Indian Railway Finance Corporation Ltd (IRFC), the government-owned financing arm for railways and allied infrastructure, has entered into two major loan agreements totaling ₹16,489 crore to support upcoming supercritical thermal power projects in Haryana and Maharashtra. The agreements mark a significant push in strengthening state-level generation capacity and reinforcing energy security for key industrial and agricultural hubs.
₹5,929 Crore Loan to Haryana Power Generation Corporation
At a signing ceremony held at its corporate headquarters in Panchkula, IRFC finalized a loan agreement with Haryana Power Generation Corporation Limited (HPGCL) for up to ₹5,929 crore. The funds will be deployed for the 800 MW (Unit 3) supercritical thermal power project at the Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP) in Yamunanagar.
The new supercritical unit is expected to enhance Haryana’s electricity supply across households, industries, and the agriculture sector, while replacing older, less efficient capacity with modern, environmentally compliant technology.
HPGCL, wholly owned by the Government of Haryana, is the state’s nodal power generation utility. Its strategic expansion at DCRTPP will significantly bolster the state’s peak power availability and help reduce dependency on power imports.
₹10,560 Crore Financing for MAHAGENCO’s Nagpur Expansion
Separately, IRFC signed another loan agreement at its New Delhi headquarters with the Maharashtra State Power Generation Company Limited (MAHAGENCO) for up to ₹10,560 crore. The funds will be used for the 2×660 MW supercritical expansion at the Koradi Thermal Power Station (TPS) in Nagpur.
The project will add 1,320 MW of advanced supercritical capacity, gradually phasing out older subcritical units. Once operational, the expansion will strengthen power supply for Maharashtra’s industrial corridors and farming sectors, while ensuring greater fuel efficiency and lower emissions per unit of output.
Strong Linkages with Indian Railways
Both loan agreements underline the deep integration between state utilities and Indian Railways, IRFC’s parent sector.
- Haryana’s HPGCL sources coal primarily from eastern coalfields, transported via Indian Railways, thereby ensuring consistent freight movement and revenue generation. The power produced also supports the Northern Grid, including meeting traction power requirements for railways.
- Maharashtra’s MAHAGENCO has long-standing Tripartite Agreements with Indian Railways for coal logistics. The utility incurs substantial annual expenditure on coal transportation, wagon handling, and freight, contributing significantly to the railway freight basket.
Boosting Energy Security Through Supercritical Technology
By financing these large-scale expansions, IRFC is not only aiding state utilities but also reinforcing India’s broader push toward efficient, high-capacity, and environmentally compliant thermal power. Supercritical technology, with its higher thermal efficiency, ensures lower fuel consumption, reduced emissions, and better cost economics compared to conventional subcritical units.
These projects, once completed, are expected to add over 2,100 MW of new generation capacity, directly benefiting millions of consumers while simultaneously driving logistics and freight revenues for Indian Railways.
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