The foundation stone of Rail Coach Factory, Kapurthala was laid down by Hon’ble Prime Minister of India Late Shri Rajiv Gandhi on 17.08.1985. The objective of this project was to enhance the production capacity of passenger coaches for the ever increasing demand of Indian Railways (IR) and to generate employment opportunities for the youth of Punjab. The project was sanctioned at an initial cost of Rs. 423 Crs. in 1985, however expansion projects had been taken up later.