Indian Railway Finance Corporation (IRFC) has signed a significant Rupee Term Loan agreement with Hindustan Urvarak and Rasayan Limited (HURL) to refinance its existing long-term debt up to ₹12,842 crore. This strategic refinancing initiative marks a substantial step forward in IRFC’s whole-of-government financing vision.
Manoj Kumar Dubey, Chairman & Managing Director of IRFC, highlighted the importance of this transaction, stating, “IRFC is actively expanding its footprint by supporting critical infrastructure sectors that have strong linkages with the railways. This refinancing transaction with HURL reflects our whole-of-government approach, where we bring cost-effective, long-term financing solutions to strategically important sectors such as fertilizers. By enabling financial efficiency, we are also contributing to agricultural sustainability while strengthening logistics with railways at the core.”
The loan agreement was formalised in New Delhi, with key figures such as Sunil Kumar Goel, Executive Director (Finance) of IRFC, and Poonam Jeswani, Chief Financial Officer of HURL, signing the deal in the presence of senior officials from both organisations.
This refinancing initiative is one of IRFC’s largest and is expected to deliver substantial value to HURL through competitive financing terms and an optimised repayment structure. This will enhance financial flexibility, improve debt servicing efficiency, and free up resources for operational strengthening and future growth.
HURL’s plants, which are well connected through rail infrastructure, underscore the project’s strong forward and backward linkages with the railway ecosystem. The company has operationalised institutional mechanisms for seamless rail freight payments, highlighting its deep integration with the rail transport network.
Established in 1986, IRFC has been instrumental in strengthening India’s rail infrastructure by mobilising long-term resources at competitive rates. As a Navratna CPSE, IRFC is expanding its role as a diversified infrastructure financier, covering projects with forward and backward linkages to railways, including power generation and transmission, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, and multimodal logistics.
Hindustan Urvarak and Rasayan Limited (HURL), a joint venture of leading PSUs including NTPC, Coal India, Indian Oil, FCIL, and HFCL, was established under the Government of India’s initiative to revive closed fertilizer plants at Gorakhpur, Sindri, and Barauni. All three plants are now operational and play a critical role in strengthening India’s domestic urea production capacity.
This transaction further reinforces IRFC’s position as a key financial partner in nation-building initiatives and demonstrates its capability to structure large-scale refinancing solutions for complex, multi-stakeholder infrastructure projects.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).