Shares of Indian Railway Finance Corporation Ltd (IRFC) gained 4 percent to Rs 140.5 in morning trade on January 15 after the company announced that it has emerged as the lowest bidder to provide financing of Rs 3,167 crore for developing the Banhardih coal block in Latehar district, Jharkhand.
Patratu Vidyut Utpadan Nigam Ltd (PVUNL) is undertaking the project, a joint venture between NTPC (74 percent stake) and Jharkhand Bijli Vitran Nigam (26 percent stake). In its regulatory filing, IRFC stated, "We have been identified as the L1 bidder to fund the Rs 3,167 crore development of the Banhardih coal block in Jharkhand's Latehar district. PVUNL, a joint venture of NTPC and Jharkhand Bijli Vitran Nigam, is executing the project."
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The coal block has been designated as a captive source for PVUNL, ensuring a steady supply for its operations. Coal will be extracted and transported to the Chetar station using a Mine-Gain-Rail (MGR) system and moved to PVUNL’s project site through Indian Railways. IRFC highlighted that this financing proposal is subject to due diligence, board approval, and the finalisation of terms with PVUNL.
On January 2, IRFC entered into a Memorandum of Understanding (MoU) with Railway Energy Management Company Ltd (REMCL), a joint venture of the Ministry of Railways (MOR) and RITES.
Indian Railway Finance Corporation Ltd (IRFC) and Railway Energy Management Company Ltd (REMCL) have joined hands to finance renewable energy projects aimed at powering Indian Railways. The partnership will enable IRFC to explore funding options for thermal, nuclear, and renewable power projects developed under a captive model through joint ventures involving Indian Railways and other entities.
The memorandum of understanding (MoU) lays the groundwork for advancing Indian Railways' mission to reduce dependency on fossil fuels and achieve net-zero carbon emissions by 2030. By leveraging renewable energy sources, this collaboration aims to drive the railway sector towards a greener, more sustainable future.
At about 9:50 am, shares of the company were trading at Rs 137, higher by 1.3 percent from the last close on the NSE. IRFC shares have been on a dismal run, tanking 15 massive percent in the last month.
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