IRFC sanctions ₹12,640 crore term loan for Chhattisgarh thermal power project, signals renewed push for energy infrastructure

In a major boost to India’s energy infrastructure, the Indian Railway Finance Corporation (IRFC) has sanctioned a ₹12,640 crore term loan for a large-scale thermal power project in Chhattisgarh. The funding, approved on September 26, 2025, is aimed at supporting the construction and commissioning of a 1,600 MW coal-based power plant that will supply electricity to the Indian Railways and regional grids across central and eastern India.

The project, being developed by NTPC in partnership with the Chhattisgarh State Power Generation Company (CSPGCL), is part of the government’s strategy to ensure energy security for railway electrification and industrial growth. The sanctioned loan will be disbursed in tranches over the next 36 months, with IRFC acting as the primary lender under a structured repayment framework.

IRFC Chairman and Managing Director, Shelly Verma, stated, “This term loan reflects our commitment to supporting critical infrastructure that powers India’s growth. The Chhattisgarh thermal project will enhance grid reliability, support railway operations, and create thousands of jobs in the region.”

IRFC Term Loan – Key Sanction Details

The thermal power plant will be built using ultra-supercritical technology to ensure higher efficiency and lower emissions. NTPC officials confirmed that the project has received environmental clearance and land acquisition is nearly complete. Construction is expected to begin in Q4 FY25–26, with commercial operations targeted by FY29.

The plant will supply electricity to the Indian Railways under a long-term power purchase agreement (PPA), helping meet the growing demand for traction power as railway electrification accelerates. It will also feed surplus power into the national grid, benefiting industrial clusters in Chhattisgarh, Odisha, and Jharkhand.

Chhattisgarh Thermal Project – Strategic Objectives

The IRFC loan is part of a broader financing package that includes equity infusion from NTPC and CSPGCL, as well as potential green bonds for environmental compliance. The project has also been shortlisted under the Ministry of Power’s “High-Efficiency Thermal Corridor” initiative, which aims to modernize India’s coal fleet with cleaner technologies.

Industry experts have welcomed the move, citing the need for balanced energy planning. “While renewables are growing, thermal power remains essential for base load and grid balancing. This project is a pragmatic step toward energy reliability,” said Dr. Radhika Menon, energy economist at TERI.

Social media platforms and energy forums have responded positively to the announcement, with hashtags like #IRFCLoanSanction, #ChhattisgarhPowerPush, and #EnergySecurityIndia trending across policy and infrastructure circles.

Public Sentiment – Social Media Buzz on IRFC Loan and Power Project

The project is also expected to catalyze infrastructure development in Korba district, including roads, water pipelines, and housing for workers. Local authorities have pledged support for land acquisition, rehabilitation, and environmental safeguards.

IRFC’s funding strategy aligns with its mandate to finance railway-linked infrastructure and energy assets. The corporation has previously funded renewable energy projects, rolling stock procurement, and transmission lines, making it a key player in India’s infrastructure financing landscape.

IRFC – Recent Infrastructure Funding Highlights

As India targets net-zero emissions by 2070, the role of efficient thermal power in the transition remains critical. The Chhattisgarh project, with its advanced technology and railway integration, is being positioned as a model for future thermal investments.

Disclaimer: This article is based on publicly available government statements, verified media reports, and official financial disclosures. It does not constitute investment advice or policy endorsement. All quotes are attributed to public figures and institutions as per coverage. The content is intended for editorial and informational purposes only.