IRFC signs Rs 12,842 crore refinancing deal with HURL to boost fertiliser sector financing
New Delhi: Indian Railway Finance Corporation Limited (IRFC) has signed a major rupee term loan agreement with Hindustan Urvarak and Rasayan Limited (HURL) for refinancing its existing long-term debt of up to Rs 12,842 crore.
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According to an official statement, the agreement, aimed at enhancing financial efficiency, aligns with IRFC’s broader “whole-of-government” financing approach to support strategically important sectors, including fertilisers.
Speaking on the development, IRFC Chairman and Managing Director Manoj Kumar Dubey said the transaction underscores the company’s expanding role in financing critical infrastructure sectors with strong linkages to the railway ecosystem. He noted that the refinancing will provide cost-effective, long-term funding solutions while contributing to agricultural sustainability and strengthening logistics.
The loan agreement was signed in New Delhi between Sunil Kumar Goel, Executive Director (Finance), IRFC, and Poonam Jeswani, Chief Financial Officer, HURL, in the presence of senior officials from both organisations.
According to the company, the refinancing is expected to deliver significant value to HURL through competitive financing terms and an optimised repayment structure aligned with its operational cash flows. This is likely to improve debt servicing efficiency, enhance financial flexibility, and free up resources for future growth and operational strengthening.
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The project also highlights strong integration with the railway ecosystem, as HURL’s fertiliser plants are well connected via rail infrastructure, with fertiliser movement coordinated closely with Indian Railways.
IRFC, a Navratna CPSE under the Ministry of Railways, has been steadily diversifying beyond rail financing into sectors with forward and backward linkages to railways, including power, mining, logistics, and infrastructure.
HURL, a joint venture of major public sector companies such as NTPC Limited, Coal India Limited, Indian Oil Corporation Limited, along with FCIL and HFCL, was established to revive fertiliser plants at Gorakhpur, Sindri, and Barauni. All three units are now operational, contributing to India’s domestic urea production capacity.
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