Diesel Loco Shed, Moula-Ali was established in the year 1984 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 50 locos and 33 DEMU Units catering for Passenger/Express trains and sub-urban traffic. The shed also maintains Accident Relief Equipment's viz. SPART, SPMRV, 140 T BD crane, Self Propelled Inspection Car (SPIC) and Self Propelled Engineering Material Van of Secunderabad and Hyderabad Divisions.