An entity appointed by the InvIT (or its HoldCo/SPVs) responsible for the execution, maintenance, and operation of project assets under a Project Implementation and Management Agreement (PIMA).
CORPORATE WISDOM · INVIT AND INFRASTRUCTURE
Project Manager
In One SentenceThe Project Manager is the operating contractor appointed to execute day-to-day operations, maintenance, and upkeep of the underlying infrastructure assets in compliance with concession agreements.
Project Manager Role = Operations & Maintenance (O&M) + Asset Uptime + Concession Compliance
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PRACTICAL FRAMEWORK
Executive Perspectives & Ground Reality
The project manager is the physical operator on the ground. For a toll road, it manages toll booths, repairs pavement, and ensures highway safety. For a transmission line, it maintains sub-stations and clears tower vegetation to ensure 99%+ electrical availability.
While the Investment Manager sits in Gurugram managing bond issues, the Project Manager's field engineers are patrolling 500 km of national highway, operating automated toll lanes, and managing resurfacing contractors.
O&M budgets typically range from 8% to 15% of gross revenue for roads, and lower for transmission. If the Project Manager keeps O&M costs within budget while maintaining quality, more cash flows into NDCF.
In many InvITs, the sponsor acts as the initial Project Manager. Because this is a Related Party Transaction, the O&M fee must be benchmarked to arm's-length market rates and audited.
Ensure the Project Management Agreement contains clear KPI penalties for concession non-compliance or unexpected downtime.
What Project Manager Is Not
Project Manager and Financial Trust Administrator
The project manager handles day to day site operations, routine maintenance, safety compliances, and toll or power collection on the ground.
Project Manager and Independent Fiduciary
The PM operates under a contractual agreement with the project SPVs, delivering technical operations subject to Investment Manager oversight.
Project Manager and Capital Allocation Authority
The PM maintains operational asset uptime, but cannot decide asset acquisitions, debt issuances, or cash distribution policies.
Project Manager and Unregulated Vendor
The PM must satisfy statutory technical capability criteria and submit regular operational and safety reports under SEBI regulations.
Questions Business Leaders Ask About Project Manager
Are the project management fees benchmarked against competitive market tenders?
Arm's-length justification is required for RPT governance.
NORTHAXIS ADVISORY · INVIT SPECIALISATION
InvIT Readiness, Structuring & Capital Markets Advisory
NorthAxis Advisory supports infrastructure developers, sponsors and asset owners in assessing InvIT viability, cash-flow predictability, HoldCo/SPV holding structures, valuation readiness and governance frameworks. All regulated intermediary roles are performed by registered SEBI intermediaries.
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