Indian Railway Finance Corporation (IRFC) on Tuesday announced that it has signed a Memorandum of Understanding (MoU) with India Infrastructure Finance Company (IIFCL) to strengthen cooperation in financing railway infrastructure projects.
The MoU was signed to strengthen cooperation in financing railway infrastructure projects with forward and backward linkages to Indian Railways sector.
Through this MoU, IRFC and IIFCL plan to amplify each other's capabilities, enabling them to jointly leverage the financing opportunities for viable infrastructure projects, the company said.
Speaking on the occasion, Amitabh Banerjee, CMD of IRFC said, The partnership between IRFC and IIFCL is a step towards realizing Hon'ble Prime Minister Narendra Modi's vision of making India a $5 trillion economy by 2025. This symbiotic relationship between two premier financing institutions would play a pivotal role in providing impetus towards development of railway infrastructure in the country, leading to enhanced customer experience and reduce logistics cost by facilitating this state-of-the-art infrastructure.
Underscoring the importance of infrastructure sector for development of the Indian economy, P R Jaishankar, MD of IIFCL said, IIFCL has been leading the infrastructure financing sector in the country and this MOU will enable both the parties to strengthen cooperation in co-financing / consortium financing of infrastructure projects, including railways sector.
The company said that the MoU shall also enable both IRFC & IIFCL, being premier and established financing institutions in their respective domains, to scale-up their capabilities and explore such funding opportunities together by combining their competence & expertise. The MoU will benefit both IRFC and IIFCL to capitalize on each other's expertise in infrastructure project financing, project due diligence, syndication, credit enhancement, re-financing etc, it added.
India Infrastructure Finance Company (IIFCL) was set up in 2006, as a wholly owned Government of India enterprise to cater to the long-term financing needs of the infrastructure sector in India. Since its inception, IIFCL has been actively involved in the promotion, development and financing of the infrastructure sector in India.
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IRFC is a dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas markets. The Government of India held 86.36% stake in the company as on 30 June 2021.
Shares of IRFC were up 0.70% to Rs 21.50 on the BSE.
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