Punjab to float state loan of Rs 1,000 crore

Chandigarh, Aug 20 (UNI) The Punjab Government today proposed to float a state loan of Rs 1,000 crore to raise part of the borrowings through auction system which would be kept open till August 26.

A spokesman of the government said that the consent of the Central Government had already been obtained for the floating this loan.

The stocks will be of 10 years tenure, which would commence on August 27, 2008. The loan would be repaid at par on August 27, 2018, he added.

The interest however, would be paid half-yearly on February 27 and August 27 every year.

He added that the object of the loan was to finance part of capital expenditure of plan scheme and other development schemes under execution in the state.

UNI XC JN AK CS1808