Dubai: India and Iraq are close to signing a memorandum of understanding (MoU) to build a state-of-the-art skybus network in Baghdad and a 250-km railway line from Baghdad to Mushaba, Minister of State for Railways Digvijay Singh said.

The two turnkey projects, worth about $ 2.7 billion, are to be executed by the Konkan Railway Corporation Ltd (KRCL) and RITES, the construction wing of the Indian Railways, the second-largest in the world, Singh said on phone from Baghdad.

The two projects will help Iraq put back on track the transport infrastructure in its capital, which had been in a shambles following the Gulf War in 1991 and the subsequent imposition of international sanctions.

The KRCL, which built and commissioned in 1998 the 760-km Konkan Railway along the Western coast of India, is renowned for its expertise in building railway lines through inhospitable terrains.

RITES Ltd, set up as a consultancy arm of the Indian Railways in 1974, has implemented a variety of projects over the last 26 years in 56 countries including Saudi Arabia, Yemen, Iran and Iraq.

Singh, who is accompanied by a high level delegation from the apex industrial body Federation of Indian Chambers of Commerce and Industry (FICCI) and also a senior official from the External Affairs ministry, said he had fruitful meetings with the Iraqi Trade and Oil Ministers and was scheduled to meet the Railway Minister.

The managing director of KRCL, B Rajaram, is a member of the delegation.

PTI