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Niti Aayog has suggested to the government to provide tax incentives for investment in Infrastructure Investment Trusts (InvITs), and bring them under the IBC to attract retail as well as institutional investors to achieve the goals of the National Monetisation Pipeline scheme. The Aayog in consultation with infra line ministries has prepared and released a report on National Monetisation Pipeline (NMP) this month.

It recommended ‘more tax-efficient and user-friendly mechanisms like allowing tax benefits in InvITs as eligible security to invest under Section 54EC of the Income-Tax Act, 1961, are important starting points for initiating retail participation in the instruments.’

Finance Minister Nirmala Sitharaman on August 23 had announced a Rs 6 lakh crore NMP scheme that will look to unlock value in infrastructure assets across sectors, ranging from power to road and railways. She had also said the asset monetisation does not involve the selling of land and it is about monetising brownfield assets.