Bhubaneswar: For third time in current financial year (2018-19), the state government will raise Rs 500 crore from open market through security sale.
As per a notification issued by state Finance department, the government after taking consent from the Centre will borrow Rs 500 crore through sale of government securities of 10 years’ tenure. The proceeds of the loan will be utilised in financing development projects to be undertaken in the state.
The stock would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai May 8. 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 10.30 am to 12 pm.
RBI would display the auction results on the same day while successful bidder has to make payment May 9 before closure of banking hours. The borrowing stock would commence May 9, 2018 while the loan will be repaid May 9, 2028. The interest rate for this borrowing would be paid November 9 and May 9 of each year till end of its tenure.
Earlier in this fiscal, the state government had borrowed Rs 500 crore from market in two phases each. During last financial year, the government had borrowed Rs 8,000 crore from open market. As per government’s projection, total debt burden of Odisha will be Rs 91,943 crore by end of 2018-19 fiscal year – 20.73 per cent of the gross state domestic product (GSDP).
