New Delhi: Indian Railway Finance Corporation (IRFC) has extended a Rs 9,821 crore loan to the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) to refinance the latter’s foreign currency debt availed from the World Bank.
The loan from World Bank was taken for the Eastern Dedicated Freight Corridor project.
The loan agreement has been formally signed between DFCCIL's Director (Finance) Rahul Kapoor and IRFC's Executive Director (Finance) Deepa Kotnis.
"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 in an official statement issued on Wednesday.
According to IRFC, this transaction marks a significant milestone in India’s infrastructure financing landscape, underscoring the growing depth, maturity and capability of Indian financial institutions to support large-scale, long-gestation critical infrastructure projects through domestic funding solutions.
Officials said that the refinancing covers existing World Bank loans and by shifting from foreign currency debt to rupee-denominated financing, DFCCIL will benefit from reduced 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 & Managing Director, IRFC, said.
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