The State government has offered to sell 10-year securities by way of auctioning for an aggregate amount of Rs. 1,500 crore.
The auction would be conducted on the Reserve Bank of India Core Banking Solution (E-Kuber) on December 8. The government, in a notification on Saturday, said the securities would be issued for a minimal amount of Rs. 10,000 and multiples of Rs. 10,000 thereafter.
The cash strapped government had already mobilised Rs. 9,000 crore through bonds in view of the severe financial constraints it had been facing post-bifurcation. It had been utilising the available funds for priority sector works including the irrigation projects.
This, sources said, was necessitated due to pressure on the State finances on account of the spree of welfare programmes including the farm loan waiver it had implemented for the benefit of the farmers and the needy sections.
Sources said the government had recently received instructions from the Central Government to furnish utilisation certificates for the funds it had released under various heads including the capital construction.
The Centre had so far released Rs. 1,850 crore for the construction of new capital city of Amaravati in tranches.
Of these, Rs. 1,000 crore were expected to be earmarked for creation of basic amenities in the new capital and another Rs. 500 crore for the construction of core Government infrastructure including the State Secretariat, Assembly, Raj Bhavan and the High Court.
The Centre had released another Rs. 350 crore for the capital works few months ago, but the Government is yet to launch works on the construction of these institutions so far.
Auction will be conducted on Reserve Bank of India Core Banking Solution (E-Kuber) on Dec. 8
