Power grid infrastructure investment trust

Share with Your Friends

Power grid infrastructure investment trust

The Power Grid Corporation of India has recently started an ‘Infrastructure Investment Trust’ called a Power Grid Infrastructure Investment Trust (PGInvIT).

This will be the first time that a public limited company has resorted to ‘Infrastructure Investment Trust’ to monetize its assets.

Key points:

  • However, earlier, the country’s first Infrastructure Investment Trust ‘IRBInvIT’ and the second ‘India Grid Trust’ have been made public in the year
  • This will be the third Infrastructure Investment Trust ‘to be listed in Indian markets after them.
  • Be aware that through InvIT, a state-run company can meet funding requirements for itself without government support.

Power Grid Corporation of India:

  • Power Grid Corporation of India Limited is a public sector undertaking of India. It is the largest electricity transmission company in the country. It was started in 1992-93, currently it is a Maharatna company. It is operated through the Ministry of Power.

Infrastructure Investment Trust:

  • InvITs is a collective investment scheme just like a mutual fund.
  • InvITs are designed to receive small amounts of funds from many investors for direct investment in infrastructure projects.
  • InvITs can be seen as a modified version of the ‘Real Estate Investment Trust’, designed to generate income and operational basic infrastructure such as roads, power transmission lines and gas pipelines etc.
  • It is a type of IPO.The minimum investment limit in an ‘InvIT Initial Public Offer’ (IPO) is one million rupees.
  • As a result, InvITs are suitable for institutional and non-institutional investors with good net worth.
  • Infrastructure investment trusts are also listed on the stock exchanges through an IPO.
  • Currently only 2InvITs are listed on the stock exchange, the first being IRBInvIT and the second India Grid Trust.
  • It is regulated through SEBI (Infrastructure Investment Trusts) Regulation,

Source – The Hindu

Download Our App

More Current Affairs

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

December 2022
« Nov    

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Open chat
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes