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Glossary

239 terms, explained simply

InvITs, highways, concessions, tolling, project finance, Ind AS, tax, P2P and R2R. Every term links to the chapter that explains it in depth.

Updated 25 October 2026

239 terms

A

Access-controlled highwayHighways and concessions
A road where vehicles can enter and leave only at fixed interchanges, with no direct access from adjoining land. Expressways are access-controlled.
Accounts payable ageingP2P and R2R
Outstanding vendor bills grouped by how long they have been due. Read more →
Accounts receivable ageingP2P and R2R
Outstanding customer balances grouped by age, used for ECL and follow-up. Read more →
AccrualP2P and R2R
An expense or income recorded in the period it relates to, before the invoice or cash arrives. Accruals are usually reversed at the start of the next month. Read more →
Additional tollwayHighways and concessions
A new toll road that diverts traffic from a concession road. The BOT model agreement restricts the authority from building one and gives compensation and an extension if it does. Read more →
Adjusted equityProject finance
A defined amount in a concession agreement, usually the equity invested indexed for inflation and reduced over the operating period. It drives termination payments when the authority defaults. Read more →
ADT (average daily traffic)Tolling
Total vehicles passing a point in a period divided by the number of days. Toll revenue models start from ADT by vehicle class. Read more →
Amortisation of toll rightsAccounting and audit
Spreading the cost of a toll-collection intangible asset over the concession. Ind AS 38 paragraph 7AA allows a revenue-based method for toll roads. Read more →
Annual pass (FASTag)Tolling
A prepaid pass for private cars, jeeps and vans valid for one year or 200 plaza crossings on national highways. ₹3,075 for FY 2026-27. Read more →
Annuity (HAM)Highways and concessions
A fixed half-yearly payment by the authority to a HAM concessionaire, repaying 60% of the completion cost with interest on the reducing balance. Read more →
Annuity project (BOT-Annuity)Highways and concessions
An older model where the developer builds and finances the road and the authority pays a fixed annuity regardless of traffic. Read more →
Annuity receivableAccounting and audit
The financial asset a HAM concessionaire records for amounts due from the authority. Read more →
Appointed DateHighways and concessions
The date the concession period starts, once both sides meet the conditions precedent. Read more →
Approval matrixP2P and R2R
A table of who can approve which transactions and up to what value. It is a key P2P control. Read more →
Arbitral awardTax and law
The binding decision of an arbitral tribunal. It can be challenged in court under section 34 of the Arbitration and Conciliation Act, 1996. Read more →
Asset coverProject finance
The value of assets compared with debt secured on them. InvITs above 49% leverage disclose it. Read more →
Asset monetisationHighways and concessions
Raising money from operating public assets by leasing or transferring their cash flows to investors, for example through TOT or an InvIT. Read more →
Audit committeeInvITs and markets
A committee of the investment manager's board that reviews financial reporting and related-party transactions.
Audit trailP2P and R2R
A record of who changed what and when in the books. Required for accounting software under the Companies (Accounts) Rules.

B

Balance sheet reconciliationP2P and R2R
Proving each balance-sheet account balance with supporting detail at period end. Read more →
Bank guaranteeProject finance
A bank's promise to pay a third party if its customer fails to. Performance security under concession agreements is usually a bank guarantee.
Bank reconciliation statement (BRS)P2P and R2R
A statement that explains the difference between the cash book and the bank statement. Read more →
BankabilityProject finance
Whether lenders will finance a project on its contract terms, which depends on revenue certainty, termination payments and risk allocation.
Bharat InvITs AssociationInvITs and markets
The industry body of Indian InvITs, which runs investor awareness programmes with the REITs association.
Bharatmala PariyojanaHighways and concessions
The central programme for economic corridors, feeder routes, border and coastal roads and expressways. Phase I planned about 34,800 km. Read more →
Bid project cost (BPC)Highways and concessions
The project cost quoted by the winning HAM bidder. 40% of it, indexed, is paid as construction support. Read more →
BOT (Build-Operate-Transfer)Highways and concessions
A concession where the private party designs, finances, builds and operates the road, collects toll for the concession period and then hands it back. Read more →
Budget vs actualP2P and R2R
A monthly comparison of actual results with the budget, with explanations for variances. Read more →
Business trustTax and law
The tax law's term for an InvIT or REIT registered with SEBI whose units are listed. It gets pass-through treatment for some incomes. Read more →
Buy-back (BOT)Highways and concessions
The authority's right, under the 2024 BOT changes, to take back a project at a formula price once traffic reaches design capacity. Read more →

C

CapexProject finance
Capital expenditure: spending that creates or improves long-term assets.
Capital gains (units)Tax and law
Tax on selling listed InvIT units: long-term after 12 months, short-term before, at rates in the Act. Read more →
Cash trapProject finance
A loan covenant that stops distributions to equity when a ratio such as DSCR falls below a set level. Read more →
CCIETax and law
Conciliation Committee of Independent Experts: NHAI's panels to settle contract claims by conciliation. Read more →
CFADSProject finance
Cash flow available for debt service: operating cash flow after tax and capex, before debt payments. Read more →
Change in lawHighways and concessions
A change in Indian law after the bid date that affects a concessionaire's costs or returns. The agreement gives compensation or another remedy. The annual pass was treated as one. Read more →
Change of scopeHighways and concessions
Extra or changed works ordered by the authority, valued and paid under the agreement's procedure. Read more →
Close calendarP2P and R2R
A schedule of who does which close task on which working day. Read more →
COD (commercial operation date)Highways and concessions
The date a road is certified complete and starts operations; tolling or annuities begin. Read more →
Competing roadHighways and concessions
A free or toll road that offers an alternative route. The BOT agreement limits the authority from building one for a period. Read more →
Completed and revenue-generating projectInvITs and markets
Under the SEBI InvIT Regulations, a project that has reached commercial operation and earned revenue for at least one continuous year. Read more →
Completion cost (HAM)Highways and concessions
The 60% of the indexed bid project cost that the concessionaire funds and the authority repays through annuities. Read more →
Concession agreementHighways and concessions
The long contract between the authority and the concessionaire that sets rights, obligations, payments and termination terms. Read more →
Concession periodHighways and concessions
The length of time the concessionaire may operate the road and collect toll or annuities. Read more →
ConcessionaireHighways and concessions
The company (usually an SPV) that signs the concession agreement.
Conditions precedentHighways and concessions
Things each party must do before the Appointed Date, such as land handover by the authority and financial close by the concessionaire. Read more →
ConsolidationAccounting and audit
Combining the financial statements of a parent and its subsidiaries as one entity under Ind AS 110. InvITs consolidate their SPVs. Read more →
Construction support (HAM)Highways and concessions
The 40% of the indexed bid project cost that the authority pays during construction, now in 10 instalments of 4% linked to progress. Read more →
Contingent assetAccounting and audit
A possible asset, such as a pending claim, that is not recognised under Ind AS 37 and is disclosed only when an inflow is probable. Read more →
Contingent liabilityAccounting and audit
A possible obligation that is disclosed, not provided for, under Ind AS 37.
CorridorHighways and concessions
A long, connected highway route between economic centres, such as the North–South corridor. Read more →
Cost overrunProject finance
Spending above budget. Usually borne by the developer under BOT and HAM beyond indexation.
Counterparty riskProject finance
The risk that the party who must pay you does not. For HAM, the counterparty is the authority.
CovenantProject finance
A promise in a loan agreement, such as keeping DSCR above a level or getting consent before a change in ownership. Read more →
Credit enhancementProject finance
Support such as a partial guarantee that raises a bond's rating.
Credit ratingProject finance
An agency's opinion of the likelihood that debt will be repaid on time. InvITs need ratings to borrow above 25%. Read more →
Cut-offP2P and R2R
Making sure transactions are recorded in the right period at month or year end.

D

DCCOProject finance
Date of commencement of commercial operations assumed in a loan. Deferring it beyond limits affects asset classification under the RBI's 2025 directions. Read more →
Debit noteP2P and R2R
A document raised on a vendor to reduce the amount payable, for example for short supply or a price difference.
Debt dueProject finance
A defined amount in a concession agreement: outstanding senior debt and related sums. It is the base for most termination payments. Read more →
Debt sculptingProject finance
Setting each repayment so that DSCR stays at a target level in every period. Read more →
Defects liability periodHighways and concessions
The period after completion when a contractor must fix defects at its own cost.
Deferred taxAccounting and audit
Tax on temporary differences between book and tax values, recognised under Ind AS 12.
Depreciation (Schedule II)Accounting and audit
Depreciation under Schedule II of the Companies Act using useful lives, on SLM or WDV. Read more →
Design capacityHighways and concessions
The traffic, in PCUs per day, a road is designed to carry. It triggers capacity augmentation and buy-back rights.
Discount rateProject finance
The rate used to bring future cash flows to today's value. In InvIT valuations it is usually a weighted cost of capital. Read more →
DistributionInvITs and markets
Cash paid by an InvIT to unitholders. It can be interest, dividend, repayment of debt (capital) or other income. Read more →
Distribution policyInvITs and markets
An InvIT's published rules on how much and how often it distributes.
Distribution yieldInvITs and markets
Distributions in a year divided by the unit price. It is not the same as total return, because part of a distribution can be a return of capital. Read more →
Double feeTolling
The fee charged to vehicles without a valid FASTag paying cash. By UPI it is 1.25 times from 15 November 2025. Read more →
DPUInvITs and markets
Distribution per unit.
DRBTax and law
Dispute Resolution Board: a standing panel for contract disputes, removed by NHAI's January 2026 circular. Read more →
DSCRProject finance
Debt service coverage ratio: CFADS divided by principal plus interest due in the period. Lenders set minimum and lock-up levels. Read more →
DSRAProject finance
Debt service reserve account: cash or a guarantee covering the next few months of debt service. Read more →
Due diligenceProject finance
The investigation of legal, technical, traffic, financial and tax matters before buying or lending to a project. Read more →

E

ECL (expected credit loss)Accounting and audit
The Ind AS 109 approach to impairment of financial assets, such as receivables and HAM annuity receivables. Read more →
Effective interest methodAccounting and audit
A way to recognise interest income or expense at a constant rate on the carrying amount. Used for HAM financial assets and borrowings.
EPCHighways and concessions
Engineering, procurement and construction: a fixed-price contract in which the government funds the road fully. Read more →
Equity IRRProject finance
The internal rate of return on the equity invested, after debt service. Read more →
Escrow accountProject finance
A bank account where all project revenue is deposited and paid out in a fixed order agreed with lenders and the authority. Read more →
Exempt supply (GST)Tax and law
A supply on which no GST is charged. Road access on payment of toll is exempt, so related input tax credit is restricted. Read more →
Exempt vehiclesTolling
Vehicle categories that pay no toll under the Fee Rules, such as ambulances and some government and defence vehicles. Read more →
ExpresswayHighways and concessions
A high-speed, access-controlled road with grade-separated interchanges.

F

FASTagTolling
An RFID tag on a vehicle's windscreen used to pay toll electronically through the NETC system. Read more →
Fee notificationTolling
The Gazette notification that sets the toll rate and location for a specific plaza. Read more →
Fee Rules, 2008Tolling
The National Highways Fee (Determination of Rates and Collection) Rules, 2008, which set toll rates, revisions, exemptions and collection. Read more →
Financial asset modelAccounting and audit
Service concession accounting where the operator has an unconditional right to receive cash from the grantor, such as HAM annuities. Read more →
Financial closeProject finance
The point at which all financing agreements are signed and the first drawdown can happen.
Financial modelProject finance
A spreadsheet that forecasts traffic, revenue, costs, tax, debt and returns for a project. Read more →
Fixed asset register (FAR)P2P and R2R
A list of fixed assets with cost, location, depreciation and disposals. Read more →
Force majeureHighways and concessions
Events beyond either party's control. Concession agreements split it into non-political, indirect political and political types with different remedies. Read more →
Free cash flow to equityProject finance
Cash left for shareholders after operating costs, tax, capex, debt service and reserves.

G

GNSS tollingTolling
Satellite-based toll charged on distance travelled, allowed by the 2024 amendment to the Fee Rules. Read more →
Going concernAccounting and audit
The assumption that an entity will continue to operate. Concession expiry makes this relevant for SPVs.
Golden QuadrilateralHighways and concessions
The highway corridor linking Delhi, Mumbai, Chennai and Kolkata, built under the National Highways Development Project. Read more →
Grievance redressal (SCORES)InvITs and markets
SEBI's online complaints system, which InvIT unitholders can use.
GRNP2P and R2R
Goods receipt note: proof that goods or services were received, used in a three-way match. Read more →

H

HAM (Hybrid Annuity Model)Highways and concessions
A model where the authority pays 40% of the cost during construction and the rest as annuities with interest, plus O&M payments. Traffic risk stays with the authority. Read more →
Hand-back requirementsHighways and concessions
The condition in which the road must be returned at the end of the concession. Read more →
Hard closingP2P and R2R
A full month-end close with all accruals, reconciliations and reviews, compared with a lighter 'soft close'.
HoldCoInvITs and markets
A holding company between an InvIT and its SPVs. SEBI's NDCF framework applies at HoldCo level too. Read more →
Hybrid annuity deductionsHighways and concessions
Cuts from annuity or O&M payments for failing maintenance standards.
Hybrid securityInvITs and markets
For mutual fund investment rules, InvIT units are treated as hybrid instruments, not equity. Read more →

I

IHMCLTolling
Indian Highways Management Company Ltd, the NHAI company that runs electronic tolling. Read more →
IIACTax and law
India International Arbitration Centre. One of the forums for highway disputes below ₹10 crore under the 2026 circular. Read more →
IIFCLProject finance
India Infrastructure Finance Company Ltd, a government-owned infrastructure lender. Read more →
ImpairmentAccounting and audit
Writing an asset down when its recoverable amount falls below its carrying amount (Ind AS 36). Read more →
Ind AS 115Accounting and audit
The revenue standard. Its service concession appendix decides whether a road operator records an intangible or a financial asset. Read more →
Ind AS 116Accounting and audit
The leases standard. Lessees record a right-of-use asset and a lease liability. Read more →
Ind AS 37Accounting and audit
The provisions standard, used for major-maintenance obligations and claims. Read more →
Ind AS 38Accounting and audit
The intangible assets standard. Toll rights are intangible assets; paragraph 7AA allows revenue-based amortisation for toll roads. Read more →
Independent Engineer (IE)Highways and concessions
A firm appointed under the concession agreement to review designs, inspect works and certify completion and O&M compliance. Read more →
Indexation (HAM)Highways and concessions
Adjusting HAM payments for inflation using the price index multiple until and after COD.
Infrastructure Risk Guarantee FundProject finance
A fund proposed in the Union Budget 2026-27 to give lenders partial credit guarantees. Read more →
Input tax credit (ITC)Tax and law
GST paid on purchases that can be set off against GST on sales. Not available for exempt supplies like toll. Read more →
Intangible asset modelAccounting and audit
Service concession accounting where the operator gets a right to charge users, such as a toll, and records it as an intangible asset. Read more →
Intercompany reconciliationP2P and R2R
Matching balances and transactions between group entities so they eliminate on consolidation. Read more →
Interest coverage ratio (ISCR)Project finance
Earnings or cash flow divided by interest. A lender and SEBI disclosure ratio.
Interest on reducing balanceHighways and concessions
In HAM, interest paid on the outstanding completion cost, which falls as annuities are paid.
Investment Manager (IM)InvITs and markets
The company that manages an InvIT's assets and investments and makes key decisions. Read more →
Investor charterInvITs and markets
A SEBI-mandated statement of InvIT unitholders' rights and how to raise grievances. Read more →
InvITInvITs and markets
Infrastructure Investment Trust: a SEBI-registered trust that pools money from investors to own income-earning infrastructure such as roads and power lines. Read more →
IRCHighways and concessions
Indian Roads Congress, which publishes technical codes for highway design and maintenance.
IRIHighways and concessions
International Roughness Index: a measure of pavement smoothness used in maintenance standards.
IRRProject finance
Internal rate of return: the discount rate at which the present value of cash flows equals zero.

J

Journal entry registerP2P and R2R
A log of manual journals with preparer, approver and support, reviewed at close. Read more →

L

Land acquisition (NH Act 3A)Highways and concessions
The process under sections 3A to 3J of the National Highways Act, 1956 for acquiring land for national highways.
LeakageTolling
Toll revenue lost through exemptions misuse, violations, system errors or fraud.
Leverage (InvIT)InvITs and markets
Net borrowings as a share of the value of InvIT assets: 25%, 49% and 70% thresholds with conditions. Read more →
LLCRProject finance
Loan life coverage ratio: present value of CFADS over the loan life divided by debt outstanding. Read more →
Local monthly passTolling
A discounted monthly pass for local non-commercial vehicles under the Fee Rules.
Lock-up levelProject finance
A DSCR level below which distributions are blocked, though it is not a default. Read more →

M

Maintenance manualHighways and concessions
The schedule to the concession agreement that sets O&M standards and response times. Read more →
Major maintenance (MM)Highways and concessions
Periodic large repairs, such as resurfacing, needed every few years under the maintenance manual. Read more →
Maker-checkerP2P and R2R
A control where one person prepares and a different person approves a transaction.
MCA (model concession agreement)Highways and concessions
The government's standard concession agreement for each model (BOT, HAM, TOT), revised from time to time. Read more →
MCLRProject finance
Marginal cost of funds based lending rate. Revised HAM agreements pay interest at the average MCLR of the top five banks plus 1.25%. Read more →
Minimum public unitholdingInvITs and markets
Public unitholders must hold at least 25% of a listed InvIT, reached within three years of listing. Read more →
MLFFTolling
Multi-lane free flow: barrier-free tolling using cameras and FASTag. First used on the Surat–Bharuch section of NH-48. Read more →
MMRAProject finance
Major maintenance reserve account: cash set aside ahead of major maintenance. Read more →
Month-end closeP2P and R2R
The monthly process of completing entries, reconciling accounts and reporting results. Read more →
MoRTHHighways and concessions
Ministry of Road Transport and Highways, the central ministry responsible for national highways. Read more →
MSME 45-day ruleTax and law
Under the MSMED Act, buyers must pay micro and small enterprises within the agreed period, at most 45 days, or 15 days if not agreed. Read more →
Mutual fund limits (InvIT)InvITs and markets
SEBI limits on how much a mutual fund scheme can invest in InvIT units, which are treated as hybrid instruments.

N

NaBFIDProject finance
National Bank for Financing Infrastructure and Development, set up under the NaBFID Act, 2021. Read more →
National highwayHighways and concessions
A road declared a national highway under the National Highways Act, 1956. Read more →
National Monetisation PipelineHighways and concessions
The government's plan for monetising operating assets across sectors; roads are the largest share. Read more →
NDCFInvITs and markets
Net distributable cash flows: the cash an InvIT and its SPVs can distribute, computed under SEBI's framework. At least 90% must be distributed. Read more →
NETCTolling
National Electronic Toll Collection: NPCI's interoperable system behind FASTag. Read more →
NH Act, 1956Highways and concessions
The National Highways Act, which declares national highways, allows fees (section 7) and sets land acquisition rules.
NHAIHighways and concessions
National Highways Authority of India, set up under the NHAI Act, 1988 to develop and manage national highways. Read more →
NHAI Act, 1988Highways and concessions
The Act that set up NHAI as a statutory authority.
NHIDCLHighways and concessions
National Highways and Infrastructure Development Corporation, which builds highways in the North-East and border areas. Read more →
NISMInvITs and markets
National Institute of Securities Markets, SEBI's capacity-building institute. Read more →

O

O&MHighways and concessions
Operation and maintenance of a road during the concession.
O&M payment (HAM)Highways and concessions
A payment by the authority to a HAM concessionaire for routine maintenance, quoted in the bid and indexed.
Offer documentInvITs and markets
The document issued for an InvIT's public offer, with assets, risks, valuation and financials.
OverloadingTolling
Trucks carrying more than the permitted weight. The Fee Rules charge higher fees for overloaded vehicles.

