india employmentnews

Now you too can profit from toll tax earnings; the government has made arrangements for you to earn a profit.

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YHJ

Infra Investment Trust: Now, ordinary people can also invest in national highways and receive a share of the toll tax earnings. NHAI's new InvIT scheme will allow retail investors to earn profits.

Until now, national highways and toll tax earnings were limited to the government or large companies. But now, ordinary people can also become stakeholders. The National Highways Authority of India (NHAI)'s new initiative, the Highway Infra Investment Trust, has received approval from SEBI.

Now, through Infra Investment Trusts (InvITs), retail investors in the country will be able to invest directly in highway projects. This means that the general public can now also earn from toll taxes. This scheme will work like a mutual fund. The only difference is that your money will not be invested in the stock market, but in roads.

You will receive a share of the toll tax collected from the highways that millions of vehicles use every day. It is believed that this can yield an annual return of up to 10 percent. Until now, only large corporations or foreign companies could invest in the infrastructure sector.

The aim of this public InvIT is to include ordinary investors. Those who invest in it can receive a regular income, as a large portion of the earnings from the InvIT is distributed as dividends. Being a government project, it also inspires greater confidence.

Because it is associated with NHAI, investors have the assurance that the projects will continue for a long time. It is also considered a long-term investment, with the expectation of stable returns over time. You can understand this entire scheme as similar to rental income.

You buy units of the InvIT. With that money, the trust leases or operates the constructed roads. The toll tax collected from these roads becomes the trust's income. For the security and management of the investment, NHAI has created Rajmarg Infra Investment Managers Private Limited.

It includes 10 major banks and financial institutions in the country. This means that your money will be managed under the supervision of experienced institutions. To invest in this scheme, you will need a Demat account. When its IPO is launched, you will be able to invest in it through your broker's app. After listing, its units can also be bought and sold on the stock market.