Indian Railway Finance Corporation (IRFC), the dedicated financing arm of the Ministry of Railways, has made a significant move in the power sector by sanctioning a substantial loan to Chhattisgarh State Power Generation Company Limited (CSPGCL). This development marks IRFC's expanding role in infrastructure financing beyond its traditional railway focus.

Loan Details

IRFC has approved a Rupee Term Loan (RTL) of ₹12,640.00 crore to CSPGCL, a wholly-owned entity of the Government of Chhattisgarh. The loan is earmarked for financing CSPGCL's upcoming 2x660 MW Super Critical Thermal Power Project at HTPS, Korba West.

Signing Ceremony

The loan agreement was formally signed at CSPGCL's headquarters in Raipur. Mr. Nav Goel, General Manager of IRFC, represented the financing corporation, while CSPGCL was represented by Mr. Sandeep Modi, Executive Director (Finance), and Mr. C.L. Netam, Executive Director (Projects).

IRFC's Expanding Role

Recently accorded 'Navratna' status, IRFC is broadening its scope as a diversified infrastructure financier within the railway ecosystem. The company's mandate now covers projects with forward and backward linkages to railways, including:

• Power generation and transmission
• Mining
• Fuel and coal
• Warehousing
• Telecom
• Hotels and catering
• Metro rail
• Freight corridors
• Ports
• Multimodal logistics

Impact on CSPGCL

CSPGCL, incorporated in 2003, is the state-owned generation utility of Chhattisgarh with an installed capacity of over 2,600 MW. This sanctioned funding will provide CSPGCL with long-term, low-cost resources for project implementation, ensuring financial stability and timely execution of this critical power project.

IRFC's Financial Strength

IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio, underlining its financial robustness and prudent lending practices.

CMD's Statement

The Chairman and Managing Director of IRFC commented on the development, stating, "IRFC remains steadfast in its mission to serve as the one-stop financier for projects that strengthen the railway ecosystem. Our support to CSPGCL exemplifies our commitment to provide competitive funding for projects that are vital to both regional growth and railway-linked infrastructure."

This loan sanction by IRFC demonstrates its commitment to supporting critical infrastructure projects that have synergies with the railway sector, contributing to both regional development and the enhancement of India's power generation capabilities.

Indian Railway Finance Corporation (IRFC), the dedicated financing arm of the Ministry of Railways, has made a significant move by joining a consortium to fund the Talcher Fertilizers' coal gasification urea project. This strategic investment marks IRFC's expansion into diversified infrastructure financing within the railway ecosystem.

Project Details

The Talcher Fertilizers Limited (TFL) project, located in Talcher, Angul district of Odisha, is set to be India's first coal gasification-based urea production facility. IRFC has committed to providing a substantial loan of ₹4,000.00 crore towards the project, as part of a larger debt package totaling ₹12,250.00 crore.

Consortium and Project Scope

TFL is a joint venture involving Coal India Ltd., GAIL, Rashtriya Chemicals & Fertilizers (RCF), and Fertilizer Corporation of India Ltd. (FCIL). The state-of-the-art facility aims to produce 1.27 million metric tonnes of neem-coated urea annually, utilizing indigenous coal resources.

Strategic Importance

This project is a crucial component of the Government of India's fertilizer revival programme and aligns with the vision of Atmanirbhar Bharat (Self-Reliant India). By using coal gasification technology for urea production, the project aims to:

1. Reduce dependence on imported natural gas
2. Enhance domestic self-sufficiency in fertilizer production
3. Revitalize the fertilizer sector by reopening closed urea plants

Railway Linkages

The project demonstrates strong forward and backward linkages with the railway sector:

• A dedicated railway siding is being developed under the Indian Railways' Gati Shakti Multi-Modal Cargo Terminal (GCT) policy.
• The facility is expected to handle approximately five rakes per day.
• The siding will facilitate both inbound movement of raw materials (coal, pet coke, and limestone) and outward dispatch of urea.

IRFC's Expanding Role

IRFC, recently accorded 'Navratna' status, is broadening its scope as a diversified infrastructure financier. The company's mandate now covers projects with railway linkages, including:

• Power generation and transmission
• Mining and fuel
• Warehousing and telecom
• Hotels and catering
• Metro rail and freight corridors
• Ports and multimodal logistics

Financial Strength

IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio, positioning it well for this new venture.

Management Commentary

The Chairman & Managing Director of IRFC stated, "We are proud to partner in this pioneering project that is central to India's fertilizer self-reliance. IRFC's long-term and competitive financing will support timely execution of Talcher Fertilizers, ensuring sustainable growth in domestic urea production and strengthening railway-linked infrastructure under the national revival programme."

This strategic move by IRFC not only supports a project of national importance but also reinforces its commitment to India's developmental priorities while maintaining strong ties to the railway sector.