The Madhya Pradesh government will again take a big loan within a period of one month. The government is going to take a huge loan of Rs 4500 crore from the market. The Finance Department has issued a notification in this regard, with this the process of taking loan has started.
The state government had taken a total loan of Rs 5 thousand crores from the market on May 7 last month, this loan was taken in two instalments of Rs 2500 crores each. Not even a month has passed since this loan was taken. There is a plan to take a new loan in two installments.
First installment of new loan will be of Rs 2000 crore
The first installment of the new loan will be of Rs 2000 crore, while the second installment will be Rs 2500 crore. The auction process for the new loan will be conducted on June 3, that is, during this period, all the financial institutions, banks, investors etc. who are willing to give loan to the MP government, will be able to participate in the auction. This auction will be done through the Reserve Bank of India.
The most interesting thing is that while the finance department will be participating in the auction process to take a loan of Rs 4500 crore, at the same time the cabinet meeting of the MP government will be going on in Pachmarhi.
State govt will mortgage its securities
According to the notification issued by the finance department, the first loan will be of Rs 2000 crore, which will be for 16 years, i.e. this loan will have to be repaid in this fixed period, while the second loan will be of Rs 2500 crore, which will be payable in a period of 18 years. In this way, the total loan amount by combining these two loans will be Rs 4500 crore. For the new loan also, the state government will mortgage its securities like the previous loan.
Debt will increase to Rs 9500 crore in the new fiscal
The third month of the financial year 2025-26 has just started and the government has taken two big loans in this period, which together will make the debt taken from the market in the current financial year Rs 9500 crore. That is, if we consider the three months of June, then the average debt of every month is more than Rs 3000 crore.
Pace of borrowing may increase
It is believed that the state government will further speed up the pace of borrowing in the coming days. The government can take a loan of more than Rs 55 thousand crore in the current financial year. By the way, according to the details of the financial position of the state given by the Finance Department for taking a new loan, Madhya Pradesh has a debt of Rs 4 lakh 21 thousand 740 crore 27 lakh as of March 31, 2025.