Guj govt to sell securities of Rs 1200 cr

Gujarat government has announced the sale of state government securities worth Rs 1200 crore to raise a loan for a tenure of 10 years.

The proceeds from the loan will be utilised to finance capital expenditure in connection with the development programmes of the state, a state government statement informed on Friday.

The government securities will be sold through an auction, which will be conducted by the Reserve Bank of India on August 21, 2012. The date of repayment has been fixed on August 22, 2022. The loan will finance particularly those schemes that are included in the annual development plan for the year 2012-13, the statement said. Gujarat government has a public debt liabilities aggregate to Rs 1,24,580 crore as on March 31, 2012, while contingent liabilities in the form of guarantees stands at Rs 7607 crore as on March 31, 2012. The debt to GSDP ratio stands at 21.07 per cent for fiscal 2011-12 (revised estimate). The government communique noted that the state has assets worth Rs 45,393 crore as on March 31, 2011.

 

The government stock up to 10 per cent of the notified amount of the sale will be allotted to eligible individuals and institutions. The allotment to non-competitive bidders is subject to a maximum limit of 1 per cent of the notified amount for a single bid. The competitive bids shall be submitted electronically on negotiated dealing system.