Setting up of a rail coach factory in collaboration with the West Bengal government or on the public-private-partnership model at the abandoned Tata Motors' Nano project site at Singur was mooted by Railway Minister Mamata Banerjee.

"The Railways are ready to set up a railway coach factory in joint venture with the state government. If the state government gives us 1,000 acre (acquired for the Tata's Nano car project), we will set up the factory," said Banerjee.

Her proposal came a day after the state government's initiative to set up a 1,600 MW power plant with public sector Bharat Heavy Electricals Limited at the site in Hooghly district.

"Of the 1,000 acre, the coach factory would come up on 600 acre, while the remaining 400 acre will be returned to farmers," Banerjee, who had agitated for the return of the 400 acre leading to Tata exiting Singur, said.

She said land would be the equity of the state government in the project, but in case it was not interested, the Railways could set up the project on the public-private- partnership (PPP) model.

She said that the main coach factory could come up at Singur while the ancillary units could be set up at Dankuni. She also said that the Tatas, to which the land was under lease, could set up their own project, but on 600 acre.