Coal India & Indian Port Rail Sign MoU to Boost Rail Infrastructure

Coal India Ltd (CIL), a Maharatna public sector undertaking and the dominant force in India's coal production, is taking strategic steps to improve its logistical capabilities. In a move that aligns with its future expansion goals, CIL has signed a non-binding Memorandum of Understanding (MoU) with Indian Port Rail & Ropeway Corporation Ltd (IPRCL) to develop rail infrastructure for the company and its subsidiaries. The MoU was executed on 5 June 2025 in Kolkata.

Coal India and IPRCL Collaborate on Rail Development

The MoU signifies a joint initiative to build and modernise the rail infrastructure supporting CIL’s coal evacuation and transportation needs. IPRCL, a joint venture comprising 11 major ports under the Ministry of Ports, Shipping and Waterways (holding 90% equity) and Rail Vikas Nigam Limited (RVNL) under the Ministry of Railways (holding 10% equity), will contribute its specialised expertise in developing rail systems to enhance the efficiency and capacity of CIL’s operations. The collaboration is expected to play a crucial role in strengthening last-mile connectivity and streamlining coal movement from mines to key industrial consumers.

Production Performance and FY26 Targets

CIL, which contributes over 80% of the country’s total coal output, produced 781.1 million tonnes (MT) in FY25, falling short of its annual target of 838 MT by nearly 7%. Looking ahead, the company has set a production target of 875 MT and an offtake target of 900 MT for FY26. The rail infrastructure development under the MoU is a strategic step to support these goals, aiming to eliminate logistical bottlenecks and improve the turnaround time for coal transportation.

Read More: Coal India Reports Sharp Rise in Green Coal Transport in FY25!

Coal India Share Performance 

As of June 06, 2025, at 10:40 AM, Coal India share price is trading at ₹398.80 per share, reflecting a surge of 0.99% from the previous closing price. Over the past month, it has surged by 5.43%.

Conclusion

The signing of the MoU between Coal India Ltd and IPRCL marks a significant step towards enhancing India's coal logistics. By focusing on strengthening rail connectivity, the partnership is expected to boost CIL’s production efficiency and support its long-term output goals, thereby contributing to the country's energy security and industrial growth.

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