Mumbai: Wgaon manufacturing company Titagarh Wagons Ltd (TWL) and FreightCar America Inc. (FCA), on Saturday, said they have agreed to wind up and dissolve their Indian joint venture company.
The joint venture company, Titagarh FreightCar Pvt. Ltd, was incorporated in India pursuant to a 2008 joint-venture agreement between the parties with the objective of manufacturing and selling aluminium coal-carrying rail wagons in India.
Soon after its incorporation, the joint venture company had begun the process of obtaining approval from the Indian Railways-Research Designs and Standards Organisation (RDSO) for aluminium wagon designs adapted for use on the Indian rail system, TWL said in stock exchange filing.
However, they said that over time it became clear that approval from the RDSO would not be obtained in an acceptable time-frame.
“The joint venture company formally notified the RDSO in June 2012 that it would not further pursue its request for design approval,” the statement said.
“We had big plans for the joint venture company when it was incorporated in 2008. However, those plans were not realized despite considerable effort. After lengthy discussions, Titagarh Wagons and FreightCar America have decided to dissolve the joint venture company and part ways amicably,” said Umesh Chowdhary, vice-chairman and managing director of TWL.