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Bengal, 5 others to raise Rs 3,647 cr

Mumbai, Feb. 19: The Reserve Bank of India (RBI) today announced that the Central government has allowed various states to borrow up to Rs 14,151 crore during the current financial year. Of this, West Bengal is one among six states which will collectively raise Rs 3,647 crore.

The central bank pointed out that while the states will raise a total of Rs 14,151 crore this fiscal, the first tranche of Rs 7,325 crore will be raised shortly through a tap issue. The balance amount will be raised in March, the RBI stated today.

The total amount of Rs 14,151 crore includes normal additional market borrowings by some states totalling Rs 3,657 crore, fresh borrowings of Rs 10,000 crore by some states under the Debt Swap Scheme and the balance Rs 494 crore from the allocations already approved by the government for the current fiscal for some states.

The apex bank said six states, which include Assam, Orissa, Rajasthan, Sikkim, Tamil Nadu and West Bengal, will raise normal additional market borrowing totalling Rs 3,657 crore; all states, except Maharashtra, Sikkim and West Bengal, will raise fresh borrowings of Rs 10,000 crore under the Debt Swap Scheme mutually agreed between the government and the states for credit to the government’s account towards repayment of existing high cost debts owed by the states to the Centre; and Andhra Pradesh and Chattisgarh will raise Rs 494 crore which is the balance amount out of the allocations already approved by the government for these states for this fiscal.

Thus, the tap issue, to be held shortly for Rs 7,325 crore, will include 50 per cent of the normal additional market borrowing for six states, 50 per cent of the amount of allocations approved under the Debt Swap Scheme and the balance Rs 494 crore for Andhra Pradesh and Chattisgarh. The balance Rs 6,826 crore will be raised in March.

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