The first Infrastructure Investment Trust (InvIT) of the National Highways Authority of India (NHAI) has attracted two international pension funds as key investors.
InvITs (Infrastructure Investment Trust) are investment schemes similar to mutual funds. These provide opportunities to individuals and institutional investors to invest in infrastructure projects, so that a part of the income can be earned as a return.
This is a part of a scheme run by the government to use alternative sources of financing. InvITs will help in boosting public expenditure in the sector of roads and infrastructure.
Benefits of InvITs:
These will help in creating greater flexibility to investors, especially in O&M (Operation and Maintenance) concessions, to attract long-term investors, etc.
Source – The Hindu