Shares of IRFC Ltd were trading in the green and 3% higher on 15 January after the company announced that they have emerged as the lowest bidder (L1) for providing financing of Rs 3,167 crore to develop the Banhardih coal block in Latehar district, Jharkhand.
The project will be undertaken by Patratu Vidyut Utpadan Nigam Ltd, Which is a joint venture between NTPC Ltd, holding a 74% stake and Jharkhand Bijli Vitran Nigam, holding a 26% stake.
In its regulatory filing, the company said, “We have been identified as the L1 bidder to fund the Rs 3,167 crore development of the Banhardih coal block in Jharkhand’s Latehar district. PVUNL, a joint venture of NTPC and Jharkhand Bijli Vitran Nigam, is executing the project.”
The coal block has been designated as a captive source for PVUNL, ensuring a consistent supply for its operations. Coal will be mined and transported to the Chetar station via a Mine-Gain-Rail (MGR) system, which will then be delivered to PVUNL’s project site through Indian Railways. IRFC emphasized that the financing proposal is subject to due diligence, board approval, and finalizing terms with PVUNL.
Earlier on 2 January, the company signed a Memorandum of Understanding (MoU) with Railway Energy Management Company Ltd (REMCL), a joint venture between the Ministry of Railways (MOR) and RITES.
The company has also partnered up with Railway Energy Management Company Ltd to finance renewable energy projects aiming towards powering Indian Railways.
The partnership will allow IRFC to explore financing options for thermal, nuclear, and renewable energy projects developed under a captive model through joint ventures involving Indian Railways and other stakeholders.
The Memorandum of Understanding (MoU) establishes a framework to support Indian Railways’ goal of reducing reliance on fossil fuels and achieving net-zero carbon emissions by 2030. This collaboration aims to propel the railway sector towards a greener and more sustainable future by harnessing renewable energy.
At 12:37 pm, the shares of IRFC were trading 1.14% higher at Rs 137.10 on NSE.
The future of investing is here!
Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!
