KOCHI: The Kerala government on Tuesday raised Rs 7,139 crore from the market, helping the state to tide over the impending financial crunch.
The state government raised the funds after the Union government gave its nod for additional borrowing on Monday evening. Kerala mobilised a total of Rs 7,139 crore through the auction of state government securities (SGS) of different maturities.
As per the RBI website, the state collected Rs 990 crore through SGS-40 (bonds maturing in 2040), Rs 3,000 crore through SGS-43, and Rs 3,149 crore through the auction of SGS-55 securities.
The raising of the funds will help the state, which was staring at a financial crisis with reports indicating imminent restrictions on the treasury.
The office of Union Finance Minister Nirmala Sitharaman conveyed to the Resident Commissioner Of Kerala in Delhi to allow additional borrowings on Monday evening.
Prof K V Thomas, the special representative of the Kerala government in Delhi, said the total approval allowed Kerala to raise the funds immediately. Reportedly, the state government received the approval for the power sector reforms. Kerala is eligible for additional borrowing of up to 0.5% of its Gross State Domestic Product (GSDP) for power sector reforms.