State Governments may borrow up to Rs. 1.05 crores in last quarter :RBI

New Delhi Dec 31 (KNN) The Apex Bank of the country said that the State Governments are expected to raise about Rs 95,000-1,05,000 crore in the form of market borrowings in the last quarter of the ongoing fiscal.

In an official release, “The Reserve Bank in consultation with state governments, announces that the quantum of total market borrowings by the state governments and the union territory of Puducherry, for the quarter January-March 2016, is expected to be in the range of Rs 95,000 crore to Rs 1,05,000 crore."

In a total of six batches from January to March, states will raise monies in various ranges, as per the Reserve Bank of India (RBI) calendar.

In the first batch, the borrowing is expected to be in range of Rs 18,000-20,000 crore on January 12. Second, Rs 16,500-18,500 crore on January 25; Rs 16,500-18,500 crore on February 9; Rs 17,000 -19,000 crore on February 23; Rs 17,000-18,000 crore on March 8 and last of Rs 10,000-11,000 crore on March 22.

RBI said the actual amount of borrowings and the details of the states participating would be intimated prior to the actual auction day.

The state governments borrow money from markets through State Development Loans (SDLs) to raise resources to meet demand. (KNN Bureau)