After initial hiccups, infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) are gaining currency in India with their combined assets under management reaching ~Rs 2 lakh crore.
While these instruments have been popular globally, they have only recently started finding favour in India, primarily because of proactive regulatory actions.
The Union Budget for last fiscal estimated India needed over ~Rs 100 lakh crore to build out infrastructure in five fiscals through 2025. Obviously, traditional modes of lending do not have the heft to provide such a gigantic amount of money, and a significant portion will have to come from channels beyond the normative.
InvITs and REITs are two instruments that can emerge as a 'win-win' for infrastructure sector stakeholders such as sponsors, investors, and lenders.
CRISIL estimates these hybrid instruments (between debt and equity) have the potential to raise ~Rs 8 lakh crore for infrastructure build-out over the next 4-6 years.
In the milieu, CRISIL is hosting a webinar where its experts will discuss the nuances of InvITs and REITs, such as:
Evolution globally and in India
Taxation and other regulatory aspects
How they offer a win-win to all stakeholders
The total funding potential
Challenges and the way forward
This will be followed by a panel discussion with industry leaders, and a Q&A session.
