Already facing a debt of around Rs 50,000 crore, the Himachal Pradesh Government is going to raise money from financial markets.
In two separate notifications, the State Government has notified the sale of Himachal Pradesh Government Stock (securities) of 8.5 years tenure for an aggregate amount of Rs 500 crore.
In the second notification, the State Government has notified the sale of Himachal Pradesh Government Stock (securities) of 9.5 years tenure for an aggregate amount of Rs 500 crore.
The notifications stated, “The consent of Central Government has been obtained to the floatation of this loan.”
The Government stock will be sold through the Reserve Bank of India, Mumbai office.
The stock will be 8.5 years and the tenure of the stock will commence on November 25, 2020. The loan will be repaid at par on May 25, 2029, stated the notification.
The second notification stated, “The stock will be of 9.5 years and the tenure will commence on November 25, 2020 and the loan will be repaid at par on May 25, 2030.”
The government stock upto 10 percent of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of one percent of the notified amount for a single bid as per the revised scheme for non-competitive bidding facility in the auctions of State Government Securities of the general notification, they stated.
Notably, the debt burden and funds crunch has become a matter of concern for the government amid the Covid-19 pandemic.
Facing major financial losses due to the Covid-19 pandemic, the State Government is making efforts to generate revenue through tourism, industry and hydro-power generation.
Recently, Himachal Government had also notified “The Himachal Pradesh Regulation of Salaries and Allowances of Different Categories in Certain Exigencies Act, 2020” slashing monthly salary and allowances of ministers, the speaker, deputy speaker, legislators, chairmen and vice-chairmen of boards and corporations by 30 percent for one year to meet the exigencies arising out of COVID-19 pandemic.