The Full Form of ‘IRFC’ in Railway is ‘Indian Railway Finance Corporation’.
Full Form of IRFC
Indian Railway Finance Corporation (IRFC) is a specialized financial institution that was established in 1986 by the Government of India to provide financial assistance to Indian Railways. It is a public sector undertaking of the Ministry of Railways and is headquartered in New Delhi. The main purpose of IRFC is to raise funds for investment in railways infrastructure projects, modernization and upgradation projects, as well as capital expenditure programmes.
IRFC has been providing long-term finance to Indian Railways since its inception. Its primary objective is to meet the funding requirements of Indian Railways for capacity augmentation and modernisation of railway infrastructure and other related activities. It also provides medium-term loans to meet the working capital needs of Indian Railways.
The mission statement of IRFC states that it strives “to be an efficient source of finance for the expansion, modernisation and upgradation of Railways through optimal mobilisation of resources at competitive terms”. To achieve this goal, IRFC has taken various initiatives such as encouraging public ownership in bonds issued by Indian Railways, developing innovative financing solutions, offering specialised services like treasury management and market borrowing etc., and providing financial advisory services.
IRFC sources its funds mainly from domestic capital markets such as public issues, private placements and external borrowings from multilateral institutions like Asian Development Bank (ADB), International Monetary Fund (IMF) etc., as well as international investors such as pension funds, insurance companies etc. It also utilises resources from government budgetary support through special securities such as Railway Development Bonds (RDBs).
Over the years, IRFC has achieved significant growth by raising adequate resources for funding various railway projects throughout India. It has helped develop more than 20 thousand kilometres of railway network so far with an estimated cost exceeding Rs 4 trillion. More recently, it has successfully raised Rs 3 trillion for various projects related to high speed rail corridors, multi-model transport systems etc., which have improved rail connectivity across India significantly.
In conclusion, IRFC plays an important role in meeting the fund requirements for India’s vast railway network by providing long term finance at competitive rates. This helps maintain a safe and efficient rail system which serves millions of passengers daily across India’s vast geography
Queries Covered Related to “IRFC”
- What is the full form of IRFC in Railway?
- Explain full name of IRFC.
- What does IRFC stand for?
- Meaning of IRFC
