IRFC Lends Rs 33.9 Billion To PVUNL For Jharkhand Coal Block
03 Oct 2025 CW Team
Indian Railway Finance Corporation (IRFC), the financing arm of the Ministry of Railways, has provided loan assistance of Rs 33.9 billion to Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary of NTPC Limited, for developing the Banhardih Coal Block in Latehar district, Jharkhand.
The agreement was signed at PVUNL’s Patratu office by Shwet Ketu Mishra, Chief General Manager, IRFC, and Ashok Kumar Sehgal, Chief Executive Officer, PVUNL.
PVUNL, a joint venture between NTPC Limited (74 per cent) and Jharkhand Bijli Vitran Nigam Limited (26 per cent), is setting up a 4,000 MW coal-based thermal power project at Patratu in two phases. The captive Banhardih coal block, with reserves estimated at 956 million tonnes, has been allocated for this project. Coal will be transported via the Indian Railways network, highlighting strong forward and backward linkages with the railway sector.
IRFC, recently accorded Navratna status, is expanding beyond railway financing into sectors including power, mining, logistics, ports and metro rail. The corporation maintains a strong financial profile with a zero-NPA record.
Commenting on the deal, IRFC Chairman and Managing Director said: “This loan marks IRFC’s continued commitment to support projects of national importance. Our long-term financing will ensure timely development of the Banhardih Coal Block, secure fuel for PVUNL’s power project, and strengthen rail-linked infrastructure critical to India’s growth plans.”