State Governments Raise Rs 11,625 Crore Through Latest SGS Auction

In the recent State Government Securities auction conducted by the RBI, states raised a total of Rs 11,625.21 crore. While Bihar and Chhattisgarh made partial acceptances, Gujarat and Uttarakhand declined offers. The funds are intended for infrastructure and developmental projects, reflecting diverse borrowing costs across the states.

State governments collectively amassed Rs 11,625.21 crore through the latest auction of State Government Securities (SGS), as reported by the Reserve Bank of India on Tuesday. The auction had a total notified amount of Rs 13,450 crore, but some states opted for partial acceptance or refrained from accepting any bids.

The RBI data details that Bihar accepted only Rs 875.21 crore against its Rs 1,200 crore notification for the re-issue of 7.69 per cent Bihar SGS 2035. Additionally, Bihar secured Rs 1,200 crore via a 15-year security at a 7.84 per cent cut-off yield. Chhattisgarh secured a total of Rs 1,000 crore through two securities, raising Rs 500 crore with a 7.68 per cent SGS 2036 and another Rs 500 crore with a 7.82 per cent SGS 2048.

Madhya Pradesh successfully raised Rs 2,800 crore by re-issuing securities at yields of 7.6999 per cent and 7.8667 per cent. Uttar Pradesh, Assam, and Kerala also participated actively, contributing Rs 1,700 crore, Rs 750 crore, and Rs 1,800 crore, respectively. However, Gujarat and Uttarakhand declined certain bidding opportunities. These auctions are crucial for states to finance infrastructure, development, and meet their fiscal requirements, amid varied borrowing conditions.