Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) in India can raise Rs 8 lakh crore in the next 5 years. The global rating agency Crisil made this claim on Thursday in a report. Crisil said that the total assets under management (AUM) of InvITs and REITs in India will reach Rs 10 lakh crore in the next 5 years. That is, the value of the total financial assets of the infrastructure and real estate investment trust will increase to Rs 10 lakh crore. Crisil said in its report that after getting success abroad, now also InvITs and REITs are gradually becoming popular in India.
Crisil’s report comes at a time when the power distribution government Power Grid Corporation of India (Power Grid) has announced the launch of an Rs 8000-crore InvIT IPO in March and on February 3, owned by Canadian company Brookfield Asset Management Wali Brookfield India REIT is launching a Rs 3800 crore REIT IPO.
There are a total of 11 InvITs and REITs in India
The central government estimates that by the year 2025, an investment of Rs 111 lakh crore will be required in the infrastructure sector, which is double the amount spent on infrastructure development in the last 5 years. Because of this, other investment options are needed for financing infrastructure projects. Crisil said in its report that InvITs and REITs can prove to be very effective on this front. The Global Ratings Agency said the Compound Annual Growth Rate (CAGR) was recorded at 42% in both these types of trusts. This report states that since the launch of InvIT in India for the first time in 2018, the assets under management (AUM) of these trusts have reached Rs 2 lakh crore. At present, there are 11 InvITs and REITs in India.
Investment in infrastructure is necessary to increase growth, sector position better after unlocked