IRFC to start lending to firms other than Indian Railways

New Opportunities

- MANU KAUSHIK

INDIAN RAILWAY FINANCE Corporation (IRFC) is exploring new business opportunities, including a diversification of its lending portfolio, given its sharply reduced role as financier for Indian Railways' rolling stocks and other projects.

The company is evaluating options to lend to companies and sectors which have forward and backward linkages with the railways, said an official.

The state-run company's core business has been to raise money from domestic and overseas markets to finance rolling stock acquisitions and lease out these to the transporter, garnering rental incomes in the process.

Since Indian Railways has not sought fresh funding from IRFC since FY24 as part of a plan to cut its indirect debt burden, IRFC's business model has come under pressure.