New Delhi, Feb. 18: The government today issued bonds worth Rs 3,610 crore to 23 fertiliser companies. This is the second and final lot of special bonds that are being issued to the firms for selling products below cost.
The bonds, which will earn an interest rate of 7.95 per cent, will not qualify for statutory liquidity ratio (SLR) status, a finance ministry release said. An SLR status means banks can buy these bonds to meet the requirement of holding 25 per cent of their deposits in RBI-approved instruments.
The government had decided to issue bonds to fertiliser firms to the tune of Rs 6,000 crore.
In the first tranche, the government had issued bonds worth Rs 3,890 crore.