Recently, NHAI made a successful pre-payment of a Rs. 15,700 crore loan from InvIT proceeds.
National Highways Authority of India (NHAI) Loan Pre-Payment
- Recent Development:
- Pre-Payment: NHAI successfully pre-paid a Rs. 15,700 crore loan using proceeds from InvIT monetization.
- Use of Proceeds: InvIT monetization proceeds are exclusively utilized for NHAI debt repayment.
About Infrastructure Investment Trusts (InvIT)
- Definition:
- Collective Investment Scheme: Similar to mutual funds, InvITs enable individual and institutional investors to invest directly in infrastructure projects to earn a share of the income as returns.
- Regulation:
- Regulated by SEBI: Governed by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
- Taxation:
- Taxable Income: Dividend and interest income from InvITs are fully taxable according to the investor’s income tax slab rate.
- Classification:
- Borrowers: InvITs are classified as borrowers under the SARFAESI Act, making them eligible for recovery actions by secured creditors in case of default.
