Ahmedabad, 5 February, 2012

Gujarat Government today in a statement said it would sell state government stock securities worth Rs 1,500 crore with a holding period of 10 years to fund development programmes and schemes included in the annual development plan (ADP) for 2011-2012.

The auction of the stock securities will be conducted by the Reserve Bank of India (RBI) on February 7, Additional Secretary to the Gujarat Finance Department, Manish Verma, said.

In recent years, the state’s public debt has mounted to Rs 1,13,125 crore as on 31 March, 2011, which the government says is being utilised for “developmental activities and in creation of productive assets”.

Besides the staggering liability, the state government has also extended guarantees on behalf of the state-owned entities and various statutory bodies.

With stringent financial and administrative measures, the government has reduced its outstanding guarantees from Rs 19,001 crore at the end of 2002-03 to Rs 8,824 crore as on March 31, 2011, the release added.

The state government in 1999-2000 had constituted a consolidated sinking fund (CSF) for redemption of the debt raised from the open market borrowings, the hand out said, adding the balance in CSF stood at Rs 5,922 crore as on March 31, 2011.

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