**Executive Summary**
This document from the Government of Tamil Nadu announces the sale of Tamil Nadu Government Stock (Securities) with a 30-year tenure, totaling Rs. 1000 crore. The auction will be conducted by the Reserve Bank of India on April 29, 2025, with payment due on April 30, 2025, and the loan will be repaid on April 30, 2055. The loan aims to finance part of the capital expenditure of plan schemes and other development schemes under execution.
**Key Points / Main Content**
* **Loan Details:**
* Sale of Tamil Nadu Government Stock (Securities) for Rs. 1000 crore (Nominal).
* 30-year tenure for the stock.
* **Purpose of the Loan:**
* Finance part of the capital expenditure of Plan Schemes and other Development Schemes under execution.
* **Auction Details:**
* Conducted by the Reserve Bank of India (Mumbai Office) on April 29, 2025.
* Bids to be submitted electronically via the Reserve Bank of India Core Banking Solution (E-Kuber) System.
* Competitive bids accepted between 10:30 AM and 11:30 AM.
* Non-competitive bids accepted between 10:30 AM and 11:00 AM.
* Auction results displayed on the Reserve Bank of India's website on the same day.
* **Payment and Tenure:**
* Payment by successful bidders due on April 30, 2025, before the close of banking hours.
* Payment can be made via cash, banker's cheque/pay order, demand draft, or a cheque drawn on their account with the Reserve Bank of India (Mumbai/Chennai).
* The stock tenure begins on April 30, 2025.
* **Repayment and Interest:**
* Loan will be repaid at par on April 30, 2055.
* The cut-off yield determined at the auction will be the coupon rate per annum on the Stock sold.
* Interest will be paid on October 30 and April 30.
* **Allotment to Non-Competitive Bidders:**
* Up to 10% of the notified amount is allotted to eligible individuals and institutions, subject to a maximum limit of 1% per single bid.
* **Statutory Liquidity Ratio:**
* The investment in Government Stock is considered an eligible investment for banks' Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.
**Impact Analysis**
**Stakeholder: Government of Tamil Nadu**
* **Impact:** Obtains funding for Plan Schemes and Development Schemes.
* **Action Required:** N/A (Issuer of stock)
**Stakeholder: Reserve Bank of India**
* **Impact:** Responsible for conducting the auction, determining the coupon rate, and displaying the results.
* **Action Required:** Conduct the auction on April 29, 2025, and display results on website.
**Stakeholder: Banks and Financial Institutions**
* **Impact:** Eligible to invest in Government Stock to meet Statutory Liquidity Ratio requirements.
* **Action Required:** Submit bids for the auction on April 29, 2025, and make payments by April 30, 2025 if successful.
**Stakeholder: Individuals and Institutions (Non-Competitive Bidders)**
* **Impact:** Eligible to invest in the Government Stock up to 10% of the notified amount.
* **Action Required:** Submit bids for the auction on April 29, 2025, and make payments by April 30, 2025 if successful.
Key Entities Referenced
Tamil Nadu Government Stock: Securities issued by the Tamil Nadu government.
Reserve Bank of India: Central bank responsible for auctioning and managing the government stock.
Banking Regulation Act, 1949: Act under which the investment in Government Stock is reckoned for Statutory Liquidity Ratio (SLR).
Chennai: Location where payments can be made at the Reserve Bank of India.
Mumbai: Location of the Reserve Bank of India office where the auction is conducted and payments can be made.