IRFC signs major rupee loan with Hindustan Urvarak and Rasayan Ltd to refinance debt, boost HURL urea plants and support railway linked fertiliser infrastructure.
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Indian Railway Finance Corporation has entered into a major rupee term loan agreement on Monday, March 23, with Hindustan Urvarak and Rasayan Ltd to refinance the existing long-term debt of up to ₹12,842 crore.
The refinancing is expected to offer HURL more competitive borrowing terms and a streamlined repayment structure aligned with its cash flows. This, in turn, is likely to enhance financial flexibility, improve debt servicing efficiency, and free up capital for future growth and operational strengthening, as per the filing.
Speaking on the development, IRFC Chairman and Managing Director Manoj Kumar Dubey said the deal reflects the company’s “whole-of-government” financing approach, aimed at delivering cost-effective, long-term funding solutions to strategically important sectors such as fertilisers. He added that the move would support agricultural sustainability while strengthening logistics linked to the railways.
HURL’s operations have strong linkages with the railway ecosystem, with its fertiliser plants connected through rail infrastructure and freight movement coordinated with Indian Railways, stated the exchange filing.
While Indian Railway Finance Corporation (IRFC) continues to finance core railway assets, the company has been steadily expanding its mandate to include sectors with strong railway linkages such as power, mining, logistics, ports, and metro rail. It also maintains a strong asset quality profile, with a zero non-performing asset (NPA) record, according to the exchange filing.
Hindustan Urvarak and Rasayan Limited (HURL), a joint venture backed by public sector companies including NTPC, Coal India, and Indian Oil Corporation, was set up to revive fertiliser plants at Gorakhpur, Sindri, and Barauni. All three units are now operational and are contributing to India’s domestic urea production capacity.
The transaction underscores IRFC’s growing role as a key infrastructure financier and highlights its ability to structure large-scale funding solutions for complex, multi-stakeholder projects, as per the exchange filing.
