IRFC refinances freight corridor’s Rs 10,000 crore World Bank loan

Indian Railway Finance Corporation (IRFC) has refinanced a Rs 10,000 crore foreign currency debt availed from the World Bank for the Eastern Dedicated Freight Corridor (EDFC). This first-of-its-kind refinancing arrangement, is expected to result in savings of Rs 2,700 crore for India, the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) said in a statement.

“By shifting from foreign currency debt to rupee-denominated financing, DFCCIL will benefit from reduced exposure to exchange rate volatility, enhanced predictability in debt servicing, and closer alignment of long-term liabilities with its rupee-based revenue streams, thereby improving overall cash flow management,” IRFC said the refinancing covers existing International Bank for Reconstruction and Development (IBRD) loans.

The Navratna said it executed a Rupee Term Loan Agreement of Rs 9,821 crore and the amount has been disbursed.


IRFC said it is expanding its role as a diversified infrastructure financier within the railway ecosystem, with a mandate covering projects having forward and backward linkages with railways. They include power generation and transmission, mining, fuel and coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports and multimodal logistics.

The Eastern Dedicated Freight Corridor is aimed at transforming freight transportation in the country by decongesting passenger lines, improving logistics efficiency, reducing transit time, and supporting industrial growth across the northern and eastern regions of India.