Shares of Indian Railway Finance Corporation (IRFC) moved higher by over 2% after the company announced a major rupee term loan agreement with Hindustan Urvarak and Rasayan Limited (HURL) to refinance its existing long-term debt of up to ₹12,842 crore. The deal stands out as one of IRFC’s largest refinancing transactions and signals its continued expansion beyond traditional railway financing.
The agreement reflects IRFC’s broader “whole-of-government” financing strategy, where the company is increasingly supporting infrastructure sectors that are closely linked with railway logistics. Chairman and Managing Director Manoj Kumar Dubey emphasised that the transaction aligns with IRFC’s vision of providing cost-effective, long-term funding to strategically important sectors such as fertilizers, while also strengthening railway-linked supply chains.
The loan agreement was formalised in New Delhi in the presence of senior officials from both organisations. Sunil Kumar Goel, Executive Director (Finance) at IRFC, and Poonam Jeswani, Chief Financial Officer of HURL, signed the deal, marking a significant step in collaboration between the two entities.
This refinancing initiative is expected to deliver meaningful financial benefits to HURL through competitive interest rates and a more efficient repayment structure. The move is likely to improve debt servicing efficiency, enhance liquidity, and allow the company to allocate more resources toward operational strengthening and future growth. HURL’s plants, which are well connected to railway infrastructure, further reinforce the strategic importance of this deal, highlighting strong forward and backward linkages with the rail ecosystem.
HURL, a joint venture backed by major public sector companies including NTPC Limited, Coal India Limited, and Indian Oil Corporation, was established to revive closed fertilizer plants at Gorakhpur, Sindri, and Barauni. With all three units now operational, the company plays a crucial role in boosting India’s domestic urea production and supporting agricultural sustainability.
Founded in 1986, IRFC has been a key financial backbone for Indian Railways, raising long-term funds at competitive rates. As a Navratna CPSE, the company is now broadening its scope to finance projects across sectors such as power, mining, warehousing, telecom, metro rail, ports, and multimodal logistics, particularly those with strong railway linkages.