Railway Company Sanctions Rs 12,640 Crore Loan to Chhattisgarh State Power Generation Company for New Thermal Power Project

DSIJ Intelligence-2 / 27 Sep 2025/ Categories: Mindshare, Trending

Railway Company Sanctions Rs 12,640 Crore Loan to Chhattisgarh State Power Generation Company for New Thermal Power Project

The stock is up by 12 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 479 per cent in 3 years.

The Indian Railway Finance Corporation (IRFC), a Government of India enterprise, has sanctioned a Rupee Term Loan (RTL) of Rs 12,640 crore to Chhattisgarh State Power Generation Company Limited (CSPGCL).

The funds are earmarked for CSPGCL's upcoming 2x660 MW Super Critical Thermal Power Project at HTPS, Korba West. CSPGCL, a wholly-owned entity of the Government of Chhattisgarh, is the state’s primary power generation utility, with an installed capacity exceeding 2,600 MW. The company plays a key role in supplying electricity to the state, neighbouring regions, and the Indian Railways.

The loan agreement was signed at CSPGCL’s headquarters in Raipur by Mr. Nav Goel, General Manager of IRFC, along with senior executives from CSPGCL, including Mr. Sandeep Modi, Executive Director (Finance), and Mr. C.L. Netam, Executive Director (Projects). The financing aims to provide CSPGCL with long-term, low-cost funds, ensuring the timely and stable execution of this critical power project.

Established in 1986 as the financing arm of the Ministry of Railways, IRFC has recently achieved ‘Navratna’ status. The company is now diversifying beyond traditional rail infrastructure financing to broader infrastructure projects, including those with forward and backward linkages to the railway ecosystem, such as power generation, mining, ports, and multimodal logistics.

Speaking from Delhi, the Chairman and Managing Director of IRFC stated, “Our support to CSPGCL exemplifies our commitment to provide competitive funding for projects that are vital to both regional growth and railway-linked infrastructure.” He further emphasised IRFC’s mission to serve as a one-stop financier for projects that enhance efficiency, sustainability, and energy security in India. The company also highlighted its strong asset quality, maintaining a zero per cent Non-Performing Asset (NPA) portfolio.

The company has a market cap of Rs 1.59 lakh crore. The stock is up by 12 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 479 per cent in 3 years.

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