InvIT pipeline strong, needs conducive tax regime: ICRA

Over the next five years, the InvIT pipeline is estimated to growth to ₹2-lakh crore including ₹80,000 crore in the next one year itself, according to ICRA.

While full tax exemption to sovereign funds could attract these funds, the overall impact of higher tax incidence for unit holders may play spoilsport.

However, for InvITs to succeed, a conducive regime is the key and much would depend on regulatory and tax regime.

Assets from roads, telecom fibre, power transmission and generation are expected to be on the block. The most keenly watched would be National Highway Authority of India (NHAI) InvIT, given its size and track record of operational toll road projects.