Gandhinagar, Nov 18: The Gujarat government has announced the sale of government stock (securities) worth Rs 1,000 crore for a tenure of 10 years to finance capital expenditure in connection with the development programmes of the state particularly on the schemes included in the annual development plan for the year 2008-09.
Principal Secretary Tapan Ray said the auction would be conducted by the Reserve Bank of India at Mumbai on November 20.
Duly filled application forms should be submitted to RBI office on November 20 before 1230 hrs and successful bidders will have to make payment on November 21 by pay order, demand draft payable at RBI, Mumbai/Ahmedabad. The tenure of the stock will commence on Nov 21 and the loan will be repaid at par on Nov 21, 2018.
Regarding the financial position of the state, it has been following sound principles of prudent financial management. It has achieved revenue surplus continuously since financial year 2006-07.
With regard to assets, the financial year 2006-07 closed with the investment under general cash balance in long-term, medium and short-term securities, shares, bonds and debentures amounting to Rs 795.05 crore and investments held under consolidated sinking fund, debt redemption and avoidance fund and other reserve fund including guarantee redemption found amounting to Rs 4,413 crore.
The net assets in the form of loans and advances given to various institutions for different purposes aggregating to Rs 4,240.74 crore while investments in statutory corporations, joint stock companies, cooperative societies in shares, bonds, debentures amounting to Rs 18,514.88 crore.
The public debt liabilities of the state aggregated to Rs 7,8870.75 crore as on March 31. The debt was utilised for developmental activities of the state and in creation of productive assets. With stringent financial and administrative measures, the government had been able to significantly reduce its outstanding guarantees to Rs 10,251 crore as on September 30, 2008, from the level of Rs 19,000.99 crore at the end of financial year 2002-03.