NHAI InvIT to replace urban with rural roads

The InvIT by NHAI, which is expected to enter the market by the end of this fiscal year, is likely to undergo changes to suit prospective bidders better. The government is awaiting approval from the market regulator, Securities and Exchange Board of India. The road stretches in urban areas, which were part of the earlier InvIT offering, have been removed in the proposal and replaced by roads in rural areas. One reason behind this proposal is that it may attract toll and other revenues, while urban areas generate revenues on their own and, therefore, may not require funding via the InvIT. As of now, five operational roads have been identified to be transferred to the InvIT. Placement memorandum is under progress and the issue may take place in March 2021 to raise expected funds of Rs 50 billion.