The Hindu Business Line : 20 States to raise Rs 8,600-cr loan

TWENTY State Governments will sell an amount of about Rs 8,600 crore on July 28. The States have offered to sell on tap 6.35 per cent Development Loan 2013 (II Series) , said a press release from RBI.

Nineteen States will tap the market for an aggregate amount of about Rs 8,000 crore as the second tranche of an additional market borrowing on account of debt swap scheme in the current financial year. Besides, three States - Madhya Pradesh, Nagaland and Punjab - will raise an aggregate amount of Rs 638.45 crore as part of their normal market borrowings.

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal are the States that will tap the market.

The States will have an option to retain up to 20 per cent of excess subscription, on account of debt swap scheme in the current financial year. The sale will be held at the respective regional offices of RBI and at Mumbai (for all the 20 States).

The right to close the sale during the banking hours on or after July 28 lies with RBI's reserves based on the requirements of the State Governments and the subscriptions received. Payments will be made on July 30.