Latest News | NHAI Raises over Rs 5,000 Cr Through InvIT: Gadkari

New Delhi, Nov 3 (PTI) The National Highway Authority of India's first infrastructure investment trust has raised more than Rs 5,000 crore, Union Minister Nitin Gadkari said on Wednesday.

Infrastructure Investment Trusts (InvITs) are instruments on the pattern of mutual funds, designed to pool money from investors and invest the amount in assets that will provide cash flows over a period of time.

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"Under the National Monetisation Pipeline (NMP), which is based on 'Creation through Monetisation', the NHAI has launched its InvIT to monetise NH projects and has demonstrated a strong ability to attract a wide variety of sophisticated global investors.

"NHAI InvIT attracted two international pension funds, Canadian Pension Plan Investment Board and Ontario Teachers' Pension Plan Board, which along with diversified DIIs invested units worth more than Rs 5,000 cr in InvIT portfolio which has currently 5 National Highway," Gadkari in a series of tweets said.

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The Road Transport and Highways minister further said that subsequently, more national highways will be added to the InvIT portfolio, as the long-term revenue-generating assets such as toll roads provide stable and long-term yields under the InvIT structure.

NHAI in April had filed draft papers with markets regulator Sebi for floating an Infrastructure Investment Trust (InVIT) through which it had sought to raise Rs 5,100 crore.

In December 2019, the Union Cabinet had given nod to the NHAI to set up an InvIT and monetise national highway projects.

The move was aimed at enabling NHAI to monetise completed national highways that have a toll collection track record of at least one year and it reserves the right to levy toll on the identified highway.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)