Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, is set to sign a memorandum of understanding (MoU) with Vadhvan Port Project to provide up to Rs 20,000 crore in funding for the construction of the upcoming Vadhvan Port in Maharashtra. 

The MoU will be formalised during India Maritime Week beginning today in Mumbai. The funding, expected at an interest rate of 7– 7.2 percent, will be utilised from 2027 after equity resources are exhausted. The Rs 76,220-crore port project aims to handle around 298 million tonne (MT) of cargo annually, including 24.5 million TEUs. 

IRFC, a Navratna PSU, has been diversifying into broader infrastructure financing as railway rolling stock procurement is now mainly supported through gross budgetary support (GBS). The corporation plans to offer loans at rates below PFC and REC, focusing on cost-effective infrastructure funding across ports, rail links, coal mines, and power plants.