DFCCIL had availed of the loans for the ₹51,000-crore (~$5.68 billion), 1,337-kilometre-long Eastern Dedicated Freight Corridor (DFC) from Punjab to Bihar.
“This first-of-its-kind refinancing arrangement, structured in close coordination with the Ministry of Finance, Ministry of Railways, DFCCIL, IRFC, and the World Bank, is expected to result in savings of ₹2,700 crore [~$300.65 million] for the government of India,” DFCCIL said in a social media post.
“This transaction marks a significant milestone in lndia's infrastructure financing landscape, underscoring the growing depth, maturity and capability of Indian financial institutions to support large-scale, long gestation critical infrastructure projects through domestic funding solutions,” an IRFC release said.
The refinancing covers existing IBRD loans. By shifting from foreign currency debt to rupee-denominated financing, DFCCIL will benefit from reduced exposure to exchange rate volatility, enhanced predictability in debt servicing, and closer alignment of long-term liabilities with its rupee-based revenue streams, thereby improving overall cash flow management, the release noted.
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