Adani Enterprises today signed a $1.65 billion deal for setting up of a 'Rail and Port project' with the Indonesian government and its coal mining company PT Bukit Asam Tbk in the island nation.
The Rail and Port project will be executed by PT Adani Global, a step-down subsidiary of Adani Enterprises, over a period of 48 months, the company said in a statement.
The $1.65-billion project would involve the construction of a 250-km railway line and port infrastructure by Adani, needed for the transportation and ship loading of up to 60 million tonnes of coal per annum.
Adani Group Chairman Gautam Adani today signed the pact with Alex Noerdin, the governor of the South Sumatera province of Indonesia and Sukrisno, president director, PT Bukit Asam Tbk in the presence of the Indonesian President, Susilo Bambang Yudhoyno.
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.
"These initiatives in Indonesia will bring us closer to achieve our stated goal of 20,000 Mw of power generation, 200 million tonnes per annum of coal mining, 200 million tonnes per annum of cargo handling and owning 20 capesize ship by 2020," Adani Group Chairman Gautam Adani said.
The 250-km railway line will help connect Tanjung Enim, the coal mining area to Tanjung Carat, where the Adani Group will set up a world class port for evacuating the coal.
As per the agreement, PT Bukit Asam Tbk will sell 60 per cent of its coal from the Tanjung Enim area to Adani at a government notified price and balance coal will be used as contract carriage for Bukit Asam.
