For private InvITs, a new asset category is about to open up
₹26,366 crore. Letters of authority (LoAs) are issued under ToT bundles 11, 12, 13 & 14, and realization of ₹15,968 crore concession fee is expected in FY24.
The LoAs for these four ToT bundles were issued by NHAI within one day of opening of their respective financial bids. Total asset monetization under this model is expected to be ₹42,334 crore by the end of the current fiscal.
NHAI set up an InvIT under the Sebi InvIT Regulations, 2014, in which NHAI has 16% stake apart from main investors—Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan (OTPP). In the three rounds of monetisation by NHIT (the third round, biggest so far, was completed just a week ago), the total realized value of the InvIT stands at ₹26,125 crore, and it holds a diversified portfolio of 15 operating toll roads with an aggregate length of about 1,525 km spread across the nine states of Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttar Pradesh and West Bengal, with concession periods ranging between 20 and 30 years.
To safeguard investors' interest, Sebi mandated InvITs to invest at least 80% of their total assets in completed infrastructure projects that can generate income. The balance 20% can be invested in under-construction infrastructure projects.
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