Government Once Again Turns to Borrowings

The state government has approached the Reserve Bank of India to raise loans worth ₹2000 crore. The amount will be mobilized through an e-auction to be conducted by the RBI next Tuesday. The government plans to raise the funds in three different phases.

According to official details, the state proposed borrowing ₹750 crore at an annual interest rate of 7.54 percent repayable by 2033, ₹500 crore at 7.70 percent interest repayable by 2037, and another ₹750 crore at 7.82 percent interest repayable by 2047. Reports stated that a total of six states submitted proposals seeking loans worth ₹20,100 crore.