Cabinet authorizes NHAI to set up InvIT and monetize completed NHs

This will enable NHAI to monetize completed National Highways that have a toll collection track record of at least one year and NHAI reserves the right to levy a toll on the identified highway.

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of Ministry of Road Transport and Highways, authorizing National Highways Authority of India(NHAI) to set up Infrastructure Investment Trust(s) (InvIT) as per InvIT Guidelines issued by SEBI. This will enable NHAI to monetize completed National Highways that have a toll collection track record of at least one year and NHAI reserves the right to levy a toll on the identified highway.

Impact:

InvIT as an instrument provides greater flexibility to investors and is expected to create the following opportunities:

Generation of specialized O&M Concessionaires.

Attract patient capital (for say 20-30 years) to the Indian highway market, as these investors are averse to construction risk and are interested in investment in assets that provide long-term stable returns.

Retail domestic savings and corpus of special institutions (such as mutual funds, PFRDA, etc.) to be invested in the infrastructure sector through InvIT.

(With Inputs from PIB)