BT Infra Summit 2026: IRFC to focus on financing rail infra, rolling stock and associated businesses

Indian Railway Finance Corporation (IRFC)  will focus on key financing themes including infrastructure projects of the railways, rolling stock and funding entities that work with the railways, its CMD Manoj Kumar Dubey said on Friday.

Speaking at the Business Today Infrastructure Summit 2026, Dubey highlighted the huge infrastructure development being undertaken by the Indian Railways and noted that financing it is both a challenge and an opportunity.

"Capacity augmentation in the railways has been done in a big way in the last 10 years, " Dubey said addressing a session titled 'Next Wave of Infra Capital'.

More projects such as seven high speed rail corridors and an East-West freight corridor has also been sanctioned.

Dubey noted the huge financing opportunity created by these two projects that would cumulatively cost about Rs 20 lakh crore.

While the seven high speed rail corridors are estimated to require financing of about Rs 16 lakh crore, the freight corridor would require funding of Rs 4 lakh crore.

He said a priority for IRFC would be how to provide good financial solutions to these two projects. While some equity will come from the government, there maybe need to form a joint venture with a multi lateral body.

The second financing priority for IRFC would be the rolling stock of railways. "Over 80% of the rolling stock of the railways is on the books of IRFC," Dubey noted.

The third key financing priority would be funding any business that works with the railways, he said, noting that IRFC has also been financing gencos of companies that provide electricity to the Indian Railways as well as some ports.

Dubey also underlined the huge scope for renewable energy for the railways. While 99.7% of Indian railway trains are now electrified, Dubey pointed out that the need is now to shift to green electrification of railways.

IRFC is also would also be interested in funding multi modal logistics parks.

Explaining the financing model of IRFC, Dubey said it tries to arrange funding at the cheapest cost possible, has low overhead costs and zero non performing assets. "We are passing back this efficiency to the market," he said.

While now most products needed for railway infrastructure development is now Made in India, Dubey said IRFC focusses on "Fund in India" and provides various financing solutions as well as bespoke funding options to state entities in any manner they require.

Along with the bullet train, semi high-speed trains will also ensure faster travelling in the country. Dubey said that the train travel time between Delhi and Mumbai may be a maximum of eight hours after three years with semi high-speed trains.

IRFC is the dedicated funding arm of the Indian Railways.

Watch the full conversation here