By Kartik Goyal/Bloomberg
New Delhi: India plans to sell Rs92,000 crore ($21 billion) of bonds in the first six months of 2008-09, the finance ministry said on 30 March in a statement in New Delhi.
The bond sales are 3.4% more than the Rs89,000 crore in the prior April-to-September period. The government has scheduled Rs16,000 crore of debt sales in April and Rs18,000 crore in May, the statement said. Planned sales in June are Rs15,000 crore.
As much as 15% of the debt sales in the April-to-September period may comprise variable-rate securities.
The government plans to sell Rs1.55 lakh crore of bonds in the new fiscal year, compared with Rs1.52 lakh crore it sold this year, Finance Minister P. Chidambaram said in his budget announcement on 28 February.
The schedule of debt sales was decided this week in a meeting between officials from the Reserve Bank of India and the finance ministry. The sales will raise money to help meet government spending plans and to replace maturing debt.
In addition, it may sell a maximum of Rs80,000 crore of the so-called stabilization bonds in the next fiscal year to drain excess funds from the banking system, if any, the central bank said in a statement.