State Development Loans

Centre releases Rs 1.11 trillion interest-free loans to states in Apr-Jan

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

State bond yields outpace AAA rated corporate bond yields for long tenors

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

Bihar to organise investor summit for 2nd time to boost industrial growth

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

14 states, union territories raise Rs 35,544 crore at weekly bond auction

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

Five states raise Rs 5,250 crore through an auction of govt paper

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

Four states raise Rs 5,800 crore through SDLs at bond auction

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

AMCs line up differentiated target maturity funds amid stiff competition

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

State market borrowings down 23.7% YoY in Q1FY23 on strong cash flows

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

Cut-off yields ease by 7-8 bps at State bond auction as borrowings taper

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

States' borrowing cost up at record 7.69% despite 40% dip in bond issuances

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.

State govts' borrowings to be lower by Rs 50,000 crore in Q1: ICRA

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)

Borrowing costs rise sharply for states on Ukraine-led geopolitical strife

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

West Bengal govt raises Rs 10,500 cr in Q1 FY22 via state loan auctions

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

States, UTs set to borrow Rs 3.16 trillion through SDLs in March quarter

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

RBI to continue OMO purchase auctions of Rs 20,000 cr to assure liquidity

It is also conducting OMO purchase auctions in SDLs

RBI conducts first-ever OMO in state bonds, buys Rs 10,000 cr under scheme

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%

Yield on 10-yr state govt bonds eases by 26 bps after RBI's intervention

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

RBI move to conduct OMO on state development loans could be a game changer

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

Combined market borrowings of 27 state govts, 2 UTs rise 57% in H1FY21

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

States forced to pay higher spread as oversupply concerns take hold

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