The US-based FreightCar America, which is engaged in the manufacture of railroad freight cars has entered a 51:49 joint venture with city-based Titagarh Wagons for developing new freight wagons for the Indian market.

The joint venture agreement was signed at the Writers’ Buildings in the presence of West Bengal chief minister Buddhadeb Bhattacharjee. The Memorandum of Understanding (MoU) for this project was signed in December 2006.

Under the terms of the joint venture agreement, FreightCar America and Titagarh will initially develop prototype cars based on FreightCar America's designs and 'assess the market opportunity in India.

Titagarh Wagons is in the business of manufacturing railway wagons, bailey bridges, heavy earth moving and mining equipment, steel and iron castings.

Buddhadeb Bhattacharjee said, “Some 118 acres have been identified near the Kalyani expressway for the proposed project. Initial investment is estimated to be $30-40 million (or, approximately Rs 160 crore) and the new unit is expected to begin production in 2009.

Last year, GE Equipment Services and GE Commercial Finance, part of General Electric Company, picked up a 15 per cent stake in Titagarh Wagons.