Lower borrowings by govt scheduled

The Reserve Bank of India (RBI) on Monday issued the government's market borrowing programme for the second half of the fiscal, amounting to Rs 44,000 crore. The market borrowing for the second half of fiscal 2005 is lower due to the state debt swap receipts.

The government will raise Rs 11,000 crore in October, followed by Rs 13,000 crore in November, Rs 8,000 crore in December, Rs 7,000 crore in January 2005 and Rs 5,000 crore in February.

The average maturity period of these government securities ranges from five to 20 years. The release also stated that all the auctions would have the facility of non-competitive bidding scheme under which 5 per cent of the notified amount would be reserved for specified retail investors.

The issuance of dated securities would be undertaken through a mix of fixed coupon bonds and floating bond depending on the market conditions. The borrowing programme is substantially lower largely on account of debt swap receipts, said sources.

In the current fiscal, the government has borrowed Rs 81,500 crore as on date, against the projected government borrowing programme of Rs 1,50,817 crore.

The borrowing programme in the second half would be in addition to the issuance of treasury bills/dated securities under the market stabilisation scheme. The upper limit on MSS has since been enhanced to Rs 80,000 crore.

In addition to the proposed issuances of dated securities, the RBI would have the flexibility for additional issuances of government securities keeping in view the emerging needs of the exchequer, the release said.