State to hit market for Rs 500 crore

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Bhubaneswar: The state government will raise Rs 500 crore from the open market through sale of securities, the fourth such borrowing in the 2018-19 fiscal.
As per a notification issued by the state Finance Department, the government will borrow the amount through sale of government securities of five-year tenure. So far, the government has borrowed Rs 500 crore each from open market in three phases.
The proceeds of the loan will be utilised for financing various development programmes and implementing different projects in the state. The government has already obtained requisite consent for raising the loan from the Centre, the department stated.
The stocks would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai, May 22. Bids for the auction should be submitted in electronic format on RBI’s core banking solution (CBS) system – e-Kuber, on the same day between 10.30 am to 12 noon.
Subsequently, RBI would display the auction results on the same day, while successful bidders would be required to make payments May 23 during banking hours.
The borrowing stocks would commence from May 23 while the loan will be repaid May 23, 2023. The interest on this borrowing would be paid November 23 and May 23 every year till the end of the tenure.
The government had borrowed Rs 8,000 crore from the open market in FY 2017-18. As per the government’s projection in its annual budget for 2018-19, the total debt burden of Odisha will be Rs 91,943 crore by the end of this fiscal, which is 20.73 per cent of the gross state domestic product (GSDP).