Hyderabad: The Telangana government will soon tie-up with a consortium of industries for setting up a rail coach factory in the state, a senior official said today.

Refusing the reveal more details citing non-disclosure agreement, the official said the exact date for signing the memorandum of understanding (MoU) has not yet been fixed as the state Assembly is slated to begin from October 27.

“The government is all set to enter into an MoU with some of the industries which are pioneers in the sector. The date for the MoU is not yet fixed. Tentatively, it may be some time during next week. It depends on the timings of the Assembly session,” the official told a news agency.

Though the state was promised a rail coach factory at Kazipet as part of Andhra Pradesh Reorganisation Act, there has been no tangible progress on the issue so far.

When contacted, a senior official of South Central Railway said the land for setting up the coach unit has been identified and the state government is yet to hand over the land parcel to Railways.

“About 200 acres of land has been identified for the coach factory. Recently, railway officials had a meeting with Deputy Chief Minister Kadiyam Srihari on the issue. The land has to be handed over to us to proceed further,” the railway official said.

The finer details, such as location of the plant and investment size, will be announced at the time of signing the agreement, the official added.