The board of IL&FS Transportation Networks Limited (ITNL) has approved the setting up of a new arm to manage a proposed infrastructure investment trust (InvIT). The company’s board also granted in-principle approval to transfer its shareholding in nine special purpose vehicles (SPVs) to the proposed InvIT.
The cabinet has approved the proposal of the Ministry of Road Transport and Highways, authorising the NHAI to set up an InvIT. This will enable NHAI to monetise completed national highways that have a toll collection track record of at least one year. Besides, the authority will reserve the right to levy toll on the identified highways. The InvIT may hold assets either
directly or through an SPV or a holding company. As an instrument, the InvIT is expected to lead to the creation of specialised operation and maintenance concessionaires and attract patient capital for the highway sector.