The State government raised another ₹1,000 crore as State Development Loan (SDL) on Tuesday continuing its efforts to mobilise resources for meeting immediate commitments like Rythu Bandhu.
The government has exercised the green shoe option allowing it to take more amount than it has notified under the auction conducted by the Reserve Bank of India.
The government had initially notified auction of securities for loan worth ₹750 crore with a tenure of 20 years and cut off yield of 6.71%, but accepted ₹1,000 crore.
Faced with a precarious financial situation in the aftermath of the COVID pandemic, the government had announced on Monday that the next instalment of Rythu Bandhu would be credited to farmers’ accounts from December 27.
Chief Minister K. Chandrasekhar Rao has directed the Finance department to release ₹7,300 crore for crediting the assured amounts into the accounts of 59.3 lakh farmers.
The State government had opted the green shoe option more than once in the past few weeks.
It had notified amounts of ₹750 crore each during the auctions conducted on November 3 and 10 and December 1, but accepted additional amounts of ₹250 crore each on the three occasions. During the auction process conducted on November 24, the government notified auction of securities worth ₹1,072.8 crore, but accepted an additional ₹500 crore.
“The green shoe option enables the government to take more amount than that is put to auction.
This indicates that investors are showing interest in these securities,” a senior official of the Comptroller and Auditor General of India’s office said.
After accepting Option-1 offered by the Central government under the Atmanirbhar Abhiyan package, the State government is expected to get ₹2,380 crore, which would be raised through special window and passed on to the State. In addition, the government could raise another ₹5,017 crore additional borrowing as announced by the Centre.
