New Delhi: Indian Railway Finance Corporation (IRFC) has signed a loan agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO) to provide financial assistance of up to Rs 10,560 crore for the expansion of the Koradi Thermal Power Station (TPS) in Nagpur.
The agreement, signed at IRFC’s corporate office in New Delhi, was executed between Sunil Kumar Goel, Chief General Manager of IRFC, and Pankaj Sharma, Chief General Manager (Finance) of MAHAGENCO. The project will add 1,320 MW of supercritical capacity (2x660 MW), replacing older and less efficient units at Koradi TPS, thereby enhancing reliable power supply for Maharashtra’s industrial and agricultural sectors.
The Koradi expansion project is considered strategically important, ensuring uninterrupted power supply in the state while contributing to modernization of generation capacity. IRFC’s funding support is expected to facilitate the smooth execution of the project.
Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has recently been accorded Navratna status. Traditionally focused on mobilising resources for rail infrastructure, the corporation is now diversifying into projects with forward and backward linkages to the railway ecosystem, including power generation, mining, coal, warehousing, telecom, metro rail, freight corridors, ports, and multimodal logistics. Notably, IRFC continues to maintain a zero-NPA portfolio.
The partnership between IRFC and MAHAGENCO also strengthens synergies with Indian Railways. MAHAGENCO has signed multiple long-term Tripartite Agreements with Indian Railways for coal transportation, with significant annual expenditure on freight, wagon handling, and logistics, thereby contributing substantially to railway freight revenues.
Commenting on the development, Manoj Kumar Dubey, Chairman and Managing Director & CEO of IRFC, said, “At IRFC, our priority is to support projects that are closely integrated with Indian Railways and deliver enduring benefits. By extending funding support to MAHAGENCO, we are not only enabling critical capacity addition in Maharashtra but also strengthening the railway infrastructure that is vital for nation building.”
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