NEW DELHI: Indian Railway Finance Corporation Ltd (IRFC), a Navratna Central Public Sector Enterprise under the Ministry of Railways, has signed a Rs 4,200-crore term loan agreement with Damodar Valley Corporation (DVC) to finance renewable energy projects in Jharkhand and West Bengal.
The agreement extends IRFC’s long-term financing capabilities to the renewable energy sector while remaining linked to the railway ecosystem, according to an official statement.
IRFC CMD Manoj Kumar Dubey said renewable energy is central to Indian Railways’ target of achieving net zero carbon emissions by 2030.
" It is at the core of Indian Railways’ journey towards Net Zero Carbon Emissions by 2030. Through this Rs 4,200 crore financing to DVC, IRFC is extending its long-term financing capability to the clean energy infrastructure that will power India’s future", said Dubey.
He also said, "This is IRFC 2.0 in action — strategic diversification that remains firmly connected to the Railways ecosystem and to the nation’s larger development priorities".
He further said, "This partnership with DVC demonstrates how IRFC can bring long-term capital to renewable energy infrastructure that supports the Railways’ growing energy requirements while contributing to a greener, more sustainable and future-ready India".
The official statement said the transaction is part of IRFC’s diversification into strategic infrastructure sectors linked to the railway ecosystem. Its financing portfolio includes renewable energy, power, metro rail, logistics and other infrastructure sectors.
It said, " The DVC transaction marks another important step in IRFC’s calibrated diversification into strategic railway-linked infrastructure sectors, building on its established strength in providing long-term financing".
The statement added, "Not only above mentioned all things, the transaction demonstrates IRFC’s ability to mobilise long-term capital for nationally important railway linked infrastructure, bringing together its core financing strengths with emerging requirements in clean energy and sustainable infrastructure".
The loan agreement was signed in New Delhi in the presence of senior officials from IRFC and DVC. DVC was represented by Manish Kumar, Member (Finance), while IRFC was represented by Manoj Kumar Dubey, Chairman and Managing Director.
The financing will support DVC’s floating solar, ground-mounted solar and rooftop solar projects, as well as Battery Energy Storage System (BESS) projects, using its existing land, reservoirs and transmission infrastructure.