FCC

PFC Sanctions Rs 35 Bn Loan for Chhattisgarh Rail Project

2025-04-08

Power Finance Corporation (PFC), a state-owned financial institution under the Ministry of Power, has sanctioned a loan of Rs 35.17 billion to Chhattisgarh East Railway (CERL) for the development of the East Rail Corridor Project in Chhattisgarh. The loan agreement, amounting to Rs 35.16 billion, was formally executed on March 28, 2025.

The East Rail Corridor Project is currently under construction and is designed primarily to facilitate the efficient transportation of coal from various coal mines located in the region. The corridor will play a crucial role in connecting these coal sources to thermal power plants, thereby strengthening the supply chain for power generation and supporting the energy infrastructure of the country.

Chhattisgarh East Railway (CERL), the entity responsible for implementing the project, is a joint venture between South Eastern Coalfields (SECL), IRCON International, and the Chhattisgarh State Industrial Development Corporation (CSIDCL). The collaboration brings together key stakeholders from the mining, infrastructure, and industrial sectors to streamline project execution and ensure timely delivery.

As a key institution under the Ministry of Power, PFC functions as a nodal agency for several critical initiatives, including the Integrated Power Development Scheme (IPDS), Ultra Mega Power Projects (UMPPs), and serves as the Bid Process Coordinator for Independent Transmission Projects (ITPs). Its involvement in the East Rail Corridor Project is aligned with its mandate to finance and facilitate the development of power-related infrastructure across India.

News source: Business Standard