Latest news with #NationalMonetisationPipeline
Mint
20-07-2025
- Business
- Mint
Should stock market investors invest in InvITs? LGT Wealth's Vislavath answers
As markets lurch from optimism to uncertainty, Indian family offices are quietly rewriting their investment playbooks. There is a gradual shift to private markets from traditional equity-debt allocations, not as fringe experiments but as core holdings that deliver stability, yield, and long-term purpose. As Indian family offices and institutional portfolios become more sophisticated, the hunt for reliable, inflation-resilient income has intensified. In current landscape, one asset class that is quietly gathering momentum is Infrastructure Investment Trusts (InvITs). Infrastructure Investment Trusts (InvITs) are specialized investment vehicles that own & manage infrastructure assets like roads, power plants, transmission lines, warehouses, ports, etc. They pool capital from a diverse base of investors, including institutional entities and individual investors. They can be traded publicly on stock exchanges or privately held. India now hosts ₹ 7 lakh crore in InvIT assets, mostly across roads, telecom infrastructure, power transmission and renewables. What began as a regulatory experiment in 2014 has evolved into a yield-generating, low-volatility access point to long-duration, operating infrastructure assets. Recent policy tailwinds from the National Monetisation Pipeline to SEBI's liberalised listing rules have unlocked new issuance, including fibre and solar-backed InvITs. Predictable Yields : Investors receive regular distributions sourced from toll collections, regulated tariffs, or long-term PPAs. Listed InvITs typically yield 8-11%, while privately placed trusts offer 12-14%+ often with seniority, asset security, and downside protection built in. : Investors receive regular distributions sourced from toll collections, regulated tariffs, or long-term PPAs. Listed InvITs typically yield 8-11%, while privately placed trusts offer 12-14%+ often with seniority, asset security, and downside protection built in. Asset-Backed Stability : Backed by operating assets, not forward bets and with limited correlation to equity market drawdowns. SEBI regulations mandate80% of an InvIT's total assets must be in completed and revenue-generating infrastructure projects. : Backed by operating assets, not forward bets and with limited correlation to equity market drawdowns. SEBI regulations mandate80% of an InvIT's total assets must be in completed and revenue-generating infrastructure projects. Access to Scale : Emerging private InvITs allow co-investment into large, institutional-grade infra pipelinesbacked by seasoned sponsors - Brookfield, Reliance, KKR, GIC, NHAI - who are increasingly monetising mature assets via these vehicles. : Emerging private InvITs allow co-investment into large, institutional-grade infra pipelinesbacked by seasoned sponsors - Brookfield, Reliance, KKR, GIC, NHAI - who are increasingly monetising mature assets via these vehicles. Diversification within Alternatives: Complements private credit, equity and RE by offering real asset-backed income with longer duration. When evaluating an InvIT, consider the quality of underlying assets, longer concession periods, and low Loan-to-Value (LTV) for stability. A strong dividend yield, robust asset pipeline, and solid Net Asset Value (NAV) indicate good returns and growth potential. Lastly, a reputable sponsor adds credibility and low execution risk ensuring timely execution and boosting investor confidence. InvITs allow retail investors to access large infrastructure projects with several benefits: low entry cost, stock exchange listing for liquidity, regular NAV disclosures for transparency, and strong SEBI regulation mandating 90% income distribution and limiting leverage. What's exciting isn't just the scale - it's the category evolution: Telecom Infrastructure InvITs, like Digital Fibre Infra Trust and Altius Telecom Infrastructure Trust are gaining traction on the back of 5G rollout, cloud migration and growing telecom subscribers base. Renewables InvITs , such as Virescent and Anzen Energy Yield Plus, are helping global capital tap India's green energy transition. , such as Virescent and Anzen Energy Yield Plus, are helping global capital tap India's green energy transition. Hybrid InvITs now blend toll roads, solar parks, and power lines in a single vehicle -offering diversified real asset exposure with a single cheque. These are not beta plays on infra development. These are cash-generating assets that already exist and operate, offeringvisibility, durability, and yield-three qualities hard to come by in public markets today. In fact, some global family offices and pension funds now allocate 10-15% of their India alternatives to InvITs and yield infra platforms. Yet domestic allocations still lag far behind -perhaps not for long. In a crowded alternatives market, InvITs are no longer just infrastructure finance vehicles - they are real assets with real income potential. As India builds its roads, wires, and towers, InvITs offer investors a chance to not just watch but earn from the country's growth story. The author, Rajini Vislavath, is the CIO of Alternative Investment at LGT Wealth India. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making investment decisions.
