Telangana to borrow Rs 13,000 crore from RBI in next three months

The quantum of market borrowings by the Telangana government for the quarter January-March 2024 from the Reserve Bank of India will run into at least Rs.13,000 crore

Hyderabad: The quantum of market borrowings by the Telangana government for the quarter January-March 2024 from the Reserve Bank of India will run into at least Rs.13,000 crore.

According to a press release from the RBI, the apex bank in consultation with State governments and Union Territories said the quantum of total market borrowings by the State governments and UTs for January – March 2024 would be to the tune of Rs.4,13,452 crore. The RBI has drawn the weekly schedule of auctions to be held during the quarter along with the name of States/UTs who have confirmed participation and the tentative amounts indicated by them, the central bank said.

---

According to the schedule, Telangana will bid for Rs.1,000 crore on January 9, Rs.2,000 crore on January 16 and another Rs.1,000 crore on January 30, totalling Rs.4,000 crore in January. It will again bid for Rs.1,000 crore each on February 13, 20 and 27. In March, the bids will be for borrowings of Rs.2,000 crore (March 5), Rs.1,000 crore (March 12), Rs.2,000 crore (March 19) and Rs.1,000 crore on March 26, totalling Rs.6,000 crore in March and overall, Rs.13,000 crore in three months.

The actual amount of borrowings will be known two to three days prior to the actual auction day and will depend on the requirement of the State governments/UTs, approval from the Government of India under Article 293(3) of the Constitution of India and the market conditions. RBI will be taking into account the market conditions and other relevant factors and distribute the borrowings evenly throughout the quarter, it said.