The State government has decided to raise open market borrowings of ₹9,000 crore during the second quarter of the current financial year.
The OMBs will be raised during the weekly auctions conducted by the Reserve Bank of India. According to the indicative calendar released by 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 RBI said the actual amount of borrowings would depend on the requirement of the State Governments/Union Territories, “approval from the Government of India under Article 293(3) of the Constitution of India” and market conditions. Interestingly, the indicative calendar comes at a time when clarity is yet to emerge on whether the Central Government have its nod for the State to raise borrowings.
