New Delhi: The government has approved the proposal of Ministry of Road Transport and Highways to let National Highways Authority of India (NHAI) set up Infrastructure Investment Trust(s) (InvIT), it said in a statement.
The move is expected to help NHAI to monetize completed highways that have a track record of toll collection of at least one year.
InvIT by NHAI will be able to attract patient capital for as long as 30 years to the Indian highways market since the investors in InvITs are more interested in investment in assets that ensure long-term and stable returns.
The move assumes significance in light of the fact that the Government has launched Bharatmala Pariyojana for the development of highways in the country to the extent of 24,800 km entailing an investment of Rs 5,35,000 crore. The InvITs will be able to generate funds for this programme.