The Himachal Pradesh government has decided to raise a loan of ₹700 crores from the open market for financing various development projects and schemes in the state. The state’s finance department has issued a notification in this regard. This amount will be spent on infrastructure projects such as roads, bridges, buildings, drinking water, health, education, and other approved development schemes in the state.
The finance department’s notification regarding the loan-raising process and its purpose states that the government will issue government securities with a maturity period of 13 years. The sale of these securities will be conducted through an e-auction process via the Reserve Bank of India (RBI). Banks, insurance companies, financial institutions, and other authorized investors will be able to participate in this auction.
The funds obtained from the auction will be directly credited to the state government’s account, which will be used for the schemes approved in the budget and capital development works. The state government raises loans from the market in a phased manner during the financial year. This process allows states to obtain financial resources within the borrowing limits set by the central government and the RBI.
The state government believes that periodically borrowing from the market is essential to maintain the continuity of development works and to enhance capital investment.