Shares of Indian Railway Finance Corporation (IRFC) rose 3% on Friday, 3 January, after the company announced signing a Memorandum of Understanding (MOU) with REMC to collaborate on financing renewable energy projects that REMCL had awarded for supply to Indian Railways. 

The partnership would also look into financing options for captive-built thermal, nuclear, and renewable power facilities through joint ventures with Indian Railways and other entities. The company said in a statement on Thursday that REMC is a joint venture of the Ministry of Railways.
 
In its regulatory filing, the company added, “Under the MOU, REMCL will provide its expertise in procuring economical Conventional/Renewable power for Railways including conducting of Bidding process for setting up Renewable Energy (RE) Projects in the power sector, while IRFC will offer its financial acumen, including project appraisal and fundraising capabilities,” the company said.

The Indian Railway Finance Corporation (IRFC), a public sector entity, is responsible for securing funding for the expansion and functioning of Indian Railways through capital markets and other borrowings. The Indian government owns the majority of IRFC, which is governed by the Ministry of Railways.  

The company’s primary duty is to secure funds through market borrowings at incredibly advantageous rates and circumstances in order to cover a significant portion of Indian Railways’ Extra Budgetary Resources (EBR) obligations.

At 12:51 pm, the shares of IRFC were trading 1.14% higher at Rs 153.78 on NSE.

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