IRFC Share Price Rises on Securing Banhardih Coal Block Financing Deal

Indian Railway Finance Corporation Ltd (IRFC) saw its share price rise by 4% to ₹140.5 on January 15 in early trading on the NSE. The surge followed the announcement that the company emerged as the lowest bidder to finance ₹3,167 crore for the development of the Banhardih coal block, located in Latehar district, Jharkhand. However, the stock pared early gains and was trading slightly higher by 1.13% as of 11:46 AM.

The project is being spearheaded by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Ltd, holding a 74% equity stake, and Jharkhand Bijli Vitran Nigam, with a 26% stake.

Key Details of the Project

The Banhardih coal block, allocated as a captive coal source to PVUNL, will supply coal to the Chetar Station using the Mine-Gain-Rail (MGR) system. From there, the coal will be transported to PVUNL’s project site via Indian Railways, ensuring efficient logistics and reduced transit times.

MoU with REMCL: A Step Towards Green Energy

Earlier this month, on January 2, IRFC signed a Memorandum of Understanding (MoU) with Railway Energy Management Company Limited (REMCL). The partnership focuses on financing renewable energy projects awarded by REMCL to benefit Indian Railways. The MoU also includes exploring financial avenues for thermal, nuclear, and renewable power projects developed under a captive model in collaboration with Indian Railways.

In its filing to BSE, IRFC stated that REMCL will bring expertise in sourcing economical power, while IRFC will contribute with project appraisals and fundraising for these initiatives.

Upcoming Financial Results

In another significant update, IRFC’s board of directors is scheduled to meet on January 20. The agenda includes the approval of the financial results and cash flow statement for the quarter and 9 months ending December 31.

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