NHAI to launch third and fourth rounds of InvITs
ROADS & HIGHWAYS

NHAI to launch third and fourth rounds of InvITs

The National Highways Authority of India (NHAI) has announced plans to launch the third and fourth rounds of Infrastructure Investment Trusts (InvITs) in the current financial year (2023-24) with the goal of raising more than Rs 200 billion.

The third tranche of InvIT is expected to be released in June, with NHAI aiming to raise Rs 120 billion through this offering. The delay in the third round was due to taxation issues, which were resolved by the government in March of this year.

In the Union Budget for the fiscal year 2024, the government initially proposed taxing income distributed by business trusts like Real Estate Investment Trusts (REITs) and InvITs in the form of debt repayments for unitholders. However, the government later decided to provide relief to investors by treating business distributions as a return of capital.

The InvIT is a crucial component of the National Monetization Plan, which aims to monetize road projects. The initial portfolio of the InvIT includes five toll roads with a combined length of 390 kilometers, located in Gujarat, Karnataka, Rajasthan, and Telangana. These roads have been granted new concessions ranging from 15 to 30 years.

In December 2019, the Union Cabinet approved the NHAI's proposal to establish an InvIT and monetize national highway projects. This move allows NHAI to monetize completed national highways with a minimum of one year of toll collection history. NHAI also retains the right to levy tolls on the identified highways.

The first NHAI InvIT attracted anchor investors, namely the Canadian Pension Plan Investment Board and Ontario Teachers' Pension Plan, who each acquired 25 per cent equity in the trust.

Also Read
Maharashtra government invites Tesla to set up factory in the state
Andhra initiates Rs 630 cr road construction in Nandyala


The National Highways Authority of India (NHAI) has announced plans to launch the third and fourth rounds of Infrastructure Investment Trusts (InvITs) in the current financial year (2023-24) with the goal of raising more than Rs 200 billion. The third tranche of InvIT is expected to be released in June, with NHAI aiming to raise Rs 120 billion through this offering. The delay in the third round was due to taxation issues, which were resolved by the government in March of this year. In the Union Budget for the fiscal year 2024, the government initially proposed taxing income distributed by business trusts like Real Estate Investment Trusts (REITs) and InvITs in the form of debt repayments for unitholders. However, the government later decided to provide relief to investors by treating business distributions as a return of capital. The InvIT is a crucial component of the National Monetization Plan, which aims to monetize road projects. The initial portfolio of the InvIT includes five toll roads with a combined length of 390 kilometers, located in Gujarat, Karnataka, Rajasthan, and Telangana. These roads have been granted new concessions ranging from 15 to 30 years. In December 2019, the Union Cabinet approved the NHAI's proposal to establish an InvIT and monetize national highway projects. This move allows NHAI to monetize completed national highways with a minimum of one year of toll collection history. NHAI also retains the right to levy tolls on the identified highways. The first NHAI InvIT attracted anchor investors, namely the Canadian Pension Plan Investment Board and Ontario Teachers' Pension Plan, who each acquired 25 per cent equity in the trust. Also Read Maharashtra government invites Tesla to set up factory in the stateAndhra initiates Rs 630 cr road construction in Nandyala

Next Story
Infrastructure Energy

NTPC Signs $11.5 Billion Clean Energy Deals in Chhattisgarh

Juniper Green Energy has successfully commissioned a 100-MW solar power project aimed at supplying electricity to Bhutan, marking a significant milestone in regional energy integration. According to the company's statement, the project facilitates a crucial cross-border agreement allowing Bhutan to receive 50% of the power generated during the winter months. This arrangement permits Bhutan to directly import power from an Indian generator under an established bilateral trade framework. Located in Rajasthan, the solar project contributes a total generation capacity of 100 MW. Highlighting the..

Next Story
Infrastructure Energy

Juniper Green Commissions 100-MW Solar Project for Bhutan

The New Delhi Municipal Council (NDMC) held its first council meeting since the Delhi Assembly polls focusing on a comprehensive Summer Action Plan aimed at achieving 100% solar energy adoption by 2026. The meeting, led by MP Bansuri Swaraj, began with the swearing-in of three new NDMC members — Delhi Minister and New Delhi MLA Parvesh Sahib Singh, Delhi Cantt. MLA Virender Singh Kadian, and Ravi Kumar Arora, Additional Secretary of the Ministry of Housing and Urban Affairs. Solar Energy Push NDMC Vice Chairman Kuljeet Singh Chahal announced the civic body's ambitious solar energy plans, ..

Next Story
Infrastructure Energy

NDMC Pushes for 100% Solar Energy by 2026

Mumbai-based energy storage startup AmpereHour Energy has raised $5 million from Avaana Capital, with participation from UC Impower and other angel investors. Founded in 2017 by IIT Bombay alumni, AmpereHour Energy focuses on building AI/ML-enabled Energy Storage Systems ranging from kW/kWh scale systems for Mini-grids to MW/MWh scale systems compatible with solar PV and wind plants. The systems are designed to be plug-and-play, integrated with the company’s proprietary Energy Management platform, Elina. The fresh capital will be directed towards expanding manufacturing and software capabi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?