NHAI completes largest InvIT monetization

Source-This post on NHAI completes largest InvIT monetization is based on the article “NHAI Completes Largest InvIT Monetization of Over Rs. 16,000 Crore Through ‘Round 3’” published in “PIB” on 19th March 2024.

Why in the News?

National Highways Infra Trust (NHIT) has completed fundraising through ‘InvIT Round-3’ for National Highway stretches totaling 889 kilometers.

This marks the National Highways Authority of India’s (NHAI) largest monetization effort, valued at over Rs. 16,000 crore.

About National Highways Infra Trust (NHIT)

1. About – The National Highways Infra Trust (NHIT) is an Infrastructure Investment Trust sponsored by the National Highways Authority of India (NHAI).

2. Aim – It aims to undertake the investment activities as an Infrastructure Investment Trust(InviT).

3. Established in–  2021

What are Infrastructure Investment Trusts (InvIT)?

1. About– InvITs are instruments that work like mutual funds. They are designed to pool small sums of money from a number of investors to invest in infrastructure assets that give cash returns over a period of time.

2. Listing– InvITs are listed on exchanges just like stocks — through Initial Public Offerings (IPOs).

3. Regulated by- InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.

What are NHAI InvITs?

1. About– It is a Trust established by NHAI under the Indian Trusts Act, 1882 and SEBI regulations.

2. Approval– In December 2019, Prime Minister Narendra Modi’s Cabinet approved NHAI’s Infrastructure Investment Trust (InvIT). NHAI launched its InvIT in 2021.

3. Objective– NHAI introduced its InvIT to enable the monetization of roads and to attract both foreign and domestic institutional investors to invest in the roads sector.

UPSC Syllabus- Indian Economy (Infrastructure)