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              Several initiatives have been taken in the recent past to take up railway based industries. The Rail wheel plant at Chhapra has successfully produced 78 wheels during 2011-12 and the plant would be ready for full commissioning in 2012-13. Similarly, the Rae Bareli Coach Factory is now ready for rolling out coaches and 10 coaches have already been manufactured. The Phase II of this factory would be commissioned in 2012-13.
Good progress has been made in the Diesel Component Factory at Dankuni with the commencement of trial production of underframes for high horse power locomotives. The factory will be fully commissioned in 2012-13. The Wagon Manufacturing Factory at Kulti and fiat bogey frame unit at Budge Budge are likely to commence production during 2012-13. As per the request received from State Government of Odisha, the new wagon factory will be located at Sitapali, District Ganjam. A new Rail Coach Factory is proposed to be set up at Palakkad with the support of Government of Kerala. Similarly, two additional new facturing units for coaches are also proposed to be established in Kutch in Gujarat and Kolar in Karnataka, the latter with the active participation of the State Government.
It is also proposed to establish a plant for manufacturing of traction alternators for high horse power diesel locomotives at Vidisha in Madhya Pradesh. The factory is proposed to be set up on PPP basis at Shyamnagar in West Bengal for manufacture of next generation technology propulsion system for use in high power electric locomotive. It is also proposed to utilise and augment the electric loco Ancillaries Unit of CLW being set up at Dankuni for fabrication of locomotive shells and assembly of three phase locomotives for manufacturing of new generation 9000 HP locomotives under transfer of technology from Japan. This unit will be a modern facility with capacity to assemble 100 electric locomotives per year.