Indian Railway Finance Corporation (IRFC) has sanctioned a long-term loan of Rs. 3388.51 crores to Patratu Vidyut Utpadan Nigam Limited (PVUNL) to secure fuel supply for Jharkhand’s largest upcoming power project. The funding will be used for the development of the Banhardi captive coal block in Latehar district, which holds an estimated 956 million tonnes of reserves.
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Loan Agreement Signed at Patratu
The agreement was formalised at PVUNL’s Patratu office in the presence of senior officials from both organisations. IRFC Chief General Manager Shwet Ketu Mishra and PVUNL CEO Ashok Kumar Sehgal signed the deal, which officials said marks the beginning of an important collaboration between India’s railway finance arm and the power sector.
Fuel Security for 4,000 MW Project
PVUNL, a joint venture of NTPC (74%) and Jharkhand Bijli Vitran Nigam Limited (26%), is implementing a 4000 MW coal-based thermal power project in two phases at Patratu. The captive coal block allocation and IRFC funding ensure that the plant can operate independent of market fluctuations, guaranteeing a reliable, cost-efficient fuel supply for decades.
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Railways to Anchor Logistics
The Banhardih project will use the Indian Railways network to transport coal, creating strong forward and backward linkages between mining, power generation, and railway freight. This model is aligned with the Government’s push for integrated infrastructure ecosystems where rail, power and mining sectors work in synergy.
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Strategic Financing by IRFC
With its recent elevation to Navratna PSU status, IRFC has widened its financing portfolio beyond core railway projects to include power generation, coal mining, ports, and multimodal logistics. The corporation continues to maintain a zero-NPA record, underscoring its focus on financially viable and strategically critical projects. Officials said the loan reflects IRFC’s role as an enabler of India’s infrastructure growth and commitment to supporting projects of national importance.
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