Investment authorities advocate for accelerated infrastructure asset selling and broader expansion of investor pools
In a speech at the NaBFID Annual Infrastructure Conclave 2025 in Mumbai, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey emphasised the need to accelerate asset monetisation in various sectors to boost infrastructure creation.
Pandey highlighted the importance of capital markets in long-term infrastructure funding, citing their ability to mobilise long-term funds, diversify risks, and ensure efficient use of capital. He pointed out that over the last five years, Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) registered with SEBI have mobilised ₹1,50,000 crore and have assets under management (AUM) of ₹8,70,000 crore at the end of FY25.
However, Pandey expressed concern over the current narrow infrastructure market, which he said is heavily dependent on institutions. He suggested broadening the sector's investor base to include retail and foreign investors, who, he noted, are currently cautious in the market.
Pandey also addressed the issue of thin secondary market trading in the infrastructure sector, which limits liquidity. He highlighted the need to address this gap in asset monetisation plans to boost infrastructure creation.
The Chairman's speech also touched upon the state of asset monetisation plans in various sectors. He pointed out that while InvITs, REITs, public-private partnership (PPP), and securitisation offer various products and models for asset monetisation, state governments, excluding a few, have not crystallised their plans. He emphasised the need to accelerate asset monetisation in sectors such as roads, railways, ports, airports, energy, petroleum & gas, and logistics.
Pandey also mentioned the challenges faced by urban local bodies in raising funds through municipal bonds, REITs, and InvITs, despite the funds raised being higher than before. Many urban local bodies still face challenges such as weak balance sheets and delayed clearances.
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In conclusion, Tuhin Kanta Pandey's speech at the NaBFID Annual Infrastructure Conclave 2025 underscores the need for accelerating asset monetisation in various sectors to boost infrastructure creation. The Chairman's call to action includes broadening the sector's investor base, addressing liquidity issues, and urging state governments to crystallise their asset monetisation plans.
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