Daijiworld Media Network - New Delhi

New Delhi, Dec 29: The Union government has announced plans to mobilise Rs 32,000 crore through the re-issuance of its 6.48 per cent Government Security maturing in 2035. The fund-raising will be carried out through a price-based auction using the multiple price method.

The auction is scheduled for January 2 and will be conducted by the Reserve Bank of India (RBI) through its Mumbai office. As per a statement from the Ministry of Finance, the government also retains the right to accept an additional subscription of up to Rs 2,000 crore over and above the notified amount.

A portion of the issuance — up to 5 per cent of the total notified amount — has been reserved for eligible retail investors and institutions under the Non-Competitive Bidding Facility for government securities.

Both competitive and non-competitive bids must be submitted electronically through the RBI’s Core Banking Solution platform, known as the E-Kuber system, on the day of the auction. Non-competitive bids will be accepted between 10:30 a.m. and 11:00 a.m., while competitive bids can be placed until 11:30 a.m.

The auction results will be declared on January 2 itself, with successful bidders required to complete payment by January 5. The security will also be available for “When Issued” trading, in line with RBI guidelines governing such transactions in central government securities.

Government bonds are issued to raise funds for public expenditure, including infrastructure development, welfare programmes, and to bridge fiscal gaps. These securities are widely regarded as low-risk investment options, as they are backed by the sovereign guarantee of the Government of India, though they typically offer relatively modest returns compared to higher-risk assets.