infrastructure investment trusts

The Union Cabinet on Wednesday approved the proposal of the ministry of road transport and highways, authorising the National Highways Authority of India (NHAI) to set up Infrastructure Investment Trust (s) (InvIT) as per guidelines issued by market regulator Sebi.

InvIT, short for Infrastructure Investment Trust, is a pooled investment scheme facilitating direct investment in infrastructure ventures, allowing investors to reap returns in the form of a share of the generated income.

Sebi has proposed a fast-track framework for follow-on offers by REITs and InvITs to streamline fundraising. A three-year lock-in for preferential units to sponsors is suggested. Public comments are sought by March 13. REIT/InvIT must obtain approvals, ensure 25% public unitholding post-issue, and comply with documentation and observation protocols.

IL&FS Group has declared a Rs 5,000 crore payout to its creditors as part of its debt resolution efforts. The distribution includes Rs 3,500 crore in InvIT units linked to six road assets and Rs 1,500 crore in cash, primarily benefiting large creditors and public funds. This payout aims to significantly reduce the group's outstanding debt.

infrastructure investment trusts (InvITs) are instruments on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.

Enthused by the strong retail interest for the non-convertible debentures (NCDs) by the National Highway Authority of India’s Infrastructure Investment Trust (NHAI InvIT), central highways minister Nitin Gadkari on Friday said the country’s premier highways builder will tap public funds more

The Indian government plans to monetize around two trillion rupees ($24.1 billion) worth of highways in the coming years, according to ratings agency CareEdge Ratings. With the National Highways Authority of India expected to commission 4,000-4,500 kilometers of new roads annually over the next three years, the government can monetize these assets through an Infrastructure Investment Trust (InvIT) or toll-operate-transfer model.

IL&FS Transportation Networks, the largest company in the IL&FS group, has taken steps to set up an infrastructure investment trust (InvIT) in a bid to offload the company’s road assets that are not seeing much demand.

Last year, the National Highway Authority of India's first infrastructure investment trust raised more than Rs 5,000 crore.

In a move that will reduce the debt of the IL&FS group by Rs 13,000-15,000 crore, the beleaguered infrastructure and financial services provider has received approval to carve out 11 major road assets from IL&FS Transportation (ITNL) into InvITs, or infrastructure investment trusts.

To streamline the process of public issue of units of REIT and InvIT, markets regulator Sebi on Thursday reduced the time taken for the listing of such emerging investment vehicles to six working days from the present 12 days.