is a consistently profit making Public Sector Undertaking that has funded rolling stock of book value of Rs.
The ratings on IRFC reflect the underlying support given by the Ministry of Railways (MoR) for IRFC debt servicing through a letter of comfort on all IRFC borrowings.
All IRFC borrowings are covered by a letter of comfort from the MoR.
IR's ability to cover lease payments to the IRFC is strong, with FFO net interest (lease) coverage ratios at about 7 times (x)-9x over the fiscal 1994-1996 period.
Referring to Railway PSU IRFC
, Shri Suresh Prabhu said that IRFC
has now emerged as an important vehicle for channelizing investment for Railways.
It is noteworthy that the bulk of this is to be financed through funds from the Union Budget (gross budgetary support) totalling `20,000 crore (up from `15,800 crore last year) and market borrowings of `20,500 crore by the IRFC
(up from `10,100 crore last year).
This will take care of additional requirements on account of fresh recruitment, increase in dearness allowance rates, increase in fuel bill, higher lease charges payable to IRFC
and general inflationary increases.
Though IRFC raised more funds than the issue size in the recent tax-free bond issue that closed two days ago, it could not fill the entire green shoe option.
Datt said that through the public issue that closed on February 7, IRFC raised about ?
Meanwhile, the tax-free bond issue of National Highways Authority of India (NHAI), which had started more than a week after IRFC
, has gained good response.
One fifth of Rs 5 lakh crore was to spend on the capacity addition of the 12th plan which will be raised by IRFC through market borrowing.
The government would provide its guarantee to IRFC to enable it to raise resources and designing projects that does not require its guarantees.