Eleven states to raise Rs 9,090 crore next week using RBI's window

KOLKATA: Eleven state governments including Gujarat, Maharashtra and West Bengal will raise debts by selling State Development Loans next week.

State dated securities worth Rs 9,090 crore will be put on sale on December 20 through Reserve Bank of India’s auction window.

Gujarat plan to raise Rs 1,500 crore while Maharashtra and West Bengal will look for Rs 2,000 crore and Rs 1,300 crore respectively. Bihar and Uttar Pradesh will also take part in the auction with their plan to garner Rs 1,000 crore each while Kerala plan to raise Rs 1,200 crore, RBI said.

Rajasthan plan to raise Rs 500 crore while Himachal Pradesh and Jammu & Kashmir will raise Rs 200 crore each. Nagaland will go for Rs 150 crore and Sikkim Rs 40 crore.

The state government dated stocks will bear interest at the rates determined by RBI at the auctions. Interest will be paid half yearly on June 21 and December 21 of each year till maturity, RBI said in a press statement on Friday.