India Gazette
09-07-2025
- Business
- India Gazette
NHAI road award growth could reach 9-11% in FY26: Report
New Delhi [India], July 9 (ANI): The growth in road project awards by the National Highways Authority of India (NHAI) could reach 9-11 per cent in FY26, according to a report by Axis Securities. The report noted that while there has been a slowdown in awarding activities so far in the current fiscal, a slight improvement since November 2024 suggests that growth momentum may pick up in the coming months. It stated 'a slight improvement in project awarding has been observed since Nov'24, and if this trend continues, growth could reach 9-11 per cent in FY26'. As of July 2025, both the NHAI and the Ministry of Road Transport and Highways (MoRTH) have witnessed delays in awarding new highway projects. However, the report expects that the total length of roads awarded in FY26 will be in the range of 8,500-9,000 km, which is broadly similar to FY25 levels. The report highlighted that the recent pickup in project awarding activity since November 2024, if sustained, could lead to growth. In terms of construction, NHAI built a total of 5,614 km of national highways in FY25, surpassing its set target of 5,150 km. Despite this achievement, the government has announced a lower construction target of 10,000 km for FY26, the lowest in the past seven years. MoRTH recently informed the Department-Related Parliamentary Committee on Transport that the construction budget for FY26 is lower than Rs 10,421 crore. In addition, the monetisation target for FY26 is also below the Rs 39,000 crore previously expected. During the first quarter of FY26 (April-June 2025), NHAI took major steps under the second phase of the National Monetisation Pipeline (NMP 2.0), aiming to unlock Rs 10 lakh crore in capital over a five-year period. Of this, the road sector is expected to contribute Rs 3.5 lakh crore. In June 2025, NHAI also released its first-ever Asset Monetisation Strategy Document. The document outlines plans to raise capital through various models, including Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation. These efforts are part of a broader strategy to mobilise funding for infrastructure development without placing additional pressure on government finances. (ANI)
Time of India
07-07-2025
- Business
- Time of India
Smooth landing
India Post & other GOI depts can easily earn good money, by monetising their land & buildings It's a bad time to be in the mail business. Denmark is removing all letter boxes because the volume of personal mail has fallen 90% since 2000. UK's 500-year-old Royal Mail was sold to a Czech billionaire last year, because it's not popular anymore. From a peak of 20bn letters per year in 2004, it came down to 7bn in 2024. US Postal Service lost $9.5bn last year, up from $6.5bn in 2023. With 1.65L post offices, India Post is the largest mail carrier in the world, and its losses aren't insignificant either. But scrapping it is not an option as 90% of post offices serve rural locations, and remote or tribal areas. Govt has been trying to boost revenue by turning India Post into a logistics firm – delivering Amazon packages in remote areas, for example. But monetising the larger post offices, especially the 15,823 in urban areas, could also improve finances. As communications minister Jyotiraditya Scindia told TOI in an interview: 'You can have the post office on the ground floor and build the whole building and lease out space.' It's a timely idea, not only for the department but also private businesses and institutions scouting for leasable premises in India's fast-growing cities. As Scindia said, India Post is already examining its paperwork to identify post offices that could be developed first, and other govt departments should follow its lead. GOI is the largest landowner in India, possessing some 15,500 sq km – more than 10 times the area of Delhi. Indian Railways alone owns at least 4,900 sq km of land. The defence ministry reportedly owns about 50% more. And there are dozens of other departments with large landholdings. Most of this land cannot be commercially developed, of course, but if even 1% can, we're talking 155 sq km – a quarter of Mumbai. Niti Aayog has pointed out that India's public sector is sitting on an inventory of 'underutilised land assets'. Consider that railways has leased out only 88 sq km or less than 2% of its land bank for passenger and cargo facilities, and commercial development. Niti's advice, under the National Monetisation Pipeline, is to 'own, hold, manage and monetise' land and building assets of GOI-owned public sector enterprises. This strategy can not only trim losses, but also help improve passenger experience in trains and stations, and ensure India's letter boxes don't go the way of the pay phone. Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Times of India.
