States Secure Rs 13,300 Crore in Latest State Government Securities Auction

Seven Indian states successfully raised Rs 13,300 crore in the latest State Government Securities auction conducted by the RBI. Madhya Pradesh led the effort, while strong investor demand allowed all states to meet their targeted capital for fiscal and infrastructure needs without under-subscription.

In a significant development for state economies, seven major Indian states have collectively raised Rs 13,300 crore through a recent auction of State Government Securities (SGS). The data, released by the Reserve Bank of India (RBI), highlights that each state secured the full amount they aimed to mobilize.

Leading the charge, Madhya Pradesh raised Rs 4,800 crore through two high-yielding securities, offering 7.14 percent for a 16-year tenure and 7.15 percent for an 18-year term. Maharashtra followed closely, securing Rs 4,000 crore with two securities spanning 20 and 21 years, each yielding 7.14 percent.

Bihar attracted Rs 2,000 crore at the lowest yield of the auction—6.88 percent for a 10-year bond. Other participants included Haryana, Jammu and Kashmir, Mizoram, and Telangana. Telangana's notable issue was a 30-year bond at 7.13 percent, the longest tenor of the auction. These financial measures aid states in funding infrastructure projects while supporting fiscal management within the Central Bank's framework.

(With inputs from agencies.)