Medha Servo Drives, the Hyderabad-based manufacturer of rail coaches and propulsion systems for diesel electric locomotives, has announced plans to set up a new manufacturing unit in Telangana for rail and metro coaches.

Founded in 1984, the company diversified into railways in 1990, closed last financial year with a turnover of over ₹1,000 crore. It supplies rail coaches and propulsion systems to railways and also exports.

“Given the demand for next generation coaches and potential to provide metro coaches to various upcoming projects, we have decided to set up a ₹800-crore manufacturing unit in a phased manner,” Y Kashyap Reddy, Managing Director of Medha Servo Drives, said.

Medha Servo Drives on Friday inked a pact with Telangana State Industrial Infrastructure Corporation on the proposed new greenfield project for setting up and allotment of 100 acres of land at Kodangal about 45 km from Hyderabad bordering the Sangareddy and Ranga Reddy districts.

Reddy said the company was at advanced stage of developing the rail coaches which can travel at a speed of 160 km for the Integral Coach Factory. “While we are currently exporting to several countries, we are also looking at a strategic tie up to increase exports to other markets,” he said.

The holding company, which has five companies under its fold, expects to begin works on the new project in the first quarter of 2018.

KT Rama Rao, Telangana Minister for Industries, said the government will provide all necessary support for the company and the upcoming project. It has potential to not only provide jobs to about 2,000 people, but also create an environment for ancillary industries.

Rail Coach Factory

Mentioning about the AP Reorganisation Act and some of the provisions made in the Act in 2014, the Minister said the Centre had announced that it would set up a Rail Coach Factory within six months in Telangana. It is now nearly three and a half years and there is no move on the project.

State Chief Minister K Chandrasekhar Rao, has also taken up the matter with the Centre and the Railways Ministry, without any progress, Rama Rao said expressing concern.

However, he said the setting up of a coach and metro unit by a private firm is a significant development for the new State.

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