Mumbai: In a major move to boost infrastructure development and raise capital for key projects like roads and bridges, the Maharashtra state government has granted approval for the establishment of the Maha InvIT (Maharashtra Infrastructure Investment Trust). With this decision, Maharashtra becomes the first state in India to set up such a trust.
The Maha InvIT will provide a new platform for fundraising, facilitating both private and public investors to participate and earn stable returns. This initiative aims to accelerate the development of crucial infrastructure by enabling effective mobilization of financial resources.
Under the Maha InvIT, the state government will establish a trust with a structure that includes sponsors, investment managers, and project managers. The trust will operate in accordance with the guidelines set by the Securities and Exchange Board of India (SEBI).
The concept of InvIT (Infrastructure Investment Trust) was first introduced in the United States in 1960, and the National Highways Authority of India (NHAI) followed suit in 2020 by creating the National Highway Infrastructure Trust to raise funds. Maharashtra is now the first state in India to establish such a trust.
As part of the Maha InvIT, select assets from the Public Works Department, Maharashtra State Road Development Corporation, and Maharashtra Infrastructure Development Corporation will be transferred into the trust. This will generate future revenue for the trust, which can then be reinvested into new infrastructure projects.
The state government has also granted in-principle approval for the creation of a ‘Special Purpose Vehicle’ (SPV) for the Maha InvIT. This decision is expected to attract long-term investments, enhance liquidity in the infrastructure sector, reduce reliance on high-interest loans, and lead to significant improvements in the quality of road projects. The government is confident that this initiative will bring about positive changes in the state’s infrastructure landscape.
