Chandrababu Naidu-led government has been struggling hard to meet regular financial commitments, leave alone its poll commitment of creating assets due to the financial mess created by the previous government. During the last three and half months, it was forced to indent the debt of Rs 20,000 crore by seven times, by auctioning its security bonds.
As a part of that, the government has indented the debt of Rs.3,000 crore in the latest auction to be held on October 1. So far, it has auctioned security bonds worth Rs 17,000 crore six times. Reserve Bank of India (RBI) conducts auctions for Core Banking Solution (e-Kuber). RBI sells them in the form of competitive and non-competitive bids.
Soon after the formation of the government, it auctioned Rs 2,000 crore security bonds on June 11. In this, two security bonds worth Rs.500 crore and one security bond worth Rs.1,000 crore have been auctioned by the AP government. The time limit of all bonds ranged from 15 years to 21 years.
In the securities auction held on June 25, Rs. 2,000 crores (two bonds of Rs.1,000 crore each) have been indented by the TDP, Janasena and BJP coalition government in the state. Afterwards, on July 2, Rs 5,000 crore worth five bonds, on July 16 Rs 2,000 worth two bonds, on July 30, Rs 3,000 crore worth three bonds, on July 30, Rs 3,000 crore worth three bonds, on August 27, Rs 3,000 crore worth three bonds were auctioned.
RBI said that these security bonds can be purchased by individuals and institutions. Those who purchase bonds in competitive mode have to file competitive bids between 10:30 am to 11:30 am on 27th of this month (Tuesday) and non-competitive bids between 10.30 am to 11 am. RBI said.
Though unlike the previous government, Chandrababu Naidu government is able to give salaries of the employees on the first of every month and also making payments of pensions also timely, it is yet to mobilize sufficient revenues to meet its crucial `Super Six’ poll promises.