Infra investment trust likely by year-end; LIC to give Rs 25K cr credit line: NHAI chairman

NHAI's infrastructure investment trust (InvIT) is likely to be floated by the year-end, its Chairman N N Sinha said Friday.

He also said the Life Insurance Corporation (LIC) has offered a credit line of Rs 25,000 crore to NHAI for funding highway projects.

"InvIT is likely in five months from now. We have sent the proposal to get the Cabinet nod for it," the National Highways Authority of India (NHAI) chairman said on the sidelines of a CII event here.

"LIC has agreed to give us Rs 25,000 crore," Sinha said, adding that NHAI has also inked a pact with the National Investment Infrastructure Fund (NIIF) to fund large greenfield road projects.

"Largely we are considering the greenfield projects," he said, adding that Rs 3,000 crore 'masala bonds' will also be issued.

To fund the country's ambitious highways building plans, including Bharatmala, NHAI also plans to mobilise Rs 75,000 crore from the market this fiscal.

InvITs are instruments on the pattern of mutual funds and are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time.

Sinha said NHAI is going to tap all resources to propel infrastructure growth and contribute towards making India a USD 5 trillion economy.