A new railway coach factory is to be set up in Kerala. The Kerala Government has made available 1000 acres of land for the factory. The decision follows steady increase in the demand for metro coaches. Announcing the decision to this effect, Railway Minister Shri Lalu Prasad said last year the Ministry had decided to set up a new coach factory at Rae Bareilly.
Coach supply orders have been received from Malaysia, Philippines, Vietnam, Sri Lanka, Bangladesh, Tanzania, Mayanmar, Angola, Senegal and Male during last few years.
He also announced that a new wagon reconstruction unit at a cost of Rs. 40 crore would be set up at Garkha in Chapra district for reconstruction of old wagons. This follows growing need for wagon maintenance and reconstruction. He also proposed modernization of Lilluah Workshop in West Bengal, Perambur Loco Workshop and Ajmer Loco Workshop at a cost of about Rs. 200 crore. Jamalpur Workshop would also be modernized at a cost of Rs. 82 crore to enable its development like a production unit.