Dahod was selected for construction of POH workshop for steam locomotive fleet because of its pleasant weather, availability of cheap land and sincere workforce. Dahod is also ideally situated mid-way between Bombay and Delhi, the main route of BB&CI Railway broad gauge system. Initially trained staff was transferred from Parel to Dahod. A full fledged colony was constructed for accommodating full strength of staff. Mr. Hendree Freeland established the colony that is named after him as Freelandganj. The foundation of Locomotive workshop, Dahod was laid by Sir Clement Hindlay Kt, then Chief Commissioner of Railways (India), on 14 th January 1926. It took about 4 years to complete the construction of the workshop and a steam powerhouse attached to the workshop, the office complex and staff amenities like colony, main hospital, area health units, railway institutes etc. Originally, the workshop at Lower Parel (Bombay) was catering to the requirement of POH of locomotives, passenger carriages and freight cars of then Bombay, Baroda and Central India (BB&CI) Railway. With the increase in the train services, Lower Parel workshop was not able to cope with the arising of all the three types of rolling stock. Therefore, it was decided to shift locomotive POH activity from Lower Parel to some other place.