Bhubaneswar, July 23: The state government will raise Rs 1,000 crore loan from the open market. It has also issued a notification to this effect.

In a press note, it said the state government was going to sale the Odisha government stock (securities) of a four-year tenure for an aggregate amount of Rs 1,000 crore in order to finance capital outlay in connection with creation of capita assets. The government stock will be sold through the Reserve Bank of India.

It said the government stock would be sold through the Reserve Bank by auction at a coupon rate to be determined by the Reserve Bank of India. The auction will be held on July 25.

In the press release, it further said: "The proceeds of the loan will be utilised to finance capital outlay for creation of capital assessments."

The state government has obtained the Centre's consent to float the loans. The loan will be repaid by July 26, 2021.

In another development, Odisha's loan amount has already touched Rs 64,991 crore by the end of 2016-17. The loan burden was Rs 54,006.2 crore by August 2016.

According to official information, the loan burden was Rs 18,100 crore in 1999-2000, Rs 37,730 crore in 2009-10 and Rs 43,273.38 crore in 2014-15.

Official sources said steps were being taken to keep burrowing within permissible permits. The loans with high interests are being repaid. "Taking loan is not a crime. We need money for the development of the state. We have already known for our effective fiscal management," said an official.

Many developed states, including Maharashtra and Tamil Nadu, take loans. Maharashtra's loan amount has touched Rs 3.40 lakh crore.

Tourism growth

The Odisha government is targeting a 30 per cent growth in foreign tourist arrivals at around one lakh travellers in the state this calender year.

In 2016, the state hosted 76,361 foreign tourists, most of them from Sri Lanka, Japan, some European and South Asian nations.

"We are witnessing a steady growth in foreign tourist arrivals over the years. In 2016, the state saw over 14 per cent growth in overseas travellers from the previous year," said Odisha Tourism Development Corporation managing director Nitin B. Jawale.