Railways Minister Lalu Prasad, Congress president Sonia Gandhi and party MP Rahul Gandhi will be in Rae Bareli in Uttar Pradesh Tuesday to launch a Rs.20 billion ($408 million) rail coach factory.

The factory will be located in Lalganj in Rae Bareli, Congress president Sonia Gandhi's Lok Sabha constituency. The work on the factory, to come up on about 1,000 acres, was stalled in October when Uttar Pradesh Chief Minister Mayawati refused to transfer 189.253 acres of land under the state government ownership, citing opposition by local people.

The lease deed for the 189.25 acres of land in Lalganj sub-district was executed Jan 17 and the Indian Railways Wednesday filed its copy along with a supplementary affidavit in the Lucknow bench of the Allahabad High Court.

"The land has now been registered in the name of Northern Railway barely a couple of days ago and now there is no hurdle in the construction of the factory," V. Madan, a Congress leader, told IANS by phone from Lucknow.

Railways officials said the project is likely to be completed in two years. Building more rail coach factories was on top of the railways ministry's agenda this year, they said.