Cabinet authorises NHAI to set up InvIT to monetise highway projects
NEW DELHI : The Union Cabinet on Wednesday gave its approval to National Highways Authority of India (NHAI) to set up infrastructure investment trusts (InvITs) to monetize highway assets.
“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 toll on the identified highway,” the government said in a statement.
InvITs are investment scheme similar to mutual funds that allow investment from individuals and institutional investors in infrastructure projects to earn a portion of the income as return. Such a model is more attractive for investors as it provides greater flexibility and they don’t have to build an infrastructure project from scratch and is averse to construction risk.
