Displaying items by tag: CIL

India: Coal India (CIL) is likely to sign a major joint venture agreement with the India Railways to co-develop a number of railway projects to extract coal. CIL would provide the money, while India Railways would provide the labour force creating the infrastructure, including the tracks, sidings and related infrastructure.

The joint venture plan was conceived by Union railway minister Suresh Prabhu, who has been working hard to raise India Railways' share of coal transport and CIL chairman Sutirtha Bhattacharya, who has previous experience of working on similar projects for the Krishnapatnam Rail Co. The deal is expected to be signed shortly. "The terms are being worked out. We will disclose when it is finalised," said Bhattacharya.

CIL has been looking at a comprehensive revenue-based partnership with India Railways in a bid to create mega infrastructure for which about 50 separate projects across the country have already been identified. Of immediate priority would be three specific projects, including a 90km stretch linking Tori-Shivpur-Kathautia connecting the North Karanpura mines in Jharkhand, Jharsuguda-Barpalli-Sardega in Odisha and Bhupdeopur-Raigarh-Mand in Chhattisgarh. CIL is likely to invest US$643m in these three projects.

The joint venture is expected to help CIL double its coal production from the current levels to 1Bnt by 2020.