Indian Railway Finance Corporation Ltd (IRFC) has secured the position of the lowest bidder (L1) to finance ₹3,167 crore for the development of the Banhardih coal block in Latehar District, Jharkhand. This significant development was announced on January 14, 2025, marking a pivotal moment for IRFC and the energy sector.
The project is spearheaded by Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a joint venture between NTPC Ltd, which holds a 74% equity stake, and Jharkhand Bijli Vitran Nigam Ltd, holding a 26% equity stake.
The development of the Banhardih coal block is aimed at strengthening the coal supply chain for PVUNL's operations. The project is expected to play a vital role in supporting energy production while leveraging the efficiency of Indian Railways for coal transportation.
In a regulatory filing, IRFC stated,
"This project is being undertaken by Patratu Vidyut Utpadan Nigam Limited, a joint venture between NTPC Limited and Jharkhand Bijli Vitran Nigam Limited. The Banhardih Coal Block has been allocated as a captive coal source."
IRFC’s emergence as the L1 bidder demonstrates its growing prominence in infrastructure financing. The company’s shares showed significant positive momentum on the Bombay Stock Exchange (BSE), reflecting investor confidence in its strategic moves.
With this project, IRFC continues to contribute to India’s energy and infrastructure sectors, aligning with the country’s economic growth and sustainability goals.
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