State clarifies report on loan auction

Dimapur, March 27 (MExN): The department of Finance has made a number of clarifications to the news reports that the state is to auction state developmental loans for Rs. 100 crore. The news is “basically correct” Additional Chief Secretary & Finance Commissioner Toshi Aier stated today. However, he stated, the clarification was issued that there would be no misunderstanding in the minds of the public.
He said that the auction of State Development Loan for Rs. 100 Cr which is to be done by the Reserve Bank of India is a part of the normal process of raising Open Market Borrowings by all the states according to the procedures laid down by the Ministry of Finance and the Reserve Bank of India. “The loan is generally raised in tranches each year within the ceiling fixed by Ministry of Finance,” he said.
The commissioner’s rejoinder stated that during the year 2010-2011 the Ministry of Finance had ‘consented’ to raising a total of Open Market Borrowing of Rs 355.36 crore as part of the scheme of financing the state’s Annual Plan for 2010-2011, approved by the Planning Commission.
“Out of this, borrowing of Rs. 255.36 crore has already been raised by the RBI on behalf of the state government on earlier occasions in 3 tranches and duly credited to the state’s accounts,” Aier stated. The balance of Rs. 100 crore, he added, is to be raised by the RBI on March 29 2011, “as the 4th and final tranche as has been correctly reported in the local media.”