HYDERABAD: The Telangana country growth trades auction on Tuesday elicited a strong investor answer together with the nation increasing Rs 3,000 crore, the maximum number among eight participating countries, with a repayment program of 30 decades.
Goa, Gujarat, Haryana, Kerala, Tamil Nadu, Punjab, Maharashtra and Rajasthan also engaged in the market to raise funds .
Haryana, Maharashtra and Rajasthan increased Rs 1,500 crore loans, Goa Rs 500 crore and the rest countries raked in Rs 1,000 crore.
“Each of the countries likewise had short-term repayment program ranging from 4 years to ten decades, while Telangana required the loans using long-term interest program of 30 decades.
On the other hand, the interest of Telangana state development loans would be marginally higher than other nations,” an official said.
Each of the nations borrowed having the interest rate ranging from 5.65 percent (Rajasthan being the cheapest ) to 6.83 percent (Maharashtra function as the greatest among other nations ), however Telangana’s was marginally higher at 7.03 percent.
‘State must finance fresh infrastructure’Earlier, Telangana was able to increase state growth loans together with the repayment schedule of 20 decades.
Finance department sources state together with the state owning a good income generating situation, the long term repayment programs will be useful and there won’t be some burden on the exchequer.
“It’s good that through the Covid-19 pandemic, the country can have funds using a longterm repayment program.
But a part of it ought to be about capital expenditure (such as construction infrastructure),” Dr Krishna Reddy Chittedi, assistant professor, School of Economics, University of Hyderabad stated.