Government to raise another Rs45,000 crore through bonds news
05 December 2008

The government will borrow another Rs45,000 crore through issue of bonds in the remaining part of the current fiscal. "In view of the additional expenditure  following the approval of the first supplementary demand for grants by the Parliament,'' an official release said.

''The Government of India, in consultation with the Reserve Bank of India, has decided to issue marketable dated securities for an amount of Rs45,000 crore during the remaining period of the current fiscal year... covering the period from 1 December 2008 to 31 March 2009,'' the release said.

The government is set to borrow Rs10,000 crore from two bond auctions of different tenor during 5-12 December. Another 20,000 crore would be raised during 2-20 January and the remaining Rs15,000 crore during February.

The auctions will be carried out under the non-competitive bidding process under which 5 per cent of the notified amount will be reserved for specified retail investors, the release said.

''The central government/Reserve Bank will continue to have the flexibility to bring about modifications in the above calendar in terms of notified amount, issuance period, maturity, etc, keeping in view the emerging requirements of the government, market conditions and other relevant factors after giving due notice,'' the release said, adding, ''Variable rate bonds may be issued depending upon the market conditions.''

The government's gross borrowing as per the budget estimates, is pegged at Rs1,45,000 crore for 2008-09.


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Government to raise another Rs45,000 crore through bonds