Indian Railway Finance Corporation (IRFC) executed a ₹9,821 crore Rupee Term Loan Agreement with Dedicated Freight Corridor Corporation of India Limited (DFCCIL) on December 24, 2025. This refinances DFCCIL’s existing foreign currency debt from the World Bank (IBRD) for the Eastern Dedicated Freight Corridor (EDFC) project. The agreement aims to provide financial efficiencies and support India’s logistics transformation.
Significant Refinancing Agreement
On December 24, 2025, Indian Railway Finance Corporation Limited (IRFC) finalized a Rupee Term Loan Agreement of ₹9,821 crore with Dedicated Freight Corridor Corporation of India Limited (DFCCIL). This refinancing is intended for DFCCIL’s existing foreign currency debt obtained from the World Bank (IBRD) for the Eastern Dedicated Freight Corridor (EDFC) project.
Objectives and Benefits
This strategic refinancing is expected to reduce DFCCIL’s exposure to exchange rate volatility and improve predictability in debt servicing. By shifting to rupee-denominated financing, DFCCIL can better align its long-term liabilities with its rupee-based revenue streams, thereby improving overall cash flow management.
Impact on Infrastructure Development
The Eastern Dedicated Freight Corridor is a crucial national infrastructure project. It aims to transform freight transportation by decongesting passenger lines, enhancing logistics efficiency, reducing transit times, and fostering industrial growth across northern and eastern India. This refinancing underscores the growing capabilities of Indian financial institutions to support large-scale infrastructure projects through domestic funding solutions.
Statements from Leadership
According to the Chairman & Managing Director of IRFC, this refinancing marks a significant step in India’s infrastructure financing journey. It reflects IRFC’s commitment to bringing financial efficiencies to the railway ecosystem and supporting strategic assets such as the Dedicated Freight Corridors.
This milestone was made possible through collaboration between the Ministry of Finance, the Ministry of Railways, IRFC, DFCCIL, and the World Bank. By mobilizing long-term resources, IRFC continues to contribute meaningfully to India’s logistics transformation and long-term economic growth.
Source: BSE