SCCL Signs MOU with RITES for Rail Infrastructure

Gurgaon (GGN): State-run-Singareni Collieries Company Ltd (SCCL) has signed MOU with RITES Ltd to extend rail infrastructure facilities at its mining areas. B.Ramesh Kumar, Director (Operations) SCCL and Arbind Kumar, Director (Projects) RITES signed a Memorandum of Understanding (MoU) in this regard on 22 Aug., 2014 at Hyderabad.

"RITES being a Central government organisation and specialised in infrastructure sector, specially rail infrastructure, SCCL entered MoU with RITES” said SCCL.SCCL supplies coal to customers through railways. Last year, the company said it had transported 32 million tonnes(mt) of coal through railways to customers, aggregating to 66 per cent of its total dispatches. 

It is likely to transport 35 mt this fiscal, SCCL said in a statement.“SCCL is diversifying into power generation and 2 X 600 MW power project is under construction at Srirampuram Adilabad district. 

Coal transportation from mines transportation from mines to this power station is proposed through dedicated railway system with RITES, which can also be used for supply of fuel oil and reverse transport of fly ash, “SCCL said adding that the company prefers to use railways for coal transportation, as it is environment-friendly and safe.Meanwhile, other projects of SCCL include construction of railway line from Kothagudem mine to Bethampudi station and development of railway siding near Rebbana for Golet mines.

The pact is expected to mutually benefit both the companies and contribute to the infrastructure growth in Telangana in general and in the coal belt area in particular.