RBI auction raises Rs 400 Cr development loan for Himachal

Shimla: At the auction of state development loans conducted by Reserve Bank of India for ten states, the Himachal Pradesh government raised a loan of Rs 400 crore at a cut off interest of 8.75 percent, state finance officials here disclosed today.

“The loan has been raised at a lower interest than previously,” said Shrikant Baldi, finance secretary Himachal government. This amount would help to accelerate the pace of development in the state, he added.

He said that the state was not facing any financial crisis and the loan was raised as part of funding the approved annual development plan.

Besides, Himachal the other states whose development loans were auctioned by RBI include, Uttar Pradesh, Tamil Nadu, Karnataka, Maharashtra, Punjab, Rajasthan, Andhra Pradesh, Gujarat and Haryana.

Of the total Rs 8300 crore loans raised by RBI at the auction, Tamil Nadu raised Rs 1500 Cr , UP, Karnataka, Maharashtra and Punjab raised Rs 1000 crore each, Andhra Pradesh Rs 750 Cr, Gujarat Rs 600 Cr, Haryana Rs 550 Cr and Rajasthan 500 crore.

At 8.88 percent, the Rs 1000 Cr development loan raised for UP carried the highest interest rates and at 8.74 percent, the Rs 1000 Cr loan raised for Karnataka fetched the lowest cost at the auction.

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