Indian Railway Finance Corporation has signed a Rs 4,200-crore loan deal with Damodar Valley Corporation to fund clean energy projects. The agreement supports DVC’s push into renewable power.

The loan will help DVC build solar and wind capacity across its project sites. DVC is best known as a thermal power producer, but it has set targets to add green energy to its portfolio.

IRFC said the financing aligns with its mandate to support railway-linked and national infrastructure projects. The company has been expanding its loan book beyond the railways in recent years.

Clean energy lending is growing fast in India as power producers shift away from coal. Banks and finance companies are competing to fund solar and wind projects.

Officials said the deal was finalised after months of talks. The first disbursement is expected soon. IRFC shares have been in focus as investors track its growing project pipeline. The company said more such green financing deals are in the pipeline for the coming year.