The state government has started the process of land identification for establishment of the second railway wagon factory proposed in the state at Kalahandi. The rail wagon manufacturing unit is expected to spur development of the economically backward Kalahandi district. Chief minister Naveen Patnaik has called for providing all support for the project. He has also stressed on expediting work on the first rail wagon factory in the state proposed to be set up at Sitalapalli in Ganjam district. It may be noted that the Ministry of railways has earmarked Rs 1 crore for this factory in the Railway Budget for 2012-13.