PUDUCHERRY: The Puducherry government would begin repayment of its loan dues by starting with Rs.177 crore borrowed in 2007-2008, along with the final interest of Rs 6.99 crores (7.90 percent interest) on January 25, 2018. The repayment of the loan is at the end of moratorium period of 10 years.
This loan is part of Rs 377 crores borrowed in the financial year 2007-2008 by the government, after opening a Separate Public account of the Puducherry government in December 2007, bifurcating from the Consolidated fund of Government of India. The remaining Rs 160 crores along with final interest would have to be paid before the end of the financial year in March.
Finance secretary V Candavelou in a release on Friday said that the money would be remitted in the bank account of the security holders by pay order or by electronic transfer of funds. The security holders should produce their bank account details to the State Bank of India or to its subsidiary banks or government treasury, through which they are getting the interest and could get the maturity amount.
Those who do not have any such bank account could submit the security to the public account office of the Reserve Bank of India , twenty days before the maturity date. Those who wish to get the maturity amount in another place other than the earlier registered one should certify at the backside of the security that the maturity amount was received and post it to the public account office of the Reserve Bank of India by registered post, Candavelou said.
Since the opening of a Separate public account in Dec 2017, the government has been borrowing every year from open market at an interest ranging from 7.5 percent to 9 percent to meet its budgetary expenditure. In the current year, the government has so far borrowed Rs 400 crores from open market by selling its securities on n August 22, October 24, November 21 and December 19. So far during the 10 year period, the government had been paying yearly interest in two half yearly installments. In addition, Puducherry government has a legacy loan of Rs 2177 crores borrowed from government of India prior to 2007, for which also the government is paying yearly interest. Now with repayment beginning and payments due every year, the government is in for further financial strain.
At present, the average revenue earned by the government is around Rs 250 to Rs 260 crores per month (excluding power revenue of Rs 90 crores), primarily from GST, VAT and Excise duty and Additional Excise duty, according to government sources.