Indian Railway Finance Corporation (IRFC), a Navratna Central Public Sector Enterprise under the Ministry of Railways, has signed a Rs. 42 bn term loan agreement with Damodar Valley Corporation (DVC) to finance renewable energy projects in Jharkhand and West Bengal.

The agreement was signed in New Delhi in the presence of senior officials from both organisations. DVC was represented by Manish Kumar, Member (Finance), while IRFC was represented by Manoj Kumar Dubey, Chairman and Managing Director.

The financing will support DVC’s floating solar, ground-mounted solar and rooftop solar projects, along with Battery Energy Storage System (BESS) projects. The projects will use DVC’s existing land, reservoirs and transmission infrastructure.

According to an official statement, the transaction extends IRFC’s long-term financing capabilities into the renewable energy sector while retaining its connection with the railway ecosystem. The company’s financing portfolio also covers power, metro rail, logistics and other infrastructure sectors.

Dubey said renewable energy was central to Indian Railways’ target of achieving net zero carbon emissions by 2030. He described the transaction as part of IRFC’s strategic diversification into railway-linked infrastructure, adding that the company was bringing its core long-term financing capabilities to clean energy and sustainable infrastructure.

The statement said the DVC transaction demonstrated IRFC’s ability to mobilise long-term capital for nationally important infrastructure. It added that the partnership would support renewable energy infrastructure linked to the Railways’ growing energy requirements while contributing to India’s broader sustainability objectives.