Here's a complete and detailed guide on Infrastructure Investment Trusts (InvITs) in
India, including their structure, types, SEBI regulations, taxation, risks, benefits, and current
listed InvITs.
Infrastructure Investment Trusts
(InvITs) – Complete Guide
What is an InvIT?
An Infrastructure Investment Trust (InvIT) is a SEBI-regulated investment vehicle that
owns and operates infrastructure assets such as roads, highways, power transmission lines,
renewable energy, telecom towers, etc.
InvITs allow individual and institutional investors to invest in long-term income-
generating infrastructure projects and receive steady income through distributions
(interest/dividends).
Types of InvITs (as per SEBI guidelines)
1. Public InvITs (Listed InvITs)
• Listed on stock exchanges (BSE/NSE)
• Accessible to retail and institutional investors
• More regulated and transparent
Suitable for regular income-seeking investors
2. Private InvITs (Unlisted InvITs)
• Offered only to institutional or HNI investors
• Not listed on stock exchanges
• Less disclosure but greater flexibility in structuring and asset acquisition
Minimum investment: ₹1 crore
Structure of InvITs
An InvIT is structured as a trust and consists of the following key entities:
Entity Role
Sponsor Sets up the InvIT and transfers assets
Investment Manager Manages the InvIT operations, assets, and investments
Project Manager Operates and maintains the infrastructure assets
Trustee Holds the assets in trust for unitholders
SEBI Regulations for InvITs (India)
Regulation Description
SEBI Regulator SEBI (Infrastructure Investment Trusts) Regulations, 2014
Minimum Asset Value ₹500 crores (income-generating projects)
Minimum Public Offer Size ₹250 crores (for public InvITs)
At least 90% of net distributable cash flows (NDCF) must
Distribution
be paid to unitholders
Max 49% of asset value (above 25% requires credit rating &
Leverage Cap
approval)
Minimum Investment
₹10,000–15,000 (as per 2021 revised norms)
(Public InvIT)
NAV Disclosure Quarterly basis
Valuation Semi-annual valuation of assets is mandatory
Listing Public InvITs must list on BSE or NSE
Taxation of InvITs (India)
Taxation for Unitholders:
Income Type Tax Treatment
Interest Income Taxable in the hands of investors as per slab
Taxable only if SPV has opted for concessional tax under Sec
Dividend Income
115BAA
Capital Gains on
Units
• STCG (<36 months): 15%
• LTCG (>36 months): 10% (above ₹1 lakh gains)
Taxation at Trust Level:
• Pass-through status for interest and dividends (like AIF Category I & II)
• Trust is not taxed; income flows through to investors
Sectors Covered by InvITs
• Roads and Highways (Toll and Annuity)
• Power Transmission Lines
• Renewable Energy (Solar, Wind)
• Gas Pipelines
• Telecom Towers
• Railways (stations, freight corridors)
Benefits of InvITs
Benefit Details
Steady Income Quarterly or semi-annual distributions (interest/dividends)
Diversification Exposure to infrastructure sector without direct ownership
Liquidity Public InvITs are traded on stock exchanges
Professional Management Run by experienced infrastructure developers
Low Entry Barrier Min ₹10,000 investment post-2021
Transparency Regulated by SEBI; disclosures required
Risks in InvITs
Risk Type Description
Project Risk Delays, cost overruns, or operational issues
Regulatory Risk Changes in infrastructure, tax, or tariff policies
Interest Rate Risk Higher rates can reduce relative attractiveness
Many InvITs are focused on one sector (e.g., roads or
Concentration Risk
power)
Liquidity Risk (Private
No exit through exchange; depends on secondary deals
InvITs)
Listed InvITs in India (as of 2025)
Approx.
Name Sponsor Focus Key Assets
Yield
IRB Roads & Highways ~8.5%–
IRB InvIT Fund 7 road assets
Infrastructure (Toll) 9.5%
India Grid Trust ~8.0%–
Sterlite Power Power Transmission 14+ assets
(IndiGrid InvIT) 9.0%
PowerGrid Power Grid ~7.5%–
Power Transmission 5 projects
Infrastructure InvIT Corp. 8.5%
Brookfield InvIT Commercial Hybrid
Brookfield Unlisted
(Private) Office/Roads portfolio
Expected New Launches:
• GAIL India may float a Gas Pipeline InvIT
• NHAI InvIT expanding with new road assets
Who Should Invest in InvITs?
Income-seeking investors (retail or HNIs)
Investors wanting fixed-income-like returns with real asset backing
Low-risk investors looking to diversify beyond equity & debt
Long-term investors (horizon 3–7+ years)
InvITs vs REITs – Quick Comparison
Feature InvITs REITs
Assets Roads, power, infra Commercial real estate
Cash Flow Source Toll, annuity, power transmission Rental income
Minimum Investment ₹10,000–15,000 ₹10,000–15,000
Return Type Mostly interest Mostly dividends
Risk Level Moderate Moderate
Liquidity High (listed) High (listed)
Summary Table
Feature Details
Regulation SEBI (InvIT Regulations, 2014)
Structure Trust with Sponsor, Manager, Trustee
Feature Details
Min Investment ₹10,000 (public); ₹1 crore (private)
Distribution ≥90% of cash flows
Yield ~7–9% (net)
Sectors Roads, Power, Renewables, Telecom, Gas
Liquidity Listed InvITs are exchange-traded
Taxation Pass-through for interest/dividend; CG taxed as per IT Act
Final Take
InvITs combine infrastructure stability with regular income.
They are ideal for:
• Diversifying portfolios
• Earning passive income
• Accessing infrastructure with lower capital
Would you like:
• A detailed comparison between InvITs and fixed deposits or debt mutual funds?
• Help selecting between IRB vs IndiGrid vs PowerGrid InvIT?
• A template to track InvIT yield and payouts?
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