Shrem InvIT shifts strategy: opts for loans

29 Aug 2023 CW Team

Shrem Infrastructure Investment Trust (InvIT) has altered its financial approach, opting for loans over debentures to complete the acquisition of 10 special purpose vehicles (SPVs) associated with road projects under Dilip Buildcon Ltd. The InvIT will raise Rs 8.6 billion through term loans, citing financial efficiency as the rationale for this shift.

The decision comes as existing term loan lenders grant approval to employ credit for acquiring the promoter's stake, settling unsecured loans, and addressing senior creditors' debts within identified SPVs. Key lenders to Shrem InvIT, including State Bank of India and Union Bank, hold exposure worth Rs 55 billion. The term loan designated for road project acquisition enjoys an "AAA" rating from Indian Ratings.

Nikhil Pareek, Executive Director of Shrem InvIT, emphasised the trust's focus on operating annuity projects to mitigate execution risks.

Having primarily acquired projects from Dilip Buildcon, Shrem InvIT is now considering opportunities beyond the parent company. The trust is currently evaluating 10 more projects and plans to bolster its capital base by Rs 3.3 billion.

Shrem InvIT aims to conclude the acquisition of 10 new SPVs from Dilip Buildcon by the end of the fourth quarter of financial year 24. With provisional completion dates met and annuities received for eight projects, the trust's portfolio will encompass a diversified range of 34 projects. These include National Highway Authority of India (NHAI) projects, state annuity plus toll projects, state annuity projects, and toll projects, demonstrating the trust's expanded footprint in the infrastructure sector.

As Shrem InvIT consolidates cash flows from both initial and new portfolio SPVs, its consolidated debt stands at Rs 77.351 billion. This encompasses sanctioned term loans earmarked for funding the additional 10 SPVs under the InvIT structure, reflecting the trust's commitment to strategic expansion.

Infrastructure Urban

13 Mar 2026

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..