State-owned mining giant Coal India (CIL) announced on Wednesday, October 8, 2025, that it has formalized a significant non-binding Memorandum of Understanding (MoU) with IRCON International (IRL). This partnership aims to bolster and expand the railway infrastructure essential for CIL and its subsidiaries to efficiently transport coal across the nation.
This isn’t CIL’s first strategic move in this direction; the company, responsible for a substantial 76% of India’s total coal production until August, had previously signed a similar agreement with Konkan Railways earlier in the same year.
The emphasis on robust rail infrastructure for coal transport aligns perfectly with the government’s priorities. During a crucial meeting on September 19, Rupinder Brar, Additional Secretary at the Ministry of Coal, underscored the urgent need for expeditious completion of key coal evacuation projects.
Specifically, Brar urged IRCON to collaborate closely with CIL and South Eastern Coalfields (SECL) to swiftly resolve any outstanding issues hindering the timely completion of vital projects. These include the Gevra-Pendra Road double rail line and the first phase of the Kharsia-Dharmajaigarh project, both situated in Chhattisgarh.
It’s worth noting the immense importance of coal to India’s railway system. Government data reveals that coal stands as the single largest contributor to railway freight, generating an impressive average of nearly 49% of total freight income. In the fiscal year 2022-23 alone, this amounted to ₹82,275 crore, contributing over a third of the railways’ total earnings.