India’s first cross-sector investment trust in works to monetise assets

The proposal, a part of deliberations on the second version of the Nationwide Monetisation Pipeline (NMP 2.0) led by the NITI Aayog, would mark a shift from the Centre’s earlier technique of launching sector- or ministry-specific Invits underneath the first NMP (2022-25). 

The creation of a multi-sector trust was mentioned at a gathering of the Core Group of Secretaries on Asset Monetisation (CGAM), chaired by Cupboard Secretary T V Somanathan, and is predicted to allow the federal government to plough again capital from a wider pool of assets past highways, officers stated. 

The transfer comes because the NITI Aayog, the federal government’s coverage assume tank, seems to carry state governments on board for NMP 2.0. A number of ministries and states could in any other case have wanted to launch their very own Invits to monetise assets. An Invit permits particular person traders to earn returns from infrastructure assets by holding items in a trust fairly than proudly owning the enterprise outright or investing in particular corporations. 

Officers stated the federal government’s rationale, echoed by the cupboard secretary on the assembly, is that new Invits ought to serve a transparent public objective. A general-purpose Invit, they stated, might permit participation by each central and state authorities departments. 

Queries despatched to the NITI Aayog remained unanswered on the time of publication.

At current, solely three Invits are spearheaded by the general public sector: The Nationwide Highways Infra Trust (NHIT) and the Raajmarg Infra Investment Trust (RIIT), each backed by NHAI, and the PowerGrid Infrastructure Investment Trust (PGInvIT), sponsored by PowerGrid Company of India, every with a sector-specific mandate.

Of the greater than 25 registered InvITs in India, none operates a diversified portfolio spanning a number of sectors corresponding to energy and vitality, roads, ports and delivery, specialists famous.

A single, giant InvIT might additionally ease the trail for state governments which were exploring their very own trusts however would in any other case face prolonged incorporation processes and the problem of attracting anchor traders, stated an individual conscious of the discussions. State governments, their asset-owning authorities, and public sector enterprises might as an alternative turn into unitholders in the proposed trust, the particular person added. 

“A multi-sector InvIT may have a decrease threat weighting as threat can be unfold throughout a number of sectors and due to this fact can get the advantage of decrease value of funds, which in flip can lead to profit to the asset monetisation initiatives of the federal government. Additional, the asset pool obtainable for acquisition would even be bigger and due to this fact such an InvIT can obtain respectable scale in a brief interval, offered the facets associated to acquisition worth of the assets are taken care of,” stated Kushal Kumar Singh, associate at Deloitte India.

Nonetheless, the plan, at the moment unfamiliar for traders, is fraught with challenges too. “It’s essential to plan in element concerning the required sectoral experience and means to harness operational/monetary efficiencies to run such an Invit,” stated Singh.

With a number of governments (states), the trust, and the investment managers anticipated to work in tandem, it’s going to require all of them to work in shut coordination, he added.

“Whereas it has been legally allowed, risk-aversion and the novelty of the instrument have meant that Invits are at the moment sector-specific. With the money flows which might be at the moment there, intermingling of sectors throughout the identical trust will solely develop going ahead. There’s an urge for food for it. There could also be challenges like analysis of threat profile and balancing out disparate income fashions,” stated Kuljit Singh, associate and infrastructure chief at EY India.

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  Nationwide Highways Infra Trust: Monetised 2,345 km of nationwide freeway assets; raised ₹43,638 crore as of FY25.
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  Raajmarg Infra Investment Trust: Acquired 5 nationwide highways from NHAI for ₹9,500 crore (introduced Feb 9)
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  PowerGrid InvIT: Operates a number of transmission assets; reported enterprise worth of ₹8,857 crore (September 2025)