The maiden Infrastructure Investment Trust (InvIT) promoted by the National Highways Authority of India (NHAI), by means of which it aims to mop up Rs 5,one hundred crore, is probably to hit the market place by the 1st week of September.
The NHAI InvIT, the second one promoted by a public sector entity immediately after energy transmission utility PGCIL, has seen various deferments currently as NHAI pulled back its advertising physical exercise for the InvIT as site visitors on the national highways fell due to Covid-associated restrictions on mobility.
“Traffic has improved a lot on the national highways since June-end. Currently, we are in the marketing phase. Hopefully, NHAI will launch the InvIT by first week of September,” a supply stated.
Though there had been no nation-wide lockdown like last year, widespread curfews and several types of extreme restrictions amounting to nearly a quasi-national lockdown this year has had an instant impact on the road site visitors movement and collection of tolls.
Toll collection by means of FASTags fell from Rs 3,086 crore in March to Rs 2,777 in April and additional to Rs 2,125 crore in May. In June, it recovered a small to Rs 2,576 crore and enhanced to Rs 2,976 crore in July. Around 96% of the total national highways is at present collected by means of the electronic route working with FASTag.
Market regulator Sebi has authorized the draft prospectus submitted by the National Highways Infra Investment Managers (NHIIM), the investment manager which will handle the InvIT.
The units are proposed to be listed on the NSE. Proceeds from the listing shall be utilised for infusion of debt or equity into the projects SPV, National Highways Infra Projects (NHIPPL), for the payment of initial estimated concession worth to NHAI and for payment of improvement and repair expenses of the 5 stretches measuring 389 km brought beneath the SPV. The SPV will gather tolls on these stretches for 30 years.
The trust will obtain one hundred% of the equity shares of the project SPV from the sponsor NHAI. NHAI might raise additional fund, about Rs 5,000 crore, by transferring more assets to the InvIT later in the year.
Apart from InvIT, NHAI has two other implies to raise funds by way of asset monetisation – toll-operate-transfer (TOT) model and toll securitisation. NHAI has raised about Rs 17,000 crore by means of the TOT model so far by granting on lengthy-term lease 3 bundles out of the 5 attempted so far.
Proceeds from the asset monetisation programme are used to repay debt and create highways. As on March, 2021, NHAI had about `3 lakh crore debt. It is permitted to borrow Rs 65,000 crore in 2021-22, very same as in 2020-21.