IRFC expands beyond rlys into key infra sectors
NEW DELHI: Indian Railway Finance Corporation (IRFC), a key financial arm of the Ministry of Railways, is expanding its portfolio beyond railway financing to include strategic sectors such as power generation and transmission, mining, fuel, warehousing, telecom, and hospitality, Manoj Kumar Dubey, chairman and managing director (CMD) & CEO of IRFC informed on Wednesday. This diversification marks a significant shift in the company’s growth trajectory, reinforcing its role in India’s broader infrastructure development.-
Earlier this week, on Monday, IRFC has been elevated to ‘Navratna’ status by the Government of India, becoming the 26th Central Public Sector Enterprise (CPSE) to receive this designation. The ‘Navratna’ status is a significant recognition within the CPSE classification system, which includes ‘Maharatna’, ‘Navratna’, and ‘Miniratna’ categories. To qualify for ‘Maharatna’ status, a company must first attain ‘Navratna’ status, be listed on Indian stock exchanges, and meet specific financial criteria, such as an average annual turnover exceeding Rs 25,000 crore, net worth over Rs 15,000 crore, and net profit over Rs 5,000 crore over the past three years.
IRFC has already made notable strides in this direction, securing funding for 20 BOBR rakes for NTPC worth Rs 700 crore. It has also emerged as the lowest bidder to finance a Rs 3,190 crore loan for Patratu Vidyut Utpadan Nigam Limited, a subsidiary of NTPC. Strengthening its foothold in the renewable energy sector, IRFC’s Rs 7,500 crore bid was recently accepted by NTPC Renewable Energy Limited (NTPC REL) for financing a Rupee Term Loan (RTL), further underlining its commitment to clean energy initiatives. While IRFC continues to play a pivotal role in funding nearly 80 per cent of Indian Railways’ rolling stock, its expansion into these allied sectors reflects its strategic vision to support India’s infrastructure beyond railways. This move aligns with the country’s increasing demand for financing in capital-intensive sectors, particularly in energy and logistics. Dubey further emphasised the company’s evolving role, stating, “As India moves towards a $10 trillion economy, IRFC aims to be at the forefront of infrastructure financing. Our expansion into these key sectors will enable us to contribute more meaningfully to the nation’s growth while ensuring long-term value for stakeholders.”
In addition to these new ventures, IRFC is actively exploring opportunities to fund rolling stock requirements for Indian Railways customers, container train operators, metro rail projects, port rail connectivity, and public-private partnership (PPP) projects in railway infrastructure. The company’s growing financial strength, reflected in its market capitalisation of over Rs 2 lakh crore and assets under management (AUM) of Rs 4.61 lakh crore as of December last year, positions it well for these ambitious initiatives.
