Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, is set to sign a memorandum of understanding with the Vadhvan Port Project to provide up to โน20,000 crore in funding for the construction of the upcoming port in Maharashtra.
The memorandum will be formalised during India Maritime Week, which begins today in Mumbai. The proposed funding, expected at an interest rate of 7 to 7.2 percent, will be deployed from 2027 after the projectโs equity resources are exhausted.
The โน76,220-crore Vadhvan Port aims to handle around 298 million tonnes of cargo annually, including approximately 24.5 million twenty-foot equivalent units (TEUs). Designed as one of Indiaโs major deep-draft ports, the development is expected to significantly enhance cargo handling capacity and maritime trade along the western coast.
IRFC, a Navratna public sector enterprise, has been broadening its focus beyond railway financing to include wider infrastructure development. With railway rolling stock procurement now primarily funded through gross budgetary support, the corporation is diversifying into sectors such as ports, rail connectivity, coal mining, and power generation.
As part of this strategy, IRFC plans to extend loans at rates lower than those offered by Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), supporting cost-effective infrastructure financing for projects of national importance.
