Coal India Ltd (CIL), the state-owned mining giant, has signed a non-binding memorandum of understanding (MoU) with IRCON International Ltd (IRL) to jointly develop railway infrastructure for CIL and its subsidiary companies. The agreement, announced on 8 October 2025, is intended to enhance the company’s reliance on railways for coal transportation and improve overall logistical efficiency.

CIL, which contributed around 76 per cent of India’s total coal production on a year-to-date basis until August, had earlier entered into a similar agreement with Konkan Railways in August 2025.

The move aligns with the government’s emphasis on strengthening rail connectivity to ensure the timely evacuation of coal from mines to consumption centres.

During a meeting held on 19 September, Rupinder Brar, Additional Secretary at the Ministry of Coal, urged all stakeholders to expedite completion of key coal rail projects. Brar specifically directed IRCON, CIL, and South Eastern Coalfields Ltd (SECL) to resolve pending issues to ensure timely completion of the Gevra–Pendra Road double rail line and Phase I of the Kharsia–Dharmajaigarh line, both located in Chhattisgarh.

Railways’ Key Role In Coal Logistics

Coal remains the largest contributor to Indian Railways’ freight traffic. According to government data, it accounted for an average of 49 per cent of total freight income, generating Rs 822.75 billion in FY 2022–23. The segment also contributed over 33 per cent of Indian Railways’ total revenue during the same period.

The new collaboration between CIL and IRCON is expected to accelerate project execution, reduce logistical bottlenecks, and boost the efficiency of coal movement, while supporting India’s broader energy security and infrastructure goals.