IRFC Inks ₹5,000 Crore Loan Agreement with NTPC Renewable Energy
Indian Railway Finance Corporation (IRFC) has entered into a ₹5,000 crore ($600 million) Rupee Term Loan agreement with NTPC Renewable Energy Limited (NTPC REL) on March 25, 2025. The unsecured loan is intended to support NTPC REL's capital expenditure for ongoing and new capacity addition projects in the renewable energy sector. This move marks IRFC's diversification into green energy financing and aligns with India's renewable energy goals.

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Indian Railway Finance Corporation (IRFC), a Government of India enterprise, has made a significant move in the renewable energy sector by entering into a substantial loan agreement with NTPC Renewable Energy Limited (NTPC REL). The deal, finalized on March 25, 2025, marks a major step in financing green energy initiatives in India.
Loan Details
IRFC has agreed to provide a Rupee Term Loan (RTL) of ₹5,000.00 crore (equivalent to approximately $600.00 million USD) to NTPC REL. This agreement aligns with IRFC's role as a key financial intermediary in the infrastructure sector.
Purpose and Terms
The loan is intended to support NTPC REL's capital expenditure for ongoing and new capacity addition projects. Additionally, it may be used for refinancing existing loans. Here are the key points of the agreement:
Aspect | Details |
---|---|
Borrower | NTPC Renewable Energy Limited |
Lender | Indian Railway Finance Corporation Limited |
Loan Type | Rupee Term Loan (RTL) |
Amount | ₹5,000.00 crore |
Security | Unsecured, with a negative lien provision (with certain exceptions) |
Execution Date | March 25, 2025 |
Strategic Implications
This loan agreement is significant for several reasons:
- Renewable Energy Push: It demonstrates IRFC's commitment to supporting India's renewable energy sector, aligning with the country's green energy goals.
- Diversification: For IRFC, traditionally associated with railway financing, this move represents a diversification of its lending portfolio.
- Support for NTPC's Green Initiatives: NTPC REL, as a wholly-owned subsidiary of NTPC Green Energy Limited, is at the forefront of NTPC's renewable energy efforts. This loan will bolster its capacity to undertake and expand green energy projects.
Corporate Governance
IRFC has duly informed the stock exchanges about this material development, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's prompt disclosure underscores its commitment to transparency and good corporate governance practices.
Market Impact
While the immediate market reaction remains to be seen, this substantial loan agreement is likely to be viewed positively by investors. It showcases IRFC's ability to participate in large-scale financing in the rapidly growing renewable energy sector, potentially opening up new avenues for growth and diversification.
As the renewable energy sector in India continues to expand, financial arrangements like this between major public sector enterprises are expected to play a crucial role in achieving the country's sustainable development goals.
Historical Stock Returns for IRFC
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+0.33% | +4.33% | +9.02% | -13.17% | -8.78% | +422.10% |