Bhubaneswar: Nearly a month before the end of 2018-19 fiscal, the state government will raise 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 four-year tenure.
“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,” the Finance department said in a notification Monday.
The stock would be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai, February 26. 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 10.30am and 12pm. RBI would display the auction results on the same day, while successful bidders will have to make their payments before the close of banking hours February 27.
The borrowing term would commence from February 27, 2019, while the loan will be repaid February 27, 2023. The interest rate on the borrowing would be paid August 27 and February 27 every year till the end of the tenure.
The state, which was revenue surplus till 2013-14, resorted to market borrowing from 2014-15. It is expected that the state’s debt burden is likely to touch around Rs 87,650 crore by the end of the current fiscal (March 31, 2019). This is 18 per cent of the gross state domestic product (GSDP).
Similarly, the debt stock by the end of the financial year 2019-20 is expected to be around Rs 1.03 lakh crore, said sources.