A rail coach refurbishing and rehabilitation factory would be set up in Haryana's Sonepat district, a senior officer said here on Thursday.

The project, costing around Rs 600 crore, would be set up in the Industrial Estate of Barhi in Sonepat district.

"Chief Minister Manohar Lal Khattar has approved the project and a memorandum of understanding (MoU) would soon be signed between the Ministry of Railways and Haryana State Industrial and Infrastructure Development Corporation (HSIIDC)," HSIIDC Managing Director Raja Sekhar Vundru said here.

"The project will provide job opportunities to hundreds of youth, besides kicking off economic development through ancillarisation," Vundru said.

He said the HSIIDC has agreed to allot 161.48 acres of land on leasehold basis to the ministry for setting up the project.

The project would refurbish 500 to 700 railway coaches every year, he said.

"The component of manufacturing would be added to the project subsequently. A senior-level team from the Ministry of Railways has already met Haryana government officials to discuss the project in detail," Vundru added.