The Central government has approved the proposal to set up a new factory to make state-of-the-art rail coaches at Palakkad, Kerala. The factory, which will be in addition to the existing coach factories such as the ones at Perambur, Kapurthala and other places, will help the railways to meet the increasing demands of passenger transportation. The Railways will buy about 234 acres of land from the Kerala state government for setting up the factory. The factory will manufacture 400 coaches a year. The construction, expected to begin this year, will be completed in three years.