NEW DELHI — In one of its largest-ever refinancing initiatives, the Indian Railway Finance Corporation (IRFC) has executed a ₹12,842 crore Rupee Term Loan agreement with Hindustan Urvarak and Rasayan Limited (HURL). The deal aims to optimize HURL’s debt structure while strengthening the vital link between India’s fertilizer production and railway logistics.
The agreement was signed by IRFC Executive Director Sunil Kumar Goel and HURL CFO Poonam Jeswani, in the presence of IRFC Chairman & Managing Director Manoj Kumar Dubey.
Strategic Importance of the Deal:
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Financial Optimization: The ₹12,842 crore loan will refinance HURL’s existing long-term debt, providing a more cost-effective repayment structure aligned with the company’s cash flows.
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Rail-Linked Infrastructure: The funding supports HURL’s major urea plants in Gorakhpur, Sindri, and Barauni, all of which are heavily integrated with Indian Railways for the transport of raw materials and finished fertilizers.
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“IRFC 2.0” Vision: This move highlights IRFC’s expanded mandate to finance infrastructure projects beyond core rail tracks, including sectors like power, mining, and multimodal logistics that provide “forward and backward linkages” to the railways.
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Agricultural Security: By stabilizing the finances of HURL—a joint venture of NTPC, Coal India, and Indian Oil—the deal bolsters India’s domestic urea production and national food security.
Company Profiles:
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IRFC: A Navratna CPSE and the dedicated financing arm of the Ministry of Railways. It maintains a zero-NPA portfolio while mobilizing funds for massive infrastructure projects.
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HURL: A premier government-backed venture established to revive closed fertilizer units, currently operating high-capacity plants that reduce India’s dependence on fertilizer imports.
