Economy

Aiming to improve infrastructure for coal transportation from its subsidiaries using railway freight services, Coal India Limited - country's leading coal major has signed a MoU with the IRCON International - a Ministry of Railway compsny, on Wednesday. 

 

It's a non-binding agreement that outlines the intent of both companies to work together on rail development projects related to CIL’s operations, sources said.

 

India, meanwhile has accelerated 38 rail projects to improve coal transportation across the country. Coal transportation by rail in India is vital for the nation's energy supply, relying on both all-rail routes and the multi-modal Rail-Sea-Rail (RSR) networks. Indian Railways and Coal India Limited (CIL) are collaborating to build new rail lines, enhance existing infrastructure, and promote multi-modal transport to improve logistical efficiency and lower costs. Initiatives include increasing the capacity of new rail corridors and implementing strategies like First Mile Connectivity (FMC) to move coal from mines to railheads more efficiently. 

 

"The latest MoU with IRCON International was a major part of the project," said a CIL official at the company headquarters today.

 

The coal loading for the power houses is constantly being ramped up by Indian Railways as per the demand. The national transporter is fully committed to lift all the domestic coal that is brought to sidings or good sheds by the coal companies and imported coal brought to port by the power generating companies.

 

In 2022, for example, the availability of rakes for the power sector had an upsurge with an average of 472 rakes per day. Both coal companies and the railways had together ensured per day coal loading of 415 rakes of domestic coal and 30 rakes of imported coal to the power sector.

 

This week, CIL - the Maharatna PSU also has entered into an agreement with Chhattisgarh Mineral Development Corporation (CMDC), aiming to collaborate on the exploration and extraction of critical minerals and other minerals of mutual interest, the CIL top brass said today in Kolkata.

 

The fresh MoU with IRCON International aims to improve rail infrastructure for Coal India and its subsidiaries.

 

CIL on October 1 had reported a 3.9% decline in production to 48.97 million tonnes (MT) in September.

 

The MoU aims to improve rail infrastructure for Coal India and its subsidiaries. It is a non-binding agreement that outlines the intent of both companies to work together on rail development projects related to CIL’s operations.

 

This week, the Maharatna PSU also entered into an agreement with Chhattisgarh Mineral Development Corporation (CMDC). The non-binding Memorandum of Understanding aims to collaborate on the exploration and extraction of critical minerals and other minerals of mutual interest.

 

Coal India, meanwhile, has experienced a shortfall of its targeted production in September coal output. Further, CIL on October 1 reported a 3.9% decline in production to 48.97 million tonnes (MT) in September. The drop in production comes in spite of the government making efforts to increase coal output to bring down the import of dry fuel.

 

The company's output was 50.94 MT in the corresponding month of the previous fiscal year. However, no reasons were given by the company for the decline.

 

Last month, on September 16, CIL, incidentally had emerged as the preferred bidder for the Ontillu-Chandragiri Rare Earth Element (REE) exploration block by the Ministry of Mines, marking a key step in the Maharatna company’s diversification into critical minerals.