NEW DELHI: Indian Railway Finance Corporation Limited (IRFC), a Navratna Central Public Sector Enterprise under the Ministry of Railways, has signed a ₹4,200 crore Term Loan Agreement with Damodar Valley Corporation (DVC) to finance renewable energy projects across Jharkhand and West Bengal.
The transaction marks another step in IRFC’s strategic expansion into diversified infrastructure financing while maintaining strong linkages with the broader railway ecosystem. The agreement was signed in New Delhi in the presence of senior officials from both organisations.
DVC was represented by Manish Kumar, Member (Finance), DVC, while IRFC was represented by Manoj Kumar Dubey, Chairman and Managing Director, IRFC.
₹4,200 Crore Financing to Support DVC’s Renewable Energy Portfolio
The financing will support DVC’s portfolio of renewable energy and energy storage projects, making use of its existing land, reservoirs and transmission infrastructure.
The projects covered by the financing include:
- Floating solar projects
- Ground-mounted solar projects
- Rooftop solar projects
- Battery Energy Storage System (BESS) projects
These projects are located across Jharkhand and West Bengal and are aimed at strengthening renewable energy capacity while making greater use of DVC’s existing infrastructure.
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IRFC Expands Financing Role Into Clean Energy Infrastructure
The DVC transaction reflects IRFC’s calibrated diversification into infrastructure sectors that have strategic links with the railway ecosystem and wider national development priorities.
IRFC has traditionally focused on providing long-term financing for railway infrastructure. Its expanding portfolio now also covers areas such as:
- Renewable energy
- Power infrastructure
- Metro rail
- Logistics
- Other railway-linked infrastructure
The company said the transaction demonstrates its ability to mobilise long-term capital for nationally important infrastructure while responding to emerging requirements in clean energy and sustainable development.
Renewable Energy Supports Railways’ Net-Zero Goal
IRFC CMD Manoj Kumar Dubey said renewable energy has become an important part of Indian Railways’ objective of achieving Net Zero Carbon Emissions by 2030.
He said the ₹4,200 crore financing for DVC extends IRFC’s long-term financing capabilities to clean energy infrastructure that can support India’s future energy requirements.
Dubey added that the transaction represents “IRFC 2.0” through strategic diversification that remains connected to the Railways ecosystem and the country’s broader development priorities.
According to IRFC, the partnership with DVC demonstrates how long-term capital can support renewable energy infrastructure while contributing to a more sustainable energy ecosystem.
DVC Projects to Leverage Existing Land and Infrastructure
The renewable energy projects supported through the financing will utilise DVC’s existing assets, including land, reservoirs and transmission infrastructure.
The approach is expected to facilitate the development of different renewable energy formats, including floating solar installations on reservoirs, ground-mounted and rooftop solar projects, as well as energy storage infrastructure.
The inclusion of Battery Energy Storage Systems will also support the integration and management of renewable power within the energy ecosystem.
IRFC’s Strategic Diversification Continues
The DVC financing agreement marks another milestone in IRFC’s strategy to diversify its financing activities while retaining a strong connection with the railway sector.
The company is extending its established long-term financing capabilities to strategic infrastructure segments that complement its core mandate. Renewable energy and related infrastructure are increasingly relevant to the Railways’ transition towards cleaner energy.
The transaction therefore brings together IRFC’s experience in long-term infrastructure financing with DVC’s renewable energy development plans in eastern India.
About IRFC
Indian Railway Finance Corporation Limited (IRFC) is a Navratna Central Public Sector Enterprise under the Ministry of Railways. It is the dedicated financing arm of Indian Railways and primarily raises funds from domestic and international markets to finance railway infrastructure and rolling stock. The company is also expanding its financing activities into strategic infrastructure sectors linked to national development priorities.
About DVC
Damodar Valley Corporation (DVC) is a statutory organisation engaged in power generation, transmission and related infrastructure in the Damodar Valley region. It operates across Jharkhand and West Bengal and is expanding its renewable energy portfolio through solar and energy storage projects, including initiatives that leverage its existing land, reservoirs and transmission network.
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