IRFC Sanctions Rs 12,640 Crore Term Loan For Thermal Power Project In Chhattisgarh

Indian Railways Finance Corp. Ltd. (IRFC) sanctioned a Rs 12,640 crore term loan to Chhattisgarh State Power Generation Co. on Friday for a thermal power project, according to a press release from the company. The loan is to finance a 2x660 MW Super Critical Thermal Power Project that will be set up in HTPS, Korba (West), Chhattisgarh.

"The loan agreement was signed today at CSPGCL’s headquarters in Raipur between Nav Goel, general manager, IRFC, and Sandeep Modi, executive director (finance) and C.L. Netam, executive director (Projects) , CSPGCL," the release said.

The company said that this move was a part of its expansion in its role as a diversified infrastructure financier within the railway ecosystem, with a mandate covering projects that have forward and backward linkages with railways.

These include power generation and transmission, mining, fuel, coal, warehousing, telecom, hotels and catering, metro rail, freight corridors, ports, multimodal logistics and more.

"IRFC continues to maintain a strong asset quality track record with a zero-non-performing assets portfolio," the firm said.

Shares of IRFC closed 1.52% lower at Rs 121.91 apiece on the NSE, compared to a 0.95% fall in the benchmark Nifty. The stock has fallen 22.28% in the last 12 months and 18.2% on a year-to-date basis.

One analyst tracking the company has a 'sell' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 50.8%.