Several state governments are set to collectively raise Rs 16,900 crore through a fresh round of auctions of State Government Securities (SGS), to be conducted by the Reserve Bank of India on April 21.
The auction will take place via the RBI’s core banking platform, E-Kuber, and will feature a mix of new issuances and re-issues across different maturities, according to an official statement.
Among the participating states, Andhra Pradesh plans to raise Rs 4,600 crore through three securities with tenors of 8, 16 and 30 years. Maharashtra will mobilise Rs 4,000 crore via three securities with maturities of 8, 18 and 28 years.
Rajasthan is also set to raise Rs 4,000 crore through a mix of fresh issuances and re-issues, including the re-issue of the 7.99 per cent Rajasthan SGS 2041, which was originally issued on March 30, 2026.
Meanwhile, Telangana will borrow Rs 3,000 crore through three securities of Rs 1,000 crore each, with tenors of 7, 11 and 21 years. Punjab plans to raise Rs 1,300 crore via a 12-year security.
The Reserve Bank of India stated that both competitive and non-competitive bids must be submitted electronically through the E-Kuber system on April 21. The results of the auction will be announced the same day, while successful bidders will need to complete payments on April 22.
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Up to 10 per cent of the notified amount of each security will be reserved for eligible participants under the non-competitive bidding facility, with a cap of one per cent per bid. Retail investors can also take part through the RBI Retail Direct platform.
State Government Securities serve as a crucial borrowing tool for states to meet fiscal needs, often used to fund infrastructure projects and bridge budget deficits. These instruments carry sovereign backing at the state level and typically offer slightly higher returns compared to central government securities.
Interest rates for the new securities will be determined through the auction process, with coupon payments scheduled semi-annually on October 22 and April 22 until maturity. In the case of re-issued securities, existing coupon rates will remain unchanged.
The SGS auctions are part of the broader market borrowing programme of states, coordinated by the Reserve Bank of India, and are closely monitored by investors for insights into state-level fiscal health and borrowing costs.
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