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A mega sale of India's pipelines, railway tracks, power plants and transmission grids could be on the cards through Infrastructure Investment Funds (InvITs)

The government hopes this will help companies monetize mature assets and raise funds for fresh investments that could be ploughed into upgrading the country's infrastructure.

This year's Budget suggested the use of InvITs to monetize roads by the National Highways Authority of India (NHAI), but the idea may be expanded to include other assets as well. First notified in 2014, the regulator simplified rules to encourage such investment vehicles last year. India has two listed private-sector InvITs.

According to Economic affairs secretary Subhash Chandra Garg, mature assets can be converted into trusts where investors can invest into trust units and the original asset holder gets the money back for making fresh investments

Public sector companies can pool their assets through these InvITs to raise funds. According to the minister, today, even in the public sector we have lots of assets — pipelines, railway tracks, power plants, transmission grids, all mature, developed assets.

He added that, it should be possible to think of monetizing them. NHAI has begun doing this through toll, operate and transfer (ToT) projects and the railways could be looking to sell and lease back 30,000 km of electric lines.

Power Grid of India has over 145,000 km of transmission lines and 42,000 km of optic fibre. He added, NHAI started in a way with ToT, railways is looking at that, Power Grid is looking at that..

Monetization of assets being held in public sector undertakings through creation of InvITs (Infrastructure Investment Funds )

 will fast-track the agenda of improving infrastructure in the country, he said.

Public infra assets may be monetized via invit model