Coal India, Konkan Railway Sign Pact to Develop Rail Infrastructure

Coal India, Konkan Railway Sign Pact to Develop Rail Infrastructure

India Manufacturing Review Team
Wednesday, 20 August 2025
  • CIL signed a MoU with Konkan Railway to enhance coal transportation
  • In FY25, CIL produced 781.1 MT of coal and targets 875 MT in FY26
  • The pact follows a previous agreement with Indian Port Rail & Ropeway Corporation to strengthen rail infrastructure

A state-owned Coal India Ltd (CIL) announced it had signed a Memorandum of Understanding (MoU) with Konkan Railway Corporation Ltd to develop more rail infrastructure to CIL and its subsidiaries. Part of the drive is to improve CIL's logistics capabilities so that coal can be moved more efficiently across India.

CIL is responsible for producing over 80% of domestic coal in India. As a result it has been consistently looking to enhance its rail infrastructure to supply and improve logistics with demand growing. The MoU was signed in Kolkata and is non-binding and gives the two organizations an opportunity to improve both coal movement, and move the needle operationally.

The company stated, "Coal India Ltd and Konkan Railway Corporation Ltd have executed a non-binding memorandum of understanding on August 18, 2025...with an intent of development of rail infrastructure of CIL and its subsidiaries".

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The agreement was established after CIL had previously partnered with the Indian Port Rail & Ropeway Corporation Ltd, to also build dedicated rail infrastructure for CIL and its affiliates. This is part of CIL's larger purpose to develop its logistics network and alleviate constraints related to coal transportation. 

Coal India Limited (CIL) produced 781.1 million tonnes (MT) of coal in fiscal year 2025 (FY25), a decrease year-on-year of nearly 7% against the target of 838 MT. In FY26, CIL targets to reach production levels of 875 MT and off take projects to reach 900 MT in order to meet the energy requirements of India and its population.

CIL is investing in rail, strengthening its relationships and commitments to deliver better efficiencies in its coal supply chain, supporting its affiliates, and ensuring energy security for the country while preparing for sustainable development into the beyond.

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