P

Pass-through statusTax and law
Tax treatment where certain income (interest, dividend, rent) is taxed in the hands of unitholders rather than the trust. Read more →
Payment runP2P and R2R
A scheduled batch of vendor payments, approved after checks on dues, MSME status and cash. Read more →
PCUTolling
Passenger car unit: a way to convert mixed traffic into car equivalents for capacity analysis.
Performance securityHighways and concessions
A bank guarantee given by the concessionaire to secure its obligations before the Appointed Date or during construction.
PlazaTolling
A toll collection point. Fee Rules restrict a second plaza in the same direction within 60 km, with exceptions. Read more →
PLCRProject finance
Project life coverage ratio: present value of CFADS over the remaining project life divided by debt.
PPPHighways and concessions
Public-private partnership: a long-term contract where a private party builds or runs public infrastructure and takes on part of the risk.
Prepaid expenseP2P and R2R
A payment made in advance for a future service, expensed over the period of benefit. Read more →
Price index multiple (PIM)Highways and concessions
The factor used to index HAM payments for inflation, based on a weighted WPI and CPI. Read more →
Price variation clauseHighways and concessions
A clause adjusting the contract price for input cost changes using indices.
Private InvITInvITs and markets
An InvIT whose units are privately placed. It may be listed or unlisted, and distributes at least once a year. Read more →
Procure to pay (P2P)P2P and R2R
The cycle from raising a requisition to paying the vendor. Read more →
Project IRRProject finance
The internal rate of return on total project cash flows before financing. Read more →
Project Manager (PM)InvITs and markets
The entity that runs the InvIT's projects day to day, such as O&M and tolling. Read more →
ProvisionAccounting and audit
A liability of uncertain timing or amount, recognised under Ind AS 37 when an outflow is probable and can be estimated.
Provisional CODHighways and concessions
Partial completion certificate allowing tolling or annuities on a completed part of the project.
Public InvITInvITs and markets
An InvIT whose units are offered to the public and listed. It must distribute at least once every six months. Read more →
Purchase order (PO)P2P and R2R
An approved document authorising a purchase at an agreed price and quantity.

R

Rajmarg YatraTolling
The official NHAI app for highway information, the FASTag annual pass and complaints.
Record dateInvITs and markets
The date that decides which unitholders get a declared distribution.
Record to report (R2R)P2P and R2R
The finance cycle from recording transactions to closing books and reporting. Read more →
RefinancingProject finance
Replacing existing debt with new debt, usually cheaper and longer after a road starts operating. Read more →
Registered valuerInvITs and markets
A valuer registered with IBBI. InvIT valuations must be done by one. Read more →
REITInvITs and markets
Real Estate Investment Trust: a similar trust structure to an InvIT, but for rent-earning real estate. Read more →
Remaining concession lifeHighways and concessions
The years left in a concession. It is the biggest single driver of value per rupee of current revenue. Read more →
Repayment of debt (InvIT)Tax and law
A distribution component that returns capital lent by the InvIT to its SPVs. Since 2023 it is taxable above a formula based on the issue price. Read more →
Retention moneyP2P and R2R
Part of a contractor's bill held back until the defects liability period ends.
Revenue-based amortisationAccounting and audit
Amortising toll rights in proportion to actual revenue over projected total revenue for the concession. Read more →
Right of way (ROW)Highways and concessions
The land needed for the road. Handover of ROW by the authority is a key condition precedent.
Risk matrixHighways and concessions
A table showing which party bears each risk (construction, traffic, inflation, finance) under each contract model. Read more →
Routine maintenanceHighways and concessions
Day-to-day upkeep such as potholes, drains and signs, as against major maintenance.

S

SAROD-RoadsTax and law
Society for Affordable Redressal of Disputes, set up in 2013 by NHAI and the builders' federation for highway arbitration. Read more →
Schedule IIIAccounting and audit
The format for company financial statements under the Companies Act, 2013, including the required ratios. Read more →
Schedule III ratiosAccounting and audit
The ratios companies must disclose under Schedule III, with explanations for changes above 25%. Read more →
SEBIInvITs and markets
Securities and Exchange Board of India, which registers and regulates InvITs. Read more →
SEBI InvIT Regulations, 2014InvITs and markets
The regulations that govern InvITs: registration, investment conditions, borrowing, distribution, valuation and governance. Read more →
Section 115UA (1961 Act)Tax and law
The provision giving business trusts pass-through treatment. Section 223 in the Income-tax Act, 2025. Read more →
Section 194LBA (1961 Act)Tax and law
TDS on distributions by business trusts. Moved into the section 393 tables under the 2025 Act. Read more →
Section 393 (2025 Act)Tax and law
The consolidated TDS section of the Income-tax Act, 2025, with tables of rates by payment type. Read more →
Self-sponsored investment managerInvITs and markets
An investment manager that takes over the sponsor's role, allowed since 2023 under strict conditions. Read more →
Sensitivity analysisProject finance
Testing how results change when one input, such as traffic or interest rate, changes.
Service concession arrangementAccounting and audit
An arrangement where a private operator builds or upgrades public infrastructure and operates it for a period, accounted for under the Ind AS 115 appendix. Read more →
SPVInvITs and markets
Special purpose vehicle: a company set up to hold one project. InvITs own SPVs directly or through a HoldCo. Read more →
Substitution agreementProject finance
A three-party agreement letting lenders replace a defaulting concessionaire instead of letting the project terminate. Read more →

