IRFC joins consortium funding for Talcher Fertilizers' Coal Gasification Urea Project

Indian Railway Finance Corporation (IRFC) has joined hands with Talcher Fertilizers Limited (TFL) as part of the Government of India's fertilizer revival programme, by extending consortium funding support for India's first coal gasification-based urea production facility. The loan agreement was signed today at TFL's office, whrein IRFC is extending loan assistance of ₹4,000 crore towards the project as part of the sanctioned debt package, in consortium with other lenders, with the total debt component amounting to ₹12,250 crore.

Established in 1986 as the dedicated financing arm of the Ministry of Railways, IRFC has played a pivotal role in strengthening India's rail infrastructure by mobilising resources at competitive rates. Recently accorded 'Navratna' status, the company is expanding its role as a diversified infrastructure financier within the railway ecosystem, with a mandate covering projects that have forward and backward linkages with railways, such as power generation and transmission, mining, fuel, coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, multimodal logistics etc. IRFC continues to maintain a strong asset quality track record with a zero-NPA portfolio.

TFL, a joint venture of Coal India Ltd., GAIL, Rashtriya Chemicals & Fertilizers (RCF) and Fertilizer Corporation of India Ltd. (FCIL), is setting up a state-of-the-art facility to utilize indigenous coal for producing 1.27 million metric tonnes of neem-coated urea annually. This strategic project will not only reduce dependence on imported natural gas but also enhance domestic self-sufficiency in fertilizer production in line with the Government's vision of Atmanirbhar Bharat.

The project forms a vital part of the fertilizer sector revival plan, wherein five closed urea plants were identified by the Government for revival and the Talcher unit will be the first to deploy coal gasification technology for urea production.

The project has a strong railway linkage, with a dedicated siding being developed under the Indian Railways' Gati Shakti Multi-Modal Cargo Terminal (GCT) policy.

The project enjoys a strong railway linkage with a dedicated railway siding is being developed as part of the project's logistics infrastructure. ensuring seamless connectivity for both inbound movement of coal, pet coke, and limestone, and outward dispatch of urea. The facility is expected to handle nearly five rakes per day. The siding is being developed under the Indian Railways' Gati Shakti Multi-Modal Cargo Terminal (GCT) policy, highlighting the strong forward and backward linkages of this project with the railway sector.

Speaking on the occasion, the Chairman & Managing Director of IRFC, from his office in Delhi said: "We are proud to partner in this pioneering project that is central to India's fertilizer self-reliance. IRFC's long-term and competitive financing will support timely execution of Talcher Fertilizers, ensuring sustainable growth in domestic urea production and strengthening railway-linked infrastructure under the national revival programme."

IRFC remains committed to supporting projects of national importance that are closely linked with the railways and contribute to India's developmental priorities.

Shares of Indian Railway Finance Corporation Limited was last trading in BSE at Rs. 121.90 as compared to the previous close of Rs. 124.10. The total number of shares traded during the day was 891197 in over 13377 trades.

The stock hit an intraday high of Rs. 124.30 and intraday low of 121.55. The net turnover during the day was Rs. 109424989.00.

Source : Equity Bulls

Keywords

IndianRailwayFinanceCorporation INE053F01010 IRFC NBFC TalcherFertilizers