Under Rs 1-lakh cr debt burden, Himachal to raise another Rs 1,500 crore loan

Government issues two notifications announcing the sale of government stock (securities) worth Rs 1,500 crore through the Reserve Bank of India (RBI).

By: Express News Service

Shimla | August 23, 2025 08:22 PM IST

Himachal Pradesh government securities sale, Himachal Pradesh raises Rs 1500 crore, Himachal Pradesh government stock auction,

The debt burden on state has already crossed Rs 1-lakh crore mark. (Representational Image/File)

The cash-strapped Himachal Pradesh dispensation has issued two notifications announcing the sale of government stock (securities) worth Rs 1,500 crore through the Reserve Bank of India (RBI) for carrying out development works of the state.

As per the notifications, issued on on August 21 from the office of Secretary (Finance) Abhishek Jain, the state will secure two separate loans — one comprising securities with a 10-year tenure worth Rs 500 crore, and another with a 15-year tenure worth Rs 1,000 crore. Both will be auctioned by the RBI’s Mumbai office through the electronic bidding platform, E-Kuber.

“The sale will be subject to the terms and conditions spelt out in this notification of Government of Himachal Pradesh…The proceeds of the state government securities will be utilized for the development programme of the state of Himachal Pradesh. Consent of the Central Government has been obtained to the flotation of this loan as required by Article 293 (3) of the Constitution of India,” read the notifications.

A senior finance department officuial said, “We have stated in the notifications that repayment dates were fixed for August 28, 2035 and August 28, 2040. Interest will be paid semi-annually”.

The debt burden on state has already crossed Rs 1-lakh crore mark.

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