National Highway Authority of India is undertaking the establishment of India's first government or semi government promoted Infrastructure Investment Trust under the Indian Trust Act, 1882 and Securities and Exchange Board of India(Infrastructure Investment Trusts) Regulations, 2014 to facilitate investment in the highway sector.
In this regard, a new company will also be set up to act as the Investment Manager to the proposed NHAI InvIT for mobilizing resources from the market for monetizing completed highway project of NHAI that have a toll collection track record of at least one year.
Dr. Sukhbir Singh Sandhu (Chairman of NHAI) is the convener of the committee and other members include Deepak Parekh, Chairman, Housing Development Finance Corporation(HDFC); Girish Chandra Chaturvedi, Chairman, ICICI (Industrial Credit and Investment Corporation of India) Bank; and Sanjay Mitra, Ex-secretary, MoRTH.
About InvITs: InvITs are instruments designed to pool small sums of money from a number of investors to invest in infrastructure projects that generate cash flows over a period of time. These are regulated by SEBI.
Benefit: InvIT enables the infrastructure projects such as roads or highways take some time to generate steady cash flows.
No comments:
Post a Comment