The government on Thursday said it will launch the next tranche of sovereign gold bonds on July 10 — the second time in this fiscal — offering a 2.5 per cent annual interest to investors. Applications for the bond will be accepted from July 10 to July 14, according to the finance ministry. The bonds will be issued to eligible applicants on July 28. The investors will get the interest payable semi-annually on the nominal value of investment.
The latest issuance of bonds is part of the government’s efforts to garner as much as Rs 5,000 crore from all the three gold schemes this fiscal. The sovereign gold bond, gold monetisation scheme and Indian gold coin were launched by Prime Minister Narendra Modi in late 2015, as the government wanted to discourage imports of the precious metal and curb their debilitating impact on trade balance.
The gold schemes are still far from a roaring success though. The government had budgeted to mop up Rs 10,000 crore from the three schemes in 2016-17, but it had to settle for Rs 3,809 crore in the revised estimate that is equivalent of just around 2 per cent of the country’s annual consumption. FE