The Ministry of Road Transport and Highways has scrapped the plan to fund infrastructure development using public money through government-sponsored road and highway sector infrastructure investment trusts (InvITs). The plan now is to bring retail investment through non-government and private sector InvITs, for which the market regulator’s approval is awaited. The lengthy gestation period of highway projects and their inconsistent revenue streams have spurred a rethink that instead of guaranteeing returns on these financial instruments, the Centre will let the market determine returns.
