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Centre’s nod for Rs5.5 billion rail coach factory in Kerala

The cabinet has approved the project as a joint venture (JV) between the state and central governments. The project is to manufacture 400 coaches per annum at an estimated cost of Rs5.5 billion. Railways shall contribute 26 per cent of the equity in the joint venture.

Railways will purchase 239 acres of land the state government has identified at Puduserry village for setting up the unit. A statement issued by the government in New Delhi said a global tender would be floated for setting up the factory.

“The plant will help Indian Railways in ensuring timely availability of passenger coaches to meet the increasing demands of passenger transportation. It shall also ensure induction of state-of-the-art aluminium coaches for the national transporter,” the statement added.

The foundation stone for the factory is expected to be laid this month itself. The work on the project will commence during 2012-13 fiscal and will be completed within a period of 36 months.

Kerala Chief Minister Oommen Chandy had last week met Railway Minister Dinesh Trivedi, seeking speedy approval for the project. Trivedi had assured that the foundation stone of the factory would be laid this month.

The coach factory was sanctioned in 2008 by the then Railway Minister Lalu Prasad in the wake of the division of the Palghat railway division to create a new division headquartered at Salem.

The federal nod to the project has led to jubilation in the northern district, which is fast emerging as the second largest industrial belt after Cochin. Member of Parliament from Palghat M P Rajesh said that the factory will give big boost to not only the industrialisation but also overall development of the state.

The coach factory is likely to bring in investment of over Rs50 billion and provide direct employment to 4,000 people. A lot of ancillary units will be needed to supply components to the coach factory.

Already several major projects are under implementation in the Kanjikode-Walayar belt. The government has notified over 1,200 acres of land at Pudussery village at Kanjikode for industrial use. Revenue officials said the proposed IIT could be set up on this land.

The major advantage of Kanjikode to emerge as a major industrial area is its proximity to educational institutions and the textile cities of Coimbatore and Tirupur. Palghat has also easy access to three airports — Coimbatore, 45km; Nedumbassery, 120km; and Calicut, 120km. Palghat and nearby Shornur are major railway junctions. — news@khaleejtimes.com