New Delhi, Mar 28: A PSU under Ministry of Railways, Indian Railway Finance Corporation (IRFC) has declared highest ever interim dividend of Rs.340 Crore for the Financial Year 2016-17. With this the cumulative dividend payout to Indian Railways has reached Rs.2750 Crore.
Minister of Railways Shri Suresh Prabhakar Prabhu accepted the dividend cheque from Shri SK Pattanayak, Managing Director, IRFC. Shri BB Verma, Financial Commissioner, Railway Board was specially present to grace the occasion. Additionally, Smt Namita Mehrotra, Executive Director Finance (Resource Management), Railway Board and Shri Niraj Kumar, Director (Finance), IRFC were also present on the occasion.
Indian Railway Finance Corporation has continued to maintain high standards of performance which is reflected in the “Excellent” grading consistently assigned to it by the Department of Public Enterprises (DPE) based on its actual performance vis-à-vis the targets set out in the Memorandum of Understanding (MOU) year after year. Indian Railways has a big investment plan of Rs.8.56 Lakh Crore from FY 2015-16 to FY 2019-20, out of which the target of funding through IRFC has been pegged at Rs.2.50 lakh crore. IRFC is going to play a major role in meeting the funding requirements of Railways to enable it to fulfill the investment plan.
Indian Railway Finance Corporation (IRFC) plays a critical role in capital formation of Indian Railways. Ministry of Railways gets one fourth of its Plan Fund needs from Indian Railways Finance Corporation every year. The cumulative funding to Rail Sector is set to cross Rs.1.75 Lakh Crore by the end of the current fiscal. Considering the uniqueness of Indian Railway Finance Corporation’s business operations and its strategic relationship with Ministry of Railways who happens to be its sole client and single owner, it has been the constant endeavor of Indian Railway Finance Corporation to provide adequate funds at the most competitive rates and terms to Ministry of Railways.
Indian Railway Finance Corporation’s cost competitiveness vis-à-vis other AAA rated entities is attributed primarily to its risk free business model, constant diversification of its borrowing portfolio in terms of markets and instruments, highest credit rating (AAA) accorded by the Domestic Credit Rating Agencies and rating at par with the Sovereign by the International Credit Rating Agencies.
