Infrastructure Trust Funds to be set up to Spur Investments

The Government of India proposes to set up Infrastructure Trust Fund to spur investments.

A structure for infrastructure projects has been announced in the Budget 2014-15, called Infrastructure Investment Trusts (InvITs) which would have tax efficient pass through status, for Public Private Partnership (PPP) and other infrastructure projects. These structures would reduce the pressure on the banking system while also making available fresh equity. These instruments are expected to attract long term finance from foreign and domestic sources including NRIs. InvITs would be modified Real Estate Investment Trusts type structures which have been successfully used as instruments for pooling of investment in several countries.

This information was given by the Minister of State for Finance, Smt. Nirmala Sitharaman in written reply to a question in Lok Sabha.