India to build infrastructure in Indonesia in exchange for coal, crude

India and Indonesia signed an agreement on Wednesday under which New Delhi will build a railway line and a port terminal worth $260 million in South Sumatra province in exchange for coal, timber and crude oil.

The construction in Indonesia will be undertaken by state-owned Indian Railway Construction Co (IRCON), the firm's managing director D S Kapur told Reuters.

IRCON handles railway construction contracts within the country and abroad.

The agreement, signed during the visit of Indonesia's President Megawati Sukarnoputri to New Delhi, was one of nine agreements signed between companies of the two countries.

The agreements, covering a raft of sectors including railways, pharmaceuticals, communications, information technology and hospitality, were signed after an address by the Indonesian leader to Indian industry. (*)