The National Highway Authority of India (NHAI) is all set to reserve Rs. 25000 crores for retail investors under its infrastructure investment trust (InvITs). Issued in the current financial year, union road transport and highways minister Nitin Gadkari stated. The fund allocation represents 30 to 40% of the total public issue.
As per the reports, the move is in to attract the small investors to the highway sector. The government target construction of 10000 km of Highway and monetization of Rs. 50000 crore worth of road assets this fiscal.
However, These InvITs are backed by completed, toll generating Highway assets. This will allow the investors to receive regular income from toll collection.
Moreover, Nitin Gadkari has stated that additional shifts like ditching “lowest bidder only”. This move will enhance the project quality and larger retail participation is also possible very soon.
How is this beneficial for small investors?
- Stable and semi-annual returns= earlier, InvITs offered ~7.9% coupon which is paid every 6 month.
- Assured toll-based income=investors on from real Highway cash flow and not just project futures.
- Government backed safety=these are the sovereign adjacent with NHAI and SEBI regulated.
- Greater access=rupees 25000 crore means more small investors can participate. As rupees 10000 +.
Considerations are liquidity, risk, fees and taxation. Nitin Gadkari retail focused opening offers small investors the attractive semi-annual returns. Access to toll-based infrastructure income. Better diversification and a sense of person is great for those seeking steady.