Indian Railway Finance Corporation Limited (IRFC), established in 1986, is a Schedule 'A' Public Sector Enterprise under the Ministry of Railways, Government of India. It primarily raises funds from domestic and international markets to finance the acquisition of rolling stock assets and infrastructure for Indian Railways, functioning as its dedicated market borrowing arm. The company operates a financial leasing model, typically spanning 30 years, for rolling stock and project assets.
IRFC has played a crucial role in supporting Indian Railways' capacity enhancement by financing significant portions of its annual capital expenditure. In Fiscal 2019, it financed 39.38% of the railway's actual capital expenditure. For 2020-21, IRFC's disbursement constituted 67.43% of the Ministry of Railways’ total capital outlay. Furthermore, the company is predominantly owned by the Government of India, with 86.36% of its equity held by the President of India. IRFC's strategic importance lies in its role as a financial backbone for India's railway infrastructure expansion.
