BL reported that Adani Enterprises will build a 250 kilometer rail link and port infrastructure in Indonesia at an estimated cost of USD 1.65 billion. The link will be used to transport coal from a coal mining company in Indonesia.

Adani Enterprises has signed an agreement to set up rail and port project with the Regional Government of Sumatra Selatan, Indonesia and PT Bukit Asam Tbk.

The project will be executed by PT Adani Global, a subsidiary of Adani Enterprises, over 48 months. It will involve construction of 250 kilometer railway line and port infrastructure for transporting and loading of up to 60 million tonnes per annum of coal. The rail link will help connect Tanjung Enim, the coal mining area to Tanjung Carat, where the Adani Group will set up a class port for evacuating the coal.

PT Bukit Asam Tbk one of Indonesia's leading coal producers with the largest coal reserve in the country, has provided coal purchase rights to PT Adani Global on take or pay basis with minimum volume of 35 million tonne per annum. The concession has an initial validity of 30 years from signing of the agreement and can be extended mutually.

According to the agreement, PT Bukit Asam Tbk will sell 60% of its coal from the Tanjung Enim area to Adani at a government notified price.

Mr Gautam Adani chairman of Adani Group signed the pact with Mr Alex Noerdin governor of the South Sumatera province of Indonesia and Mr Sukrisno president director of PT Bukit Asam Tbk. This agreement is pursuant to a tripartite memorandum of understanding signed in August 2010. It reaffirms key milestones and principles of this major infrastructure project.

Mr Gautam Adani said that “These initiatives in Indonesia, Australia and even in India will bring us closer to achieve our stated goal of 20,000 MW of power generation, 200 million tonne per annum of coal mining, 200 million tonne per annum of cargo handling and owning 20 Capesize ships by 2020.”
(Sourced from BL)