First cross-sector Invit in works to monetise assets

Building on the success of highway monetisation, the central government is likely to set up India’s first infrastructure investment trust (Invit) encompassing assets from across infrastructure sectors, according to multiple officials familiar with the matter.

- DHRUVAKSH SAHA

The proposal, part of deliberations on the second edition of the National Monetisation Pipeline (NMP 2.0) led by the NITI Aayog, would mark a shift from the Centre’s earlier strategy of launching sectoror ministry-specific Invits under the first NMP (2022-25).

The creation of a multi-sector trust was discussed at a meeting of the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by Cabinet Secretary TV Somanathan, and is expected to enable the government to plough back capital from a wider pool of assets beyond highways, officials said.

The move comes as the NITI Aayog, the government's policy think tank, looks to bring state governments on board for NMP 2.0. Several ministries and states may otherwise have needed to launch their own Invits to monetise assets. An Invit allows individual investors to earn returns from infrastructure assets by holding units in a trust rather than owning the business outright or investing in specific companies.

Officials said the government's rationale, echoed by the cabinet secretary at the meeting, is that new Invits should serve a clear public purpose. A general-purpose Invit, they said, could allow participation by both central and state government departments.