The two companies say the joint venture began the process of seeking approval from the Indian Railways Research Design and Standards Organisation (RDSO) soon after its inception. However, in a statement, FreightCar America said that over time it became apparent that approval would not be obtained within an acceptable timescale and Titagarh FreightCar informed the RDSO last June that it would no longer pursue approval for the design.

"We had big plans for the joint venture company when it was incorporated, but those plans were not realised despite considerable effort," says Titagarh Wagons vice chairman and managing director Mr Umesh Chowdhary. "After lengthy discussions, Titagarh Wagons and FreightCar America have decided to dissolve the joint venture and part ways amicably."