IRFC Extends ₹3,388 Crore Funding Support to PVUNL for Banhardih Coal Block

Indian Railway Finance Corporation (IRFC), the financing arm of the Ministry of Railways and a recently conferred Navratna public enterprise, has approved a major loan facility to support power generation in Jharkhand. 

On September 27, 2025, the corporation announced that it is extending financial assistance of over ₹3,388 crore to Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary of NTPC Limited, for the development of the Banhardih Coal Block in Latehar district.

Loan Agreement and Project Scope

The agreement was signed at PVUNL’s Patratu office by Shri Shwet Ketu Mishra, Chief General Manager at IRFC, and Shri Ashok Kumar Sehgal, Chief Executive Officer of PVUNL. The loan amounts to ₹3,388.51 crore, aimed at enabling the timely development of the coal block, which will serve as captive fuel for PVUNL’s large-scale thermal project.

PVUNL, formed as a joint venture between NTPC Ltd. (74%) and Jharkhand Bijli Vitran Nigam Limited (26%), is executing a 4,000 MW coal-based thermal power plant at Patratu in two phases. The Banhardih block, allocated for this purpose, contains estimated reserves of around 956 million tonnes. Coal extracted will be transported through the Indian Railways network, ensuring strong forward and backward integration with the rail ecosystem.

IRFC’s Expanding Role

Established in 1986, IRFC has long been instrumental in mobilising capital to strengthen India’s rail infrastructure. With its new Navratna status, the corporation is diversifying its portfolio to finance projects that connect to the railway sector. Its mandate now extends across power generation and transmission, mining, coal, warehousing, telecom, hotels, catering, metro rail, freight corridors, ports, and multimodal logistics. Importantly, IRFC continues to maintain a zero-NPA portfolio, underlining its track record in prudent financing.

Commenting on the development from New Delhi, the Chairman & Managing Director of IRFC said: “This loan marks IRFC’s continued commitment to support projects of national importance. Our long-term financing will contribute to the timely development of the Banhardih Coal Block, ensuring fuel security for PVUNL’s power plant and strengthening rail-linked infrastructure under India’s growth plans.”

Read More: Government Approves ₹1,866 Crore Diwali Bonus for Railway Employees!

IRFC Share Price Performance 

As of September 29, 2025, at 10:28 AM, IRFC share price is trading at ₹123.96 per share, reflecting a gain of 1.68% from the previous closing price. Over the past month, the stock has gained by 4.95%.

Conclusion

By extending over ₹3,388 crore in support, IRFC has reinforced its position as a key financier of projects aligned with India’s developmental priorities. The funding not only secures coal supply for PVUNL’s 4,000 MW power plant but also strengthens the rail-linked infrastructure network, underscoring the corporation’s pivotal role in driving growth across interconnected sectors.

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