Adani Enterprises will develop transportation infrastructure for Indonesia under a $1.6bn deal signed with the Indonesian Government and its coal mining firm PT Bukit Asam Tbk.

Adani will construct a 250km railway line and port infrastructure capable of transporting up to 60 million tons of coal per annum, reports Business Standard.

The railway line will connect the Tanjung Enim coal mining area to Tanjung Carat, where the Adani Group will develop a port for coal evacuation.

PT Bukit Asam Tbk will sell 60% of its coal from the Tanjung Enim area to Adani at a government notified price, and the remaining coal will be used as contract carriage for Bukit Asam.