04 Oct 2022

NHAI raises Rs 1,217 crore through InvIT

The National Highways Authority of India through its latest Infrastructure Investment Trust (InvIT) has raised Rs 1,217 crore to fund road projects.

Infrastructure Investment Trusts are instruments on the pattern of mutual funds, designed to pool money from investors and invest in assets that will provide cash flows over a period of time.

"(The) ministry is thankful to all investors who have reposed faith in NHAI latest InvIT issue. Issue has been fully subscribed before its closing. NHAI has raised Rs 1,217 crore (excluding its own share of Rs 213 crore)," the Ministry Road Transport and Highways (MoRTH) said in a tweet on Monday.

Earlier, a senior road ministry official had said the government will tap the capital market in October to raise around Rs 2,500 crore to fund three road projects.

Last year, NHAI's first infrastructure investment trust raised more than Rs 5,000 crore.

At that time, Road Transport and Highways Minister Nitin Gadkari said that more national highways will be added to the InvIT portfolio as the long-term revenue-generating assets.

NHAI has the largest share under the National Monetisation Pipeline (NMP) as road assets worth Rs 1.60 lakh crore will be monetised over four years till FY25. NMP was announced by Finance Minister Nirmala Sitharaman in August last year.

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