NHAI Completes Largest Infrastructure Investment Trust (InvIT) Monetization in Roads Sector | Current Affairs | Vision IAS
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NHAI Completes Largest Infrastructure Investment Trust (InvIT) Monetization in Roads Sector

Posted 27 Mar 2025

2 min read

National Highways Infra Trust (NHIT) raised about Rs.18,380 crore in the 4th round of fundraising.

  • NHIT is the InvIT set up by National Highways Authority of India (NHAI) in 2020 to support India's Monetization programme.
Overview of InvIT

Infrastructure Investment Trust (InvIT)

  • Definition: It is an investment vehicle, like a mutual fund or Real Estate Investment Trusts (REITs).
  • InvITs enable direct investment of money from individual and institutional investors in infrastructure projects.
    • Investments can be made directly or through SPV (Special Purpose Vehicle)/Holding Company by the InvIT.
  • InvITs earn income through tolls, rents, interest or dividends from their investments.
    • The interest, dividend, and  rental income are taxable in the hand of the unitholder.
  • Regulation: InvIT are regulated by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
    • SEBI requires InvITs to distribute at least 90% of their income to investors.
    • InvITs are recognized as borrowers under the ‘Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002’.
  • Types of InvITs: Public InvITs, Private listed InvITs and Private unlisted InvITs.
  • Advantages of InvITs: Access to retail investors to invest in large infrastructure projects, low ticket size, liquidity (as units are listed on stock exchanges), etc. 

Asset Monetization (AM) 

  • AM is the process of creating new sources of revenue for the government and its entities by unlocking the economic value of unutilised or underutilised public assets.
  • India’s Monetization Programme
  • National Monetisation Pipeline (NMP): Developed by NITI Aayog to tap the aggregate monetisation potential of Rs. 6 lakh crores over a period of 2022-2025.
  • 2nd Asset Monetization Plan (2025-2030): Launched in the Budget 2025, aimed at generating Rs. 10 lakh crore through monetization.
  • Others: National Land Monetization Corporation, etc.
  • Tags :
  • SEBI
  • InvIT
  • National Highways Infra Trust (NHIT)
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