Power Grid to file draft papers for $1 bn InvIT

Electricity transmission company Power Grid Corp. of India Ltd plans to file a draft prospectus for a $1 billion infrastructure investment trust (InvIT) by June-end, in the first InvIT offering from any state-owned company, two people aware of the matter said.

An InvIT is a pool of money collected from investors to run operational infrastructure projects in return for a regular yield to its unitholders.

The InvIT was proposed by the government as an alternative fundraising route for state-owned companies to manage their funding requirements without having to depend on government support. The National Highways Authority of India is also preparing to raise funds through this route.