Govt to borrow Rs 500 crore from open market

Bhubaneswar: The state government will borrow Rs 500 crore from open market through sale of government securities of 12 years tenure, official sources said Monday.
According to a notification issued by the Finance department, the proceeds of the loan will be utilised for financing developmental programmes and projects to be implemented in the state. The state government has also taken required consent from the Centre.
The stock would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai December 12 (Tuesday). 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 and 12pm, it said.
RBI would display the auction results on the same day while successful bidders have to make payment December 13 before closing of banking hours.
The borrowing stock would commence from December 13 this year while the loan will be repaid December 13, 2029. The interest would be paid June 13 and December 13 of every year till the end of the tenure.
This is the seventh time the state government is borrowing from open market in the current financial year. Earlier, the government had issued notifications to raise `5500 crore from the market. With this fresh borrowing, the total market borrowing of the state will touch `6,000 crore.