IRFC Strengthens Infrastructure Diversification with Strategic MoU for Outer Harbour Development at Tuticorin Port

Indian Railway Finance Corporation Limited (IRFC) has entered into a strategic tripartite Memorandum of Understanding (MoU) with V.O. Chidambaranar Port Authority (VOCPA) and Sagarmala Finance Corporation Limited (SMFC). Signed at Transport Bhawan in New Delhi, the agreement marks a collaborative effort to finance large-scale port and multimodal infrastructure projects. The signing ceremony was attended by high-ranking officials, including Manoj Kumar Dubey of IRFC, Susanta Kumar Purohit of VOCPA, and LVS Sudhakar Babu of SMFC, in the presence of Union Ministers Ashwini Vaishnaw, Sarbananda Sonowal, and Shantanu Thakur.

The partnership focuses on exploring structured financing for the Development of the Outer Harbour Project at VOCPA, alongside other initiatives aimed at enhancing multimodal connectivity. By combining IRFC’s capital market access and long-tenor financing capabilities with SMFC’s maritime expertise and VOCPA’s expansion programs, the alliance aligns with the Sagarmala initiative and the PM Gati Shakti National Master Plan. These efforts are designed to support increasing cargo volumes and coastal trade through significant capacity upgrades at one of India’s major ports.

This collaboration highlights IRFC’s expanding role as a primary enabler within India’s integrated transport infrastructure ecosystem. By facilitating dedicated funding for maritime and port-led projects, the tripartite agreement aims to improve logistics efficiency and foster long-term economic development. The initiative underscores a unified government approach to building a robust, sustainable infrastructure network that bridges rail and sea transport to drive national growth.

Speaking about the signing ceremony, CMD IRFC Shri Manoj Kumar Dubey said that the MoU represents IRFC’s strategic transition into a diversified national infrastructure financier while keeping railways at the core of India’s logistics transformation. “India’s logistical infrastructure growth today demands integrated financing across railways, ports, logistics corridors and multimodal networks. Railways remain the backbone of national freight movement, and ports are its natural partners in driving trade and economic expansion. Through this partnership with VOCPA and Sagarmala Finance, IRFC is extending its long-term financing expertise assets to support port-led development that is seamlessly connected with rail infrastructure. This collaboration reflects IRFC’s commitment to meeting India’s growing infrastructure needs through strategic partnerships, innovation in financing, and a whole-of-transport approach.”

About the Company

Established in December 1986, Indian Railway Finance Corporation (IRFC) serves as the dedicated financing arm of the Indian Railways, operating as a Navratna Central Public Sector Enterprise under the Ministry of Railways. As a systemically important Non-Banking Financial Company (NBFC), IRFC's primary mission is to mobilise funds from domestic and international capital markets to finance the acquisition of rolling stock—such as locomotives, coaches, and wagons—and the development of critical railway infrastructure.

The company has a market cap of Rs 1.50 lakh crore. The stock is up by 8.33 per cent from its 52-week low of Rs 108.05 per share and has given multibagger returns of 275 per cent in 3 years.

Disclaimer: The article is for informational purposes only and not investment advice.