Telangana minister for industries KT Rama Rao laid the foundation stone for Medha Servo Rail Coach Factory in Ranga Reddy district yesterday (Thursday, 13th August 2020). Rail transportation player Medha Servo Drives Pvt Ltd is investing Rs 1,000 crore in setting up what is being touted as India’s largest private sector rail coach factory on Hyderabad’s outskirts at Kondakal village.
Spread across 100 acres, the rail coach factory is being constructed with a budget of Rs 800 crore. The factory will manufacture coaches, locomotives, intercity trainsets, metro trains and monorail, among others, and will have a production capacity of 500 coaches of various types and 50 locomotives per year. The facility is slated to create about 1000 direct jobs and 1,200 indirect jobs ones in the region.
Speaking at the ground-breaking of the factory, Telangana industries minister KT Rama Rao said the setting of the largest private sector rail coach factory in the state will create an ecosystem for rail coach manufacturing in Telangana. The project will create employment opportunities for hundreds of people across Telangana. He hoped that the first assembly unit of the plant would be ready in 15 months to cater to the future requirements of Telangana of not just metro and mono rails but also high-speed trains.
Speaking about the importance of the rail coach factory and its contribution to High Speed Rail Network in the country, KTR said, “The high speed rail network will increase job prospects by enabling people residing in other districts of the state to commute to Hyderabad on a daily basis without having to shift to another place or waste much time in travel.”
KTR, as the minister is popularly known, said Medha was making Telangana proud by not only emerging as India’s largest private rail coach maker but also a global player.
He recalled that at the time of formation of Telangana state, the Centre had promised a rail coach factory in public sector at Kazipet but even after six years, no step was taken.
He said the Centre should fulfil the promise made in Andhra Pradesh Reorganisation Act by setting up the rail coach factory in the public sector and handhold the new state which was marching on the path of development with progressive policies.
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 in 2017. Founded in 1984, the company diversified into Railways in 1990 and it supplies rail coaches and propulsion systems to railways.
Medha Group had signed the Memorandum of Understanding (MoU) with Telangana State Industrial Infrastructure Corporation (TSIIC) in 2017 while the land was allotted last year.
Medha Servo Drives’ Managing Director Khashyap Reddy said with proximity to Hyderabad and access to railway tracks, the company had an ideal location for the plant.
“Over the next 4-6 years, we will invest about Rs 1,000 crore to create state of the art infrastructure which will employ 1,000 plus people to deliver high quality trains from this factory,” he said.
He said the large suppliers’ base to be developed by the factory was expected to generate 1,200 indirect jobs.
“The factory will build the highest quality train and locomotives to make the country proud. It will develop all types of railway rolling stock including coaches, train sets, locomotives, metro trains and monorails,” he said.
Reddy also revealed that the company was in talks with a reputed European train builder to be part of the project.
He said Medha, which made a modest beginning in 1984, had now grown into a group of 12 companies. It has two subsidiaries each in Europe and the US, one in South America and four joint ventures in India.
The group, which had a turnover of Rs 25 crore in 2005, saw tremendous growth over the last 15 years. It now has consolidated revenues of Rs 2,100 crore and 3,500 employees.
It is the largest propulsion equipment supplier to Indian Railways and also the largest traction motor manufacturer and largest supplier of signalling equipment to the national transporter.
He pointed out that most of the equipment including propulsion systems of the Vande Bharat express train launched last year between New Delhi and Varanasi had come from Medha.
Developed at par with European standards, this was the first Indian train which can run at a speed of 160 km per hour.
Reddy said with 600 engineers at its R&D centre at Cherlapally near Hyderabad, Medha had the capability to design the best world-class products for India and also bid for the private investment opportunities in Indian Railways.