Rail funding: IRFC extends Rs 9,821 crore loan to DFCCIL; World Bank debt refinanced in rupee terms
Indian Railway Finance Corporation (IRFC) has provided a Rs 9,821 crore loan to the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) to refinance its foreign currency debt taken from the World Bank for the Eastern Dedicated Freight Corridor project, PTI reported.The rupee-denominated term loan agreement was signed between Rahul Kapoor, Director (Finance), DFCCIL, and Deepa Kotnis, Executive Director (Finance), IRFC, the rail financier said in a statement.“The Rupee Term Loan Agreement of Rs 9,821 crore was executed at the Railway Board, New Delhi, in the presence of Chairman & CEO, Railway Board, Satish Kumar, along with senior officials of IRFC and DFCCIL,” IRFC said.According to IRFC, the refinancing marks an important milestone in India’s infrastructure financing landscape, highlighting the growing capacity of domestic financial institutions to support large, long-gestation infrastructure projects through local funding solutions.Officials said the refinancing fully covers the existing World Bank loans. By shifting from foreign currency borrowing to rupee-based financing, DFCCIL is expected to benefit from lower exposure to exchange rate volatility, among other advantages.“This refinancing marks a landmark step in India’s infrastructure financing journey and reflects IRFC’s pivotal role in bringing financial efficiencies to the railway ecosystem,” Manoj Kumar Dubey, Chairman and Managing Director of IRFC, said.
