Indian Railway Finance Corporation (IRFC) is widening its infrastructure lending footprint with a Rs 4,200-crore term loan to Damodar Valley Corporation for renewable energy projects in Jharkhand and West Bengal.
The financing marks another step in IRFC’s move into businesses beyond its traditional railway funding operations. The projects covered by the agreement include several forms of solar generation as well as battery storage infrastructure.
According to the press release, DVC plans to develop floating solar, ground-mounted and rooftop solar projects, along with Battery Energy Storage Systems.
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The power utility will use its existing land, reservoirs and transmission infrastructure to support the planned projects.
The loan agreement was signed in New Delhi between senior officials from the two organisations. Manish Kumar, DVC Member (Finance), and Manoj Kumar Dubey, IRFC Chairman and Managing Director, were present at the signing.
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For IRFC, the transaction adds renewable energy financing to a portfolio that has gradually expanded into areas such as power, metro rail, logistics and other infrastructure segments.
Dubey said the deal forms part of “IRFC 2.0”, reflecting the company’s strategy of building new business opportunities while retaining its core role in railway financing.
IRFC said clean energy infrastructure is increasingly becoming an important area for its long-term financing capabilities.
The transaction also has a link to the broader decarbonisation plans of Indian Railways. IRFC said the financing supports the national carrier’s target of achieving Net Zero Carbon Emissions by 2030.
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IRFC remains the dedicated market borrowing arm of Indian Railways and finances railway expansion, modernisation and strategic infrastructure. Its latest deal with DVC signals a broader approach to infrastructure funding, with the company increasingly looking at projects that have connections with the wider transport, power and energy ecosystem.
The Rs 4,200 crore agreement could therefore strengthen IRFC’s presence in renewable infrastructure while helping DVC advance a diversified clean energy pipeline across eastern India.
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