India’s growth is only possible when it will be led by its own people, Union Road Transport and Highways Minister Nitin Gadkari.
MUMBAI, Oct 14 (The CONNECT) - Having already raised more than Rs. 8,000 Crores from foreign and Indian institutional investors, NHAI InvIT is now looking to raise Rs.3,800 crore more, Union Road Transport and Highway Minister Nitin Gandkari said.
As part of this, Rs. 1500 crore is being raised through issue of Non-Convertible Debentures (NCDs), with a long-dated maturity of 25 years.
Gadkari said his focus is to pass InvIT’s benefit to retired citizens and salaried class people most of whom are currently investing in Fixed Deposits with comparatively lower returns.
In order to enhance participation by domestic retail investors, NHAI InvIT is issuing Bonds to raise Rs.1500 crore, which have a longdated maturity of 25 years. The minimum investment amount has been kept low at Rs. 10,000 so that a common person can participate in it, the Minister explained.
“With that in mind, 25% of the InvIT Bonds issued would be reserved for retail investors,” he said.
The coupon is 7.9% payable half yearly, which works out to 8.05% interest for the year. These InvIT Bonds carry AAA rating from two rating agencies.
Stating that in the current environment, this is an attractive opportunity to make investments from long term perspective, Gadkari expressed the belief that “India’s growth is only possible when it will be led by its own people”.
He pointed out that India is one of the fastest growing countries in the world and the developments in the highway sector have played a very crucial role in our nation’s economic growth. Today, we have the second largest road network in the world covering about 63 Lakh Kms. As mush as 86% of Passenger and 67% of Freight traffic is being carried via the road network.
The government has given special emphasis in connecting the farthest and remotest parts of the country, such as North Eastern parts of the country through national highways while working hard on providing all-season connectivity to religious and tourism destinations, he said.
The network of Expressways under BHARATMALA programme being constructed across the country will boost connectivity to major Economic Nodes and reduce cost and time of travel, Gadkari said and pointed out that the remaining economic nodes are being connected with National Highways thanks to the PM Gati Shakti National Master Plan.
This will bring our Logistics cost down to single digit from 13% to 14% of GDP at present.