Green Giants Unite: IRFC’s ₹50 Billion Boost Sets NTPC on Fast Track to Clean Power

Indian Railway Finance Corporation Ltd (IRFC) has emerged as the lowest (L1) bidder to extend a ₹5,000 crore (₹50 billion) rupee term loan to NTPC Renewable Energy Limited (NTPC REL), a milestone moment in India's infrastructure financing history. The deal, signed on March 25, 2025, will finance NTPC REL's new and incremental capacity expansion projects, as well as roll over outstanding debt, in accordance with the company's aggressive green energy ambitions.

 

It is an unsecured loan with a negative lien clause, providing certain protection to IRFC while keeping NTPC REL flexible. The action is part of IRFC's strategy to diversify outside its conventional railway finance business, turning it into a prominent contributor in India's renewable energy space. NTPC REL, a subsidiary of NTPC Green Energy Limited, will use these funds to ramp up its renewable energy portfolio, backing India's national goal of 500 GW of non-fossil fuel capacity by 2030.

 

This historic transaction not only bolsters IRFC's revenue streams and lowers its reliance on railway projects but also reflects the increasing role of public sector financiers in India's transition to clean energy.

 

Source: CNBC-TV18, EquityBulls, Wright Research