IRFC | Lending

Lending

Background
Lending to Railway Projects
Lending to Railways Subsidiaries

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.

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From the desk of CMD

We, as IRFC, have come a long way in the service of the nation by supporting developmental needs of the Indian Railways. Since our inception in 1986, we have been unwaveringly true to our Vision of establishing ourselves as a pivotal and premier financial services company for meeting, in the most competitive manner, the gamut of developmental requirements of Ministry of Railways (MoR) for its Rolling Stocks Assets, Project Assets,as well as Projects of National Importance. Over the past three decades, we have evolved as a key player for investment in country’s railways infrastructure landscape.

The year 2019-20 has been a landmark year and the cumulative funding to the railway sector has crossed a monumental figure of INR 3.39 lakh crore to the end of FY 2020. The Company has met the highest ever annual borrowing target of INR 70,471.96 crore mandated by the MoR during the FY 2019-20, registering a year-on-year growth of more than 34%.

We acknowledge the instrumental role that the Indian Railways have played in our country’s economic progress, by transporting a high quantum of passenger and freight traffic in an energy efficient and cost-effective manner through its vast network and thereby integrating markets, connecting communities, enabling productive investments and job creation.

Rising incomes and population in developing and emerging economies like ours, where cities are growing exponentially, are set to lead to a strong demand for more efficient, faster and cleaner transport. The strategic importance of railways aided by augmentation of infrastructure and technological innovations through greater investments, makes Indian Railways, and thereby IRFC, a propeller of an accelerated growth.

Furthermore, the positive externalities and the multiplier effect of investments in Infrastructure for economic growth is a well appreciated and established fact. India, in its Vision to achieve the GDP of $5 trillion by 2024-25, needs to spend about 100 lakh crores over these years on infrastructure. And it plans to do so under its ambitious National Infrastructure Pipeline (NIP), of which Railways has a sizeable share of around 13%. NIP will enable well-prepared infrastructure projects that in turn will create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive.

Over the last three decades of our Company’s existence, we have played a pivotal role in supporting the capacity enhancement programmes of Indian Railways by financing a notable proportion of its annual plan outlay. Our company owns more than 80% of Indian Railways’ Rolling Stock fleet, comprising 11,332 locomotives, 64,642 passenger coaches, 2,41,082 freight wagons and 85 cranes and track machines, valued at INR 2.28 lakh crore, of which rolling stock assets worth INR 33,544.11 crore were acquired in 2019-20.

The single year annual borrowing target during the period from 2014-15 to 2019-20 has gone up by around 6.4 times from INR 11,044 crore in 2014-15 to INR 70,471.96 crore in 2019-20, achieving a CAGR of around 45% in the last five years ending March 2020. The share of IRFC in the Annual Plan Outlay of Indian railways has increased to 44% in 2019-20.

With our Future on Track, we at IRFC comprising of a lean, albeit an effective and committed team of professionals, hope, with utmost sincerity, that the coming years will see IRFC scaling greater heights toward transforming Indian Railways infrastructural landscape, which would go a long way towards building a vibrant and dynamic nation and thereby transforming our economy.

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वित्तीय आयुक्त का संदेश

आईआरएफसी, अपनी शैली के वित्तीय संस्थानों के बीच एक नेता।

आइ.आर.एफ़.सी जल्द ही एक अधिसूचित कम्पनी बनने जा रही है जो खुले बाज़ार से अपने लिए शेयर पूंजी इकट्ठा करेगी. कम्पनी के इतिहास में यह एक महत्वपूर्ण क़दम होगा. पिछले 30 सालों में आइ.आर.एफ़.सी अपने ढंग की वित्तीय संस्थानों में एक लीडर के रूप में उभर कर सामने आयी है. भारतीय रेल के एक समर्पित पूँजी जमा करने वाले अंग के रूप में आइ.आर.एफ़.सी ने भारतीय रेल के पूँजी निवेश कार्यक्रम में वित्त व्यवस्था के अनुसार निरंतर एक महत्वपूर्ण वित्तपोशक की भूमिका निभायी है.

आइ.आर.एफ़.सी द्वारा जुटायी गयी धन राशि का उपयोग केवल चल-स्टाक परिसंपत्तियां की खरीद तथा अन्य आधारभूत सुविधाएँ पूरी करने में ही किया जाता है . इस कम्पनी ने अब तक भारतीय रेल के 70 प्रतिशत चल-स्टाक का वित्तपोशन किया है. हाल ही में आइ.आर.एफ़.सी ने भारतीय रेल से जुड़ी निर्माण योजनाओं का भी सफलता पूर्वक वित्तपोशन किया.

उल्लेख करना होगा कि आइ.आर.एफ़.सी ने वित्तीय बाज़ार में अपने हल्के संगठन ढाँचे, पेशेवर कर्मचारियों, मज़बूत प्रबंधन और आंतरिक तंत्र के साथ अपनी एक अलग ही पहचान बना ली है जो कम्पनी के साझेदारों को कम्पनी के प्रति आश्वस्त करती हैं. वित्तपोशन की अपनी प्रमुख गतिविधि के अलावा आइ.आर.एफ़.सी अपने ज़िम्मेदार कौरपोरेट नागरिक होने के सर्वोपरि सामाजिक लक्ष्य को ध्यान में रखते हुए भी अपनी भूमिका बख़ूबी निभा रहा है .

कम्पनी का मार्गदर्शन एक सशक्त निदेशक मंडल कर रहा है. ज्ञात रहे, भारतीय रेल की विशाल विस्तार योजनाएँ उसे हमारी अर्थव्यवस्था के विकास में अग्रणी स्थान पर ला चुकी हैं. इस संदर्भ में, आइ.आर.एफ़.सी की भारतीय रेल के आधारभूत विकास में होने वाली ज़िम्मेदारी कई गुणा बढ़ने की आशा है.

पूरी आईआरएफसी टीम की कार्य कुशलता की मैं सराहना करता हूँ और उनके भविष्य के लिए शुभकामनाएं देता हूँ

Chairman's message

IRFC, a leader among financial instiutions of its genre.

IRFC is poised to record another milestone in its history by becoming a listed company and raising equity capital from the market. Over the past 30 years, IRFC has been recognised as the leader amongst the financial institutions of its genre. As the dedicated borrowing arm of Indian Railways, IRFC has consistently financed a significant component of Indian Railways’ capital investment programme through financial lease mechanism.

The funds mobilised by IRFC are exclusively utilized for acquiring rolling stock assets and also for building up infrastructure. It has financed about seventy per cent of the rolling stock of Indian Railways. IRFC has recently successfully diversified into financing construction projects for Indian Railways.

Needless to mention, IRFC has made its own mark in the financial market for its slim organizational setup, professional workforce, strong management and robust internal systems, which have been providing adequate comfort to the stakeholders at large. Apart from its core activities of raising funds through market borrowing, IRFC is also playing the role of a responsible corporate citizen committed to achieving larger social goals by remaining on the forefront of CSR activities.

The Company is guided by an empowered Board of Directors. In the context of the large expansion plans of Indian Railways to become the growth engine of the economy, IRFC’s role and importance for the development of Railway infrastructure in India is expected to further grow by leaps and bounds.

My commendations to the entire IRFC team and best wishes for their future.

Lending

Background

Lending to Railway Projects

Lending to Railways Subsidiaries

IRFC has disbursed total amount of Rs 24,678 Crore to MOR for financing of the Railway projects.

Loan to RVNL as on Mar 31, 2017 is Rs 2164 Cr.