Coal India, Indian Port Rail & Ropeway Corp ink pact to develop rail infra

By Admin

07 Jun, 2025

In a strategic move to boost coal transportation and infrastructure efficiency, Coal India Limited (CIL) has signed a non-binding Memorandum of Understanding (MoU) with Indian Port Rail & Ropeway Corporation Limited (IPRCL). The MoU, executed on June 5, 2025, in Kolkata, marks a significant step toward the development of rail infrastructure for CIL and its subsidiaries.

A Key Partnership for Rail Connectivity

This collaboration underscores the mutual intent of both organizations to enhance coal evacuation systems through robust railway infrastructure. With India’s coal demands steadily rising, efficient logistics and seamless transportation are critical to national energy security. The MoU is expected to pave the way for joint planning and development of rail corridors, sidings, and other vital infrastructure to support coal movement across the country.

About the Indian Port Rail & Ropeway Corporation Ltd

IPRCL is a Joint Venture Company established to develop rail connectivity to India’s major ports, thereby enhancing capacity and throughput. The company’s equity structure is composed of:

• 90% held by 11 major ports under the Ministry of Ports, Shipping and Waterways
  
  

• 10% held by Rail Vikas Nigam Limited (RVNL) under the Ministry of Railways
  
  

IPRCL’s expertise in designing and executing rail-based evacuation systems is expected to significantly benefit CIL’s operational efficiency.

Coal India’s Strategic Outlook

As the primary coal producer in India, CIL contributes over 80% of domestic coal production. In FY25, the company reported a production of 781.1 million tonnes (MT), falling short of its annual target of 838 MT by about 7%. Looking forward, CIL has set an ambitious production target of 875 MT and an offtake target of 900 MT for FY26.

To meet these goals, improved rail logistics and evacuation systems will be crucial. This MoU comes at a pivotal moment when infrastructure upgrades are essential for bridging supply-demand gaps and optimizing coal distribution nationwide.

Conclusion

The partnership between Coal India Ltd and Indian Port Rail & Ropeway Corporation Ltd is more than just a formal agreement it is a strategic alignment of two major public sector undertakings aimed at enhancing India's coal supply chain infrastructure. As both companies move forward with project planning and execution, this initiative is set to play a vital role in supporting India's energy and industrial landscape.