NHAI InvIT bonds to open every 15 days
In an interview with Business Today TV Managing Editor Siddharth Zarabi at the BT Budget Roundtable 2023, Union Minister for Road Transport and Highways Nitin Gadkari revealed that the Ministry of Road Transport and Highways intends to open the National Highways Infra Trust (NHAI InvIT) every 15 days with interest rates of up to 8.50 percent.
The minister added that the bond for the InvIT model has been introduced by the government at the stock exchange.
He stated, “We introduced the bond for InvIT model at the Mumbai Stock Exchange one and a half months ago. The bond was actually set for 10 days. But on the first day, it received seven times the amount of applications in just seven hours. Additionally, we are already paying an annual interest rate of 8.50% on our bond. There is a plan whereby we will monthly deposit interest into investors’ accounts even if they can just invest Rs 10,000 in this bond.
The union minister said, “NHAI InvIT offers much better interest rates compared to fixed deposits, so salaried class citizens, middle-class individuals, and pensioners can invest in it.” He further stated that foreign financial institutions are eager to participate in India’s highways industry.
“My request to all of you, especially salary people, is that they can earn good returns,” he said. Because they only receive a maximum of 5% to 5.50% of their deposits, wherever. You can receive a return of 8.50% from NHAI, which has a AAA rating.
The National Highway Authority of India (NHAI) sponsors the NHAI InvIT, an infrastructure investment trust, to help the National Monetization Pipeline of the Central Government (NMP).
When asked about the NHAI’s financial situation, the minister responded that the authority’s basis is quite solid and that its debt is gradually being paid down. He continued by saying that the government anticipates NHAI toll revenue to exceed Rs 1.40 lakh crore.