Shares of Indian Railway Finance Corporation Ltd (IRFC) gained 4 percent to Rs 140.5 in morning trade on January 15 after the company announced that it has emerged as the lowest bidder to provide financing of Rs 3,167 crore for developing the Banhardih coal block in Latehar district, Jharkhand.
Patratu Vidyut Utpadan Nigam Ltd (PVUNL) is undertaking the project, a joint venture between NTPC (74 percent stake) and Jharkhand Bijli Vitran Nigam (26 percent stake). In its regulatory filing, IRFC stated, "We have been identified as the L1 bidder to fund the Rs 3,167 crore development of the Banhardih coal block in Jharkhand's Latehar district. PVUNL, a joint venture of NTPC and Jharkhand Bijli Vitran Nigam, is executing the project."
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The coal block has been designated as a captive source for PVUNL, ensuring a steady supply for its operations. Coal will be extracted and transported to the Chetar station using a Mine-Gain-Rail (MGR) system and moved to PVUNL’s project site through Indian Railways. IRFC highlighted that this financing proposal is subject to due diligence, board approval, and the finalisation of terms with PVUNL.
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