Govt mulling to double retail component in NHAI InVIT bonds: Gadkari

Union Minister Nitin Gadkari on Friday said the retail component in NHAI's InVIT bonds will be doubled to 50 per cent.

Speaking at a meeting held here virtually, the Union minister for road transport and highways said the debut issue of the National Highway Authority of India (NHAI) infrastructure investment trust (InVIT) got a good response, and every common citizen of the country can play a role in nation building by helping finance the infrastructure.

"We have reserved 25 per cent of InVIT bond for retail investors. Now we are planning to increase this limit to 50 per cent," Gadkari said.

Citizens can invest anything upward of Rs 10,000 and get a return of 8.5 per cent per annum on their investments, Gadkari said, thanking the investor community for the over subscription of seven times in the maiden bond issuance of Rs 1,500 crore which listed last month.

Speaking to an audience comprising institutional investors, the minister made a plea for more money saying the government's resources are limited.

He stressed that all the projects being brought before the investors are financially viable ones with attractive internal rates of returns, and putting money into them will also help in nation building.

Citing various initiatives where there is a thrust on domestic alternatives which substitute imports, like mobile phone manufacturing through the production linked incentive scheme, Gadkari said there is a need to work together for "economic nationalism".

"We wish to bring a cultural shift among the mindset of the people," Gadkari said.

Stating that students are going out of the country for education, he said, we should create private institutions offering quality education within the country.

He said there is a need to have 10,000 water taxis in the country, which will create employment, help reduce pollution and also the cost of transportation.