IRFC (Indian Railway Finance Corporation) has significantly expanded its lending portfolio, participating in a major fertilizer project, extending substantial loans to power generation companies, and supporting thermal power projects.

New Thermal Power Project Loans

IRFC has signed two loan agreements totaling ₹16,489.00 crore to finance supercritical thermal power projects:

1. An agreement with Haryana Power Generation Corporation Limited (HPGCL) for up to ₹5,929.00 crore to fund an 800 MW supercritical thermal power project at Deenbandhu Chhotu Ram Thermal Power Plant in Yamunanagar.

2. An agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO) for up to ₹10,560.00 crore to support a 2x660 MW supercritical expansion project at Koradi Thermal Power Station in Nagpur, adding 1,320 MW capacity.

These projects aim to strengthen power supply for households, industries, and agriculture in Haryana and Maharashtra. The partnerships also benefit Indian Railways through coal transportation contracts and freight revenues.

IRFC's Role in Talcher Fertilizers Project

IRFC has joined a consortium to support the Talcher Fertilizers' coal gasification project, committing to provide loan assistance of ₹4,000.00 crore. This commitment is part of a larger sanctioned debt package for the project. The total debt component for the Talcher Fertilizers project amounts to ₹12,250.00 crore, with IRFC collaborating alongside other lenders to finance this significant initiative.

Key Points of the Talcher Project Financing

• Project type: Coal gasification for fertilizer production

The Talcher Fertilizers project represents a strategic investment in India's fertilizer sector, utilizing coal gasification technology. This project is expected to contribute to the country's fertilizer production capacity and potentially reduce dependence on imports.

Additional Loan Sanction to CSPGCL

In a separate development, IRFC has sanctioned a substantial loan of ₹12,640.00 crore to CSPGCL (Chhattisgarh State Power Generation Company Limited). This loan underscores IRFC's expanding role in financing various sectors beyond its traditional focus on railway infrastructure.

IRFC's Expanding Financial Portfolio

These recent financial commitments highlight IRFC's growing presence in diverse sectors:

1. Fertilizer industry: Participation in the Talcher Fertilizers project
2. Power sector: Significant loans to CSPGCL, HPGCL, and MAHAGENCO

IRFC's involvement in these projects demonstrates its capacity to support large-scale industrial and infrastructure initiatives across different sectors in India. As a public sector enterprise, IRFC's financial backing plays a crucial role in facilitating the development of key projects that contribute to the country's economic growth and self-reliance in critical sectors like fertilizer production and power generation.

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.