The state governments and the union territory of Puducherry are expected to raise about Rs 36,000-40,000 crore from market for the July-September quarter, the Reserve Bank said today.
“Indicative quantum of total market borrowings by the state governments and the Union Territory of Puducherry, for the quarter July-September 2012, is expected to be in the range of Rs 36,000 crore to Rs 40,000 crore,” RBI said a statement.
“The amount will be raised through auction of State Development Loans (SDLs), conducted generally on alternate Tuesdays,” it added. The actual amount of borrowings would be intimated by way of press release two/three days prior to the auction day and would depend on the requirement of the state governments and approval from the government.
“RBI would endeavor to conduct the auctions in a calibrated manner and distribute the borrowings evenly
throughout the quarter,” it said. RBI said market participants have been demanding about advance information of states’ market borrowing so as to enhance transparency and enable them to plan their investment more efficiently.
“It is expected that release of such indicative advance schedule of SDLs would largely meet such demand of the market participants and help the state governments to mobilise resources in a more cost effective manner,” RBI added.