State govts likely to borrow up to Rs 1.05L crore in March quarter: RBI

Mumbai: State governments are expected to raise about Rs 95,000-1,05,000 crore in the form of market borrowings in the last quarter of the ongoing fiscal, Reserve Bank said Wednesday.

"The Reserve Bank in consultation with state governments, announces that the quantum of total market borrowings by the state governments and the union territory of Puducherry, for the quarter January-March 2016, is expected to be in the range of Rs 95,000 crore to Rs 1,05,000 crore," the apex bank said in a release today.

In a total of six batches from January to March, states will raise monies in various range, as per the RBI calender.

In the first batch, the borrowing is expected to be in range of Rs 18,000-20,000 crore on January 12. Second, Rs 16,500-18,500 crore on January 25; Rs 16,500-18,500 crore on February 9; Rs 17,000 -19,000 crore on February 23; Rs 17,000-18,000 crore on March 8 and last of Rs 10,000-11,000 crore on March 22.

RBI said the actual amount of borrowings and the details of the states participating would be intimated prior to the actual auction day.

The state governments borrow money from markets through State Development Loans (SDLs) to raise resources to meet demand.