Coal news and updates

CoalMin identifies 50 railway projects for evacuation

January 20: The Ministry of Coal has identified for developing a total of about 50 railway projects in order to streamline transportation of coal as the country substantially plans to increase its domestic coal production.

“This is the first step. We have identified 50 odd projects and I have written to the chairman of the Railway Board, seeking his comments. We are going to have a meeting either on January 28th or 29th with the Railway Board and will intensively examine each of the projects and then decide which will come up and how and what will be the financing pattern etc,” Secretary (Coal) Anil Swarup has said.

Asked if the ministry is open to the prospect of investment from the user-industry for these 50 odd projects, Swarup replied in the affirmative.

“Why not? We have not yet discussed these aspects but we have an open mind. There is a need for such railway projects and Indian Railways is starved of funds, but it has the capacity, capability and human resources while Coal India has the money. We should have participation from stake-holders, state governments,” he said.

“We have an open mind (on this). We have made the beginning and the Railway Minister himself has announced that he is open to joint ventures and SPVs. Because, until and unless these railway projects come up, even if we mine a lot of coal, we will not be able to transport the same. We are moving in that direction and soon we will come out with a roadmap,” Swarup added.

Asked if any specified investment size has been earmarked, the secretary (coal) said, “These are very early days. We have just identified the projects.”

He, however, said Railways has the expertise to say whether these would be viable, and if it can participate and in what way etc.

“We have raised our requirement in that railway lines and sidings would be required for evacuating coal. That’s the first step. Thereafter, we will get to know whether and in what way Railways will participate. Then we will discuss with other stake-holders on their participation,” Swarup said.