DLW is a production unit under the Indian Ministry of Railways that has been manufacturing diesel-electric locomotives since 1961 through a collaboration with American Locomotive Company. It produces around 250 locomotives annually, with each costing between 12-14 crore rupees. The key facilities at DLW include a chemical metallurgy lab for testing raw materials, a pipe shop for manufacturing fuel and air pipes, a heavy machine shop housing lathes and mills, and a loco and engine test shop for evaluating locomotives under load and lubrication conditions.