Retail investors may soon get a share of the Bandra-Worli Sea Link’s toll income

Small investors could soon put money into the toll earnings of the Bandra-Worli Sea Link, officially the Rajiv Gandhi Sea Link, under a plan being considered by the Maharashtra government.

The idea is to move the bridge’s toll income into an infrastructure investment trust (InvIT), a listed fund that owns income-earning infrastructure and pays most of that income to its unit holders. The State would raise money up front, which it could spend on new projects, while investors would receive a share of the tolls over the years.

Why it matters

InvITs are already used by the National Highways Authority of India and private companies to raise money from completed roads, but opening a well-known city landmark to small investors would be new for a State government. The returns depend on traffic: the 5.6-km sea link carries tens of thousands of vehicles a day between Bandra and Worli.

What to keep in mind

The plan is still at an early stage. Investors should wait for the offer document, which will set out the expected payouts, the toll rights’ remaining term and the risks, before deciding.