Railway company refinances Bhartiya Rail Bijlee Company Ltd with up to Rs 1,125 crore, reducing railway energy costs

DSIJ Intelligence-1 / 22 Aug 2025/ Categories: Mindshare, Trending

The stock is up by 16.8 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 500 per cent in 3 years.

The Indian Railway Finance Corporation (IRFC), a "Navratna" Public Sector Enterprise, has executed a refinancing facility of up to Rs 1,125 crore for Bhartiya Rail Bijlee Company Limited (BRBCL). BRBCL is a joint venture between NTPC Ltd. (74%) and the Ministry of Railways (26%). The loan agreement was signed at BRBCL’s Nabinagar office by Shri Sunil Goel, CGM (BD) of IRFC, and Shri Deepak Ranjan Dehuri, CEO of BRBCL.

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Established in 1986, IRFC serves as the dedicated financing arm for the Ministry of Railways. The company, which was recently granted "Navratna" status, is expanding its role as a diversified infrastructure financier. Its mandate now includes financing railway-linked projects such as power generation, mining, telecom, metro rail, and logistics. IRFC has a strong financial track record with a zero-NPA portfolio.

BRBCL, incorporated in 2007, operates a 1,000 MW thermal power project in Nabinagar, Bihar. 90 per cent of the plant's capacity supplies power to the Indian Railways, while the remaining 10 per cent goes to the Bihar State Electricity Board. The power is supplied under a long-term Power Purchase Agreement with a cost-plus tariff regulated by the Central Electricity Regulatory Commission (CERC).

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The refinancing provided by IRFC will help lower BRBCL's financing costs, thereby improving its financial health. This also reduces the cost of electricity for the Indian Railways. This initiative highlights IRFC's commitment to creating synergies within the railway ecosystem and ensuring the cost-effectiveness and financial sustainability of projects that directly support the Railways' operations.

The company has a market cap of Rs 1.64 lakh crore. The stock is up by 16.8 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 500 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.