The State Government has decided to go ahead with raising the open market borrowings through the Reserve Bank of India notwithstanding the reported restrictions imposed by the Union Finance Ministry on the quantum of borrowings.
The Finance department has mobilised ₹4,000 crore OMBs during the two auction of securities conducted by the RBI on July 5 and 12 and the State is gearing up to file indents for further borrowings in the coming days. According to the indicative calendar of the RBI, the State proposed to tentatively raise ₹3,000 crore during the auction slated on July 5. This would be followed by ₹2,000 crore and ₹1,000 crore in August and ₹1,000 crore and ₹2,000 crore in September.
The State however raised ₹1,000 crore on July 12 as against the ₹3,000 crore projected during the current month. The amount has come handy for the State to complete payment of the first instalment of Rythu Bandhu, farmers investment support scheme, amounting to close to ₹7,500 crore without any impediments.
