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IRFC Signs ₹5,000 Crore Loan Agreement with NTPC Renewable Energy for Green Projects.

Banking & Finance | Dated: 28 Mar 2025

In March 2025, New Delhi (Delhi)-based Indian Railway Finance Corporation (IRFC), a public sector undertaking under the Ministry of Railways (MoR), signed a Rupee Term Loan (RTL) agreement worth ₹5,000 crore with New Delhi-based NTPC Renewable Energy Limited (NTPC REL), a subsidiary of NTPC Green Energy Limited (NTPC GEL).

🎯 Key Highlights:

  • - The loan is intended to finance NTPC REL’s ongoing and new capacity expansion projects in the renewable energy sector.
  • - Additionally, it will be used for refinancing existing debt, as approved by NTPC REL’s board.

💡 Other Important Facts:

  • (i) NTPC REL has secured an unsecured loan, backed by a negative lien with limited exceptions. The funds will support the company’s Renewable Energy (RE) expansion in solar, wind, energy storage, and green hydrogen sectors.
  • (ii) Indian Railways (IR), one of the largest electricity consumers, is committed to achieving net zero carbon emissions by 2030.
  • (iii) This agreement aligns with India’s target of reaching 450 Gigawatts (GW) of RE capacity by 2030, highlighting the vital role of public sector entities like IRFC in facilitating the country’s green energy transition.

📚 Test Your Knowledge:

How much loan did IRFC agree to provide to NTPC Renewable Energy Limited (NTPC REL) for green energy projects recently?

Correct Answer: ₹5,000 Crore

🚀 Quick Recap: