Template language ( Default ) dropdown is disable
 

I must be missing something.

Are you sure your are posting in product assigned forum?: Yes

What is your CMS version?: Joomla 2.5

MySQL Version: 5.x

PHP version: 5.x

Link to installation: localhost installation

Have you edited any files? If yes tell us which ones.: No

Is this personal or client website?: Personal

I created a new style for the template, and it got enabled.
Basically I had to create style for each language, so now I have 3 styles.
Is this correct ?

Yes and you should assign the templates to correct language.

Thank you.