Indian Railway Finance Corporation (IRFC) has extended a Rs 98.21 billion loan to the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) to refinance its foreign currency debt availed from the World Bank for the Eastern Dedicated Freight Corridor project.

The rupee term loan agreement was formally signed between Rahul Kapoor, Director (Finance), DFCCIL, and Deepa Kotnis, Executive Director (Finance), IRFC. The agreement was executed at the Railway Board in New Delhi in the presence of Railway Board Chairman and CEO Satish Kumar, along with senior officials from IRFC and DFCCIL, IRFC said in a statement.

According to IRFC, the transaction marks a significant milestone in India’s infrastructure financing landscape, highlighting the growing depth, maturity and capability of domestic financial institutions to fund large-scale, long-gestation infrastructure projects through local currency solutions.

Officials said the refinancing covers existing World Bank loans and will allow DFCCIL to shift from foreign currency borrowing to rupee-denominated financing. This is expected to reduce exposure to exchange rate volatility, improve financial stability and lower long-term funding risks for the strategic freight corridor project.