India's Adani group plans to invest in a coal railway project in South Sumatra, Indonesia.
The 270km railway is expected to cost $1.6bn, including the construction of a coal terminal.
Another rail project is underway by state-owned miner PT Perusahaan Batubara Bukit Asam in the same region, Reuters said, quoting a government official.
Diversified industrial group Adani Enterprises could sign an offtake agreement with Bukit Asam for coal supply in exchange for financing the railway.
The project is expected to start in 2010 and may take four years to complete.