IRFC extends ₹1,125 Cr refinancing support to BRBCL, strengthening Railway-linked Power Project

New Delhi, India (Metro Rail Today): In a strategic move to reinforce energy infrastructure serving the Indian Railways, the Indian Railway Finance Corporation (IRFC) has executed a refinancing facility of up to ₹1,125 crore for Bhartiya Rail Bijlee Company Limited (BRBCL). The initiative is set to improve BRBCL’s financial stability while reducing the cost of electricity supplied to the Indian Railways.

The agreement was signed at BRBCL’s Nabinagar office between Sunil Goel, Chief General Manager (Business Development), IRFC, and Deepak Ranjan Dehuri, CEO, BRBCL, in the presence of senior officials from both organisations.

A joint venture between NTPC Limited (74%) and the Ministry of Railways (26%), BRBCL operates the 1,000 MW Nabinagar Thermal Power Project in Bihar. The plant supplies power under a regulated cost-plus tariff model, with 90% of its output allocated to Indian Railways and the remaining 10% to the Bihar State Electricity Board. The project plays a critical role in supporting energy needs of the national transporter under a long-term Power Purchase Agreement (PPA).

The refinancing extended by IRFC is expected to substantially lower BRBCL’s borrowing costs. This will not only improve the financial health of the power utility but also bring down the cost of energy procurement for Indian Railways—a dual benefit for the government as both equity holder and end-user.

Manoj Kumar Dubey, CMD, IRFC, speaking from New Delhi, said, “IRFC is committed to providing innovative and competitive financing solutions that create a win-win for all stakeholders in the railway ecosystem. This refinancing of BRBCL demonstrates our continued support to Indian Railways, true to the very mission on which IRFC was founded. By supporting critical energy infrastructure, we ensure long-term synergy, cost-effectiveness, and financial sustainability within the railway sector.”

This development further reinforces IRFC’s growing mandate beyond traditional rolling stock financing. Now a Navratna PSU, IRFC is actively supporting projects with direct or strategic linkages to the rail sector—ranging from power generation and transmission to multimodal logistics, mining, telecom, metro rail, and warehousing. Its strong track record, including a zero-NPA portfolio, highlights the corporation’s commitment to prudent and sustainable financing.

By enabling cleaner and more cost-efficient energy sourcing through BRBCL, this refinancing move underscores the importance of integrated financial planning in strengthening the Railways’ operational backbone and long-term energy security.