Transportation
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Updated on 14th November 2025, 5:49 AM
Author
Abhay Singh | Whalesbook News Team
The Indian government is poised to approve the National Highways Authority of India's (NHAI) proposal to launch its first public Infrastructure Investment Trust (InvIT). This strategic move aims to significantly broaden the investor base beyond institutional players, allowing direct retail participation in revenue-generating completed highway assets. A public InvIT will be listed on stock exchanges, democratizing investment in vital infrastructure projects.
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The Centre is reportedly close to approving a proposal by the National Highways Authority of India (NHAI) to establish its inaugural public Infrastructure Investment Trust (InvIT). This landmark initiative is designed to monetize completed highway assets by attracting a wider spectrum of investors, including individual retail investors, thereby unlocking higher upfront revenue.
Currently, NHAI operates privately placed InvITs launched in 2021 and 2022, which are accessible only to select institutional investors like pension funds and domestic mutual funds. The proposed public InvIT, however, will be listed on stock exchanges, opening doors for participation from retail, high-net-worth, and domestic institutional investors alike. This is viewed as a critical step to deepen India's infrastructure financing ecosystem, reduce dependence on budgetary allocations, and enhance NHAI's capital recycling capabilities.
**Impact**: This development is expected to inject significant capital into India's infrastructure sector. It offers retail investors a direct, regulated avenue to invest in stable, income-generating road assets, potentially leading to attractive returns and supporting the government's asset monetization goals. The move could also spur further development and modernization of the nation's highway network. Rating: 8/10
**What is an InvIT?** An Infrastructure Investment Trust (InvIT) is a collective investment vehicle that owns income-generating infrastructure assets. It functions much like a mutual fund but is focused on large-scale infrastructure projects such as roads, power transmission lines, or ports. An InvIT collects tolls or user fees from these assets and distributes a substantial portion of this income to its unit holders (investors). A **public InvIT** is listed and traded on stock exchanges, allowing the general public to buy and sell units. A **private InvIT** is not publicly traded and is restricted to a limited number of sophisticated institutional investors.