What are Road & Highway InvITs?
Road & Highway InvITs own and operate toll roads, national highways, and expressways. They generate revenue from toll collection and annuity payments, offering investors stable infrastructure-backed returns.
- Toll-Based Income: Revenue from vehicle tolling on highways
- Traffic Growth: India's vehicle population growing at 10%+ annually
- Government Partnership: BOT and HAM concession agreements
- Long Concession Periods: 15-30 year operational rights
- Essential Infrastructure: Roads are India's primary goods transport mode
How Road & Highway InvITs Work
These InvITs operate by owning and managing highway toll assets:
- Trust acquires operational toll road concessions
- Revenue earned through toll collection from vehicles
- Annuity-based projects provide fixed government payments
- Distributions from toll revenue and annuity cash flows
- Traffic volume and toll rate increases drive organic growth