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IRFC Signs ₹250 Crore Lease Agreement with NTPC for 8 BOBR Rakes

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Synopsis:

IRFC has inked a ₹250 crore lease agreement with NTPC for 8 BOBR rakes, supporting coal transportation projects. The deal aligns with IRFC’s broader ₹700 crore financing plan.

IRFC news today

Indian Railway Finance Corporation (IRFC) has signed a ₹250 crore lease agreement with NTPC Ltd for financing 8 Bogie Open Bottom Rapid (BOBR) rakes. This move is part of IRFC's broader commitment to fund 20 BOBR rakes under the General Purpose Wagon Investment Scheme (GPWIS) of Indian Railways. The agreement, signed on 15 January 2025, reinforces the public sector entity’s role in supporting the infrastructure needs of key energy and transport stakeholders.

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INDIAN RAILWAY FIN CORP L

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146.193.21 (2.24 %)

Updated - 17 January 2025
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Key Takeaways:

  • Agreement Value: ₹250 crore for 8 BOBR rakes.

  • GPWIS Commitment: IRFC to finance 20 BOBR rakes for ₹700 crore.

  • Associated Project: Coal transportation for NTPC’s captive coal block.

  • Significant Role: Strengthening Indian Railways' freight infrastructure.

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Details Of The Lease Agreement

The lease agreement marks the initial phase of IRFC’s financial commitment under GPWIS. The funding is aimed at facilitating coal transportation from NTPC’s captive coal block to its project sites, enhancing the efficiency of India’s logistics and energy supply chain.

IRFC’s Role In Supporting Coal Infrastructure

This agreement complements IRFC’s recent success as the lowest bidder (L1) for financing ₹3,167 crore towards the development of the Banhardih coal block in Jharkhand. This coal block, managed by Patratu Vidyut Utpadan Nigam Ltd (PVUNL), will ensure efficient coal supply via the Mine-Gain-Rail (MGR) system to NTPC’s Chetar station.

Financial Insights

Here is a summary of the financial and operational scope of the agreement and related projects:

Parameter

Details

Agreement Value

₹250 crore

Number of BOBR Rakes

8

Total GPWIS Commitment

₹700 crore (20 rakes)

Recent Financing Bid (Banhardih)

₹3,167 crore

Captive Coal Block

Banhardih, Jharkhand

Strengthening Infrastructure For Coal Transport

The lease agreement underscores IRFC’s commitment to enhancing railway and energy infrastructure in India. By funding critical freight assets, the company facilitates smooth coal transportation, improving efficiency in energy projects and bolstering its position as a key infrastructure financier.

This agreement highlights IRFC’s strategic initiatives in supporting India’s logistics and energy sectors. With further commitments in pipeline, the company continues to play a pivotal role in infrastructure development, positively impacting IRFC share price performance.

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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