NTPC joint venture secures IRFC funding for Jharkhand Coal Block 

Indian Railway Finance Corporation (IRFC) has emerged as the lowest bidder to finance ₹3,167 crore for the development of the Banhardih Coal Block in Latehar District, Jharkhand, as disclosed in a regulatory filing on January 15, 2025. The project will be executed by Patratu Vidyut Utpadan Nigam Ltd. (PVUNL), a joint venture where NTPC Limited holds a 74 per cent equity stake and Jharkhand Bijli Vitran Nigam Ltd. owns 26 per cent.

NTPC’s shares responded positively to the news, trading up 3.69 per cent at ₹321.85 on the Indian stock exchanges as of 11. 26 AM.

The Banhardih Coal Block, allocated as a captive coal source to PVUNL, will transport coal to Chetar Station via Mine-Gain-Rail (MGR) system and subsequently to PVUNL’s project site through Indian Railways. The financing proposal remains subject to board approval, detailed due diligence, and finalization of sanctioned terms with PVUNL.

This development comes amid mixed market sentiments globally, with US markets closing varied as investors await inflation data that could signal the Federal Reserve’s policy easing trajectory. While the Gift Nifty indicates a positive opening for Indian indices, market observers note that upcoming third-quarter earnings, Budget 2025, and the Reserve Bank of India’s February policy meeting could influence trading patterns.

The financing agreement represents a significant step in developing India’s energy infrastructure, particularly in the eastern region.