The state government has raised Rs 1,000 crore through sale of government securities for a tenure of 10 years recently. The latest sale of securities is in addition to the Rs 1,000 crore raised on March 10 through an auction by the Reserve Bank of India for a tenure of five years.
"The state government had notified for sale of Odisha government stock (securities) of 10 year tenure for Rs 1,000 crore on March 24, 2015 through auction by the Reserve Bank of India. The auction has been completed on 24 March, 2015 and the notified amount of Rs 1,000 crore has been accepted at a cut off yield rate of 8.03 per cent," read a notification of finance department.
As per a pre-sale notification, the proceeds of the loan will be utilised to finance capital outlay for creation of capital assets. The loan will be paid at par on March 25, 2025.
State finance minister Pradip Amat in his Budget speech in February this year had announced to avail market borrowing in the remainder of this fiscal to fund capital intensive projects.
"We are going for budgeted market borrowing during 2014-15 for financing capital outlay. Our fiscal health permits us to carry a higher debt burden than the present level of public debt and we are exercising utmost prudence in choosing the source of borrowing, timing and the type of instruments. Further, the proceeds would be strictly applied for creation of capital assets," Amat said in his Budget speech. For the coming fiscal (2015-16), the state government has projected a market borrowing of Rs 12,000 crore which includes Rs 7,356.38 crore from the open market, Rs 800 crore from the GPF (General Provident Fund), Rs 300 crore from National Small Savings (NSS) and Rs 2,710 crore by way of negotiated loans.
