New Delhi, Dec 11 (IANS): The Union Cabinet here on Wednesday approved the proposal of the Ministry of Road Transport and Highways authorising the National Highways Authority of India (NHAI) to set up Infrastructure Investment Trust(s) (InvIT).

The trust will enable the NHAI to monetise completed national highways with toll collection record of at least one year. "The NHAI reserves the right to levy toll on the identified highways," an official said.

Besides, the infrastructure funds aims to attract "patient capital to the Indian highway market" as these investors are averse to construction risk and interested in investment in assets that provide long-term stable returns.

Retail domestic savings and corpus of special institutions (like mutual funds and PFRDA) will be invested in infrastructure sector through InvIT, according to an statement.

The NHAI's InvIT will be a Trust established under the Indian Trust Act, 1882, and the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014.

The InvIT will be formed with an objective of investment primarily in infrastructure projects (as defined by the Ministry of Finance). InvIT might hold assets either directly or through an SPV or a holding, it added.