PFC Sanctions Rs 3,517 Crore Loan for Chhattisgarh East Rail Corridor

State-owned Power Finance Corporation (PFC) has sanctioned a Rs 3,517 crore loan to Chhattisgarh East Railway Limited (CERL) for the East Rail Corridor Project. CERL, a joint venture, will use the funds to develop a railway primarily for coal transport to thermal power plants.

The Power Finance Corporation (PFC), a state-owned entity, announced on Thursday the sanctioning of a loan worth Rs 3,517 crore to Chhattisgarh East Railway Limited (CERL). This funding is intended for the development of the East Rail Corridor Project in the region.

CERL is a collaboration among South Eastern Coalfields Limited (SECL), IRCON International, and Chhattisgarh State Industrial Development Corporation Limited (CSIDCL), the PFC's statement revealed. The agreement for the term loan, amounting to Rs 3,516.68 crore, was formalized on March 28, 2025.

The railway project, currently under construction, aims to facilitate the transportation of coal from nearby mines to thermal power plants, enhancing the area's infrastructure. Operating under the Ministry of Power, PFC is central to the development of power schemes and transmission projects.

(With inputs from agencies.)