While the Union Cabinet chaired by the Prime Minister Narendra Modi had approved the National Highways Authority of India (NHAI) setting up Infrastructure Investment Trust(s) (InvIT) in December 2019, the company has recently started meeting investor groups, as it prepares to come up with its InvIT issue.
The issue will enable NHAI to monetise its completed National Highways that have a toll collection track record of at least one year. The NHAI reserves the right to levy toll on identified highways and it will help the company raise funds for more road development across the country.
What are InvITs?
Infrastructure investment trusts are institutions similar to mutual funds, which pool investment from various categories of investors and invest them into completed and revenue-generating infrastructure projects, thereby creating returns for the investor.