The Union Cabinet has given its approval on the proposal of Ministry of Road Transport and Highways to authorize the National Highways Authority of India (NHAI) to form Infrastructure Investment Trust(s) (InvIT) in order to monetize those national highways that are already completed and have a toll collection record of at least one year.
The Securities and Exchange Board of India (SEBI) will issue guidelines for InvIT and NHAI will have the right to levy a toll on the identified highway.
The government on October 2017 had launched Bharatmala Pariyojana— a flagship program for highway development which includes the development of 24,800 km of roads for a total investment of Rs 535,000 crore.
InvITs are the trusts that raise funds from investors, acquires income yielding infrastructure assets, manage such assets and distribute regular yields to investors. Like mutual funds, it is also listed on a stock exchange.
