Infrastructure Investment Trust (InvIT) - PowerGrid Infrastructure Investment Trust (PGInvIT)
- Posted By
28th Apr, 2021
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.