In a landmark move for India's infrastructure financing, the National Highways Authority of India (NHAI) has secured the crucial regulatory green light to launch a public investment trust for its operational highway assets. The Securities and Exchange Board of India (Sebi) has granted approval for the registration of the Raajmarg Infra Investment Trust (RIIT) as a Public Infrastructure Investment Trust (InvIT).
Unlocking Value and Inviting Public Participation
This strategic step, announced by NHAI in a statement on Wednesday, is designed to achieve two primary objectives. Firstly, it aims to unlock the monetisation potential of operational national highway projects. Secondly, it seeks to create a novel, long-term investment avenue, specifically targeting retail and domestic investors. The initiative is viewed as a pivotal development in broadening public involvement in the nation's ambitious highway infrastructure expansion.
By monetising existing assets, NHAI intends to recycle capital for funding future road development projects, creating a sustainable model for growth. The Raajmarg Infra InvIT is expected to play a crucial role in deepening domestic investor participation in the infrastructure sector, allowing everyday Indians to directly own a stake in the country's development narrative.
Structure and Key Leadership
To facilitate this venture, NHAI had previously established Raajmarg Infra Investment Managers Pvt Ltd (RIIMPL) to act as the investment manager for the trust. The ownership structure of RIIMPL is notable for its wide banking consortium. It has been set up as a joint venture with equity participation from a powerhouse group of leading financial institutions, including:
- State Bank of India
- Punjab National Bank
- National Bank for Financing Infrastructure and Development (NaBFID)
- Axis Bank
- Bajaj Finserv Ventures Ltd
- HDFC Bank
- ICICI Bank
- IDBI Bank
- IndusInd Bank
- Yes Bank
According to the official statement, NRVVMK Rajendra Kumar, who serves as the Member (Finance) at NHAI, will take on the additional charge of Managing Director and Chief Executive Officer of the investment manager company, RIIMPL.
A New Chapter in Infrastructure Funding
The approval of the Raajmarg Infra InvIT marks a significant evolution in how India funds its massive infrastructure needs. It shifts part of the burden from traditional government funding and debt to a model that taps into the vast pool of domestic savings. For retail investors, it presents an opportunity to invest in tangible, revenue-generating highway assets, which were previously inaccessible.
This move is set to strengthen the financial ecosystem for infrastructure in India, providing NHAI with a mechanism to recycle capital efficiently and accelerate the pace of national highway network expansion. It represents a mature step towards involving citizens as stakeholders in the nation's progress while building a robust framework for long-term asset management.
