Indian Railway Finance Corporation Ltd (IRFC), a Navratna CPSE under the Railways Ministry, has signed a rupee term loan agreement with Hindustan Urvarak and Rasayan Ltd (HURL) to refinance its existing long-term debt of up to ₹12,842 crore.
The agreement marks one of IRFC’s largest refinancing transactions and underscores its evolving role beyond railway financing into broader infrastructure-linked sectors.
Expanding role beyond railways
The loan agreement was signed in New Delhi between IRFC Executive Director (Finance) Sunil Kumar Goel and HURL Chief Financial Officer Poonam Jeswani in the presence of IRFC Chairman and Managing Director and HURL Chairman.
The refinancing is expected to provide HURL with competitive financing terms and an optimised repayment structure aligned with its operational cash flows, thereby improving debt servicing efficiency and enhancing financial flexibility.
“IRFC is actively expanding its footprint by supporting critical infrastructure sectors that have strong linkages with the railways. This refinancing transaction with HURL reflects our whole-of-government approach, where we bring cost-effective, long-term financing solutions to strategically important sectors such as fertilisers. By enabling financial efficiency, we are also contributing to agricultural sustainability while strengthening logistics with railways at the core,” said IRFC Chairman and Managing Director Manoj Kumar Dubey.
Strengthening rail-linked ecosystem
The project has strong forward and backward linkages with the railway ecosystem, with HURL’s plants well connected through rail infrastructure and fertiliser movement coordinated with Indian Railways. The company has also operationalised institutional mechanisms for seamless rail freight payments.
This integration underscores the strategic alignment between fertiliser logistics and the rail transport network, reinforcing IRFC’s role in financing assets linked to railway operations.
IRFC’s diversification strategy
Established in 1986 as the dedicated financing arm of the Railway Ministry, IRFC has played a key role in mobilising long-term resources for India’s rail infrastructure at competitive rates.
As a Navratna CPSE, the company is expanding into a diversified infrastructure financier, covering sectors such as power generation and transmission, mining, fuel and coal, warehousing, telecom, metro rail, freight corridors, ports, and multimodal logistics, while maintaining a zero-NPA portfolio.
HURL’s operational footprint
HURL, a joint venture of public sector undertakings including NTPC, Coal India, Indian Oil, FCIL and HFCL, was established to revive closed fertiliser plants at Gorakhpur, Sindri and Barauni.
All three plants are now operational and contribute to strengthening domestic urea production capacity, with the refinancing expected to support operational efficiency and future growth initiatives.