With the government pushing for development of multimodal logistics parks and programmes such as Sagarmala for promoting port-led development, there is increased need for connecting projects associated with them with forward and backward linkages to the Indian railways.
India Infrastructure Finance Company Ltd and Indian Railway Finance Corporation Ltd signed a Memorandum of Understanding on Tuesday to strengthen cooperation in financing railway infrastructure projects with focus on forward and backward linkages to the Indian railways sector.
While IIFCL is engaged in undertaking direct lending, refinancing and takeout financing in various infrastructure sectors such as roads, railways, airports and ports, IRFC is the borrowing arm of the Indian Railways and finances the acquisition of rolling stock assets, leasing of railway infrastructure assets and projects.
“We are extremely fortunate that we together have agreed for a formal cooperation in the form of a MOU (Memorandum of Understanding) with mutual areas of cooperation on the lines of co-financing, project appraisal, syndication, takeout financing and many others,” said P. R. Jaishankar, Managing Director, IIFCL.
“IRFC is now entering into an MOU … with IIFCL in order to further strengthen its position in financing railway infrastructure, along with other infrastructure projects,” said Amitabh Banerjee, Chairman and Managing Director, IRFC.
With the government pushing for development of multimodal logistics parks and programmes such as Sagarmala for promoting port-led development, there is increased need for connecting projects associated with them with forward and backward linkages to the Indian railways.
