Himachal Pradesh Taps into Debt Market for Development
The Himachal Pradesh government is issuing government securities for an Rs 800 crore loan to fund development projects. An auction by the RBI will be held on June 3, with payment due by June 4. The state's financial troubles continue, with a rising debt crossing Rs 1-lakh crore.
- Country:
- India
The Himachal Pradesh government has announced plans to secure an Rs 800 crore loan through the sale of government securities, intended to fund development programs. This decision is part of the state's strategy to manage an extensive debt portfolio.
The Reserve Bank of India will conduct an auction in Mumbai on June 3. Participants will be required to make payments by June 4, following a notification from the state government, according to an official statement released Saturday.
This loan, with a 20-year tenure, will commence on June 4, 2025, and end on June 4, 2045. The financial strain on the government is exacerbated by reduced Revenue Deficit Grants and the cessation of GST compensation in June 2022, escalating its annual fiscal liabilities.
(With inputs from agencies.)
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