The Cabinet on Friday gave its approval for setting up a new rail coach manufacturing unit at Kolar in Karnataka to manufacture 500 linke Holfman Bush (lHB) coaches a year. The coach factory, expected to foster economic development of the State, will be set up with an estimated cost of Rs 1460.92 crore with active participation of State Government. The factory will be a 50-50 joint venture between the Railways and the State, which will bear half of the project cost and also provide land free of cost in a first-of-its-kind business participatory model.