Mumbai, Oct 3 The Reserve Bank of India (RBI) announced on Friday that the state governments and Union Territories are expected to raise Rs 2,81,865 crore through market borrowings during the October-December quarter of the current financial year.
Tamil Nadu is among the highest borrowers with plans to raise Rs 39,000 crore during the quarter.
Uttar Pradesh, the country’s largest state, has indicated that it intends to borrow a total of Rs 33,000 crore in 11 auction rounds of Rs 3,000 crore each, while West Bengal is said to borrow Rs 29,000 crore.
Gujarat has indicated that it plans to raise Rs 20,000 crore through market borrowings in the current quarter, while neighbouring Rajasthan plans to borrow Rs 14,455 crore.
Trinamool Congress-ruled West Bengal has informed the RBI that it plans to raise RS 28,000 crore, which has been spread across 10 tranches, mainly of Rs 3,000 each.
Poll-bound Bihar has indicated that it intends to raise Rs 9,800 crore in market borrowings, while adjoining Odisha plans to borrow Rs 9,000 crore in equal tranches of Rs 1,000 crore each. The hill state of Himachal Pradesh has indicated that it will mobilise Rs 1,500 crore, while neighbouring Uttarakhand plans to raise Rs 4,000 crore. Madhya Pradesh plans to mobilise around Rs 15,600 crore through debt.
All Indian states together borrowed Rs 5 lakh crore through debt sales in the first six months of the financial year ending March 2026. The fresh auctions are set to begin from October 7, with a total of 13 rounds to be conducted till December 30. The RBI has released the detailed list of market borrowings by the states. The calendar for borrowing by the states and Union Territories begins on October 7, which is a Tuesday, and will subsequently extend on each following Tuesday across 13 weeks until December 30.
The actual amount of borrowings and the details of the states/UTs participating would be intimated in two or three days prior to the actual auction day, the Reserve Bank said. "It would depend on the requirement of the state Governments and UTs, approval from the Government of India under Article 293(3) of the Constitution of India and market conditions."
The RBI said it would conduct the auctions in a non-disruptive manner, taking into account the market conditions and other relevant factors and distribute the borrowings evenly throughout the quarter. The central bank also said it reserves the right to modify the dates and the amount of the auction in consultation with state governments and UT administrations.
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