In a significant move to enhance its logistical capabilities, state-owned mining behemoth Coal India (CIL) announced on Wednesday, October 8, 2025, that it has entered into a non-binding Memorandum of Understanding (MoU) with IRCON International (IRL), a prominent railway infrastructure developer. This agreement aims to accelerate the development of vital rail infrastructure for CIL and its subsidiary companies, streamlining the movement of coal across the nation.
This isn’t Coal India’s first strategic partnership this year. Back in August, the company, which is responsible for a substantial 76% of India’s total coal production year-to-date, signed a similar non-binding agreement with Konkan Railways, highlighting a concerted effort to modernize its transportation backbone.
The government has consistently emphasized the critical importance of robust rail infrastructure for efficient coal transportation. During a high-level meeting on September 19, Rupinder Brar, Additional Secretary at the Ministry of Coal, urged for the swift completion of key projects crucial for coal evacuation. Specifically, he called upon IRCON to collaborate closely with CIL and South Eastern Coalfields (SECL) to promptly resolve any outstanding issues impeding the progress of the Gevra-Pendra Road double rail line and the first phase of the Kharsia-Dharmajaigarh project, both located in Chhattisgarh.
It’s worth noting the immense contribution of coal to India’s railway system. Government data reveals that coal is the single largest commodity for railway freight, accounting for approximately 49% of the total freight income in FY 2022-23, which amounted to a staggering ₹82,275 crore. Its revenue contribution alone exceeded 33% of the railway’s total earnings, underscoring the profound economic impact of these infrastructure improvements.