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Maharashtra Seeks ₹2,500 Crore for Development
19 Mar
Summary
- Maharashtra plans to raise over ₹2,500 crore via government securities.
- Funds will finance development projects across the state.
- Auction for securities to be held by RBI on March 24, 2026.
The Maharashtra government is launching a significant borrowing program to raise over ₹2,500 crore, intended for development projects across the state. This initiative will include a fresh issuance of 10-year bonds totaling ₹1,000 crore, with an option to increase this amount by ₹500 crore. The auction for these securities is scheduled to be conducted by the Reserve Bank of India on March 24, 2026.
Additionally, the state will offer previously issued long-term securities for sale, comprising ₹1,000 crore in 26-year bonds and ₹530 crore in 21-year bonds. These issuances, originally dated March 4, 2026, carry a fixed annual coupon rate of 7.66 percent. The proceeds from all these financial instruments are designated for financing essential developmental works throughout Maharashtra.
The borrowing plan also allocates 10 percent of the notified amount for individual and institutional investors through a revised non-competitive bidding mechanism. Investments by banks in these securities will qualify for Statutory Liquidity Ratio purposes. This structured approach aims to ensure consistent financial resources for infrastructure and development while maintaining market liquidity.
