Gujarat: Addressing funding gaps in India’s infra sector in focus, highlights key workshop

At the event, Ashwani Bhatia, a full -time member of SEBI, highlighted the immense growth of capital markets and the scale of potential it offers to the infrastructure sector. The panelists agreed that “InvITs have emerged as a robust mechanism for attracting private capital into infrastructure projects” and emphasised upon the role of InvITs in creating long-term, stable returns for investors, while enabling infrastructure developers to unlock the value of their assets.

“InvITs and REITs offer predictable yields, typically ranging between 7% and 9% annually, making them attractive to lenders seeking steady returns. REITs, which allow investors to pool funds for investments in commercial real estate, were identified as an ideal alternative for financing large-scale urban development projects. The introduction and expansion of municipal debt securities were seen as a game-changer for cities and local governments looking to fund critical infrastructure projects as the issuance of bonds by municipalities allows them to tap into capital markets directly, raising funds for critical projects like water treatment plants, road development, and public transportation,” a release underlined on Saturday.

“Experts agreed that municipalities need to strengthen their creditworthiness and ensure financial disclosure transparency to attract a wider range of investors. For Gujarat, the discussion delved into alternative financing mechanisms not being just tools; but enablers of transformation,” it added.