IRFC signs lease agreement with NTPC for 8 BOBR rakes worth ₹250 crore

State-owned Indian Railway Finance Corporation (IRFC) Ltd on Wednesday (January 15) said it has signed a lease agreement with NTPC Ltd for the financing of 8 BOBR (Bogie Open Bottom Rapid) rakes worth approximately ₹250 crore.

“…this is to inform that Indian Railway Finance Ltd (IRFC), a Public Sector Enterprise under the Ministry of Railways, has signed a Lease Agreement dated 15th January 2025 with NTPC, a Public Sector Enterprise under the Ministry of Power,” IRFC said in a regulatory filing

This marks the first phase of IRFC’s broader commitment to fund 20 BOBR rakes under the General Purpose Wagon Investment Scheme (GPWIS) of Indian Railways. The IRFC board had earlier approved financing up to ₹700 crore for these rakes on a finance lease basis during its meeting on October 8, 2024.

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This week, the Indian Railway Finance Corporation said it has emerged as the lowest bidder (L1) to finance ₹3,167 crore for the development of the Banhardih coal block in Latehar District, Jharkhand.

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

The coal block, allocated to PVUNL as a captive coal source, will support the company’s operations by facilitating coal transportation to its project site. Coal extracted from the block will be moved to the Chetar station via a Mine-Gain-Rail (MGR) system and then transported using Indian Railways.

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Shares of Indian Railway Finance CorpLtd ended at ₹137.50, up by ₹1.75, or 1.29% on the BSE.