TEAM HERALD
teamherald@herald-goa.com
PANJIM: In a bid to raise revenue, the State government has offered to sell securities of a 10 year tenure of an aggregate amount of Rs 200 crore, making it the first sale of securities by the government for the current fiscal.
The Government Stock will be sold through the Reserve Bank of India, Mumbai Office (PDO) Fort, Mumbai, by auction at a coupon rate to be determined by the Reserve Bank of India at the yield based auction under multiple price format.
The auction will be conducted by the Reserve Bank of India at its Mumbai Office, Fort, Mumbai, on July 2, 2013. Bids for the auction should be submitted in electronic format, on the Reserve Bank of India Core Banking solution (E-Kuber) system between 10.30am and 12pm and the non competitive bids have to be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) system before 11.30pm that day.
The result of the auction shall be displayed by the Reserve Bank of India on its website on the same day. The payment by successful bidders will be on July 3, 2013, before close of banking hours by means of cash, banker’s cheque/pay order, demand draft payable at Reserve Bank of India, Mumbai (Fort). The loan will be repaid at par on July 3, 2013. The cut-off yield determined at the auction will be the coupon rate percent annum on the stock sold at the auction. The interest will be paid every half yearly on January 3 and July 3.
Chief Minister Manohar Parrikar had insisted that the state government’s borrowing were within what were permitted by the Reserve Bank of India and that banks were eager to buy state government stocks given what he claimed was the healthy economic atmosphere in the state.
Last financial year the state government sold stock to the tune of Rs 950 crore in as many as five instances of borrowing. Incidentally Rs 950 crore is more or less the amount of revenue the state government has lost out on due to suspension of mining operations which resulted from the Supreme Court interim order last year.
