Adani completes FS for South Sumatra railway project

Indian firm Adani has completed feasibility study of a railway project, which may speed up development of the infrastructure, said a company executive on Monday.

Adani Enterprises Ltd, the flagship company of Adani Group signed a deal in January to set up a railway and port project the Indonesian government and state-owned firm PT Bukit Asam Tbk, the government-owned coal mining company of Indonesia.

The railway project is part of a $1.65 billion infrastructure project that will be executed by PT Adani Global, a subsidiary of Adani Enterprises, over 48 months, the firm has said.

It will include construction of a 250 kilometer railway and a port infrastructure for transporting and ship loading up to 60 million tonnes per annum of coal.

"Technical and financial feasibility study on the railway has been completed. They are processing necessary license for the project," said Sukrisno, Bukit Asam's president director.

This year, Bukit Asam expects to sell 16.8 million tons of coal, a 29 percent increase from 12.95 million tons last year.(bernard)