T

TailProject finance
The years of concession left after the loan is fully repaid. A longer tail gives refinancing room. Read more →
Takeout financeProject finance
A new lender taking over a project loan after a period of operations, often at a lower rate. Read more →
TDSTax and law
Tax deducted at source on payments such as contract work, fees, rent, interest and InvIT distributions. Read more →
Termination paymentHighways and concessions
What the authority pays when a concession ends early. It depends on who defaulted and is based on debt due and adjusted equity. Read more →
Three-way matchP2P and R2R
Checking that the purchase order, goods receipt and invoice agree before paying. Read more →
TollTolling
A user fee for using a highway section, bridge, bypass or tunnel, set under the Fee Rules. Read more →
Toll suspensionTolling
A period when tolling is stopped, for example from 25 March to 20 April 2020 during COVID-19. Read more →
TOT (Toll-Operate-Transfer)Highways and concessions
A model where an investor pays an upfront fee for the right to collect toll on an existing public road for a set period, and maintains it. Read more →
Total project cost (TPC)Project finance
The full cost of building the project including financing costs, used for termination limits and support.
Trading lotInvITs and markets
The minimum number of units that can be traded. For listed InvITs it is one unit. Read more →
Traffic elasticityTolling
How much traffic changes for a 1% change in GDP or another driver. Read more →
Traffic studyTolling
An analysis of current and future traffic by class, used to forecast toll revenue. Read more →
Trial balanceP2P and R2R
A list of all ledger balances whose debits equal credits. The starting point for financial statements. Read more →
TrusteeInvITs and markets
A SEBI-registered debenture trustee that holds the InvIT's assets for unitholders and oversees the manager. Read more →

U

Udyam registrationTax and law
The registration that identifies a business as micro, small or medium. It decides MSME payment protection. Read more →
Unbilled revenueAccounting and audit
Revenue earned but not yet invoiced, such as annual-pass compensation for the last days of a month.
UnitholderInvITs and markets
An investor who holds units of an InvIT.
Unitholder approvalInvITs and markets
A vote of unitholders, needed for leverage above 25%, large related-party deals and other key matters. Read more →
Unitholder nominee directorInvITs and markets
A director that unitholders holding 10% or more can nominate to the investment manager's board. Read more →
Units as equityAccounting and audit
InvIT unit capital is presented as equity, following SEBI circulars of 2016. Read more →

V

Valuation multipleInvITs and markets
A ratio such as enterprise value to EBITDA used to compare asset prices.
Valuation reportInvITs and markets
The registered valuer's report on InvIT assets: full annually and updated half-yearly for public InvITs. Read more →
Variable considerationAccounting and audit
Revenue that depends on future events, such as claims or bonuses, included only when highly probable under Ind AS 115.
Vendor masterP2P and R2R
The approved list of vendors with PAN, GSTIN, bank and MSME details. Changes need independent review. Read more →
Vendor reconciliationP2P and R2R
Matching the vendor's statement of account with your books. Read more →
Vivad se VishwasTax and law
Government schemes for settling contractual disputes at a discount to the award. Scheme III was notified in 2026. Read more →

W

WACCProject finance
Weighted average cost of capital: the blended required return of debt and equity. Read more →
WaterfallProject finance
The order in which escrow cash is paid out: costs, taxes, debt service, reserves, then equity. Read more →
Withholding taxTax and law
Tax deducted on payments to non-residents, including InvIT distributions to foreign unitholders. Read more →
Working capitalP2P and R2R
Current assets minus current liabilities, mostly receivables, payables and cash for a toll SPV.
Working day (WD)P2P and R2R
Close calendars count tasks in working days after month end: WD1, WD2 and so on. Read more →
WPI-linked revisionTolling
The annual toll increase on 1 April: a fixed 3% plus 40% of the change in WPI. Read more →

Y

Yield vs returnInvITs and markets
Yield is cash paid divided by price. Total return also counts price change. Capital returned in a distribution reduces future value. Read more →