Railway Minister Mamata Banerjee Sunday laid the foundation for a Rs.860-crore rail coach factory at Kanchrapara which is expected to supply 500 EMU and Metro coaches annually over a period of ten years.

The state-of-the-art unit would be set up by the railways in joint venture with a private partner and is expected to begin production in a couple of years.

Speaking on the occasion, Banerjee said once completed, it will be one of the best coach factories in the world. The project will be spread over 153 acres, which is already in possession of the railways, she said at the Kanchrapara Railway Stadium.