Punjab to float Rs.1000 crore loan

CHANDIGARH: The Punjab Government in line with the Reserve Bank of India today proposed to float a state loan of Rs. 1000 crore to raise part of the barrowings through auction system. It would be kept open till August 26.

Disclosing this here today a spokesman of the government said that the consent of the Central Government had already been obtained for the floatation of this loan required under Article 293 (3) of the contitution of India.

The stocks would be of 10 years tenure and the tenure of the stock 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 each February 27 and August 27.

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