Punjab to float state loan of Rs 500 crore

Chandigarh, Jul 7 (UNI) The Punjab Government in line with the Reserve Bank of India's (RBIs) policy has proposed to float a state loan of Rs 500 crore to raise part of the barrowings through auction system.

Disclosing this here today an official spokesman here today said that the consent of the Central Government has already been obtained to the floatation of this loan required under Article 293 (3) of the Constitution of India.

The stocks would be of 10 years tenure and the tenure of the stock would commence on July 11, 2008.

The loan would be repaid at par on July 11, 2018. The interest however, would be paid every half yearly on January 11 and July 11.

UNI HS VN1702