Nine states to raise Rs 9,800 cr through auction of securities

Nine state governments, including Maharashtra, Rajasthan and Tamil Nadu, will raise Rs 9,800 crore by selling securities on April 15, the Reserve Bank said Thursday.

The auction will be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) system, it added.

"...State Governments have offered to sell securities by way of auction for an aggregate amount of Rs 9,800 core (Face Value)," the central bank said in a notification.

Tamil Nadu, Rajasthan, and Maharashtra would auction securities worth Rs 2,000 crore each, followed by Telangana (Rs 1,500 crore) and Gujarat (1,000 crore).

Punjab would selling securities of Rs 600 crore and Kerala Rs 500 crore. Goa and Nagaland plan to raise Rs 100 crore each.

The Reserve Bank further said it will determine the maximum yield/minimum price at which bids will be accepted.

Securities will be issued for a minimum nominal amount of Rs 10,000 and multiples of Rs 10,000 thereafter.

The state government securities will bear interest at the rates determined by RBI at the auctions.

For the new securities, interest will be paid half yearly on October 16 and April 16 of each year till maturity.