Gearing up to train railway managers for future challenges, Indian Railways will set up an international management institute here.

The institute would provide a kind of rail sector MBA in the country.

The International Railway Strategic Management Institute (IRSMI) will come up in collaboration with the International Union of Railways (UIC) on 30,000 sq metre land in Chanakyapuri here.

"We have sanctioned Rs 22 crore for the construction of the state-of-the-art building and an architect would be selected soon to design it," said a senior Railways Ministry official.

The training modules would be prepared in consultation with the leading global business schools including HEC Paris and also with the UIC.

"The training facility would be extended to all UIC member countries. The fee structure for different training modules, workshops and seminar on specific areas would be finalised after the completion of the building," said the official.

The setting up of the IRSMI was approved by the UIC, which felt there was a need for an international railway management institute exclusively for rail sector management.