The shares of Indian Railway Finance Corporation Limited (IRFC) rallied 3.13% to an intraday high of ₹156.80 per share on Friday as the company signed a Memorandum of Understanding (MoU) with REMC to collaborate on financing renewable energy projects awarded by REMCL for supply to Indian Railways.
The partnership will also look into financing opportunities for thermal, nuclear, and renewable power projects developed under a captive model through joint ventures with Indian Railways and other organizations. REMC, the company noted in a statement on Thursday, is a joint venture between the Ministry of Railways and the company.
In the exchange filing, the company said, “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.”
Indian Railway Finance Corporation (IRFC) is a public sector entity primarily tasked with raising financial resources for Indian Railways' expansion and operations, mainly through capital markets and borrowings. Majority-owned by the Government of India, IRFC operates under the Ministry of Railways. Its main function is to meet a large portion of Indian Railways' Extra Budgetary Resources (EBR) needs by securing funds at competitive rates. Meanwhile, Indian Railways has successfully electrified 96.68% of its broad gauge network and is on track to become fully electrified by 2024-25, with 20 states now having 100% electrified networks.
At close on Friday, the shares of Indian Railway Finance Corporation Limited (IRFC) were trading at ₹153.70 per share, registering gains of 1.09%, as opposed to the previous close of ₹152.04 per share on the National Stock Exchange (NSE).
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