MUMBAI: Retail investors with demat accounts may soon be able to invest in the toll revenue generated by Bandra-Worli Sea Link, officially known as the Rajiv Gandhi Sea Link.
The 5.6-km Sea Link, managed by the Maharashtra State Road Development Corporation (MSRDC), will be among its first assets. The Maharashtra government plans to launch its first Infrastructure Investment Trust (InvIT), called Maha-InvIT, which is likely to be listed on stock exchanges next year.
Three state officials told Hindustan Times that the trust will also include selected operational roads, bridges and industrial infrastructure managed by the Public Works Department (PWD), MSRDC and Maharashtra Industrial Development Corporation (MIDC).
An InvIT is a SEBI-regulated investment vehicle that pools money from investors to invest in revenue-generating infrastructure projects. Investors can buy units of the trust through demat accounts and earn returns from the revenue generated by these assets. To set up the trust, the state has established Maha-InvIT Sponsor Corporation Limited as its government-backed sponsor. MSRDC and the sponsor have issued requests for proposals to appoint the independent valuers to assess the initial bundle of road and bridge projects. Similar models already operate in India. The National Highways Authority of India’s (NHAI) National Highways Infra Trust (NHIT) and private player IRB InvIT are examples of investment trusts that hold highway and toll-road assets and distribute their earnings to investors. IRB InvIT’s assets are spread across Maharashtra, Gujarat, Rajasthan, Karnataka, Tamil Nadu, Punjab, Haryana and Uttar Pradesh. – Who can invest? Retail investors with a demat and trading account can buy the trust’s units once it is listed on the stock exchanges.
