Govt raises ₹2,000 crore market borrowings for meeting financial commitments

The State government has raised market borrowings of ₹2,000 crore to meet its immediate financial commitments.The amount has been raised in three tranches, ₹1,000 crore and ₹500 crore each, through price auction of State government securities by the Reserve Bank of India at an interest rate of 7.7%. The amount, according to RBI, is the reissue of securities of July 1 which had been kept on hold. The reissue follows the fresh indent submitted by the State government.The government, according to official sources, did not respond with a specific time range after the auction of securities on July 1, resulting in withholding of the amounts. The State government might have felt that the interest rates at that point in time were not favourable and wanted to wait till the interest rates came down.