A rail coach factory at Palakkad in Kerala was sanctioned in the Railway Budget for 2012-13, the Railway Minister told the Rajya Sabha in a written reply on Friday, July 31. The minister said that the proposal had been envisaged in a joint venture and public private partnership mode as part of broader efforts to expand manufacturing capacity. He indicated that decisions on such projects are guided by an assessment of the railways' operational requirements.

The issue had been raised in the House by the CPI(M) member from Kerala, who asked why a rail coach factory at Kanjikode, sanctioned in the 2008-09 Railway Budget with a foundation stone laid in 2012, remained unimplemented despite the state having acquired the site. The member also sought clarification on whether the adoption of a public private partnership model and subsequent reviews of coach manufacturing capacity had contributed to any deferment. The minister's reply addressed those points by outlining capacity and planning considerations.

The minister explained that rail coach manufacturing units are established with reference to the railways' overall requirement for rolling stock and that existing production units, together with those already planned, are sufficient to meet demand in the near future. He noted that planning takes account of operational needs and that new factories are pursued only when justified by forecast requirements. The response therefore did not identify an immediate need to proceed with additional manufacturing capacity at the site.

The minister further said that available railway land is utilised for creating infrastructure according to operational priorities and that the land at Kanjikode, Palakkad, measuring approximately 228 acres, had been acquired for this purpose. The acquisition had been made at a cost of approximately Rs 398 million (mn) and the site has been reserved for future development and operational needs of Indian Railways. The reply therefore framed the existing position as one of planned reserve capacity pending any change in projected requirements. The minister's statement was recorded in official parliamentary records and compiled with inputs from news agencies.