Titagarh denies joint venture with FreightCar is over

Kolkata-based wagon manufacturer Titagarh Wagons has denied that its joint venture with FreightCar America has been scrapped.

Speaking to Rail.co, a Titagarh official said: “The joint venture is still intact, the report that has been published is false and very soon both the companies will do a joint press conference in this regard.”

However, he did not confirm the date of the joint press conference.

It was reported by DNA newspaper on September 5 that: “FreightCar America Inc has called off its joint venture with Titagarh Wagons due to latter’s failure to get approval from Indian Railways for a prototype of an aluminium wagon, which the US-based wagon maker specialises in.”

The newspaper quoted a source who said that FreightCar had exercised a unilateral right under the pact to terminate the agreement.

The joint venture pact was signed in 2008 between both the companies and it was formed to develop high-axle load and low tare-weight aluminium wagons in which FreightCar holds a majority stake of 51 per cent, with the remaining 49 per cent owned by Titagarh Wagons.

The new joint venture firm was also looking to set up manufacturing plant in India with an investment of $40 million, it was reported.

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