**Executive Summary**
This document from the Government of Tamil Nadu, dated April 17, 2025, notifies the reissue of 6.71% TNSGS 2035 for an aggregate amount of Rs. 2000 crore. The sale of the stock will occur through an auction conducted by the Reserve Bank of India on April 22, 2025, with payment due on April 23, 2025. The loan will be repaid on April 16, 2035.
**Key Points / Main Content**
* **Reissue of Stock:**
* Reissue of 6.71% TNSGS 2035, originally issued on April 16, 2025.
* Total amount: Rs. 2000 crore (Nominal).
* **Loan Objectives:**
* Finance part of capital expenditure of Plan Schemes and other Development Schemes under execution.
* Consent of Central Government obtained as required by Article 293(3) of the Constitution of India.
* **Auction Details:**
* Conducted by: Reserve Bank of India, Mumbai Office.
* Date: April 22, 2025.
* Bidding: Electronic format via Reserve Bank of India Core Banking Solution (E-Kuber) System.
* Competitive bids: Submitted electronically between 10.30 A.M. and 11.30 A.M.
* Non-competitive bids: Submitted electronically between 10.30 A.M. and 11.00 A.M.
* **Allotment to Non-Competitive Bidders:**
* Up to 10% of the notified amount is allocated to eligible individuals and institutions.
* Maximum limit of 1% of the notified amount for a single bid.
* **Auction Results and Payment:**
* Results displayed by the Reserve Bank of India on its website on April 22, 2025.
* Payment by successful bidders due on April 23, 2025.
* Payment methods: Cash, bankers' cheque/pay order, demand draft, or cheque drawn on account with Reserve Bank of India, Mumbai (Fort)/Chennai.
* **Stock Tenure and Repayment:**
* Tenure: 10 years, commencing on April 16, 2025.
* Repayment date: April 16, 2035.
* **Interest:**
* Rate: 6.71% per annum on the nominal value.
* Payment: Half-yearly on October 16 and April 16.
* **Eligibility:**
* Investment eligible for Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.
* Stocks qualify for the ready forward facility.
**Impact Analysis**
**Stakeholder: Investors (Individuals and Institutions)**
**Impact**
* Opportunity to invest in Tamil Nadu State Government Securities.
* Potential returns through interest payments.
* Eligible for Statutory Liquidity Ratio (SLR) under Section 24 of the Banking Regulation Act, 1949.
**Action Required**
* Participate in the auction process through the Reserve Bank of India Core Banking Solution (E-Kuber) System on April 22, 2025.
* Ensure payment by April 23, 2025, if successful.
**Stakeholder: Reserve Bank of India**
**Impact**
* Responsible for conducting the auction process.
* Managing payment and allotment of the Government Stock.
**Action Required**
* Conduct the auction on April 22, 2025.
* Display the auction results on the website.
* Facilitate the payment process on April 23, 2025.
**Stakeholder: Government of Tamil Nadu**
**Impact**
* Receives funding for plan schemes and development schemes under execution.
* Manages the repayment of the loan in 2035.
**Action Required**
* Utilise the funds generated through the auction for intended purposes.
* Plan for repayment of the loan on April 16, 2035.
Key Entities Referenced
Tamil Nadu: State issuing the government gazette and the subject of the market borrowing program.
Reserve Bank of India: Conducts the auction and receives payments for the Tamil Nadu government stock.
TNSGS 2035: 6.71% Tamil Nadu State Government Stock 2035 being reissued, the subject of the notification.
Mumbai: Location of the Reserve Bank of India office where the auction is conducted.
Finance Department: Department of the Tamil Nadu government responsible for the borrowing program.