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Normally often we have seen that state government accusing central government for not supporting them to start new projects; however with Karnataka government it’s the other way around. Rail ministry cleared the project of establishing a rail coach factory in Kolar four years ago but it was the state government who was unable to allocate proper funds and land for this project.

Finally, state Chief Minister promised to earmark funds in the state budget to acquire 1,120 acres for setting up the factory. What is notable that as per the signed MoU between centre and state government if the state government fails to set up the project in a span of five years, Centre is entitled to shift the project to a different place or state.

As per the report, a fund of Rs. 1460 crore will be allocated to set up the factory on 1100 acre plot and state will bear half the project cost besides providing the land for free.

Once complete, this will the fourth rail coach factory in the country.