IRFC gains over 3% on signing MoU to fund renewable energy projects for Indian Railways

REMC is a joint venture of the Ministry of Railways and RITES (formerly Rail India Technical and Economic Service). It facilitates power procurement for the Indian Railways.

In a press release issued late on Thursday, IRFC said that it has signed a memorandum of understanding (MoU) with REMC to collaborate on financing renewable energy projects awarded by REMC for supply to Indian Railways.

The partnership also 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.

Under the MoU, REMC 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.

“This MoU sets the foundation for cooperation between IRFC and REMC to advance Indian Railways' goal of minimizing reliance on fossil fuels and achieving net-zero carbon emissions by 2030,” the release said.

IRFC share price

Reacting to the announcement, shares of IRFC jumped as much as 3.1% to hit an intraday high of ₹156.8 apiece in the opening trade on Friday on the National Stock Exchange of India (NSE). The stock was trading 0.85% higher at ₹153.33 apiece on the NSE at 10:42 am.

Shares of IRFC have rallied almost 54% in the last one year. The stock was recently added to the futures and options (F&O) segment on November 29. It has remained almost flat since then.