Indian Railway Finance Corporation's Landmark Loan To Transform DFCCIL

Indian Railway Finance Corporation extended a Rs 9,821 crore loan to DFCCIL for refinancing its World Bank debt related to the Eastern Dedicated Freight Corridor project. This Rupee Term Loan benefits DFCCIL by reducing exchange rate risk. The agreement symbolizes a significant development in India's infrastructure financing with domestic funds.

In a major development for India's infrastructure sector, the Indian Railway Finance Corporation has extended a substantial Rs 9,821 crore loan to the Dedicated Freight Corridor Corporation of India Ltd (DFCCIL), aiming to refinance foreign currency debt initially acquired from the World Bank for the Eastern Dedicated Freight Corridor project.

The significant Rupee Term Loan Agreement was finalized at the Railway Board in New Delhi, with key financial figures Rahul Kapoor, Director of Finance at DFCCIL, and Deepa Kotnis, Executive Director of Finance at IRFC, overseeing the proceedings. The event was also attended by the Chairman and CEO of the Railway Board, Satish Kumar, along with other senior officials.

The transaction is hailed as a milestone in the Indian infrastructure financing sector, showcasing the ability of Indian financial institutions to support large-scale infrastructure projects domestically. By switching from foreign currency debt to a rupee-denominated loan, DFCCIL can mitigate against exchange rate volatility, reflecting IRFC's strategic contribution to financial efficiencies within the railway ecosystem.