IRFC inks ₹16,489 crore loan agreements with HPGCL and MAHAGENCO for thermal power projects

State-owned Indian Railway Finance Corporation Ltd (IRFC) on Monday (September 29) said it has signed two major loan agreements worth a combined ₹16,489 crore to finance upcoming supercritical thermal power projects in Haryana and Maharashtra.

At its Corporate Headquarters in Panchkula, IRFC signed a loan agreement with Haryana Power Generation Corporation Limited (HPGCL) for up to ₹5,929 crore. The funding will support the 800 MW (3rd Unit) supercritical thermal power project at Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), Yamunanagar.

The project is expected to strengthen Haryana’s power supply for households, industries, and agriculture, significantly augmenting the state’s generation capacity through modern, efficient technology. HPGCL, a wholly owned Government of Haryana undertaking, operates as the state’s primary power generation utility.

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Separately, at its New Delhi headquarters, IRFC signed a loan agreement with Maharashtra State Power Generation Company Limited (MAHAGENCO) for up to ₹10,560 crore. The funding will go toward the 2x660 MW supercritical expansion project at Koradi Thermal Power Station (TPS), Nagpur.

The project will add 1,320 MW of supercritical capacity, replacing older, less efficient units, and ensuring a reliable supply for Maharashtra’s industrial and agricultural consumers.

Both partnerships carry strong forward and backward linkages with Indian Railways. HPGCL’s thermal plants rely on coal transported by Indian Railways from eastern coalfields, ensuring steady freight traffic, while the generated power supports Northern Grid requirements, including railway traction.

MAHAGENCO, meanwhile, has executed multiple long-term Tripartite Agreements with Indian Railways for coal transportation. The utility incurs substantial annual expenditure on coal freight, wagon handling, and logistics, contributing significantly to Indian Railways’ freight revenues.

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