As mining revenue slides, govt borrowings climb - ToI

As mining revenue slides, govt borrowings climb Murari Shetye, TNN | Nov 4, 2012, 02.47AM IST PANAJI: With uncertainty over the resumption of mining in the state, Goa government is borrowing money from the market for the second time in less than two months. The government has sought to borrow Rs 150 crore through sale of 10-year Goa government stock (securities). It had borrowed Rs 200 crore on September 18, to meet development expenditure. Soon after the BJP came to power it had borrowed Rs 150 crore. The proceeds of this loan too will be utilized for financing capital expenditure in connection with development programmes. The government has also decided to pay its employees a Diwali bonus and will require Rs 15 crore to meet this assurance. TOI had reported that the government had set a target of over Rs 800 crore as earnings from mining royalty for 2012-13. Earnings from this industry have fallen short until now. The state's borrowing limit, set by the planning commission, is Rs 1,300 crore per year. "Consent of the Central government has been obtained to float the loan as required by Article 293(3) of the Constitution," principal secretary finance, B Vijayan, said in the order. The stock will be auctioned through Reserve Bank of India's Mumbai office on Tuesday and the interest rate will be determined by RBI. "Bids for the auction should be submitted in electronic format," Vijayan said. The auction's result will be available on the RBI website the same day and payment by successful bidders will have to be made on Wednesday. The tenure of the stock will commence on November 7, 2012 and, the loan will be repaid at par on November 7, 2022. "Interest will be paid on May 7 and November 7 every year," Vijayan said. http://timesofindia.indiatimes.com/city/goa/As-mining-revenue-slides-govt-borrowings-climb/articleshow/17081566.cms