Current Affairs

Infrastructure Investment Trust (InvIT) - PowerGrid Infrastructure Investment Trust (PGInvIT)

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    28th Apr, 2021

Context

The Power Grid Corporation of India (PGCIL) launched its Infrastructure Investment Trust (InvIT) - PowerGrid Infrastructure Investment Trust (PGInvIT).

What are InvITs?

  • InvITs are trusts that manage income-generating infrastructure assets, typically offering investors a regular yield and a liquid method of investing in infrastructure projects.
  • The InvIT route was proposed by the government as an alternative fundraising route for state-run companies to manage their funding requirements without having to depend on government support.
  • This will be the third InvIT after IRB InvIT and India Grid Trust to be listed in India.
  • Post the first tranche, a second tranche for the InvIT is also in the works as reported by Mint earlier.
  • PGCIL is the first state-owned companies to offer an InvIT as part of the government’s brownfield asset monetization strategy, wherein the PSU is monetizing its five tariff-based competitive bidding (TBCB) assets having an enterprise value of ?10,384 crore.