Government defers Rs.15,000 crore bond issue

Government defers Rs.15,000 crore bond issue

rbi1The government Wednesday announced that it has decided to defer Rs.15,000 crore bond issue scheduled for Jan 17, a move seen to aimed at containing fiscal deficit.

The finance ministry said in a statement that the bond issue has been deferred after taking into account the “Government of India’s cash position and funding requirement”.

“It has been decided, in consultation with Reserve Bank of India (RBI), to defer the auction of Dated Securities amounting to Rs.15,000 crore scheduled to be held on Jan 17, 2014 as per the issuance calendar for the Government of India dated securities during the second half of the current financial year,” the statement said.

The government issues dated securities to meet its borrowing requirements.

The decision to defer the bond issue came a day after public sector firm Coal India announced that it will give Rs.19,600 crore divided to the government.

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