The Indian Railway Finance Corporation (IRFC) has successfully executed a refinancing facility amounting to INR 1,125 crore for Bhartiya Rail Bijlee Company Limited (BRBCL), a joint venture between NTPC Ltd. (holding 74%) and the Ministry of Railways (holding 26%).
The loan agreement was formally signed at BRBCL’s Nabinagar office by Shri Sunil Goel, Chief General Manager (Business Development) of IRFC, and Shri Deepak Ranjan Dehuri, Chief Executive Officer of BRBCL, in the presence of senior officials from both organisations.
BRBCL, which was established in 2007, operates the Nabinagar Thermal Power Project with a total capacity of 1,000 MW (comprising four units of 250 MW each) located in Bihar. This plant is engaged in long-term power purchase agreements (PPAs), with 90% of its output allocated to Indian Railways and the remaining 10% to the Bihar State Electricity Board, under a cost-plus tariff framework regulated by the CERC.
The refinancing support provided by IRFC is expected to lower BRBCL’s financing costs, thereby enhancing its financial standing while simultaneously reducing the electricity costs supplied to Indian Railways. This initiative creates a benefit for both parties, improving BRBCL’s financial results and directly supporting the Ministry of Railways as both an equity stakeholder and the primary customer.
This undertaking exemplifies IRFC’s dedication to facilitating the financial needs of railway-related entities by fostering synergies within the railway ecosystem and ensuring both cost efficiency and the financial sustainability of projects that serve the operational needs of Indian Railways.
IRFC Chairman & Managing Director 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 demonstrates IRFC’s continued support to the Indian Railways, true to the very reason for which IRFC was set up – to provide reliable financial support to the Indian Railways.. Building on this legacy, IRFC is now extending its support to entities within the railway ecosystem, ensuring long-term synergies, cost effectiveness, and financial sustainability for the sector.”
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