Indian Railway Finance Corporation Ltd (IRFC) signed a Rs 4,200 crore term loan agreement with Damodar Valley Corporation (DVC) on September 28, 2026, to finance renewable energy projects, according to its BSE filing. The projects will be developed across Jharkhand and West Bengal.

The agreement was signed in New Delhi in the presence of senior officials from both organisations, including Manish Kumar, Member (Finance), DVC, and Manoj Kumar Dubey, Chairman and Managing Director, IRFC.

IRFC, a Navratna Central Public Sector Enterprise under the Ministry of Railways, said the transaction extends its long-term financing capabilities into clean energy infrastructure linked to the broader railway ecosystem. The company described the agreement as part of its expansion and diversification as an infrastructure financier.

Funding for solar and battery storage

The financing will support DVC’s renewable energy portfolio across Jharkhand and West Bengal, using its existing land, reservoirs and transmission infrastructure. The projects covered include:

  • Floating solar projects
  • Ground-mounted solar projects
  • Rooftop solar installations
  • Battery Energy Storage System (BESS) projects

IRFC said the financing supports railway-linked clean energy infrastructure and Indian Railways’ Net Zero Carbon Emissions target by 2030. The release positioned renewable energy as central to the Railways’ energy transition.

Dubey said the DVC financing demonstrates the company’s approach to diversification while retaining its connection with the railway ecosystem. He also said the partnership would bring long-term capital to renewable energy infrastructure that supports the Railways’ growing energy requirements.

Expansion beyond core railway financing

The DVC transaction forms part of IRFC’s diversification into railway-linked infrastructure sectors. Its expanding financing portfolio includes renewable energy, power, metro rail, logistics and other infrastructure associated with national development priorities, the release said.

IRFC remains the dedicated market borrowing arm of Indian Railways. Its financing activities support railway expansion, modernisation and infrastructure development, alongside its expansion into sectors with forward and backward linkages to the railway ecosystem.

The company said the DVC agreement combines its established long-term financing capabilities with emerging requirements in clean energy and sustainable infrastructure, complementing its core railway financing mandate.

Source: BSE corporate announcement.