The Ministry of Road Transport and Highways is planning to open the National Highways Infra Trust (NHAI InvIT) every 15 days with interests of up to 8.50 per cent, Union Minister for Road Transport and Highways Nitin Gadkari said in a conversation with Business Today TV Managing Editor Siddharth Zarabi at the BT Budget Roundtable 2023.
The minister also said that the government had launched the bond for the InvIT model at the stock exchange.
He said, “One and a half month before, we launched the bond for InvIT model at the Mumbai Stock Exchange. Actually, the bond was prescribed for 10 days. But [on] the first day, within seven hours, it was seven times oversubscribed. And now in our bond, we are giving 8.50 per cent interest per year. There is a scheme that we will deposit the interest monthly in their account even if they (investors) can invest Rs 10,000 in this bond.”
The union minister added that salaried-class individuals, middle-class persons, and pensioners can invest in NHAI InvIT as it offers much higher interest rates compared to fixed deposits. He added that global financial forms are also keen to invest in India’s highways sector.
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He stated, “My request to all of you, particularly salaried people, is they can get good returns. Because anywhere on their deposits, they are getting a maximum of 5 per cent to 5.50 per cent. NHAI is AAA rating and you can get a return of 8.50 per cent.”
The NHAI InvIT is the infrastructure investment trust sponsored by the National Highway Authority of India (NHAI) to support the Centre’s National Monetisation Pipeline (NMP).
When asked about the NHAI’s financial standing, the minister said that the highways authority’s debt is reducing with time and its foundation is very strong. He further added that the government expects NHAI toll collection to cross Rs 1.40 lakh crore.
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