Toll Tax Update: Until now, the earnings from national highways and toll taxes have been limited to the government or large corporations. However, under a new initiative by the National Highways Authority of India (NHAI), ordinary investors will also be able to participate. NHAI’s Highway Infrastructure Investment Trust (InvIT) has received approval from SEBI, allowing retail investors to directly invest in highway projects.

Share in Toll Tax through InvIT

This new scheme will work like a mutual fund, the only difference being that the money will be invested in roads instead of the stock market. Ordinary investors will now receive a share of the toll tax revenue collected from highways that see millions of vehicles daily. It is believed that this could provide investors with an annual return of up to 10 percent. Previously, investment in the infrastructure sector was primarily limited to large corporations and foreign companies.

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Regular Income and Long-Term Investment

This public InvIT aims to include ordinary investors. Those who invest in it are likely to receive regular income, as a large portion of the InvIT’s earnings is distributed as dividends. Association with NHAI provides investors with the assurance that the projects will be long-term. This is considered a long-term investment, with the expectation of stable returns over time.

How InvIT Works

Investors buy units of the InvIT. With this money, the trust leases or operates existing roads. The toll tax collected from these roads becomes the trust’s income. For the security and management of the investment, NHAI has created Highway Infrastructure Investment Managers Private Limited, which includes 10 major banks and financial institutions of the country. This means that the investor’s money will be managed under the supervision of experienced institutions.

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Requirements for Investment

A Demat account is required to invest in this scheme. When its IPO is launched, investors will be able to buy units through their broker’s app. After listing, these units can also be bought and sold through the stock market. This initiative will provide ordinary people with the opportunity to invest in the infrastructure sector and generate a regular income stream from toll taxes.