Indian Railways plans to set up a Rs 100 crore (Rs 1-billion) high-axle load wagon trolley factory in collaboration with the US in West Bengal.

"Steps are being undertaken to set up a modern wagon bogey factory with US technology in West Bengal. An MoU will be signed with the US for setting up the 25-ton axle load wagon soon," said a senior railway ministry official.

There has been a growing demand for high axle load wagon trolley and the proposed factory is expected to cater to the demand.

Asked why West Bengal was selected for setting up the factory, the official said "majority of wagon manufacturing units are in the state.It is in the interest of the system that wagon trolley factory is also set up near these units so that the transportation cost for assembling a wagon is minimum."

Once the factory with the state-of-the-art technology is set up, it will be first of its kind in the country.

The factory is expected to produce 5,000 wagon bogies in a year.

Besides, the modern factory, Railways is also planning to acquire the wagon manufacturing factory in Burnpur in West Bengal.