union Cabinet authorizes the National Highways Authority of India (NHAI) to set
up an Infrastructure Investment Trust to monetize highway projects that have a
toll collection evidence of at least one year.
The Cabinet, chaired by Prime Minister Narendra Modi, also authorized NHAI to reserve the right to levy a toll on recognized national highways.
According to the Investment Information and Credit Rating Agency (ICRA), a credit rating the agency, NHAI’s total exceptional debt will increase to Rs 3.30 lakh crore by March 2022.
Using new and innovative finance vehicles have become inevitable for organizations like NHAI that have limited existing sources of funds. The then Finance Minister, in his Budget Speech of the year 2018-19, had stated that NHAI may consider organizing its road assets into Special Purpose Vehicles and use a pioneering monetizing structure such as Toll, Operate and Transfer model and Infrastructure Investment Trusts.