Govt to raise Rs 500 crore from open market

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Bhubaneswar: The state government is going to raise Rs 500 crore from open market through security sale Tuesday. This is the sixth time the government is going for market borrowings in 2018-19 financial year.
As per a notification issued by the Finance department, the government will borrow the amount through sale of government securities of 25 years’ term.
The proceeds of the loan will be utilised for financing development programmes to be implemented in the state. The state government has also taken required consent for raising the loan from the Centre, said the department.
The stock would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai June 26. 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. RBI would display the auction results on the same day while successful bidders have to make payment June 27, before close of banking hours.
The borrowing term would commence from June 27, 2018 while the loan will be repaid June 27, 2043. The interest rate for this borrowing would be paid December 27 and June 27 of every year till the end of the tenure.
So far, the government has borrowed Rs 2,500 crore from the open market five times (Rs 500 crore each) this fiscal. As per the projection made by the government in this annual budget, the total debt burden of Odisha will be Rs 91,943 crore by end of this year.