1. Large scale, efficient Infrastructure is the basic requirement for any economy to function competitively. This is also essential to maintain and updated these infra for continuous growth and smooth running of economy.
With the vision of Make in India, our Prime Minister has given much emphasis on infrastructure growth and taking various steps to revive the sector. Several infrastructure projects which are under development in India are on hold or delayed due to various reasons. These infra systems are high-cost investments.
The infrastructure projects comprising roads and highways, ports, power, Communication and water sanitation projects etc. have been facing severe liquidity crunch due to the limited funding options, high interest cost and lack of investor interest. Witnessing the requirement for infrastructure in a country like India coupled with the huge funding requirements of the infrastructure developers, the structureof InvIT seems to be a much needed and a welcome introduction.
Finance Minister Mr. Arun Jaitely announces exemption from dividend distribution tax (DDT) by a domestic company to business trust (InvITs) in his speech in Budget 2016 . This announcement has suddenly given momentum to attract investor in Infra companies.