Mumbai :- The Government of Maharashtra has decided to float a loan of Rs. 3 thousand crore (Nominal) to finance expenditure in connection with the development programmes of the State of Maharashtra. Today Press release issued by Nitin Karir, ACS to Finance Department.
The state government stock upto 10 per cent of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of 1 per cent of the notified amount for a single bid as per the Revised scheme for Non-Competitive Bidding Facility in the Auction of State Government Securities. The auction will be conducted by the Reserve Bank of India, at its Fort Office, Mumbai on May 23, 2023. The application form duly filled in with the bids should be submitted to the aforesaid office on May 23, 2023 before 11.30 am. Successful bidders will make payments on May 24, 2023 before close of banking hours by means of cash, banker’s cheque/pay order, demand draft payable at Reserve Bank of India, Mumbai (Fort). The stock will be of 7 years tenure. The tenure of the stock will commence on May 24, 2023. The loan will be repaid at par on May 24, 2030.
Financial Position of the State
The Maharashtra State has raised from 1st May 1960 public loans of Rs. 4,93,362.42 crore of which Rs. 3,80,239 crore are outstanding at the end of March, 2022. Loans amounting to Rs. 2,43,188.42 crore have been obtained during the period from 1960-61 to 2021-2022 principally from the Government of India and also from the Life Insurance Corporation of India, National Co-operative Development Corporation, Central Warehousing Corporation, Employees’ State Insurance Corporation, Indian Dairy Corporation and National Agricultural Credit (Long Term Operation). Fund of the Reserve Bank of India, the outstanding loans at the end of March, 2022 in respect of which amounts to Rs. 1,02,796.29 crore. These loans have been and are being repaid regularly, together with interest charges, in accordance with the terms applicable to them.
The figures of Revenue receipts and expenditure of Maharashtra for the year 2023-2024 as estimated in the Budget Estimates presented before the Maharashtra Legislature and the Actuals for 2021-2022 and the Revised Estimates for 2022-2023 are as
There is overall deficit of Rs. 7,190.81 crore after adjusting for the surplus on account of Capital Account and the Opening Balance of Rs. 7,360.79 crore.
All the loans taken from the Government of India and other sources are being utilised mainly for the creation of productive assets such as irrigation, dams, canals, tanks, land improvement, drinking water schemes, sanitation, improvement to communications or for advancing loans for productive programmes to bodies like the State Electricity Board, Local Bodies and Co-operative Societies which will repay the loans with interest.
There are also assets in the shape of loans and advances amounting to Rs. 28,087.21 crore granted to municipalities and other statutory bodies, agriculturists and other under various schemes as on 31st March, 2022. The State has large holdings in the share capital of the State Road Transport Corporation, the State Financial Corporation, a number of major Co-operative Institutions and various Irrigation Development Corporations.
As per the recommendation of Tenth Finance Commission, the State Government has constituted a Consolidated Sinking Fund from 1999-2000 for redemption of debt arising from these open market borrowing. This fund is being operated by the Reserve Bank of India from 1999-2000. Provision of Rs. 3 thousand crore has been made for 2023-2024 for the scheme, as press released issued by the Finance Department of GoM.
Further details of the terms and conditions of the loan appear in the Government Notification of Finance Department dated 18th May, 2023 published in the Maharashtra Government Gazette (Extraordinary) of that date.
