Transaction Overview
Indian Railway Finance Corporation Limited (IRFC), a Navratna Central Public Sector Enterprise under the Ministry of Railways, has signed a ₹4,200 crore Term Loan Agreement with Damodar Valley Corporation (DVC) to finance renewable energy projects across Jharkhand and West Bengal.
Project Details
The financing will support DVC's portfolio of renewable energy projects including:
- Floating solar projects
- Ground-mounted solar projects
- Rooftop solar projects
- Battery Energy Storage System (BESS) projects
The projects will leverage DVC's existing land, reservoirs and transmission infrastructure.
Strategic Significance
This transaction represents IRFC's strategic expansion and diversification into renewable energy infrastructure while maintaining alignment with the broader railway ecosystem. The financing supports Indian Railways' Net Zero Carbon Emissions target by 2030.
Management Commentary
Manoj Kumar Dubey, Chairman & Managing Director of IRFC, stated: "Renewable energy is no longer peripheral to the Railways; it is at the core of Indian Railways' journey towards Net Zero Carbon Emissions by 2030. Through this Rs 4,200 crore financing to DVC, IRFC is extending its long-term financing capability to the clean energy infrastructure that will power India's future. This is IRFC 2.0 in action - strategic diversification that remains firmly connected to the Railways ecosystem and to the nation's larger development priorities."
Dubey added: "This partnership with DVC demonstrates how IRFC can bring long-term capital to renewable energy infrastructure that supports the Railways' growing energy requirements while contributing to a greener, more sustainable and future-ready India."
Signing Ceremony
The loan agreement was signed in New Delhi in the presence of senior officials of IRFC and DVC, led from DVC by Manish Kumar, Member (Finance), DVC, and Manoj Kumar Dubey, Chairman & Managing Director, IRFC.
Broader Business Context
The transaction demonstrates IRFC's ability to mobilize long-term capital for nationally important railway-linked infrastructure. IRFC's expanding financing portfolio now includes sectors such as renewable energy, power, metro rail, logistics and other infrastructure with strong linkages to national development priorities.
Company Background
Indian Railway Finance Corporation Ltd. is a Navratna Central Public Sector Enterprise under the Ministry of Railways and serves as the dedicated market borrowing arm of Indian Railways. The company provides financing support for railway expansion, modernization and strategic infrastructure development.