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Sure, here is what I found about the Indian Railway Finance Corporation (IRFC):
The Indian Railway Finance Corporation (IRFC) is a non-banking financial institution established by the Government of India under the Ministry of Railways in 1986. It plays a crucial role in financing the Indian Railways’ developmental activities and expansion plans. Here’s a brief overview of its key functions:
Financing Rolling Stock Acquisition:
IRFC is the primary financier for acquiring locomotives, coaches, and freight wagons for Indian Railways. It mobilizes funds through domestic and international markets and leases these assets to the Railways at competitive rates. This frees up the Railways’ budget for other critical infrastructure projects.
Infrastructure Development:
IRFC also finances various infrastructure development projects undertaken by Indian Railways, such as electrification, doubling of tracks, and construction of new lines. This helps modernize the railway network and improve its efficiency.
Mobilizing Resources:
IRFC acts as a bridge between the Indian Railways and the capital markets. It raises funds through various instruments like bonds, commercial papers, and masala bonds, thereby diversifying the Railways’ funding sources.
Strategic Role in Indian Railways Growth:
IRFC has played a significant role in the growth and modernization of Indian Railways over the past three decades. By providing critical financial support, it has enabled the Railways to expand its network, upgrade its infrastructure, and improve its operational efficiency.
Here are some of the key achievements of IRFC:
- Funded over 50% of the Indian Railways’ capital expenditure in the past five years.
- Financed the acquisition of over 13,000 locomotives, 74,000 coaches, and 260,000 wagons.
- Mobilized over Rs. 1 lakh crore (US$ 13.5 billion) from the capital markets.
- Played a key role in the electrification of over 22,000 route kilometers of railway tracks.
- Supported the construction of several key infrastructure projects, including dedicated freight corridors and high-speed rail lines.
IRFC is a vital institution for the Indian Railways and has contributed significantly to its growth and modernization. Its continued efforts will be crucial in ensuring the Railways remain a key driver of India’s economic development.