Govt. to raise ₹1,500 crore through sale of securities

Auction to be conducted by RBI today

The State government has decided to raise ₹1,500 crore open market borrowings through the Reserve Bank of India (RBI) to meet its immediate financial commitments. The government has accordingly decided to sell securities worth ₹1,500 in the auction to be conducted by the RBI on Monday. The RBI will auction securities pertaining to Arunachal Pradesh (₹400 crore), Nagaland (₹350 crore) and Rajasthan (₹1,000 crore) in addition to Telangana during the auction. The auction would be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system and payment by successful bidders would be made during banking hours on Tuesday at RBI head office in Mumbai and its regional offices. Though the calendar released by the RBI mentioned that the government had confirmed participation for raising market borrowings to the tune of ₹1,000 crore, the amount had been increased by ₹500 crore subsequently. The development reportedly follows the State government’s decision to implement fitment of 30% to all categories of employees from this month.