The decision was taken at a high-level meeting with Mr Goyal and Mr Fadnavis to discuss the setting up of the massive rail coach factory by the Indian Railways.
Railway Ministry officials said the plant would manufacture electric multiple units (EMUs) for suburban trains and coaches for metro trains.
"Work on this project will be done on high priority with fast track processing of all approvals. The Maharashtra government has offered several concessions including in land, taxes," an official said.
"Thank you Piyush Goyalji for your commitment for setting up of factory of EMU for Suburban Railways and Metro coaches at Latur. Big boost to economic activities in Marathwada and huge employment opportunities," Mr Fadnavis tweeted.
The new coach plant will create an industrial ecosystem in the drought-prone region and may help shift from agriculture to industry.