Kerala Government entered into a Memorandum of Understanding with Indian Railways for a joint venture company for fabrication of bogie frames for passenger coaches and wagons utilizing the land and other assets of Steel Fabrication of Unit and Autocast at Cherthala. Chief Minister V.S. Achuthanandan clinched the formation of the joint venture in a fast track meeting with the Railways Minister Lalu Prasad Yadav for the purpose on 28.06.2008. As per the MOU the Kerala Government will clear all its liabilities and obligations as owner, promoter and guarantor of Steel Fabrication Unit and Autokast and transfer the assets including land to the joint venture along with the employees.

Indian Railways will hold 51 per cent stake in the company and the remaining 49 percent will be held by the Kerala Government. The joint venture, would come into existence in a phased manner. Indian Railways will be providing all necessary inputs and training to start the fabrication activity for components, while a joint working group will be constituted to prepare business plan and work the modalities for the formation of joint venture and fixation of prices.