| Date : 02 Jul 2012 |
|Indicative Quantum of Market Borrowings by State Governments for the Quarter July-September 2012 |
The Reserve Bank of India, in consultation with the State Governments, announces that the 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 `36,000 crore to `40,000 crore. The amount will be raised through auction of State Development Loans (SDLs), conducted generally on alternate Tuesdays. RBI would endeavour to conduct the auctions in a calibrated manner and distribute the borrowings evenly throughout the quarter. 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, approval from the Government of India under Article 293(3) of the Constitution of India and the market conditions. It may be recalled that market participants have been demanding that advance information about the States’ market borrowings be disseminated in order to enhance transparency and enable them to plan their investments 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 mobilize resources in a more cost effective manner.
Assistant General Manager
Press Release : 2012-2013/4