NHAI gets Cabinet nod to set up Infrastructure Investment Trust

New Delhi: The Union Cabinet on Wednesday authorised the National Highways Authority of India (NHAI) to set up Infrastructure investment trust (InvIT), a move which will allow the authority to monetise completed national highways, and meet its funding requirements.

Under InvIT, highway projects will be bundled to form a special purpose vehicle (SPV) to be offered to investors. The SPV would then be traded on the stock exchanges, and returns will be linked to the InvIT’s performance in the capital market.