IRFC shares surge over 3% as company emerges lowest bidder for ₹3,167 crore project in Jharkhand; all you need to know

IRFC said it has emerged as the L1 bidder for financing ₹3,167 crore for the development of the Banhardih Coal Block in Latehar District, Jharkhand. This project is being undertaken by Patratu Vidyut Utpadan Nigam Limited (PVUNL), a joint venture between NTPC Limited (74% equity stake) and Jharkhand Bijli Vitran Nigam Limited (26% equity stake).

An L1 bidder is the lowest bidder in a tender, bidding process, or procurement solicitation. The L1 bidder is selected based on the lowest cost to complete the work.

The Banhardih Coal Block has been allocated to PVUNL as a captive coal source. Coal from the block will be transported to Chetar Station via Mine-Gain-Rail (MGR) and then to PVUNL's project site using Indian Railways, the company added.

Shares of IRFC have gained nearly 5% in the past 12 months.

IRFC Q2 FY25 Results

The NBFC under the administrative control of the Ministry of Railways had earned a net profit of ₹1,545 crore in the year-ago period.

The company's total income rose to ₹6,900 crore from ₹6,762 crore in the year-ago period.

The total expenses of the Mini-Ratna company during the period under review rose marginally to ₹5,288 crore from ₹5,218 crore in the corresponding period a year ago.

The assets under management (AUM) stood at ₹4,62,283 crore at the end of September 2024.

Meanwhile, the company's board approved an interim dividend of ₹0.80/share (or 8%) on the face value of ₹10 for 2024-25.

IRFC Chairman & Managing Director Manoj Kumar Dubey had said the company would not only strengthen the financial ecosystem for railway infrastructure projects but was also making all efforts to diversify its lending portfolio as per current mandate into sectors with backward and forward linkage with Indian Railways.

IRFC is a public sector enterprise that finances the Indian Railways. It was established in 1986 to raise funds for the railways from domestic and international capital markets. IRFC is a Schedule 'A' company and a non-banking financial company (NBFC).

The Government of India owns a majority stake in the company, while the Ministry of Railways has administrative control.