IRFC Extends ₹1,125 Crore Refinancing Support to BRBCL

22 Aug 2025 , 10:00 AM

Indian Railway Finance Corporation Ltd. (IRFC), the financing arm of the Ministry of Railways, has executed a refinancing facility of up to ₹1,125 crore for Bhartiya Rail Bijlee Company Limited (BRBCL), a joint venture between NTPC Ltd. (74%) and the Ministry of Railways (26%).

The agreement was signed at BRBCL’s Nabinagar office by Shri Sunil Goel, CGM (BD), IRFC, and Shri Deepak Ranjan Dehuri, CEO, BRBCL, in the presence of senior officials from both organisations.

BRBCL, incorporated in 2007, operates the 1,000 MW Nabinagar Thermal Power Project (4×250 MW) in Bihar. The project supplies electricity under a long-term power purchase agreement, with 90% of its capacity dedicated to Indian Railways and the remaining 10% to Bihar State Electricity Board, under tariffs regulated by the Central Electricity Regulatory Commission (CERC).

The refinancing extended by IRFC is expected to lower financing costs for BRBCL, strengthening its financial position and reducing the cost of electricity supplied to Indian Railways. This, in turn, benefits both BRBCL’s profitability and the Ministry of Railways, which is both a shareholder and a key consumer of the plant’s output.

Commenting on the development, the Chairman and Managing Director of IRFC said from New Delhi: “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 our continued support to Indian Railways, true to the very reason IRFC was established – to provide reliable financial support to the sector. Building on this legacy, we are now extending our reach to entities within the railway ecosystem to ensure synergies, cost-effectiveness and financial sustainability for the long term.”

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