State-owned Indian Railway Finance Corporation Ltd (IRFC) executed a Rupee Term Loan Agreement with Maharashtra State Power Generation Company Ltd (MAHAGENCO) for a sanctioned amount of ₹5,000 crore on December 31. The company achieved immediate disbursement of ₹3,000 crore on the same day of agreement execution.

Loan Agreement Details

The financing arrangement represents a significant commitment between the two state-owned entities, with the following key parameters:

IRFC's Expanding Infrastructure Role

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has evolved beyond its traditional railway financing mandate. The Navratna Central Public Sector Enterprise now operates as a diversified infrastructure financier within the broader railway ecosystem.

The company's expanded scope encompasses multiple sectors with forward and backward linkages to railways:

• Power generation and transmission projects
• Mining operations and fuel supply
• Warehousing and logistics facilities
• Telecommunications infrastructure
• Hotels and catering services
• Metro rail systems and freight corridors
• Ports and multimodal logistics hubs

IRFC maintains a strong asset quality track record with a zero-NPA portfolio, positioning it as a reliable financing partner for critical infrastructure projects.

MAHAGENCO's Strategic Importance

MAHAGENCO operates as Maharashtra's largest power generation company and serves as a key state utility responsible for ensuring reliable power supply across the state. The sanctioned facility from IRFC will support the company in meeting its operational and financial obligations, strengthening the state's power infrastructure capabilities.

Management Commentary

The Chairman & Managing Director of IRFC emphasized the strategic significance of this transaction, stating that the sanction further strengthens IRFC's engagement with strategic public sector utilities and demonstrates the company's commitment to supporting critical infrastructure entities through structured long-term financing solutions.

Market Performance

Shares of Indian Railway Finance Corp Ltd closed at ₹124.75 on the BSE, registering a marginal gain of ₹0.16 or 0.13% for the trading session.

IRFC has executed a significant rupee term loan agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO), marking another milestone in its diversified infrastructure financing mandate. The Government of India NBFC sanctioned ₹5,000.00 crore to the state utility on December 31, 2025, with immediate disbursement of a substantial portion.

Loan Agreement Details

The transaction represents a major financing commitment between the railway financing corporation and Maharashtra's power sector. Key parameters of the agreement include:

IRFC's Expanding Infrastructure Role

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has evolved into a comprehensive infrastructure financier. The Navratna CPSE operates under the administrative control of the Ministry of Railways and maintains a distinguished track record in the sector.

The corporation's diversified mandate encompasses multiple infrastructure sectors with railway linkages:

• Power generation and transmission projects
• Mining operations
• Fuel and coal infrastructure
• Warehousing facilities
• Telecommunications infrastructure
• Hotels and catering services
• Metro rail systems
• Freight corridors
• Ports and multimodal logistics

Financial Performance and Asset Quality

IRFC continues to demonstrate strong financial discipline with a zero-NPA portfolio, reflecting its robust risk management practices. The corporation has consistently mobilized long-term resources at competitive rates, supporting India's rail infrastructure development over nearly four decades.

MAHAGENCO Partnership Significance

MAHAGENCO serves as Maharashtra's largest power generation company and plays a crucial role in ensuring reliable electricity supply across the state. As a key state utility, the company's operational efficiency directly impacts Maharashtra's industrial and domestic power requirements.

The sanctioned facility will enable MAHAGENCO to meet its operational and financial obligations, supporting the state's power generation capacity and reliability.

Management Commentary

The Chairman & Managing Director of IRFC emphasized the strategic importance of this partnership, stating that the sanction strengthens the corporation's engagement with strategic public sector utilities. The leadership highlighted IRFC's commitment to supporting critical infrastructure entities through structured long-term financing solutions.

This transaction reflects IRFC's expanding role in supporting vital infrastructure sectors while maintaining alignment with its core railway-focused mandate.