Indian Railway Finance Corporation (IRFC), the dedicated funding arm of Indian Railways, is expanding into renewable energy financing to support India’s goal of installing 500 GW of non-fossil fuel-based energy capacity by 2030. Recently awarded ‘Navratna’ status, IRFC now has greater operational and financial autonomy. 

The corporation won a bid to provide a Rs 75 billion term loan to NTPC Green Energy and is lending Rs 31 billion to an NTPC thermal power subsidiary. It is also exploring funding opportunities for Indian Railways' renewable energy needs and metro rail projects. Additionally, IRFC has partnered with REMC to finance renewable projects supplying power to the railways. 

This financing push aligns with calls from the Ministry of New and Renewable Energy to mobilize funds for India’s clean energy targets, with an estimated Rs 30 trillion needed to meet the 2030 capacity goal. Parliament’s standing committee on energy has also recommended innovative financing mechanisms like green bonds and infrastructure development funds to bridge the financing gap. 

(mercom)