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West Bengal Announces Sale of Govt Stock for Rs 2,000 Crore to Meet Expenses of Developmental Projects

The Mamata Banerjee-led Bengal government notified sale of West Bengal Stock (Securities) of a 10 year tenure for an aggregate amount Rs 2,000 crore on Thursday.

Sujit Nath | News18.com

Updated:February 16, 2018, 11:48 PM IST
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West Bengal Announces Sale of Govt Stock for Rs 2,000 Crore to Meet Expenses of Developmental Projects
The amount generated out of the sales would be utilised on developmental projects.
Kolkata: The Mamata Banerjee-led Bengal government notified sale of West Bengal Stock (Securities) of a 10 year tenure for an aggregate amount of Rs 2,000 crore on Thursday.

“The proceeds of the loan will be utilized towards meeting the requirement for developmental expenditure of the state. Consent of the central government has been obtained to the floatation of this loan as required by Article 293 (3) of the Constitution of India,” read a state Finance Department circular issued by Additional Chief Secretary, Finance Department, HK Dwivedi.

According to government officials, the amount generated out of the sales would be utilised on developmental projects of the state government.

“Government stock will be sold through RBI, Mumbai by auction in the manner as prescribed in Paragraph 6.1 of the general notification No. 480 – dated 20th July, 2007and its amendment vide notification No. 1200 - dated 2nd September, 2009 as a coupon rate to be determined by the RBI at the yield based auction under multiple price formats,” the statement said.

On allotment to non-competitive bidders, it further states, “The government stock up to 10% of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1% 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.”

The auction will be conducted by the Reserve Bank of India on February 20, 2018. All bids for the auction are to be submitted in an electronic format on the RBI core banking solution system.

The result of the auction shall be displayed by the RBI on its website on the same day and payments by successful bidders are to be made on February 21. The stocks will be of a 10-year tenure, which will commence on February 21.

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| Edited by: Sanchari Chatterjee
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