Funds to be utilized for development projects; RBI to conduct auction on April 21
The Government of Maharashtra has announced the sale of State Government Securities (SDRs) worth ₹2,400 crore to finance various development projects across the state. The fund-raising will be conducted through two separate tenures: ₹1,600 crore for a period of 18 years and ₹800 crore for a period of 28 years. This information was shared via an official press release by Vikas Chandra Rastogi, Additional Chief Secretary (Financial Reforms), Finance Department.
Auction Details and Investment Limits The auction will be conducted by the Reserve Bank of India (RBI) at its Mumbai office on April 21, 2026. The bidding process will take place electronically on the RBI’s Core Banking Solution (e-Kuber) system.
Under the non-competitive bidding scheme, 10% of the total notified amount will be reserved for eligible individual and institutional investors. However, a single investor can be allotted a maximum of 1% of the total notified amount.
Key Schedule for Bidders:
· Competitive Bids: Between 10:30 AM and 11:30 AM.
· Non-Competitive Bids: Between 10:30 AM and 11:00 AM.
· Results: The results will be published on the RBI website on the same day.
· Payment Date: Successful bidders must make the payment by April 22, 2026.
Terms of Repayment and Interest The 18-year tenure bonds will commence on April 22, 2026, and will be repaid in full on April 22, 2044. The 28-year bonds will follow a similar schedule relative to their tenure.
Interest will be paid semi-annually on October 22 and April 22 each year until maturity. The interest rate will be determined based on the coupon rate decided during the auction.
Investment Benefits for Banks These government securities are eligible for the Statutory Liquidity Ratio (SLR) requirements under Section 24 of the Banking Regulation Act, 1949. Additionally, these securities will be eligible for ready forward contracts (Repo/Reverse Repo), providing liquidity to investors in the secondary market.
