The government has introduced an exciting new opportunity for ordinary citizens to earn a share of toll tax revenue from national highways. Through the Infrastructure Investment Trust (InvIT) scheme by the National Highways Authority of india (NHAI), retail investors can now invest in highway projects and potentially earn profits from toll collections.
What Is the NHAI InvIT Scheme?
An Infrastructure Investment Trust (InvIT) is a financial vehicle that allows individuals to invest in large-scale infrastructure projects, such as highways, power plants, or toll roads. In this case, NHAI’s InvIT focuses specifically on national highways, enabling investors to earn a share of the toll tax revenue collected from these roads.
How It Works:
Investment in Toll Roads: Individuals can purchase units of the InvIT, effectively becoming stakeholders in the highways included in the trust.
Share in Revenue: As vehicles use the highways and pay tolls, a portion of the revenue is distributed to InvIT unit holders as periodic returns.
Professional Management: The trust is managed by professionals who handle operations, maintenance, and toll collection, ensuring investors earn profits without needing to manage the highways themselves.
Benefits for Retail Investors:
Access to Infrastructure Investments: Previously, investing in highways or large infrastructure projects was mostly limited to institutions or high-net-worth individuals. Now, ordinary citizens can participate.
Regular Income: Investors receive a share of toll revenue periodically, providing a steady source of income.
Long-Term Growth Potential: As highway traffic increases over time, the returns from toll collections may grow, offering long-term benefits.
Diversification: InvIT investments provide an alternative to traditional investment options like stocks, bonds, or fixed deposits.
Things to Keep in Mind:
Risk Factors: Returns depend on toll collection and highway usage. Low traffic or unforeseen events may impact profits.
Lock-In Period: InvIT units may have a minimum holding period, so investors should be prepared for a long-term commitment.
Professional Advice: Consulting a financial advisor can help determine if investing in an InvIT aligns with your financial goals and risk appetite.
Conclusion:
The NHAI InvIT scheme opens the door for ordinary people to invest in national highways and profit from toll collections. With professional management and the potential for steady returns, this initiative makes infrastructure investment accessible and rewarding for retail investors.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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