Odisha to raise Rs 500 cr from open market

State to use proceeds to finance capital outlay related to creation of capital assets

The Odisha government has issued a fresh notification to raise Rs 500 crore from the open market via sale of government securities of six year tenure.

The amount so raised would be used to finance capital outlay in connection with creation of capital assets.

The government stock would be sold through the Mumbai office of Reserve Bank of India (RBI) by auction at a coupon rate to be determined by the central bank.

Auction is scheduled to be held on December 8. Bids for the auction are to be submitted in electronic format on RBI's core banking solution system.

Successful bidders would make payments on December 9 before close of bank hours.

Last month, the state government had notified sale of government securities to mop up Rs 1000 crore.

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

In parallel, the state finance department in collaboration with OMEGA Technical Assistance and Support Team (TAST) team has developed a web-based utilisation certificate (UC) monitoring system for generating and monitoring submission of against central assistance received for various schemes. The system has been developed on

the basis of feedback received from various stakeholder departments.

The online monitoring system would also cover sanction and release of funds for utilisation against sanction orders received for central assistance.

The objective of the web based application is to impart transparency and accountability to the process of utilisation of central assistance. The system is also expected to instill fiscal discipline.