States, union territories to borrow over Rs 50,000 crores by auctioning loan documents

New Delhi: Seventeen states including Kerala and the union territories will borrow a total loan of Rs 50,206 crores by auctioning the loan documents. Out of this, Kerala will avail loans amounting to Rs 3,742 crores. This is the first time ever that a state government or the union government is accumulating such a huge amount by auctioning loan documents in a week. The previous highest was Rs 39,000 crores which was raised by the union government in a similar manner in February, earlier this year.

Uttar Pradesh will borrow the maximum funds - Rs 8,000 crores. Closely followed by Karnataka, Maharashtra and Tamil Nadu. The three states will borrow Rs 6,000 crores each. Goa is borrowing the least amount, only Rs 100 crores. There are many states lined up to borrow money, those buying the loan documents will benefit from this.

As per the instruction of the Supreme Court, Kerala received the central approval to borrow Rs 13,608 crores. However, the final amount sanctioned stood at Rs 8,742 crores. Rs 5,000 crores out of this amount was availed by the state government last week. The remaining Rs 3,742 crores in the quota will be borrowed today. This is expected to be a major relief to the state which is currently reeling under financial crisis.

Kerala is soon expected to receive approval for borrowing an additional Rs 4,864 crores for bringing about reformations in the energy sector. The last borrowing of this financial year will happen next Tuesday. The state is expected to receive the above mentioned amount then.