IRFC refinances World Bank loan for freight corridor project

Indian Railway Finance Corporation Limited (IRFC) has executed a Rupee Term Loan Agreement of ₹9,821 crore with Dedicated Freight Corridor Corporation of India Limited (DFCCIL). This agreement, signed on December 23, 2025, refinances DFCCIL's existing foreign currency debt from the World Bank (IBRD) for the Eastern Dedicated Freight Corridor (EDFC) project. The amount has already been disbursed. The agreement was formalized at the Railway Board, New Delhi, with key officials from IRFC and DFCCIL in attendance.

The refinancing shifts DFCCIL from foreign currency debt to rupee-denominated financing, reducing exposure to exchange rate volatility and enhancing predictability in debt servicing. This also aligns long-term liabilities with rupee-based revenue streams, which is expected to optimize overall cash flow management for DFCCIL, a wholly owned company of the Ministry of Railways.

This transaction is a milestone for India's infrastructure financing, demonstrating the growing capability of Indian financial institutions to support large-scale, critical infrastructure projects with domestic funding. IRFC, as the dedicated financing arm of the Ministry of Railways, continues to bolster India's rail infrastructure.