On June 3, the Centre had permitted the Telangana government, for the first time in this fiscal year, to auction bonds worth Rs 4,000 crore Representational image/DC
Hyderabad: The state government received another jolt when its proposal to raise another Rs 4,000 crore from the auction of bonds on June 14 was rejected by the Centre. The Reserve Bank of India (RBI) announced the auction of bonds by three states — Andhra Pradesh and Haryana (Rs 2,000 crore each) and Tamil Nadu (Rs 1,000 crore).
On June 3, the Centre had permitted the Telangana government, for the first time in this fiscal year, to auction bonds worth Rs 4,000 crore, along Andhra Pradesh (Rs 2,000 crore), Maharashtra (Rs 4,000 crore) and Tamil Nadu (Rs 2,000 crore). The state's name was missing this tme round.
Telangana had sought permission to raise Rs 15,000 crore through bonds from April-June — Rs 3,000 crore in April, Rs 8,000 crore in May and Rs 4,000 crore in June.
Since permission to borrow Rs 11,000 crore in April and May were denied, the state government had requested the Centre to permit it to raise an additional Rs 4,000 crore in June. But it was not to be
The TS finance department now hopes to get permission to raise Rs 4,000 crore at least in the remaining two rounds of auctions to be held on June 21 and June 28.
The finance department is in urgent need of Rs 7,500 crore for the Rythu Bandhu scheme since the Kharif season has started on June 1. Over 60 lakh farmers are awaiting the benefit to meet their investment costs while political parties have started pressing the government to release the funds.