During the year 2004, BEML Limited through a lease agreement with Bharat Gold Mines Limited (BGML) had taken over the erstwhile Nundyduroog workshop for the purpose of developing the same into a manufacturing unit to supplement the needs of Bangalore complex. The premises consist of Factory workshops and other buildings with a total area covering 22 acres.

BEML has engaged ex-BGML employees and their children with requisite qualifications and experience for manufacture / fabrication of Railway components / sub-assemblies. In addition, the unit also supplemented the efforts for manufacture of structures for BOMN, BFAT & BRSTN wagons, to meet the defence requirements.

BEML constructed three new Hangars viz. Under Frame Hangar and Shell Hangar and Furnishing hangar. The shell hangar consists of 3 assembly lines. Two coach Traversers (50T & 100T capacity) are available for transferring shells in between the assembly lines. The hangars are equipped with two numbers of each 10 T and 20 T EOT cranes. Furnishing hangar is constructed in the year 2009 for fully furnishing of Rail coaches and delivered GS/GSCN Rail coaches during 2010 onwards to Indian railways. The initial capacity of hangars is to fabricate around 80 Rail coach shells per annum. The Division is accredited with ISO 9001 – 2015 Certificate for QMS by BVCI.