The Hindu
07-07-2025
- Politics
- The Hindu
Visakhapatnam Port All Trade Unions JAC leaders demand abolition of Labour Codes
Leaders of All Party Trade Unions JAC of Visakhapatnam Port said that the implementation of Labour Codes will deprive workers of their right to go on strike. Once the mandatory strike notice is issued, the Labour officials would admit conciliation after which workers will lose their right to strike. Addressing a media conference here on Monday (July 07), the JAC leaders said the new Labour Codes would also deprive the workers of their right to form into a union to fight for their rights. They alleged that even before the Labour Codes were brought out by the Centre, various experiments were being made for the past 10 years like non-registration of unions formed in various industries by the managements and the government. The Port JAC leaders sought implementation of the Major Ports Wage Agreement made in September 2024 and withdrawal of the Major Port Authorities Amendment Bill, 2025, and withdrawal of the system of leasing of assets of major ports under the National Monetisation Pipeline scheme. Later, the JAC leaders Pothana (AITUC), J. Suribabu (HMS), V.S. Padmanabha Raju (CITU), B. Lakshmana Rao (VDLB), N. Kanaka Rao (CFTUI national president) and Chandu (INTUC) released a poster on the General Strike to be observed all over the country on July 9. They explained that after admission of the conciliation by the Labour officials, any strike by the workers would be treated as 'illegal'. Workers who resort to strike against the guidelines would have to forego their wages for eight days for each day of strike. The union leaders could be jailed apart from cancellation of union registration and recognition. On the other hand, employers who could be jailed for non-payment of PF and ESI to the workers, could no longer be jailed under the new Labour Codes. In the past employers used to comply with the rules as non-payment of PF and ESI could land them in jail. They had to pay at least 50% of the arrears to the workers, to obtain bail. This apart, the Centre has brought out a new law 'Jan Viswas' lifting 180 different punishments prescribed for non-implementation of labour laws under the old rules, they alleged. The Central and State governments have done away with the system of inspection of factories and industries. No law would be implemented without inspection. The existing laws can be amended by Parliament, but the new Labour Codes empower the State governments to amend the codes according to their whims and fancies.
Business Standard
10-06-2025
- Automotive
- Business Standard
National Highways Authority of India releases first ever Asset Monetization Strategy for Road Sector
To unlock value of operational National Highway assets and increase Public Private Partnership in Indias infrastructure development, National Highways Authority of India (NHAI), has released its first ever Asset Monetization Strategy for the Road Sector. The strategy presents a structured framework that provide a robust blueprint to mobilise capital through Toll-Operate-Transfer (ToT), Infrastructure Investment Trusts (InvITs), and securitisation models. These instruments have helped NHAI raise over Rs 1.4 lakh crore across more than 6,100 km of National Highways under National Monetisation Pipeline. The strategy is anchored on three core pillars that include Value Maximisation of Government Road Assets, Transparency of Processes and Dissemination of investor-relevant information, and market development through deepening the investor base as well as promoting stakeholder engagement.
