A rail coach factory project in Kerala has been formally discontinued after remaining in limbo for nearly two decades. The government informed the Rajya Sabha last week that the 228-acre land parcel in the Kanjikode area of Palakkad would be utilised for “future development/operational needs of Indian Railways”.
“The said railway land measuring approximately 228 acres at Kanjikode, Palakkad was acquired at a cost of approximately Rs. 39.80 crore and has been planned for future development/operational needs of Indian Railways,” Railway Minister Ashwini Vaishnaw told the Rajya Sabha.
Indian Railways has said its existing and planned production facilities are sufficient to meet future rolling stock demand, reducing the immediate need for a new manufacturing unit. Vaishnaw also noted that land acquired by Indian Railways is “utilised for creating infrastructure as per the operational needs”.
The project, sanctioned in the Railway Budget 2012-13 under the joint venture/public-private partnership (JV/PPP) model, has not progressed further.
The issue was raised by CPI(M) MP from Kerala John Brittas, who questioned the status of the Kanjikode facility and sought reasons for its delay despite land being acquired by the Kerala government.
Brittas also asked whether the change in approach towards coach manufacturing, including the proposed PPP model and a review of production capacity, resulted in the deferment of the project.
“Rail Coach manufacturing units are set up keeping in view the Railways’ overall operational requirement of Rolling Stock. Presently, the existing Production Units and those already planned are sufficient to meet the Railways’ overall requirement of aforesaid Rolling Stock in near future,” Vaishnaw said.
Land remains with Railways, future use undecided
While the coach factory has not taken off, the land acquired for the project remains part of railway assets. Vaishnaw said the 228-acre land parcel at Kanjikode, acquired at a cost of around Rs 39.80 crore, has been planned for future railway development and operational needs.
The response indicates that while the land remains available for railway use, there is currently no timeline for reviving the coach factory proposal.
Capacity expansion strategy changed over years
The Kanjikode project was planned at a time when Indian Railways was looking at expanding manufacturing capacity through new production units and private participation. However, with existing facilities and upcoming production units expected to meet near-term requirements, the ministry has not prioritised the Palakkad facility.
The development highlights a shift in railway infrastructure planning, where investments in new manufacturing facilities are increasingly linked to projected demand rather than regional representation alone.
For Kerala, the project remains a long-pending railway proposal, but the latest response from the ministry suggests that any future development of the Kanjikode land will depend on operational requirements rather than the immediate revival of a coach factory. remains stuck despite land acquisition