IRFC and IIFCL sign MoU to strengthen cooperation in financing railway infrastructure projects

Indian Railway Finance Corporation Ltd. (IRFC), a Schedule 'A' / Miniratna Public Sector Enterprise under the Ministry of Railways signed a Memorandum of Understanding (MoU) with India Infrastructure Finance Company Ltd. (IIFCL), a Public Sector Enterprise under the Ministry of Finance, to strengthen cooperation in financing railway infrastructure projects with forward and backward linkages to Indian Railways sector.

The MoU was signed by Shri. Amitabh Banerjee, Chairman and Managing Director, IRFC and Shri. Padmanabhan Raja Jaishankar, Managing Director, IIFCL in presence of senior officers of both the organizations.

Through this MoU, IRFC and IIFCL plan to amplify each other's capabilities, enabling them to jointly leverage the financing opportunities for viable infrastructure projects.

Speaking on the occasion, Shri. Amitabh Banerjee, CMD, IRFC said, "The partnership between IRFC and IIFCL is a step towards realizing Hon'ble Prime Minister Narendra Modi's vision of making India a $5 trillion economy by 2025. This symbiotic relationship between two premier financing institutions would play a pivotal role in providing impetus towards development of railway infrastructure in the country, leading to enhanced customer experience and reduce logistics cost by facilitating this state-of-the-art infrastructure."

Underscoring the importance of infrastructure sector for development of the Indian economy, Shri. P R Jaishankar, MD, IIFCL said, "IIFCL has been leading the infrastructure financing sector in the country and this MOU will enable both the parties to strengthen cooperation in co-financing / consortium financing of infrastructure projects, including railways sector."

The MoU shall also enable both IRFC & IIFCL, being premier and established financing institutions in their respective domains, to scale-up their capabilities and explore such funding opportunities together by combining their competence & expertise. The MoU will benefit both IRFC and IIFCL to capitalize on each other's expertise in infrastructure project financing, project due diligence, syndication, credit enhancement, re-financing etc.

This MoU is just the beginning of the long-term relationship between these two institutions and together they aim to be part of the transformation that the Indian economy is currently undergoing, under the visionary leadership of Hon'ble Prime Minister and soon realise the dream of India being a $5 trillion economy.

Source : Equity Bulls

Keywords

IRFC IIFCL MoU IndianRailwaysSector