Panaji: The state government has decided to go for another borrowing of Rs 100 crore through the sale of stock (securities) of 10-year tenure. The Rs 100-crore loan will take state government’s borrowings for the current fiscal to Rs 2,200 crore against the borrowing limit of Rs 2,600 crore for the financial year 2019-20.
A notification issued by the finance department on Thursday stated that the proceeds of the loans will be utilised for financing capital expenditure in connection with the ‘development programmes’ of the state government.
It further said the consent of the central government has been obtained to the floatation of this loan as mandated by Article 293(3) of the Constitution of India.
The government’s stock up to 10 per cent of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1 per cent of the notified amount for a single bid as per the revised scheme for non-competitive bidding facility in the auctions of state government securities of the general notification.
The stock auction will be conducted by the Reserve Bank of India at its Mumbai office on February 17, 2020.
This loan will be repaid at par on February 18, 2030, the notification reads.
The government has been castigated over the rising borrowings for the current fiscal, as the state has almost exhausted its borrowing limit laid down by the RBI.