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Coal India seeks roadmap for its own rail network

Wednesday, 16 May 2018
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Coal India has sought a roadmap from the Ministry of Railways which will help the company possess its won network of railway corridors and rakes. The company aims to reduce its dependency on railways for transporting coal.

Under this proposal, railways will be issuing tenders to purchase rakes on behalf of Coal India as well as deploy the coal corridors and new-age technology based wagons like high-tensile aluminium wagons can be procured.

Already its major coking coal producing subsidiary, Bharat Coking Coal, is investing an estimated Rs 2.34 billion, which will help evacuate 25 million tonne of additional coal every year.

Western Coalfields, which caters to the western part of the country where the power situation had once worsened in 2017, has also spent Rs 116.53 million to improve its railway infrastructure in Maharashtra.

As per the preliminary findings, Coal India may need to spend around Rs 200 billion to build its railway logistical capability which may drain its monetary reserves.

Coal India Ltd.
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