Dear Shareholders,
On behalf of the Board of Directors of Jharkhand Central Railway Limited, it gives me immense pleasure to welcome you all to the 11th Annual General Meeting of the Company. The Directors' Report, the Audited Financial Statements for the financial year 2025–26, together with the Reports of the Statutory Auditors and the Comptroller & Auditor General of India, have already been circulated to the Members and, with your permission, may be taken as read.
I am pleased to present a brief overview of the Company's performance and the significant milestones achieved during the financial year 2025–26. Despite the challenges associated with implementing a large infrastructure project, the Company remained focused on timely execution of the Shivpur–Kathautia Rail Line, strengthening project implementation, and advancing the Government's vision of efficient, sustainable, and rail-based coal evacuation. I would now like to highlight some of the key performance areas and initiatives undertaken during the year.
The Shivpur–Kathautia Rail Line is a 49-kilometer, new broad-gauge, fully electrified railway corridor in Jharkhand, developed by Jharkhand Central Railway Limited (JCRL) to transport the coal evacuated from North Karanpura Coalfields. The line connects major coal mines to the national railway network, enabling efficient transportation of coal to thermal power plants while significantly reducing dependence on road transport.
Designed as a dedicated coal evacuation corridor, the project will facilitate enhanced coal evacuation to support the targeted annual production capacity of 125MT. By shifting coal movement from congested highways to rail, the line will reduce large-scale road transportation of coal via Koderma, Jharkhand, improving logistics efficiency, reducing transportation costs, easing road congestion, and lowering environmental impacts associated with truck-based coal movement. While the project directly benefits Jharkhand by reducing road congestion and improving mining logistics, it will also enhance the supply of coal to thermal power plants and industrial consumers across Bihar, West Bengal, Uttar Pradesh, and other northern and eastern states through seamless connectivity with the national railway network. The project will play a vital role in improving freight efficiency, reducing logistics costs, and supporting India's energy security.
The Ministry of Coal has prioritized rail-based coal transportation as part of its commitment to cleaner, safer, and more sustainable logistics and environment. The Shivpur–Kathautia Rail Line is a key initiative under this strategy, reinforcing the government's efforts to progressively replace road movement of coal with efficient rail connectivity. The project is aligned with national infrastructure initiatives such as the PM Gati Shakti National Master Plan and the Dedicated Freight Corridor (DFC) programme. Together, these initiatives are driving a modern logistics ecosystem by enhancing multimodal connectivity, improving freight efficiency, and supporting India's long-term energy security and economic growth.
The Ministry of Railways, in close coordination with the Ministry of Coal, is strengthening India's coal logistics infrastructure through the development of dedicated rail corridors and enhanced freight capacity. Strategic projects such as the Tori–Shivpur–Kathautia Rail Line in Jharkhand, the East Rail Corridor in Chhattisgarh, and rail connectivity projects for Mahanadi Coalfields in Odisha are being implemented through joint ventures involving the Ministry of Railways, coal companies, and state governments.
These investments are aimed at expanding rail capacity, enabling efficient and environmentally sustainable coal evacuation from mining regions to major consumption centres. Improved rail connectivity will reduce logistics costs, decongest road networks, enhance freight efficiency, and contribute significantly to India's energy security and economic growth.
Your Company maintained a sound financial position during the reporting period, ensuring timely deployment of funds for project execution. During the year, the revised project cost estimate of ₹2,564.34 crore was approved by all the promoters, comprising an additional equity infusion of ₹206.47 crore by CCL and IRCON International Limited, together with an enhanced loan of ₹535.29 crore approved by the consortium of lending banks; documentation for financial closure of the enhanced facility is under process. As on 31st March 2026, the Company had achieved financial progress of 68.99% of the revised project cost, with cumulative disbursement of ₹1,258.28 crore against the approved and committed drawdown of ₹1,259.75 crore, representing utilization of 99.88%. The Company continues to exercise prudent financial management while maintaining adequate liquidity for completion of the project.
Construction of the 49.085-km Shivpur–Kathautia Rail Line continued to make steady progress across key components, including civil works, track laying, electrification, and signalling, achieving an overall physical progress of 71.64% as on 31st March 2026. In a significant milestone,
the 13.250-km stretch between Kathautia and Duari Goods Shed was completed and received commercial notification on 24th March 2026 — the first section of the line to be commissioned. In this connection, the company had earlier entered into a Memorandum of Understanding with NTPC Limited on 12th September 2025 for use of the Duari Goods Shed, enabling movement of one rake of coal per day at Evacuation Facility Charges of ₹60 per tonne, which is expected to generate early revenue for the Company even as the balance stretch of the line is completed. The project remains on course with focused efforts towards timely completion, enabling enhanced rail-based coal evacuation from the North Karanpura Coalfields.
Your Company continues to utilize its sanctioned term loan in line with project funding requirements and construction milestones. Loan drawdowns have been managed prudently, with the Company remaining compliant with all financing obligations of the lending consortium, which has also approved an additional loan of ₹535.29 crore to support the revised project cost, with financial closure of the enhanced facility under active process to support successful project completion.
The Management of the Company recognizes that effective governance is essential for long-term value creation and for maintaining the trust of our stakeholders. Accordingly, the Company has consistently made efforts to enhance governance structures, promote transparency in decision-making, and ensure robust internal controls. A separate section on Corporate Governance has been added to the Directors' Report. In addition, Secretarial Audit for 2025-26 under the Companies Act, 2013 was also conducted by a Practicing Company Secretary, who gave an unqualified Report. At JCRL, we uphold high standards of corporate governance, transparency, and accountability; in line with this commitment, the Company has substantially adhered to the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises (DPE).
Jharkhand Central Railway Limited (JCRL) faces high project execution risks, pending greenfield construction, and traffic dependency on Central Coalfields Limited (CCL). The road ahead centers on commissioning the 49.085 km Shivpur-Kathautia broad gauge line to drastically shorten coal transport distances.
The Company's commitment to the development of society continues to strengthen with each passing year, reflecting its belief that responsible business practices must extend beyond economic success to contribute to the well-being of the communities in which it operates.
In alignment with its CSR Policy, the Company has directed its efforts this year towards improving the standard of education and healthcare in the vicinity of its project sites. Under its flagship CSR initiative “SAKSHAM - EMPOWERMENT AND CAPABILITY BUILDING”, the Company undertook key initiatives towards improvement of sanitation facilities and the availability of safe drinking water, educational institutes and Health Centers.
As part of this initiative, renovation and upgradation of school infrastructure was carried out to foster a clean, safe, and motivating atmosphere for students. In addition to building renovations, need-based support was extended to other schools, where items requested by school representatives were provided to enhance educational outcomes and basic amenities.
The Company remains committed to driving positive change and creating a lasting impact through its social responsibility initiatives.
I extend my sincere gratitude to the Ministry of Coal, the Ministry of Railways, the Government of Jharkhand, Coal India Limited, Central Coalfields Limited, IRCON International Limited, and the local district administration for their continued cooperation, unwavering support, and valuable guidance throughout the year.
I also place on record my appreciation for the professional assistance extended by the officers and staff of the Director General of Audit (Coal), the Comptroller & Auditor General of India, and the Registrar of Companies, Jharkhand.
My heartfelt thanks go to my esteemed colleagues on the Board and to all employees of the Company for their dedication, commitment, and invaluable contributions to JCRL's continued progress and success.
Thanking You,
Sd/-
Pawan Kumar Mishra
(Chairman)
DIN- 09665365
