The National Highways Authority of India (NHAI) is in the process of establishing an Infrastructure Investment Trust (InvIT) to promote investment in the highways sector, the government said on July 2.
This will be the first government firm promoted InvIT in the country. A search committee has been instituted for the post of chairman and two independent directors for its Investment Manager Board.
InvITs are instruments that work like mutual funds and are designed to pool small sums of money from a number of investors to invest in assets that generate cash flows over a period of time.
“As part of the structure, a new company is being set up to act as the Investment Manager to the proposed InvIT.