Five state governments, including Andhra Pradesh and Rajasthan, are collectively auctioning ₹29,900 crore in securities via RBI-managed process.
State Governments Conduct Bond Auctions
Several state governments, including Andhra Pradesh, Rajasthan, and Tamil Nadu, have offered to sell state development loans aggregating ₹29,900 crore through an RBI-conducted auction. The tenors range from re-issued 7.46% bonds by Andhra Pradesh to longer-dated securities issued by Rajasthan.
The auction includes reissues of existing stock under the “tap” system and fresh issuances under state borrowing programs approved by the Ministry of Finance. Some states have included a greenshoe option, allowing for additional borrowing up to a specified limit based on investor demand.
State-level borrowings are governed by limits set under the Fiscal Responsibility and Budget Management (FRBM) framework. Legal practitioners advising on public finance should monitor state-specific notifications for bidding procedures and settlement timelines.
