Indian Railway Finance Corp. on Thursday signed a memorandum of understanding with REMC Ltd. to collaborate on financing renewable energy projects awarded by REMCL for supply to Indian Railways.
REMCL is joint venture of the Ministry of Railways and RITES Ltd.
The partnership also extends to exploring financing options for thermal, nuclear, and renewable power projects established under a captive model through joint ventures involving Indian Railways and other entities, a statement said.
The collaboration aims to harness renewable energy sources for the railway sector and advance railways' goal of minimising reliance on fossil fuels and achieving net-zero carbon emissions by 2030.
Under the deal, REMCL will provide its expertise in procuring economical conventional and renewable power for railways including conducting of bidding process for setting up projects in the power sector, while IRFC will offer its financial acumen, including project appraisal and fundraising capabilities, the statement said.
IRFC, a ‘MiniRatna' company, is the dedicated financing arm of the Indian Railways for mobilising funds from domestic as well as overseas capital markets.
The company's profit in the second quarter grew by 4.41%, reaching Rs 1,612.65 crore while revenue rose by 2% to Rs 6,900 crore. Assets under management reached Rs 4.62 lakh crore.
Shares of IRFC closed 1.13% higher at Rs 152 apiece on the BSE, ahead of the announcement, compared to 1.8% rise in the benchmark Sensex. The stock has generated no positive return in the last 12 months.
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