Bhubaneswar: The state government has issued notifications to borrow Rs 1,000 crore from open market to meet some of its committed expenditures. The loan will be raised through sale of government securities of five-year and 10 year tenures.
“The proceeds of the loan will be utilised to finance development programmes and projects sanctioned by the government. The Central government’s permission has been obtained for the loan,” read a Finance department notification.
The stocks would be sold through auction to be conducted by the RBI, Mumbai July 23 while bids for the auction are to be submitted in electronic format on the RBI’s core banking solution (CBS) system – e-Kuber, on the same day between 10.30 am and 12 pm.
As per the notification, the RBI would display the auction results on the same day. Successful bidders will have to make their payments before the closing of banking hours July 24.
The borrowing term would commence from July 24 this year. The 5-year tenure loan will be repaid July 24, 2024 while the 10 year tenure loan will be repaid July 24, 2029, it said.
The interest rate on the loan would be paid January 24 and July 24 every year till the end of the tenure of the concerned loan.
The state, which was revenue surplus till 2013-14, resorted to market borrowing from 2014-15. The total open market borrowing till 2018-19 stands at Rs 29,030.92 crore. State’s per capita loan burden touched Rs 18,228 as the state incurred a total debt of Rs 82,570.68 crore as of May.
While the state incurred a loan of Rs 3000 crore from open market in 2014-15, it increased to Rs 4472.82 in 2015-16, Rs 7620 crore in 2016-17, Rs 8438.35 in 2017-18 and Rs 5500 crore in 2018-19, sources said.