Indian Railway Finance Corporation (IRFC), the financing arm of the Ministry of Railways, has taken a significant step in supporting India's transportation infrastructure development. The company has sanctioned and executed a term loan facility of ₹199.70 crore to Surat Integrated Transportation Development Corporation Limited (SITCO) for the development of India's first international-standard Multi-Modal Transport Hub (MMTH) in Surat.

Loan Agreement Details

The loan agreement was signed at SITCO's New Delhi office, marking a crucial milestone in the project's progress. The signing ceremony was attended by key officials from both organizations:

• Mr. Mohit Kumar, Director, SITCO
• Ms. Namrata Makharia, Company Secretary, SITCO
• Mr. Ashish Saini, General Manager Finance, IRFC

Project Overview

The Surat MMTH project, spearheaded by SITCO, is a joint venture between the Ministry of Railways and the Government of Gujarat. This ambitious project aims to revolutionize urban transportation in Surat by integrating various modes of transport, including:

• Rail
• Metro
• Bus Rapid Transit System (BRTS)
• City and regional buses
• Intermediate transport modes (autos and taxis)

In addition to improving connectivity, the project will also focus on upgrading passenger amenities and station infrastructure, setting a new benchmark for transportation hubs in India.

IRFC's Role and Expansion

IRFC, established in 1986, has been instrumental in strengthening India's rail infrastructure by mobilizing resources at competitive rates. The company's involvement in the Surat MMTH project underscores its expanding role as a diversified infrastructure financier within the railway ecosystem.

Recently accorded 'Navratna' status, IRFC has broadened its mandate to cover 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

Financial Strength and Impact

IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio, highlighting its financial prudence and robust risk management practices. The ₹199.70 crore loan to SITCO is expected to:

• Strengthen the Surat MMTH project's financial viability
• Ensure long-term sustainability of the initiative
• Accelerate timely execution of the project
• Contribute to regional economic growth
• Enhance India's overall transport infrastructure capacity

CMD's Statement

The IRFC Chairman and Managing Director emphasized the company's commitment to the project, stating, "IRFC is the dedicated financing arm for projects in the railway ecosystem, with strong forward and backward linkages. Our support to the construction of SITCO's landmark Surat MMTH project reflects our commitment to providing competitive financing solutions while developing railway-linked infrastructure that powers India's logistics, strengthens urban mobility, and contributes to the nation-building journey."

This strategic move by IRFC not only showcases its expanding role in India's infrastructure development but also highlights the government's focus on creating integrated transportation solutions to meet the growing needs of urban centers like Surat.

Indian Railway Finance Corporation (IRFC), the dedicated financing arm of the Ministry of Railways, has successfully completed a significant refinancing operation for Angul Sukinda Railway Limited (ASRL), aiming to enhance the project's long-term viability.

Refinancing Details

IRFC has executed a refinancing facility of ₹2,539.00 crore for ASRL, an Special Purpose Vehicle (SPV) within the railway ecosystem. The loan agreement was signed at IRFC's New Delhi office by Mr. Dilip Kumar Samantray, Managing Director of ASRL, and Ms. Deepa Kotnis, Executive Director (Finance) of IRFC, in the presence of senior officials from both organizations.

Strategic Importance of ASRL

ASRL, promoted by Rail Vikas Nigam Limited (RVNL), Container Corporation of India Ltd. (CONCOR), Government of Odisha, and private partners, operates a crucial 113.4 km broad gauge railway line in Odisha. This line connects mineral-rich belts to major coal, steel, power, and port facilities, serving as a strategic freight corridor. It enables faster and more efficient transportation of key commodities, reducing congestion on existing routes and improving supply chain efficiency for industries in the region.

Benefits of Refinancing

The refinancing package from IRFC offers several advantages:

1. More competitive financing terms
2. Repayment structure aligned with the project's actual revenue cycles
3. Improved capacity for ASRL to meet its financial commitments
4. Freed up resources for expansion, capacity enhancement, and operational improvements

These measures are expected to enhance the project's long-term viability and its contribution to regional economic growth and the country's rail freight capacity.

IRFC's Expanding Role

IRFC, recently accorded 'Navratna' status, is expanding its role as a diversified infrastructure financier within the railway ecosystem. Its 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

The company maintains a strong asset quality track record with a zero-NPA portfolio, positioning itself as a one-stop dedicated financier for all project requirements in the railway ecosystem.

Management's Perspective

The IRFC Chairman and Managing Director stated, "IRFC is the one-stop dedicated financier for all project requirements in the railway ecosystem, with forward and backward linkages. We are committed to providing competitive financing solutions that create a win-win for all stakeholders, while supporting nation-building and strengthening India's ever-growing logistics and infrastructure backbone, with railways at its core."

This refinancing initiative is part of IRFC's broader strategy to strengthen critical railway-linked infrastructure and its associated entities, ensuring they remain financially robust and well-positioned to meet the demands of India's growing logistics sector.

Upcoming Investor Interaction

In related news, IRFC management will be participating in a Non-Deal Roadshow (NDR) in Mumbai on August 12th and 13th, 2025. During these interactions, the company will discuss its financial results for Q1/FY25-26 along with other publicly available information, providing an opportunity for investors to gain insights into IRFC's performance and strategies.

As IRFC continues to play a pivotal role in strengthening India's rail infrastructure, this refinancing deal for ASRL marks another step towards enhancing the efficiency and viability of key railway projects across the country.