Cabinet authorises NHAI to set up InvIT to monetise national highways

IRB Infrastructure Developers was the first private company in the sector to come out with an INvIT

The Union Cabinet on Wednesday approved the proposal of Ministry of Road Transport and Highways to authorise the National Highways Authority of India (NHAI) to set up Infrastructure Investment Trust(s) (InvIT) to monetise completed national highways that have a toll collection track record of at least one year.

The INvIT guidelines would be issued by the Securities and Exchange Board of India (Sebi) and NHAI will reserve the right to levy toll on the identified highway.

InvITs are trusts, similar to mutual funds listed on a stock exchange, which raise funds from investors, acquire income yielding infrastructure assets, manage such