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IRFC Delivers Rs 128.42 bn Refinancing For HURL
ECONOMY & POLICY

IRFC Delivers Rs 128.42 bn Refinancing For HURL

Indian Railway Finance Corporation Limited, a Navratna central public sector enterprise under the Ministry of Railways, has signed a Rupee term loan agreement with Hindustan Urvarak and Rasayan Limited for the refinancing of existing long-term debt of up to Rs 128.42 bn. The agreement was concluded in New Delhi on 23 March 2026 and was executed by senior finance executives of both organisations in the presence of their respective chairpersons and officials. The transaction aligns with IRFC's strategic vision to extend long-term financing to projects linked with the railway ecosystem.

The refinancing is among IRFC's largest initiatives and is conceived under the IRFC 2.0 whole-of-government approach to provide cost-effective long-term financing to strategically important sectors such as fertilisers. The deal is structured to deliver competitive financing terms and an optimised repayment schedule that is intended to align with HURL's operational cash flows. This arrangement is expected to enhance financial flexibility, improve debt servicing efficiency and release resources for operational strengthening and future growth.

HURL's production facilities are well connected through rail infrastructure and the movement of fertiliser is coordinated with Indian Railways, reflecting strong forward and backward linkages with the railway network. The company has operationalised institutional mechanisms for seamless rail freight payments which underline its integration with rail transport and logistics. Such connectivity is cited as a key rationale for IRFC's financing support.

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has mobilised long-term resources at competitive rates to strengthen rail infrastructure and has expanded its mandate to cover projects in power, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports and multimodal logistics. The corporation continues to maintain a strong asset quality record with a zero-NPA portfolio. Hindustan Urvarak and Rasayan Limited, a joint venture of leading public sector undertakings, has revived and now operates fertiliser plants at Gorakhpur, Sindri and Barauni which contribute to domestic urea production capacity.

Indian Railway Finance Corporation Limited, a Navratna central public sector enterprise under the Ministry of Railways, has signed a Rupee term loan agreement with Hindustan Urvarak and Rasayan Limited for the refinancing of existing long-term debt of up to Rs 128.42 bn. The agreement was concluded in New Delhi on 23 March 2026 and was executed by senior finance executives of both organisations in the presence of their respective chairpersons and officials. The transaction aligns with IRFC's strategic vision to extend long-term financing to projects linked with the railway ecosystem. The refinancing is among IRFC's largest initiatives and is conceived under the IRFC 2.0 whole-of-government approach to provide cost-effective long-term financing to strategically important sectors such as fertilisers. The deal is structured to deliver competitive financing terms and an optimised repayment schedule that is intended to align with HURL's operational cash flows. This arrangement is expected to enhance financial flexibility, improve debt servicing efficiency and release resources for operational strengthening and future growth. HURL's production facilities are well connected through rail infrastructure and the movement of fertiliser is coordinated with Indian Railways, reflecting strong forward and backward linkages with the railway network. The company has operationalised institutional mechanisms for seamless rail freight payments which underline its integration with rail transport and logistics. Such connectivity is cited as a key rationale for IRFC's financing support. Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has mobilised long-term resources at competitive rates to strengthen rail infrastructure and has expanded its mandate to cover projects in power, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports and multimodal logistics. The corporation continues to maintain a strong asset quality record with a zero-NPA portfolio. Hindustan Urvarak and Rasayan Limited, a joint venture of leading public sector undertakings, has revived and now operates fertiliser plants at Gorakhpur, Sindri and Barauni which contribute to domestic urea production capacity.

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