Indian Railway Finance Corporation (IRFC) has signed a major Rupee Term Loan agreement worth ₹12,842 crore with Hindustan Urvarak and Rasayan Limited (HURL) for refinancing existing long-term debt. This transaction highlights IRFC’s expanding role as a diversified infrastructure financier, supporting critical sectors linked to railways. The move aligns with IRFC’s IRFC 2.0 strategy, promoting cost-effective financing for key national projects like fertilizer production.
IRFC Secures Major Refinancing Deal
On March 23, 2026, Indian Railway Finance Corporation Limited (IRFC), a Navratna CPSE under the Ministry of Railways, finalized a significant Rupee Term Loan agreement with Hindustan Urvarak and Rasayan Limited (HURL). The agreement facilitates the refinancing of HURL’s existing long-term debt up to ₹12,842 crore.
Advancing Whole-of-Government Vision
Manoj Kumar Dubey, Chairman & Managing Director of IRFC, stated that this refinancing supports IRFC’s whole-of-government approach by providing cost-effective, long-term financing to strategically important sectors like fertilizers. This not only enhances financial efficiency for HURL but also strengthens logistics through core linkages with the Indian Railways network.
This transaction is noted as one of IRFC’s largest refinancing initiatives, marking a key step forward under the IRFC 2.0 strategic vision. The refinancing is expected to deliver substantial value to HURL through competitive terms and optimized repayment structures, improving debt servicing efficiency.
Strategic Linkages with Railways
The project involving HURL has strong forward and backward linkages with the railway ecosystem. HURL’s fertilizer plants are well-connected via rail, and fertilizer movement is coordinated with Indian Railways. The company utilizes institutional mechanisms for seamless rail freight payments, confirming its deep integration with the rail transport network.
Expanding Mandate of IRFC
Established in 1986, IRFC is steadily expanding its mandate beyond core railway financing. As a diversified infrastructure financier, its scope now covers related sectors including power generation, mining, warehousing, metro rail, freight corridors, ports, and multimodal logistics. IRFC maintains a strong asset quality record, reporting a zero-NPA portfolio.
HURL Background
Hindustan Urvarak and Rasayan Limited (HURL) is a joint venture involving major PSUs such as NTPC, Coal India, Indian Oil, FCIL, and HFCL. It was established under a Government of India initiative to revive closed fertilizer plants at Gorakhpur, Sindri, and Barauni, all of which are now operational and crucial for domestic urea production capacity.
Source: BSE
