Coal India, IRCON To Develop Rail Links For Coal Transport
COAL & MINING

Coal India, IRCON To Develop Rail Links For Coal Transport

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement