On Tuesday, January 14, Indian Railway Finance Corporation Ltd (IRFC) announced that it has been selected as the lowest bidder (L1) to finance Rs 3,167 crore for the development of the Banhardih coal block in Latehar District, Jharkhand.
This project is undertaken by the Patratu Vidyut Utpadan Nigam Ltd (PVUNL), a joint venture between NTPC Ltd (holding 74% equity) and Jharkhand Bijli Vitran Nigam Ltd (holding 26% equity).
"...this is to inform that IRFC has emerged as the L1 bidder for financing Rs 3,167 crore for the development of the Banhardih Coal Block in Latehar District, Jharkhand. This project is being undertaken by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (74% equity stake) and Jharkhand Bijli Vitran Nigam Limited (26% equity stake)," IRFC said in a regulatory filing.
The coal block, designated as a captive source for PVUNL, will aid the company's operations by enabling coal transport to its project site. Extracted coal will be transferred to the Chetar station through a Mine-Gain-Rail (MGR) system and then transported via Indian Railways.
"The Banhardih Coal Block has been allocated to PVUNL as a captive coal source. Coal from the block will be transported to Chetar Station via Mine-Gain-Rail (MGR) and then to PVUNL's project site using Indian Railways," it said.
This financing proposal is still subject to additional due diligence, board approval, and finalisation of detailed terms with PVUNL. Indian Railway Finance Corp Ltd shares closed at Rs 135.75, rising by Rs 7.35, or 5.72%, on the BSE.
