States, UTs set to borrow Rs 3.16 trillion through SDLs in March quarter

Overall, in Q3FY21, gross SDL issue was Rs 2.02 trn

State governments and Union Territories (UTs) plan to raise Rs 3.16 trillion through state development loans (SDLs) in January-March 2021, the last quarter of the current fiscal year (Q4FY21).

The Reserve Bank of India (RBI), in consultation states and UTs firmed up, has the indicative borrowing plan for raising funds from the market.

Aditi Nayar, principal economist, ICRA, said the indicative amount is lower than the estimate of Rs 3.5 trillion. 

The revenue flows have improved in the case of some states. Besides, some states are taking assistance of state-owned undertaking to raise funds. 

The revenues from goods and services tax (GST) in December