Govt unlikely to mobilise Rs 15,000 cr from gold bond scheme - Firstpost

Govt unlikely to mobilise Rs 15,000 cr from gold bond scheme

Updated: Jan 18, 2016 22:26 IST

#Economy   #Investing   #NewsTracker   #Sovereign gold bond scheme  

New Delhi: Government is unlikely to mobilise Rs 15,000 crore from sovereign gold bond scheme, even as its second tranche was launched today.

Raising Rs 15,000 crore from gold bond scheme by March end seems to be a difficult target, official sources said.

Gold scheme. Reuters

Gold scheme. Reuters

As per the second half borrowing programme issued by Reserve Bank in consultation with government, Rs 15,000 crore
had to be raised through gold bonds.

The fund raised from gold bonds would be part of the market borrowing programme in addition to Rs 2.34 lakh crore
to be raised through dated securities during October-March period of the current fiscal.

Aimed at curbing demand for physical gold, the government could mobilise Rs 246 crore from the scheme in the first
tranche that closed on 30 November.

Second tranche of the sovereign gold bond scheme is open for subscription from today till 22 January.

The gold bonds are issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment.

The Gold Bond Scheme will have an annual cap of 500 grams per person.

Prime Minister Narendra Modi had on 5 November launched gold schemes to wean investors away from physical gold.

India imports about 1,000 tonnes of gold every year and the precious metal is the second-highest constituent of the
import bill after crude oil.

The scheme is aimed at reducing demand for gold in physical form by encouraging people to buy the commodity in
demat or the paper form.

In April-December this fiscal, gold imports rose to USD 26.45 billion, from USD 25.85 billion in the same period last year.


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