Telanganahas proposed to raise Rs 11,500cr from the market in the first quarter of the new fiscal in the form ofReserve Bank Of India(RBI) . In the first two rounds of raising Rs 1000cr bonds each, Telangana opted for a long repayment schedule of 21 years at an interest of 7.61%.
In April, Telangana will raise Rs 4000 crore, followed by Rs 3500 crore in May and Rs 5000 in June, with total borrowings pegged at Rs 11,500 crore.
In the last financial year, both state and Central governments locked horns over the Centre’s new rule that outstanding guarantees given by the State Government should be part of Fiscal Responsibility Budget Management (FRBM) conditions retrospectively.