State Development Loans

The Centre has released about Rs 1.11 lakh crore loan to states during April-January under the scheme for special assistance to states for capital expenditure, Minister of State for Finance Pankaj Chaudhary said on Monday. In the 2024-25 Budget, Finance Minister Nirmala Sitharaman hiked the allocations for interest-free loans to states for capital expenditure, enabling states to spend more on infrastructure and specified reforms. The allocation was hiked to Rs 1.5 lakh crore, up from disbursal of Rs 1.10 lakh crore made in 2023-24. In a written reply in the Lok Sabha, Chaudhary said under the scheme for special assistance to states for capital expenditure, the Centre has approved loans worth Rs 1.22 lakh crore till January 31. Of this, about Rs 1.11 lakh crore has been released Chaudhary said out of the total allocation of Rs 1.50 lakh crore, an amount of Rs 55,000 crore under Part-I of the scheme is untied. This amount has been allocated to the states in proportion to their share o

Market participants said that the price difference is largely driven by heavy supply, timing mismatches in fund flows, and rising global interest rates

After an impressive maiden show, Bihar will on December 19-20 host the second edition of Bihar Business Connect - the global investor summit that looks at boosting industrial and entrepreneurial growth in the state. The prestigious event, curated by the state's Department of Industries, seeks to showcase Bihar as a vibrant investment destination. "The inaugural edition in 2023 witnessed participation from over 600 entrepreneurs from India and abroad. Bihar Business Connect 2023 was a landmark initiative. During the two-day summit held last year, a total of 278 investment proposals amounting to Rs 50,530 crore were signed as MoUs, out of which 244 projects worth Rs 38,000 crore have already been implemented on the ground," an official statement said. This investment has significantly accelerated industrial development in the state and created numerous employment opportunities. "Considering the success of last year's Bihar Business Connect, the Department of Industries, Government of

Amount higher than scheduled figure of Rs 32,532 crore, a first in seven weeks

The Reserve Bank of India (RBI) data showed that Telangana raised the highest amount of Rs 2,000 crore through two bonds

The indicative calendar of market borrowings by states and Union Territories for April-June 2023 showed 15 states planning to raise Rs 22,500 crore in the second week of April

Yield-to-maturity between 7.36% and 7.5% for these schemes with fixed tenure makes them attractive bet

Icra said a comfortable cash flow position of the state governments was due to a back-ended release of tax devolution to the states in FY2022

This week, spread between weighted average 10-year SDL and 10-year GOI bond yield was up slightly to 37 bps from 36 bps earlier

So far this fiscal, the issuance of State Development Loan (SDL) as state debt is known, has declined 40 per cent as 10 states did not participate in the auctions conducted so far.

During Apr 1-May 2 FY2023, only Andhra Pradesh (Rs 44 billion), Maharashtra (Rs 40 billion), Punjab (Rs 25 billion) and Haryana (Rs 15 billion) raised through State Development Loans (SDL)

Cut- off for state Development Loans up by 19 bps this week over auction held last week

The West Bengal government raised Rs 10,500 crore in the first quarter of the current financial year through auctions of state securities and state development loans, as per official data

Overall, in Q3FY21, gross SDL issue was Rs 2.02 trn

It is also conducting OMO purchase auctions in SDLs

Lowest cut-off yield offered for Karnataka's 9-year bond at 6.4746%, highest for Jammu & Kashmir's 10-year SDL at 6.6813%

The weighted average cut-off for the 10-year SDLs eased by a sharper 26 bps to 6.63 per cent on October 13, 2020 over the previous weekly auction

By facilitating the OMOs, the central bank is assuming a much bigger role than earlier. Some have started comparing the RBI with European Central Bank

During April-September 2019 (H1FY20), states had raised Rs 2.25 trillion

The rise in spreads is a direct measure of market displeasure than a rise in yields. This is because if spreads widen, SDL yields could still rise even when G-sec yields remain where they are