India’s Divestment Secretary has announced plans to make public Infrastructure Investment Trusts (InvITs) operational by the end of 2026. The move is expected to unlock value in public sector assets, attract private capital, and strengthen infrastructure financing, aligning with the government’s broader divestment and economic growth strategy.
India is advancing its divestment agenda with a focus on infrastructure monetization. According to the Divestment Secretary, the government aims to operationalize public InvITs by the end of this year. InvITs, which pool investor funds for infrastructure projects, are seen as a key instrument to mobilize long-term capital and reduce fiscal pressure while enhancing efficiency in asset management.
The initiative is part of India’s broader plan to leverage innovative financing models to support infrastructure development, including roads, power transmission, and other critical sectors. By making public InvITs functional, the government hopes to attract global investors and deepen domestic capital markets.
Key highlights from the announcement include
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Government aims to operationalize public InvITs by end of 2026.
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InvITs will help monetize public sector infrastructure assets.
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Move expected to attract private and global capital into India’s infrastructure sector.
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Part of broader divestment and economic growth strategy.
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Supports long-term financing for roads, power, and other critical projects.
Industry experts note that operational public InvITs could significantly boost India’s infrastructure financing ecosystem, providing transparency, efficiency, and investor confidence. The initiative is expected to play a pivotal role in meeting India’s ambitious infrastructure development goals.
Sources: Reuters, Economic Times, Business Standard