Meghalaya is expected to borrow Rs 350 crore from the markets during this July-September quarter of the financial year.
The Reserve Bank of India (RBI) in consultation with the states and union territories (UTs) has drawn up the borrowing calendar for the quarter where bonds will be issued to mobilise funds on a weekly basis.
The RBI has yesterday announced the quantum of total market borrowings by the states and union territories for the July-September quarter.
The RBI in consultation with the states and UTs has drawn up the borrowing calendar for the quarter where bonds will be issued to mobilise funds on a weekly basis.
The RBI has said that a weekly schedule of auctions will be held during the quarter along with the states and UTs that have confirmed participation and tentative amounts indicated by them.
As per the borrowing calendar, Meghalaya has tentatively indicated to borrow Rs 150 crore on August 3 and another Rs 200 crore on September 7.
In all, states and UTs are expected to borrow Rs 1,92,091 crore from the markets during July-September quarter.
With the pandemic pushing up the need to spend more towards Covid relief measures, states have lined up massive borrowing plans for the second quarter of the current financial year.
The borrowing programme that started on July 6 will continue till September 28.
According to the RBI, the actual amount of borrowings and the details of the states and UTs participating would be intimated two/three days prior to the actual auction day and would depend on the requirement of the states and UTs, approval from the Government of India under Article 293(3) of the Constitution of India and the market conditions.
RBI also said that it would endeavour to conduct the auctions in a non-disruptive manner, taking into account the market conditions and other relevant factors and distribute the borrowings evenly throughout the quarter.
“RBI reserves the right to modify the dates and the amount of auction in consultation with state governments and UTs,” it added.
It may be noted that for the quarter of April – June 2021, Meghalaya’s tentative amount of borrowing was Rs 200 crore (April 15), and Rs 200 crore (June 8).
