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States handle to boost greater than Rs 15,000 crore at public sale of SDLs

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MUMBAI: Fourteen states together with Tamil Nadu, Gujarat, Haryana, Uttar Pradesh, Telengana and Bihar raised Rs 15,475 crore on the public sale of state authorities securities or state growth loans (SDLs), Care Ratings stated in a observe at the moment.

Most state governments have seen their revenues being hit however prices going up as a consequence of Covid pandemic.

The quantity was Rs.321 crores greater than the full notified quantity of the public sale. While three states viz. Gujarat, Telangana and Haryana accepted further quantities on the public sale, Assam didn’t settle for any quantity within the 10 yr safety and Punjab accepted 57 per cent (of Rs. 570.53 crores) of the notified quantity. Gujarat and Telangana accepted a further quantity of Rs. 500 crores every and Telangana accepted a further quantity of Rs.250 crores, Care Ratings stated.

So far 28 states and a pair of union territories have raised Rs. 4.64 lakhs crores via market borrowings, 51 per cent greater than the identical interval a yr earlier than. As per the borrowing calendar for the primary three quarters of 2020-21 (Apr-Dec), the states are to borrow a complete of Rs. 5.07 lakhs crores, the report stated.

“The sharp fall in the revenues on account of the lockdown coupled with an increase in expenditure for controlling and mitigating the impact of the pandemic has severely strained state finances,” the report added.

The report stated that solely seven states together with Arunachal Pradesh, Himachal Pradesh, Manipur, Uttar Pradesh, Odisha, Punjab and Tripura haven’t elevated their borrowing in comparison with final yr’s.

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