The National Highways Authority of India’s (NHAI’s) plan to float infrastructure investment trusts, or InvITs, to raise money from the market for its ambitious Rs5.97 trillion Bharatmala project has been halted in its tracks by the finance ministry.
The authority has been asked to wait till other central public sector enterprises (CPSE) issue their InvITs.
InvITs are financial instruments designed to pool money from a number of investors to invest in assets that provide a cash flow over a period of time. They are generally used in the infrastructure sector to ensure steady cash flow. InvITs have four parties—sponsors, investment managers, project managers and trustees —and must comply with the Sebi (Infrastructure Investment Trusts) Regulation, 2014.
