IRFC also has presence in lending activities and have provided funds to various companies in Railway sector like Rail Vikas Nigam Limited (RVNL), Konkan Railway Corporation Limited, Rail Land Development Authority, Railtel Corporation of India and Pipavav Railway Corporation Limited.
IRFC’s foray into funding of railway projects began in 2011-12 which has accelerated the project execution on many fronts like capacity enhancement etc.
Besides, the Company has been assigned the additional task of funding Railway Projects through Institutional Finance to the extent of Rs.1.50 Lakh Crore by 2019-20
IRFC has disbursed total amount of Rs 24,678 Crore to MOR for financing of the Railway projects.
IRFC has been also providing funds to MOR for implementation of various projects undertaken by MoR for Railway expansion and modernization. IRFC follows a lease cum license arrangement for financing of Railway Projects wherein IRFC’s acquire leasehold interest in the project under a lease agreement with MoR (yet to be executed).
IRFC also raises funds from Life Insurance Corporation (“LIC”) for financing of the railway projects. The MoR has entered into a MoU with LIC to avail Rs 1,50,000 Crore over a period of five years, commencing from FY 2016. Basis on this MoU, IRFC has entered into a MoU with the MoR to be the funding source for LIC. The MoU provides for a tenor of 30 years for each installment, with capitalization of interest accruing in the first five years and repayment of principal in equal semi-annual installments in 20 years commencing after a moratorium of 10 years
IRFC has disbursed total amount of Rs 24,678 Crore to MOR for financing of the Railway projects and outstanding advance toward projects financing stands at Rs 24,526 crore as on March 31, 2017.
Loan to RVNL as on Mar 31, 2017 is Rs 2164 Cr.
IRFC has been offering Rupee Term Loan Products to various companies engaged in development of Railways in India.
RVNL is one of the biggest clients of IRFC and has been regularly drawing funds from IRFC for its requirements. the outstanding loan to RVNL as on March 31st, 2017 is Rs 2,164 Crore.