NHAI plans to launch InvIT by end of Mar, raise Rs 5,000 crore

National Highways Authority of India plans to launch its infrastructure investment trust or InvIT by the last week of March and is looking to raise 50 bln rupees from investors, a senior government official from the authority said.

"All formalities including approval from SEBI (Securities and Exchange Board of India) have been received," said an official from the Ministry of Road Transport and Highways.

InvITs, which are registered with and regulated by SEBI, pool money from a number of investors to invest in assets that give cash flow over a period of time.

The Ministry of Road Transport and Highways had earlier approved the setting up of an InvIT by Natinal Highways Authority of India and the same was also approved by the Cabinet.

The InvIT launched will comprise already completed and revenue-generating infrastructure projects of National Highways Authority of India.

The first InvIT floated by the authority will be through private placement.

The instrument will allow retail domestic savings and investment from institutions such as mutual funds, and pension funds, among other long-term funds, to be invested in infrastructure projects that have a long gestation period.

The authority is looking at several modes of monetising its assets, including toll-operate-transfer, and toll receipt securitisation models, as well as raising funds through issuance of Masala bonds.