IRFC Executes ₹1,125 Crore Refinancing for Bhartiya Rail Bijlee Company
Indian Railway Finance Corporation (IRFC) has successfully refinanced ₹1,125 crore for Bhartiya Rail Bijlee Company Limited (BRBCL), a joint venture between NTPC Ltd. and the Ministry of Railways. This transaction aims to reduce BRBCL's financing costs and lower electricity costs for Indian Railways. BRBCL operates a 1,000 MW thermal power project in Bihar, with 90% capacity dedicated to Indian Railways. IRFC, recently granted 'Navratna' status, is expanding its role as a diversified infrastructure financier within the railway ecosystem.

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Indian Railway Finance Corporation (IRFC), the dedicated financing arm of the Ministry of Railways, has successfully completed a significant refinancing transaction for Bhartiya Rail Bijlee Company Limited (BRBCL). The deal, worth ₹1,125 crore, marks a notable financial move in the railway sector.
Key Details of the Refinancing
Item | Detail |
---|---|
Amount | ₹1,125 crore |
Beneficiary | Bhartiya Rail Bijlee Company Limited (BRBCL) |
BRBCL Ownership | Joint venture between NTPC Ltd. (74%) and Ministry of Railways (26%) |
Transaction Highlights
The loan agreement was signed at BRBCL's Nabinagar office by Shri Sunil Goel, CGM (BD) of IRFC, and Shri Deepak Ranjan Dehuri, CEO of BRBCL. Senior officials from both organizations were present during the signing ceremony.
Impact and Benefits
This refinancing initiative is expected to yield multiple benefits:
- Cost Reduction: The refinancing will help lower BRBCL's financing costs, strengthening its financial position.
- Lower Electricity Costs: As a result, the cost of electricity supplied to Indian Railways is expected to decrease.
- Win-Win Outcome: The transaction aims to improve BRBCL's bottom line while directly benefiting the Ministry of Railways, both as an equity holder and as the primary customer.
About BRBCL
Bhartiya Rail Bijlee Company Limited, incorporated in 2007, operates the 1,000 MW Nabinagar Thermal Power Project in Bihar. The plant consists of four units of 250 MW each and supplies power under a long-term Power Purchase Agreement (PPA). Notably, 90% of its capacity is dedicated to Indian Railways, while the remaining 10% serves the Bihar State Electricity Board.
IRFC's Expanding Role
IRFC, recently accorded 'Navratna' status, is expanding its role beyond its traditional scope:
- Established in 1986 as the dedicated financing arm of the Ministry of Railways
- Now evolving into a diversified infrastructure financier within the railway ecosystem
- Mandate covers projects with forward and backward linkages to railways, including power generation, transmission, mining, fuel, coal, warehousing, telecom, hotels, catering, metro rail, freight corridors, ports, and multimodal logistics
IRFC's Financial Strength
The corporation continues to maintain a strong asset quality track record with a zero-NPA portfolio, underlining its financial robustness and prudent management.
CMD IRFC's Statement
The Chairman & Managing Director of IRFC commented on the transaction: "IRFC is committed to providing innovative and competitive financing solutions that create a win-win for all stakeholders in the railway ecosystem. This refinancing of BRBCL demonstrates IRFC's continued support to the Indian Railways, true to the very reason for which IRFC was set up – to provide reliable financial support to the Indian Railways. Building on this legacy, IRFC is now extending its support to entities within the railway ecosystem, ensuring long-term synergies, cost-effectiveness, and financial sustainability for the sector."
This refinancing transaction exemplifies IRFC's commitment to supporting railway-linked entities, fostering synergies within the railway ecosystem, and ensuring cost-effectiveness and financial sustainability of projects that directly serve the Railways' operational requirements.
Historical Stock Returns for IRFC
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.03% | +0.74% | -6.66% | +0.25% | -30.53% | +405.73% |