India's second railway manufacturing facility will come up at Kazipet in Telangana and will be the first unit to be set up by the Railways. The new facility, amounting to Rs 521 crore will produce various types of rolling stock and would manufacture 1,200 wagons in the first year and scale up to 2,400 in the second year.

The upcoming facility, spanning over 160 acres, will be developed by Rail Vikas Nigam (RVNL) and is expected to be completed by February 2025. This project will help to achieve the target of scaling freight transportation to 3,000 million tonne in India.

The new manufacturing unit, which is expected to be a green structure, is equipped with a solar power plant, and rainwater harvesting structure and will also be equipped with the latest technology, including robotic painting of wagons, computerised machinery for precision cutting and others.

Prime Minister Narendra Modi will lay the foundation stone for the unit on 08 July, 2023. Earlier, the proposal was approved to set up a wagon repair workshop with a capacity to overhaul 200 wagons monthly at Kazipet, and later, converted to a wagon manufacturing unit to fulfil the increased demand for wagons and pressure from various quarters.