In an effort to diversify its core financing mechanisms for Indian Railways, the Indian Railway Finance Corporation (IRFC), a specialised non-banking financial company (NBFC) dedicated to supporting Indian Railways, is now seeking to finance the procurement of rolling stock for metro systems.
Manoj Kumar Dubey, Chairman & Managing Director and Chief Executive Officer of IRFC mentioned ” We are on the verge of signing one agreement with one of the metro railway (project) where we are going to finance their rolling stock for the first time in the similar manner as we are doing for the Indian Railways,” as reported by ET Infra.
Mr. Dubey also indicated that the development of rail infrastructure across the country, including the Indian Railways network, metro systems, and rapid rail systems, entails an annual financing requirement ranging from ₹4 lakh crores to ₹25 lakh crores, demonstrating IRFC’s intent to capture this major financing opportunity.
Mr. Dubey also said, “In January this year, we changed our motto from being the financing arm of Indian Railways to the financing arm of the railway ecosystem… anything having backwards-forward linkages with the railways,”.
As the budgetary allocations for Indian Railways have progressively increased, with an allocation for the financial year 2025-26 (April to March) set at ₹2.52 lakh crores, IRFC is now focusing on lending to various segments within the rail sector to achieve enhanced net interest margins.
