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NHAI plans to turn to retail investors to meet monetisation target

2022-07-29

The National Highways Authority of India (NHAI) intends to allow retail investors access to its upcoming infrastructure investment trust (InvIT) and is also exploring ways to permit this class of investors access to its toll-operate-transfer (TOT) projects in the future.

It is envisaged that this will enable the company to reach its fiscal year 2019 asset monetisation objective of Rs 200 billion.

InvITs are collective investment vehicles akin to mutual funds that allow individual and institutional investors to invest directly in infrastructure projects and receive a small return on their investment.

Retail investors' interest in road projects has increased, according to the NHAI, and depending on how successfully InvIT with retail investors goes, TOT projects and BOT (build-operate-transfer) projects might be made available in the future as well.

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