Indian railway: Major premium trains of Indian Railways, such as Vande Bharat Express and Shatabdi Express, are actually assets of the Indian Railway Finance Corporation (IRFC). IRFC is a government company providing financial assistance to Indian Railways, which has now been given the status of Navratna by the Government of India.
IRFC CEO and CMD Manoj Kumar Dubey told in an interview to ABP News that the company has received financial sovereignty due to Navratna status. This will give the board more freedom in decision making and the pace of decision making will be accelerated. Now financeing and lending processes will be increased faster for the railway.
Premium trains are owned by IRFC
All engines, wagons and coaches of Indian Railways are actually owned by IRFC, who have been given a 30 -year lease to the Railways. Under the leasing model, these assets remain in the name of IRFC for thirty years.
Please tell that all premium trains like Vande India and Shatabdi are IRFC assets. 80% passengers and freight trains of Indian Railways are financed by IRFC. IRFC plays an important role in the expansion and progress of the railway.
IRFC’s contribution
To meet the additional financial needs from the budget to the Railways, IRFC has been working to raise capital at cheaper rates from the market for the last 40 years and make it available to the railways on low margin.
Which projects finance IRFC?
Companies that supply electricity to other railway subsidiary companies like container manufacture, port operations, and railways.
Large public-private participation (PPP) projects, which are working closely with the Railways.
Railway financial needs
About 4 lakh crore rupees are required every year for the entire infrastructure development of the railway. However, the railway is able to spend only 2.5 lakh crore rupees of its budget. IRFC provides loans to other companies for the remaining amount.
Which companies give loan to IRFC?
Large infrastructure projects related to railway
Container and port companies
Power supply companies
IRFC’s financial performance
The total revenue of IRFC is close to Rs 26,000 crore, while post -tax profit (PAT) is more than Rs 6,500 crore.
Big things for investors:
IRFC’s financial performance is continuously getting better. The company’s profit margin is increasing every quarter. IRFC is now expanding funding throughout the railway ecosystem, which will further develop in future.
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