NHAI Likely To Set Up INvIT By Year End
New Delhi: The National Highways Authority of India (NHAI) is expected to set up an Infrastructure Investment Trust towards the end of the current year, said its Chairman NN Sinha.
NHAI is currently waiting for cabinet approval for floating the Infrastructure Investment Trust or InvIT.
An InvIT is formed by pooling small amounts of money from people to invest in assets like roads or highways that generate cash flow over a period of time. A fraction of the cash flow is distributed to the people who have pooled money in form of dividend.
Sinha also said that NHAI will construct about 4,500 kms of roads and highways in the current year.
While speaking on the sidelines on an event organized by industry body Confederation of Indian Industry, Sinha said that the contingent liability of the authority is about Rs 70,000 crore. “NHAI is in a strong position with strong pipeline, however, more budgetary resources are welcome,” he added.