06.07.21 Daily [Telangana] TSPSC Current Affairs

Telangana raised Rs 2,000 crore via auction of bonds following Reserve Bank of Indias (RBI) approval last week. The state went for a payment of the longest duration of 30 years.

Andhra Pradesh, Bihar, Goa, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttarakhand and West Bengal also raised bonds. All these states took loans with interest repayment schedule of seven to 10 years, unlike Telangana.

Besides Telangana, other states on long duration schedule are Bihar (15 years) and AP (14). Telangana also fixed a slightly higher interest rate (7.24%) than other states, which kept it in the range of 6.95% to 7%.

Meanwhile, the state will also go for another round of auction to raise Rs 1,000 crore this month end as per schedule given to RBI. According to the calendar, in the July-September quarter, the state will go for auction of Rs 8,000 crore.

In the last quarter too, it had applied for raising of Rs 8,000 crore, but taken Rs 16,000 crore loan. In June, it had taken Rs 10,000 crore loan.

In the 2021-21 budget, it was proposed to pool in funds worth Rs 47,500 crore via loans. Sources said that in this quarter too, the state will go for more loans than it requested in the calendar to the RBI.