₹20,000 Crore Boost: IRFC to Fund Vadhvan Port Construction

Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, is set to sign a Memorandum of Understanding (MoU) with the Vadhvan Port Project to extend up to ₹20,000 crore in funding for the construction of the upcoming Vadhvan Port in Maharashtra.

The MoU will be formalised during India Maritime Week, beginning today in Mumbai. The funding—expected at an interest rate of 7–7.2%—will be deployed from 2027, following the utilisation of equity resources. The ₹76,220-crore port project aims to handle approximately 298 million tonnes (MT) of cargo annually, including 24.5 million TEUs.

A Navratna PSU, IRFC has been expanding its portfolio beyond railway financing, as rolling stock procurement is increasingly supported through gross budgetary support (GBS). The corporation is now focusing on cost-effective infrastructure financing across sectors such as ports, rail connectivity, coal mining, and power projects, offering loans at rates lower than those of PFC and REC.

News by Rahul Yelligetti.