Market borrowings of State govts this yet to be Rs 59,000 cr

Mumbai, Jun 17 (UNI) State Governments across the country are estimated to raise market borrowings to the tune of Rs 59,000 crore this financial year.

The amount includes repayments for the year, which are expected to be at Rs 14,371 crore, an RBI release issued here said. The State Governments would go in for market borrowing in a phased manner depending upon their requirement.

So far, this year six states have raised Rs 5,912 crore through the sale of their State Development Loans through auctions.

The Apex bank said the State Governments/Reserve Bank of India would have the flexibility to review the borrowing requirements and bring about modifications in the borrowings, keeping in view the emerging requirements of the State Governments, market conditions and other relevant factors.

The Annual Policy Statement for year 2006-07 had proposed, inter alia, that States, at their discretion and initiative, would be encouraged to develop an advance indicative open market borrowing calendar, with a view to disseminate information on borrowings of State Governments and usher in greater transparency.

UNI VK SR AG1612