Odisha to raise Rs 1,000 cr through securities sale

The Odisha government expects to mop up Rs 1,000 crore through sale of government stock (securities) of five-year tenure. Sale of securities was done through an auction on Tuesday by Reserve Bank of India (RBI) in Mumbai.

Successful bidders would make payments on November 26. The loan is to be repaid at par on November 26, 2020. The amount so raised by the state would be used to finance capital outlay in connection with creation of capital assets.

The government stock up to 10% of the notified amount of the sale would be alloted to eligible individuals and institutions, subject to a maximum limit of 1% of the notified amount for a single bid as per the revised scheme for non-competitive bidding facility in the auctions of state government securities of the general notification.

The investment in government stock will be reckoned as an eligible investment in gov securities by banks for the purpose of Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.