Indian Railway Finance Corporation (IRFC) has executed a refinancing facility of up to Rs 11.25 billion for Bhartiya Rail Bijlee Company Limited (BRBCL), a joint venture between NTPC Ltd. (74 per cent) and the Ministry of Railways (26 per cent). The loan agreement was signed at BRBCL’s Nabinagar office by Sunil Goel, CGM (BD), IRFC, and Deepak Ranjan Dehuri, CEO, BRBCL, in the presence of senior officials from both organisations.

Founded in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has been instrumental in strengthening India’s rail infrastructure by mobilising funds at competitive rates. Recently accorded Navratna status, the company is broadening its role as a diversified infrastructure financier across railway-linked sectors, including power, mining, fuel, logistics, metro rail, and ports. IRFC continues to maintain a strong asset quality track record, with a zero-NPA portfolio.

BRBCL, incorporated in 2007, operates the 1,000 MW Nabinagar Thermal Power Project in Bihar, comprising four 250 MW units. Under a long-term power purchase agreement, 90 per cent of the capacity is supplied to Indian Railways and 10 per cent to the Bihar State Electricity Board, under tariffs regulated by the Central Electricity Regulatory Commission (CERC).

The refinancing support will lower BRBCL’s financing costs, strengthening its financial position and reducing the cost of electricity supplied to Indian Railways. This delivers a dual benefit—improving BRBCL’s bottom line while directly supporting the Ministry of Railways as both equity holder and end-user.

Speaking on the development, the Chairman and Managing Director of IRFC 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 reflects our continued support to Indian Railways and reinforces our mandate of ensuring long-term synergies, cost-effectiveness, and financial sustainability across the sector.”