States Unlock Assets: InvITs Pave Way For Infrastructure Funding

States are showing growing momentum in monetizing public infrastructure assets via Infrastructure Investment Trusts (InvITs). Maharashtra is at the forefront, preparing to launch its asset monetisation policy in the next four to five months. This initiative is supported by discussions with SEBI, aiming to unlock value in state-owned infrastructure.

Rajasthan and Uttar Pradesh are also engaging in talks regarding InvIT-backed asset monetization, though their progress is at earlier stages. The increasing interest from global pension and provident funds highlights a potential expansion of infrastructure funding beyond central government initiatives.

Key sectors identified for this monetisation drive include operational road assets, renewable energy projects, and power infrastructure. While road assets benefit from existing templates like NHAI, other sectors will require states to establish confidence in valuation and risk allocation from the ground up.

Investor appetite is anticipated to be robust, contingent on the quality and structural integrity of the assets. The success of early transactions in correctly pricing assets and ensuring strong governance could significantly scale capital inflow into state-level infrastructure development.