New Delhi: Coal India Limited (CIL) has signed a memorandum of understanding (MoU) with Indian Port Rail & Ropeway Corporation Ltd (IPRCL) to develop rail infrastructure supporting coal transportation across its operations. The non-binding MoU was signed on June 5, 2025, in Kolkata. While the agreement does not mandate either party to a specific project, it signals a broader intent to strengthen coal evacuation capabilities through collaborative infrastructure planning.
The move comes amid growing concern over logistical bottlenecks that continue to affect coal movement from mines to power and industrial consumers. With over 80% share in domestic coal production, CIL has long relied on Indian Railways for large-scale evacuation, but network constraints often limit offtake efficiency.
IPRCL, a joint venture under the Ministry of Ports, Shipping and Waterways (90%) and Rail Vikas Nigam Ltd (10%), was set up to develop rail evacuation systems linked to major ports. Its involvement is expected to bring in domain expertise in multi-modal connectivity and accelerate coal handling capacity. In FY25, CIL produced 781.1 million tonnes (MT) of coal, falling short of its 838 MT target by nearly 7%. With a higher production goal of 875 MT and an offtake target of 900 MT set for FY26, the company’s transport network will require substantial upgrades to avoid future supply chain lags.
The pact with IPRCL is part of CIL’s strategy to pre-emptively address evacuation hurdles through joint planning and integrated rail projects with specialised entities. This may include enhancing last-mile connectivity from mines to loading points, reducing turnaround times, and easing port-linked congestion.
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