Puducherry, Sept 3 (PTI) The Puducherry government on Thursday announced that it would raise Rs 125 crores through open market borrowing to tackle the financial crunch faced by the union territory in the wake of COVID-19 pandemic.

A release from the Secretary to Finance of the territorial government, Shurbir Singh said the administration has "offered to sell by auction dated securities for an amount of Rs 125 crores with three year tenure."

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Securities will be issued for a minimum nominal amount of Rs 10,000 and in multiples of Rs 10,000 thereafter.

The auction would be conducted by Reserve Bank of India (RBI) Mumbai office (Fort) on September 8.

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The government decision to go for open market borrowing comes in the backdrop of Chief Minister V Narayanasamy alleging that the Centre has not been conceding the request of his government for allocation of funds to tackle the current fiscal crisis.

Competitive bids should be submitted electronically on RBI Core Banking solution (E-Kuber) between 10.30 am. and 11.30 am. the same day.

Successful bidders should deposit the price amount of the stock covered by their bids by means of Bankers Cheque or DD payable at the RBI Mumbai Fort or Chennai on September 9 before close of banking hours.

It was also stated that the government stock would bear interest at the rate determined by the RBI at the auction.

Interest would be paid on March 9 and September 9 of every financial year until repayment.

Stocks would quality for Ready Forward Facility, the release pointed out.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)