**Executive Summary**
This document from the Government of Tamil Nadu notifies the sale of Tamil Nadu Government Stock (securities) of 6-year tenure for an aggregate amount of ₹1000 crore through an auction conducted by the Reserve Bank of India. The auction will take place on June 17, 2025, and payment by successful bidders is due on June 18, 2025. The loan will be repaid on June 18, 2031.
**Key Points / Main Content**
* **Loan Details:**
* Sale of 6-year tenure Tamil Nadu Government Stock for ₹1000 crore.
* Proceeds will finance part of capital expenditure of Plan Schemes and other Development Schemes.
* Central Government consent for the loan has been obtained as per Article 293(3) of the Constitution of India.
* **Auction Process:**
* Conducted by the Reserve Bank of India, Mumbai Office, on June 17, 2025.
* Bids to be submitted electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) system.
* Competitive bids: 10:30 A.M. to 11:30 A.M.
* Non-competitive bids: 10:30 A.M. to 11:00 A.M.
* Auction result will be displayed on the Reserve Bank of India website on the same day.
* Payment by successful bidders is due on June 18, 2025 before close of banking hours.
* **Allotment and Payment:**
* Up to 10% of the notified amount is reserved for non-competitive bidders.
* Payment can be made via cash, banker's cheque/pay order, demand draft, or cheque.
* **Tenure and Repayment:**
* The Stock has a 6-year tenure, commencing on June 18, 2025.
* Repayment will be at par on June 18, 2031.
* **Interest and Eligibility:**
* The coupon rate will be determined by the cut-off yield at the auction.
* Interest will be paid on December 18 and June 18.
* The investment qualifies as an eligible investment in Government Securities for SLR purposes under Section 24 of the Banking Regulation Act, 1949.
* The stocks qualify for the ready forward facility.
**Impact Analysis**
**Stakeholder: Individuals and Institutions**
* **Impact:** Can participate in the auction of Government Stock. Eligible individuals and institutions can bid up to 1% of the notified amount.
* **Action Required:** Submit bids electronically through the Reserve Bank of India Core Banking Solution (E-Kuber) system between 10:30 A.M. and 11:00 A.M. on June 17, 2025 (for non-competitive bids).
Successful bidders will make payments on June 18, 2025 before close of banking hours.
**Stakeholder: Banks**
* **Impact:** Can invest in Government Stock which qualifies as an eligible investment for Statutory Liquidity Ratio (SLR) purposes.
* **Action Required:** Determine investment strategy and participate in the auction process if interested.
**Stakeholder: Reserve Bank of India**
* **Impact:** Responsible for conducting the auction and determining the coupon rate.
* **Action Required:** Conduct the auction on June 17, 2025; determine and announce the cut-off yield and publish the results on the same day.
Key Entities Referenced
Tamil Nadu Government Gazette: Official publication containing government notifications.
Reserve Bank of India: Central bank involved in auctioning government stock.
Tamil Nadu Government Stock: Securities being sold by the Government of Tamil Nadu with a 6-year tenure.
General Notification No. 644(L)/W&M-II/2023: A prior notification specifying terms and conditions, dated February 22, 2023, for government stock sales.
Chennai: Location of government secretariat and permissible payment locations.