Govt-sponsored infra investment trust by March
ROADS & HIGHWAYS

Govt-sponsored infra investment trust by March

The National Highways Authority of India (NHAI) said that India’s first government-sponsored Infrastructure Investment Trust (InvIT) could be operational by March 2021.

In-principle approval for transfer to the InvIT has been given for around six road assets worth Rs 5,000 crore, said NHAI.

Transfer of assets to the InvIT includes the 32.6 km Kotha-Kata Bypass to Kurnool (Telangana), the 75 km-long Palanpur-Abu Road in Gujarat, the 31 km-long Abu Road-Swaroopganj in Gujarat, the 77 km Maharashtra-Karnataka border to Belgaum, and the 160 km Chittorgarh Kota and Chittorgarh Bypass Road in Rajasthan.

In December 2019, NHAI received approval from the Union cabinet to float the InvIT and is now in the process of legal vetting of the financing instrument.

With an objective to mobilise additional resources through capital markets, NHAI has been actively working on setting up an InvIT to monetise its completed and operational national highways projects.

InvITs are popular among investors of long term revenue-generating assets like power-transmission projects and toll roads. They enable a large number of investors to pool their money for investments into operational infrastructure assets in return for regular dividends. Global investors have been keen on such entities floated by domestic entities since the operating infrastructure assets provide stable and long term yields under the InvIT structure.

The National Highways Authority of India (NHAI) said that India’s first government-sponsored Infrastructure Investment Trust (InvIT) could be operational by March 2021. In-principle approval for transfer to the InvIT has been given for around six road assets worth Rs 5,000 crore, said NHAI. Transfer of assets to the InvIT includes the 32.6 km Kotha-Kata Bypass to Kurnool (Telangana), the 75 km-long Palanpur-Abu Road in Gujarat, the 31 km-long Abu Road-Swaroopganj in Gujarat, the 77 km Maharashtra-Karnataka border to Belgaum, and the 160 km Chittorgarh Kota and Chittorgarh Bypass Road in Rajasthan. In December 2019, NHAI received approval from the Union cabinet to float the InvIT and is now in the process of legal vetting of the financing instrument. With an objective to mobilise additional resources through capital markets, NHAI has been actively working on setting up an InvIT to monetise its completed and operational national highways projects. InvITs are popular among investors of long term revenue-generating assets like power-transmission projects and toll roads. They enable a large number of investors to pool their money for investments into operational infrastructure assets in return for regular dividends. Global investors have been keen on such entities floated by domestic entities since the operating infrastructure assets provide stable and long term yields under the InvIT structure.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?