Indian Railway Finance Corporation Ltd (IRFC), a government-owned financial arm of Indian Railways, has emerged as the lowest bidder for a ₹5000 crore term loan to NTPC. The offer, made on April 18, 2025, has been accepted by NTPC as per a communication dated April 24, 2025. The loan will be used for capital expenditure and energy projects.
Indian Railway Finance Corporation Ltd (IRFC), a central public sector enterprise under the Ministry of Railways, has emerged as the lowest (L1) bidder for a ₹5000 crore term loan to NTPC, India’s largest power generation company. This update was disclosed in filings with the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on April 25, 2025.
According to IRFC’s communication, the bid for the Rupee Term Loan (RTL) was submitted on April 18, 2025. NTPC accepted IRFC’s proposal via a letter dated April 24, 2025. The funds will support NTPC’s capital expenditure plans for ongoing and upcoming projects, including the acquisition of projects, investments in renewable energy, project modernization, and loan refinancing.
However, IRFC clarified that the loan deal remains subject to internal due diligence, Board approval, and finalization of terms with NTPC.
In related developments, IRFC has scheduled a Board meeting on April 28, 2025, to review and approve the audited financial results for Q4 and the full financial year ending March 31, 2025. The meeting will also consider the approval of the company’s market borrowing program for the fiscal year 2025–26.
On the stock market, IRFC shares opened at ₹133.90 on the BSE on Thursday, slightly above the previous day’s closing price of ₹133.40. The stock rose to an intraday high of ₹134.50 but could not sustain the gains amid broader market weakness.
IRFC plays a key role in financing the expansion and modernization of Indian Railways by raising funds from domestic and international markets. NTPC, headquartered in New Delhi, is responsible for generating about one-fourth of the electricity consumed in India.
