Diesel Loco Shed, Moula-Ali was established in the year 1979 to maintain YDM1R & YDM2 locomotives and located at a distance of 7 Km from Rail Nilayam. Earlier, this shed was maintaining meter gauge and Broad gauge hydraulic locomotives. Further the activities of the shed had got expanded and from the year 2002, WDM2 main line locos were homed for maintenance. Presently the holding has increased to 83 locos out of which 47 locos are working in passenger / express links. In addition to the locos, the shed is also holding 25DEMUs meeting the demand of sub-urban traffic. The shed also maintains Accident Relief Equipment's viz. SPART, SPMRV and 140 T BD crane of Secunderabad and Hyderabad Divisions.