NHAI expects to launch first tranche of Rs 5k cr InVit in May
ROADS & HIGHWAYS

NHAI expects to launch first tranche of Rs 5k cr InVit in May

The National Highways Authority of India (NHAI) is planning to set up the first infrastructure investment trust (InVIT) in the highways sector worth Rs 5,000 crore by mid-May.

NHAI submitted a proposal to the Securities and Exchange Board of India (SEBI) to set up the first InVIT, and the authority said it expects to launch the first tranche of the InVIT by the middle of next month.

Apart from the Rs 5,000 crore InVIT, the government is also focusing on toll-operate-transfer (ToT) and securitisation for highway assets monetisation. The total InVIT, ToT and securitisation could amount to Rs 18,000 crore in 2021-22, according to the Ministry of Road Transport and Highways.

The union cabinet had authorised NHAI to use InVITs as one of the preferred modes for raising long term finance for investment in the highways sector in 2019.

InVITs are required to invest at least 80% of their corpus in operational assets and to ensure that 90% of the cash flows from operations are distributed to the investors, as per the regulations. This essentially divests the InVITs from the construction risks in infrastructure projects.

Image Source


Also read: NHAI InvIT to replace urban with rural roads

Also read: NHAI InvIT plans to raise Rs.50 billion

The National Highways Authority of India (NHAI) is planning to set up the first infrastructure investment trust (InVIT) in the highways sector worth Rs 5,000 crore by mid-May. NHAI submitted a proposal to the Securities and Exchange Board of India (SEBI) to set up the first InVIT, and the authority said it expects to launch the first tranche of the InVIT by the middle of next month. Apart from the Rs 5,000 crore InVIT, the government is also focusing on toll-operate-transfer (ToT) and securitisation for highway assets monetisation. The total InVIT, ToT and securitisation could amount to Rs 18,000 crore in 2021-22, according to the Ministry of Road Transport and Highways. The union cabinet had authorised NHAI to use InVITs as one of the preferred modes for raising long term finance for investment in the highways sector in 2019. InVITs are required to invest at least 80% of their corpus in operational assets and to ensure that 90% of the cash flows from operations are distributed to the investors, as per the regulations. This essentially divests the InVITs from the construction risks in infrastructure projects. Image Source Also read: NHAI InvIT to replace urban with rural roads Also read: NHAI InvIT plans to raise Rs.50 billion

Next Story
Products

unWOOD transforms plastic waste into durable wood alternative

unWOOD, a breakthrough innovation, is converting hard-to-recycle plastic waste into a durable alternative to natural wood. Developed through a proprietary process called Intelligent Compounding, unWOOD uses a Macro Molecular Fiber Matrix (MMFM) structure to replicate the strength, look, and feel of hardwood—without the environmental cost.Conceptualised by Dr Babu Padmanabhan, the material addresses key flaws in traditional plastic recycling by consuming minimal energy, using zero water, and generating no microplastics. “Any application that introduces plastics into areas where it cannot be..

Next Story
Real Estate

India's first AI-integrated campus announced in Noida

Yashoda Hospital and Bhutani Infra have announced plans to develop India’s first fully AI-integrated mixed-use campus in Greater Noida West. The upcoming project will feature a hospital, retail spaces, offices, SOHOs, serviced apartments, and a hotel—all operating within a self-learning, generative AI-powered ecosystem.The AI-first campus will integrate real-time data systems, predictive analytics, and adaptive infrastructure to offer personalised experiences across functions. From AI-enabled footfall tracking and dynamic energy optimisation to smart F&B and retail insights, the develo..

Next Story
Infrastructure Urban

Postal Dept Unveils Stamp Honouring 125 Years of Kodaikanal Observatory

The Department of Posts is proud to release a commemorative postage stamp celebrating 125 years of the Kodaikanal Solar Observatory (KSO). Recognising the legacy of the KSO through this special stamp is a fitting tribute to one of India’s most significant scientific institutions and highlights the nation’s long-standing contribution to global science.The Commemorative stamp was released by S Rajendra Kumar, Chief Postmaster General, Karnataka Circle in the gracious presence of A S Kiran Kumar, Chairperson, Governing Council, IIA and Former Chairman, ISRO and other esteemed guests at Indian..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?