NHAI submits Rs 5,000 cr highway InVIT proposal to Sebi
National Highways Authority of India (NHAI) has submitted
a proposal to the Securities and Exchange Board of India
(Sebi) to set up the first infrastructure investment trust
(InVIT) in the highway sector.
According to NHAI chairman Sukhbir Singh Sandhu said,
they have filed papers related to InVIT with the Sebi on
March 31. They expect the Sebi approval to come in the
next three weeks. They hope to launch the first tranche of the InVIT worth Rs 5,000 crore by the mid of May.
Apart from the InVIT, the government is also focusing on
toll operate transfer (ToT) and securi?sa?on for
mone?sa?on of the highway assets. The total InVIT, ToT
and securi?sa?on could be to the tune of Rs 18,000 crore in
2021-22, according to sources in the Ministry of Road
Transport and Highways.
The union cabinet authorised NHAI to use InVITs as one of
the preferred modes for raising long term finance for
investment in the highways sector in 2019.
As per the regula?ons, InVITs are required to invest at least
80 percent of their corpus in opera?onal assets and to
ensure that 90 percent of the cash flows from opera?ons
are distributed to the investors. This essen?ally divests the
InVITs from the construc?on risks in an infrastructure
projects.
The Indian government has constructed highways at a
record pace in 2020-21 despite Covid-led disrup?ons.
Record length of 13,298 kms of highways has been
constructed in FY21 and the government now plans to
construct highways at a pace of more than 40 km per day in
the current financial year
Current Issue
02-2026
