Railway stock: IRFC shares in focus as PSU signs MOU on RE projects; key details – EQ
In Short : IRFC shares gained attention as the PSU signed a Memorandum of Understanding (MoU) to finance renewable energy (RE) projects for Indian Railways. The move supports the railways’ sustainability goals, including achieving net-zero emissions by 2030. This collaboration underscores IRFC’s commitment to green initiatives, boosting investor confidence in its role in India’s renewable energy transition.
In Detail : Shares of Indian Railway Finance Limited (IRFC) Ltd are be in focus on Friday morning after the public sector enterprise, under the Ministry of Railways (MoR), signed a Memorandum of Understanding (MOU) with REMC to execute renewable energy projects.
REMC is a joint venture of MoR and RITES Ltd. The MoU is signed to collaborate on financing renewable energy (RE) projects awarded by REMCL for supply to Indian Railways. The partnership extends to exploring financing options for thermal, nuclear, and renewable power projects established under a captive model through joint ventures involving Indian Railways and other entities.
IRFC shares are down 14 per cent in the past six months. The stock is still up 51 per cent for the one-year period.
The MoU sets the foundation for cooperation between IRFC and REMCL to advance Indian Railways’ goal of minimising reliance on fossil fuels and achieving net-zero carbon emissions by 2030.
“The collaboration aims to harness renewable energy sources for the railway sector. Under the MOU, REMCL will provide its expertise in procuring economical Conventional/Renewable power for Railways including conducting of bidding process for setting up renewable energy projects in the power sector, while IRFC will offer its financial acumen, including project appraisal and fundraising capabilities,” IRFC said.
For IRFC, this MoU marks a strategic step toward diversifying its business model while maintaining its critical role in the development of Indian Railways.
