Goverment to raise an additional Rs15,000 crore in Q4 2008-09

06 January 2009

The centre will raise an additional Rs15,000 crore from the market in the last quarter of the current financial year 2008-09, against the earlier borrowing programme of Rs35,000 crore in the last quarter, taking the total to Rs50,000 crore, to offset the impact of stimulus packages on government coffers.

The Reserve Bank today came out with a revised indicative calendar for the fourth quarter of 2008-09 in supersession of the borrowing programme announced on December 5.

According to the new borrowing programme, announced by the Reserve Bank of India, the government will sell (re-issue) '7.59 per cent 2016 stock' for a notified amount of Rs7,000 crore; '6.30 per cent 2023 stock' for a notified amount of Rs4,000 crore and '7.50 per cent 2034 stock' for a notified amount of Rs4,000 crore through  price-based auctions using multiple price method.

The auctions will be conducted by the RBI Mumbai office, Fort, Mumbai on 9 January.

Up to 5 per cent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities.

Bids in the prescribed form, obtainable from the regional director, Reserve Bank of India, Mumbai Office (Public Debt Office), Fort, Mumbai-400 001 and RBI website www.rbi.org.in, should be submitted to that office on 9 January 2009. The NDS members should submit competitive as well as non-competitive bids in electronic format using primary market operation (PMO) module of NDS. All bids should be submitted by 12.30 pm, RBI said in a release.