Rajasthan to issue UDAY bonds worth Rs 1,564 cr

RBI will have the sole discretion to accept or reject bids

Rajasthan will float bonds of over Rs 1,564 crore under UDAY on Monday, a scheme designed specifically to help electricity distribution companies tide over their losses.

"The Rajasthan government proposes to issue special securities of Rs 1,564.88 crore under the Ujwal Discom Assurance Yojana Scheme (UDAY)," RBI said in a notification on Thursday.

The eligible market participants interested in subscribing to these special securities can e-mail their bids between 10.30 am to 12 noon on February 6.

The power ministry had issued a notification on the UDAY scheme in November, 2015. The notification was aimed at achieving operational and financial turnaround of power distribution companies (discoms).

"Allotment of securities and settlement will take place on February 7, 2017," the RBI said.

At minimum bid size of Rs 100 crore, the interest on bonds will be corresponding to yield on government securities as at the close of February 3.

RBI said it will have the sole discretion to accept or reject any/all bids.

Eight states -- Uttar Pradesh, Rajasthan, Chhattisgarh, Punjab, Jammu and Kashmir, Bihar, Jharkhand and Haryana -- had floated bonds worth Rs 98,959.97 crore in 2015-16 under the UDAY programme.