Indian Railway Finance Corporation Limited (IRFC) has executed a major rupee-term loan agreement worth ₹9,821 crore with Dedicated Freight Corridor Corporation of India Limited (DFCCIL), marking a significant step in strengthening domestic infrastructure financing. The agreement was signed on December 23, 2025, at the Railway Board in New Delhi, and the full loan amount has already been disbursed.
Indian Railway Finance Corporation Limited, a Government of India-owned NBFC operating under the administrative control of the Ministry of Railways, extended the rupee loan to refinance DFCCIL’s existing foreign currency debt availed from the World Bank (IBRD). The refinancing pertains to loans taken for the development of the Eastern Dedicated Freight Corridor, one of India’s most critical rail infrastructure initiatives.
The loan agreement was executed in the presence of the Chairman and CEO of the Railway Board, Shri Satish Kumar, along with senior officials from both organizations. The agreement was formally signed by Shri Rahul Kapoor, Director (Finance) of DFCCIL, and Ms. Deepa Kotnis, Executive Director (Finance) of IRFC.
Established in 1986 as the dedicated financing arm of Indian Railways, IRFC has played a central role in mobilising long-term funds at competitive rates to support railway infrastructure expansion. As a Navratna CPSE, IRFC has steadily diversified its financing portfolio beyond rolling stock to include projects with forward and backward linkages to the rail ecosystem. These include power generation and transmission, mining and fuel, coal logistics, warehousing, telecom, metro rail, freight corridors, ports, multimodal logistics, and allied infrastructure. The company continues to maintain a strong asset quality profile, supported by a zero non-performing asset (NPA) portfolio.
Dedicated Freight Corridor Corporation of India Limited, a wholly owned entity of the Ministry of Railways, is responsible for the development, operation, and maintenance of dedicated freight corridors across the country. These corridors are a key pillar of Indian Railways’ long-term strategy to boost freight capacity, improve logistics efficiency, and reduce congestion on passenger routes.
By refinancing its existing IBRD loans through rupee-denominated funding, DFCCIL stands to gain multiple financial advantages. The shift reduces exposure to foreign exchange volatility, improves predictability in debt servicing, and aligns long-term liabilities more closely with rupee-based revenue streams. This is expected to enhance overall cash flow management and financial stability for the project.
The Eastern Dedicated Freight Corridor is a flagship national infrastructure project aimed at transforming freight transportation in India. Once fully operational, it is expected to significantly reduce transit times, decongest existing rail lines, lower logistics costs, and support industrial and economic growth across northern and eastern India.
