State to raise RS 500 cr loan from market
BHUBANESWAR: The State Government will raise `500 crore from open market through sale of its securities of 15-year tenure to finance development projects. “The proceeds of the loan will be utilised for financing development programmes and projects to be implemented by the State”, said a Finance Department notification.
The Government stocks will be sold through auction to be conducted by the Reserve Bank of India (RBI), Mumbai on September 11. Successful bidders will make payment on September 12. The loan will be repaid at par on September 12, 2033.The cut-off yield determined at the auction will be the coupon rate and the interest on the loan will be paid twice a year- March 12 and September 12, it said.
As per the Government’s projection in its Annual Budget for 2018-19, the total debt burden of Odisha will be `91,943 crore by the end of this fiscal, which is 20.73 per cent of the gross state domestic product (GSDP).The Government has planned to go for market borrowing of `19,678 crore during the current financial year to meet its capital expenditure. The Government had borrowed `8,000 crore from the open market in 2017-18.