Indian Railway Finance Corporation (IRFC) shares surged by 3% following the signing of a Memorandum of Understanding [1] (MoU) with Railway Energy Management Company Ltd (REMCL). This MoU aims to finance renewable energy projects to supply power to Indian Railways.
The collaboration between IRFC and REMCL, a joint venture between the Ministry of Railways and RITES, is designed to reduce reliance on fossil fuels and achieve net-zero carbon emissions by 2030. Under the MoU, IRFC will explore financing options for renewable, thermal, and nuclear power projects developed through joint ventures involving Indian Railways and other stakeholders.
REMCL will provide its expertise in procuring economical conventional and renewable power for Railways, including conducting bidding processes for setting up renewable energy projects. Meanwhile, IRFC will leverage its financial acumen, including project appraisal and fundraising capabilities.
This partnership marks a strategic step for IRFC in diversifying its business model while maintaining its critical role in the development of Indian Railways. The collaboration aligns with the government’s vision of delivering world-class, efficient, and environmentally sustainable transportation solutions for the nation
IRFC shares closed at Rs 152 on Thursday, up 1.13%, while the benchmark Sensex rallied 1.83%. Over the past 12 months, IRFC shares have surged by 52% and 362% over the past two years, with the company’s market capitalization now at Rs 1,98,641 crores.
Sources:
[1]IRFC shares in focus after MoU with REMCL to finance renewable energy projects
