Bengaluru: Indian Infrastructure Investment Trusts (InviTs) has the potential to build up Rs 21 lakh crore of assets under management in a decade (2024-34), estimates Bharat InvITs Association (BIA).
Speaking to the media on Wednesday, the Association’s representatives said this outlook is based on the national monetisation pipeline published by NITI Aayog and the enhanced government focus on the infrastructure development of the country,
Sharing past data, they pointed out that the private sector spent Rs 13 lakh crore on core infrastructure between 2017 and 2023, of which Rs Rs 2.7 crore are InviT-eligible assets.
From 2017 to 2023, private sector spending on core infrastructure was Rs 13 lakh crore, with Rs 2.7 lakh crore of InvIT-eligible assets. Likewise, the government's National Monetisation Pipeline targeted leasing public assets for Rs 6 lakh crore between FY22 and FY25. Of this, Rs 2.1 lakh crore worth InviT-able assets remain to be accessed.
Future infrastructure spending between 2024 and 2030 is expected to add ₹16 lakh crore to the InvIT pipeline. That apart, there is a potential for InviTs in road projects of Rs 10 lakh crore.
Presently, cumulative assets managed by InvITs are ~₹5 lakh crore and they have raised ~Rs 1.1 lakh crore in equity since 2019. The 4 publicly listed InvITs have a combined market capitalisation of ~Rs 27,500 crore and have over ~1.7 lakh unitholders (as on 31st March 2024).
“Given the government's focus on massive infrastructure projects, the sector is poised to grow at a rapid pace in the coming years. With the value proposition InvITs offer, they provide an excellent opportunity for all investor classes to tap into this segment,” the association pointed out in a statement.
InvITs own and operate infrastructure assets across various sectors like roads, transmission lines, telecom towers, fibre cables, warehousing, renewable energy etc. They provide an opportunity for investors, with varying quantum of investment capacities, to invest in income-generating infrastructure assets through a Sebi-regulated, transparent platform.
Published 05 June 2024, 16:27 IST