How you can earn from Toll tax!

We’re sure you must have shelled out money from your pocket at toll plazas across highways in India.
But, what if we tell you that - you can earn money from the same toll plazas?

Yes, that’s very much possible!

Importance of Infrastructure

Infrastructure and real estate are the two most critical sectors for India, which is a developing economy.

A well-developed infrastructural set-up propels the overall development of the country.

It also facilitates a steady inflow of private and foreign investments and augments the growth of key sectors in the Indian economy.

InvITs : Introduction

Given the importance of infrastructure in the country and the shortage of public funds available to boost growth, it is important that additional channels of financing are put in place.

Thus, Infrastructure Investment Trusts (InvITs) were introduced a few years back to publicly fund infra projects.

InvITs : Explanation

An Infrastructure Investment Trust (InvITs) is a pooled investment scheme similar to a mutual fund, which enables direct investment of money from individual and institutional investors in infrastructure projects to earn a portion of the income as a return.

Alternative Income Source

India has many Infrastructure Investment Trusts or InvITs, that own toll roads across the length and breadth of India.

According to SEBI, owners of such InvITs have to share 90% of their income with their unit holders, in the form of dividends.

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Record Toll Collections

Just to put things in context, total toll collection, just via FASTag, crossed the 50,000 crore mark in 2022!

Now imagine, you are entitled to receive a chunk of profit from such supernormal revenues every year, just because you invested in InvITs.

Types of InvITs

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Investment in Finished Projects

One of the types allows investment in revenue-generating finished projects and tends to invite investors through a public offering.

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Investment in Projects Under Construction

Additionally, investors are also allowed to invest in projects that are under construction or have been finished. Notably, this type opts for a private placement of its units

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Available InvITs to Invest In!