Indian Railway Finance Corporation (IRFC) has stepped in to support Bhartiya Rail Bijlee Company Limited (BRBCL) with a refinancing facility of up to ₹1,125 crore. BRBCL is a joint venture between NTPC Ltd. (74%) and the Ministry of Railways (26%).
The loan agreement was signed today at BRBCL’s Nabinagar office by Shri Sunil Goel, CGM (BD), IRFC, and Shri Deepak Ranjan Dehuri, CEO, BRBCL, in the presence of senior officials from both organisations.
IRFC’s Expanding Role
Set up in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has been instrumental in powering India’s railway growth by raising funds at competitive rates. Recently elevated to ‘Navratna’ status, the company is now widening its reach beyond rail projects to cover areas that support the railway ecosystem, such as power generation and transmission, mining, fuel, coal, logistics, telecom, metro rail, freight corridors, ports, and even hospitality.
Notably, IRFC continues to maintain a stellar track record with zero NPAs (non-performing assets), highlighting its strong financial discipline.
BRBCL’s Nabinagar Plant
BRBCL, founded in 2007, runs the 1,000 MW Nabinagar Thermal Power Project in Bihar, which consists of four units of 250 MW each. Under a long-term Power Purchase Agreement (PPA), 90% of the plant’s output is supplied to Indian Railways, while the remaining 10% goes to the Bihar State Electricity Board. Tariffs are regulated by the Central Electricity Regulatory Commission (CERC) on a cost-plus basis.
A Win-Win for Railways and BRBCL
The refinancing package from IRFC will help BRBCL bring down its financing costs, strengthening its overall financial position. More importantly, it will also reduce the cost of power supplied to Indian Railways.
This makes it a double benefit: BRBCL’s bottom line improves, while the Ministry of Railways, as both a shareholder and the primary customer, gains from cheaper electricity.
