The lending arm of the Indian Railways, Indian Railways Finance Corporation, is planning to financing third parties interested in investing in rolling stock and will begin with the funding of the railways’ wagon investment scheme. For all such projects, it will go in for a tripartite agreement, in which the railway ministry will act as the guarantor.

Mr Rajendra Kashyap MD of IRFC said “Railway ministry has forwarded us a list of companies who wish to be a part of the wagon investment scheme. These include mainly private sector steel and coal companies who want to have the convenience of owning their own rakes for transporting goods, but are short on funds.” Mr Kashyap said that IRFC wants to have a phased investment plan, beginning with an approximate Rs 200 crore this fiscal to only 3 to 4 players this year, and depending on the success of the scheme expand operations from next fiscal.

IRFC till now has been providing market funding only for Indian Railways projects.