Haryana to auction bonds worth Rs 775 cr under UDAY

Reserve Bank has said Haryana will place special securities worth Rs 775 crore on Friday, under the discoms' financial restructuring scheme, UDAY.

"Haryana government proposes to issue special securities of a notified amount of Rs 775 crore, under the Ujjwal Discom Assurance Yojna Scheme (UDAY)", RBI said in a release.

RBI has invited bids from eligible participants who are interested in subscribing to the bonds. The bids have to reach RBI between 1030 hrs to 1200 hrs on July 1, RBI said.

Allotment of securities and settlement will take place on July 4.

The special securities will have a face value of Rs 100 and the minimum size of bid will be Rs 100 crore, RBI said.

The securities are to be issued in equal strips with a maturity at the end of 6th, 7th, 8th, 9th and 10th year.

"An investor will be required to purchase entire structure and the bid amount will be uniformly distributed across all tenors," RBI said.

The Power Ministry in November had issued a memorandum on UDAY scheme for operational and financial turnaround of Power Distribution Companies (discom).

Under UDAY, the central government has allowed states, which own discoms, to take over 75% of their debt as of September 30 and pay back lenders by selling bonds.

For the remaining 25%, discoms will issue bonds.

The scheme is optional and can be operationalised through signing of an MoU.