Titagarh Wagons and FreightCar America to dissolve Indian joint venture

25 February 2013 (Last Updated February 25th, 2013 18:30)

Titagarh Wagons (TWL) and FreightCar America (FCA) have agreed to dissolve their Indian joint venture (JV) company, Titagarh FreightCar.

Titagarh Wagons (TWL) and FreightCar America (FCA) have agreed to dissolve their Indian joint venture (JV) company, Titagarh FreightCar.

The JV formed in 2008 to develop and manufacture aluminium coal-carrying rail wagons in India.

Under the agreement, both companies initially planned to develop prototype cars based on FreightCar America’s designs.

Titagarh FreightCar had planned to commence railcar production in India beginning in 2009 using the manufacturing methods of FreightCar America.

The companies said in a joint statement that the venture has been wound up in view of the prolonged delay in securing regulatory approval from Indian Railways.

Titagarh FreightCar had started the process of obtaining approval from the Research Designs and Standards Organisation (RDSO), a unit of Indian Railways, for aluminium wagon designs soon after its incorporation.

"The venture has been wound up in view of the prolonged delay in securing regulatory approval from Indian Railways."

Over time it became clear that approval from the RDSO "would not be secured in an acceptable timeframe", the companies said.

In June 2012, Titagarh FreightCar formally informed the RDSO that it would not further pursue its request for design approval.

Titagarh Wagons vice chairman and managing director Umesh Chowdhary said the company has decided to dissolve the JV and "part ways amicably" after lengthy discussions with FreightCar America.

"We had big plans for the joint venture company when it was incorporated in 2008," Chowdhary said. "However, those plans were not realised despite considerable effort."

Titagarh Wagons is a private sector wagon manufacturer in India, engaged in manufacturing railway wagons and EMUs.

FreightCar America produces and maintains railroad freight cars, specialising in coal-carrying railcars.