On Wednesday (December 31), the state-owned Indian Railway Finance Corporation Ltd (IRFC) entered into a Rupee Term Loan Agreement with Maharashtra State Power Generation Company Ltd (MAHAGENCO) for a sanctioned amount of ₹5,000 crore. Of this total sanctioned loan, ₹3,000 crore was disbursed on the same day, according to IRFC.
Founded in 1986 as the financing arm of the Ministry of Railways, IRFC has played a crucial role in enhancing India’s rail infrastructure by securing long-term resources at competitive interest rates.
As a Navratna CPSE, IRFC is broadening its scope as a diverse infrastructure financier within the railway ecosystem. Its mandate encompasses projects with direct and indirect linkages to railways, including power generation and transmission, mining, coal and fuel, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, and multimodal logistics.
IRFC continues to uphold a robust asset quality record, maintaining a zero-NPA portfolio.
Also Read: A chartist warns that IRFC shares could drop to ₹100, with the PSU seeing a decline of over 50% from its peak.
MAHAGENCO, the primary power generation entity in Maharashtra and a vital state utility, plays a key role in providing a stable power supply across the state. The facility approved by IRFC will assist MAHAGENCO in fulfilling its operational and financial responsibilities.
The Chairman & Managing Director of IRFC stated, “This sanction further enhances our collaboration with strategic public sector utilities and demonstrates our commitment to supporting essential infrastructure through structured long-term financing options.”
Shares of Indian Railway Finance Corp Ltd closed at ₹124.75, up by ₹0.16, or 0.13%, on the BSE.
