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Aided by regulatory guardrails and structural benefits, infrastructure investment trusts (InvITs) in the road sector have enhanced the credit quality of around ₹46,000 crore debt till now, credit rating agency Crisil said on Tuesday.
According to Crisil, since 2016, 19 InvITs have been registered in India and these include 11 from the roads sector of which nine have been floated or are set to be launched soon.
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The fund has committed 100 per cent of its ₹500 crore corpus across six investments to create a portfolio of ₹2,300 crore spanning five citiesThese nine comprise 94 road assets valued over ₹1.1 lakh crore, it said, adding that toll roads account for 70 per cent of this while annuity, annuity plus toll and hybrid annuity models comprise 13 per cent, 11 per cent and 6 per cent, respectively.
Historically, Crisil said credit profiles of toll roads had seen challenges, such as high leverage, long delays in construction and lower-than-expected traffic.
InvITs have addressed many of these problems, it added.
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