Indian Railway Finance Corporation has signed a term loan agreement of ₹4,200 crore with Damodar Valley Corporation to fund renewable energy and related infrastructure projects.

The projects will come up in Jharkhand and West Bengal. They include floating solar, ground-mounted solar, rooftop solar and battery storage systems.

The deal marks a clear expansion of IRFC beyond its traditional role of financing railway projects. The lender is now funding power and infrastructure projects in its own right.

DVC, which supplies power across Jharkhand and West Bengal, is pushing into clean energy as India works towards its renewable targets.

The agreement was among the company-specific developments investors tracked on Tuesday, with IRFC’s shares in focus in early trade.

For IRFC, lending to a public sector power utility for green projects diversifies its loan book and ties it to the country’s fast-growing clean energy sector.

The loan supports projects that are part of India’s wider effort to add clean power capacity and modernise grid infrastructure in the eastern region.