Friday, October 7th, 2022

NHAI Invit To Replace Urban With Rural Roads

The infrastructure investment trust (InvIT) by NHAI, which is expected to enter the market by the end of this fiscal year, is likely to experience changes to suit the prospective bidders better. The Union government is awaiting approval from the market regulator Securities and Exchange Board of India (SEBI).

The road stretches in the urban regions, which were a portion of the earlier InvIT offering, have been evacuated in the proposal and replaced with the roads in rural areas. One reasoning behind this proposal is that it may attract toll and other revenues, while urban areas generate revenues on their own and therefore may not require funding via the InvIT.

As of now, five operational roads have been identified to be transferred to the InvIT. Placement memorandum is under progress, and the issue may take place in March 2021 to raise expected funds to the tune of `50 billion.

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