Bhubaneswar: The state government has issued a notification to raise Rs 500 crore from open market through security sale. This is the fifth time in financial year (FY) 2018-19 that the government is going for market borrowings.
As per the notification issued by the Finance department, the government will borrow the amount through sale of government securities of 20 years tenure.
So far, the government has borrowed Rs 2,000 crore in four phases, Rs 500 crore each.
The proceeds of the loan will be utilised for financing development programmes and projects in the state. The state government has also taken requisite consent for raising the loan from the Centre, said the department.
The stock would be sold through an auction to be conducted by the Reserve Bank of India (RBI), Mumbai June 5. 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 bidder has to make payment June 6 before close of banking hours.
The borrowing stock would commence June 6, 2018 while the loan will be repaid June 6, 2038. The interest on this borrowing would be paid December 6 and June 6 of every year till the end of the tenure.
The government had borrowed Rs 8,000 crore from open market during 2017-18 financial year. 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.
