Nagpur: Indian Railway Finance Corporation (IRFC) has signed a loan agreement worth up to Rs 10,560 crore with Maharashtra State Power Generation Company (MAHAGENCO) to finance the expansion of the Koradi Thermal Power Station in Nagpur. The agreement was executed in New Delhi between senior officials of both organisations.
The project involves adding 1,320 MW of supercritical capacity (2×660 MW) to replace older, less efficient units at Koradi. The expansion is expected to improve electricity availability for Maharashtra’s industrial and agricultural sectors, while also modernising the state’s thermal generation capacity.
For IRFC, traditionally focused on raising resources for railway infrastructure, this marks a significant diversification. The corporation, which recently received Navratna status, has been extending its financing portfolio into projects linked with the railway ecosystem, including power generation, coal, logistics, and metro rail. According to official data, IRFC has maintained a zero-NPA record while broadening its exposure to such sectors.
The collaboration also aligns with Indian Railways’ freight operations. MAHAGENCO has long-term tripartite agreements with Indian Railways for coal transportation, which account for substantial freight movement and revenue. By supporting the Koradi expansion, IRFC indirectly contributes to strengthening freight volumes that sustain railway operations.
Officials said the financing deal reflects IRFC’s strategy to prioritise projects with backward and forward linkages to the railways, ensuring resource security for power generation and steady freight demand. The expansion is expected to play a role in maintaining uninterrupted supply in Maharashtra, which remains one of India’s largest power-consuming states.
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