Bhubaneswar: With a view to financing development programmes and projects, the state government will borrow Rs 1,000 crore from open market Tuesday through sale of government securities of six-year tenure.
As per a notification issued by the Finance department, the proceeds of the loan will be utilised for financing development programme and projects to be implemented in the state. The state government has also taken required consent for raising the loan from the Centre.
The stock would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai January 16. Bids for the auction are to be submitted in electronic format on RBI’s core banking solution (CBS) system- E-Kuber, on the same day between 10.30am to 12pm, it said.
RBI would display the auction results on the same day while successful bidder has to make payment January 17 before close of banking hours.
The borrowing stock would commence January 17 this year while the loan will be repaid January 17, 2024. The interest rate for this borrowing would be paid July 17 and January 17 of every year, till the end of the tenure.
This is the eighth time that the state government is resorting to open market borrowing in the current financial year. Earlier, the government had issued notifications to raise `6,000 crore from the market. With this fresh borrowing, the total market
borrowing of the state will be Rs 7,000 crore.
PNN
