Indonesia Looks to Adani for Infrastructure

Indian firm Adani Enterprises announced it will invest US$25 billion to US$30 billion in coal mine acquisitions, cement manufacturing, shipping, port operations and power generation over the next seven years, including US$1.65 billion on a coal port and railway network projects in Indonesia's Sumatra province, according to Industrial Information Resources.

The 153-mile railway line in Indonesia will connect Tanjung Enim with a proposed coal port at Tanjung Carat. Construction is scheduled to begin this year and be completed in 2014.

The coal port terminal will have a capacity of 50 million tons per year. Adani Enterprises will have exclusive rights to more than 60 percent of the project’s coal reserves, according to IRR.

Adani Enterprises is India's largest coal importer and is expected to procure 35 million tons of coal this year. Over the next 10 years, Adani Enterprises aims to its increase coal mining capacity to 200 million tons per year and power generating capacity to 20,000 megawatts.