West Bengal sells 19 year debt at 7.11%: RBI

West Bengal sells 19 year debt at 7.11%: RBI

West Bengal has successfully sold 19-year debt securities worth Rs 2,000 crore at a yield of 7.11% as reported by the Reserve Bank of India (RBI) on Friday. The auction, conducted as part of the regular borrowing calendar for states, aimed to meet the state's capital expenditure and fiscal needs [3].

The state's debt securities were well-received by investors, with the entire amount subscribed to. This indicates strong investor confidence in West Bengal's financial health and its ability to manage its debt obligations. The 19-year maturity period suggests that the state is planning for long-term financial stability and growth.

The auction follows the recent trend of states raising funds through government securities. For instance, Maharashtra led the fundraising drive, raising Rs 6,000 crore through four securities, while Andhra Pradesh and Uttar Pradesh also secured substantial funds [3].

This successful debt issuance comes at a critical time for West Bengal, as it prepares for the 2026 Assembly elections. Prime Minister Narendra Modi is set to visit Durgapur to launch and inaugurate development projects worth over ₹5,000 crore, including the foundation stone for Bharat Petroleum’s ₹1,950-crore City Gas Distribution project in Bankura and Purulia, and the inauguration of the ₹1,190-crore Durgapur-Kolkata gas pipeline under the PM Urja Ganga scheme [2].

The state's ability to secure favorable debt terms is a positive indicator for investors and could enhance its economic prospects. However, the successful issuance of debt securities also places an obligation on the state to manage its debt effectively and ensure that the funds are used for productive purposes.

References:
[1] https://economictimes.indiatimes.com/news/politics-and-nation/pm-modi-warns-infiltrators-in-west-bengal-says-action-will-be-taken-against-non-indians/videoshow/122769354.cms
[2] https://economictimes.indiatimes.com/news/politics-and-nation/pm-modi-to-launch-rs-5000-crore-development-projects-in-west-bengal-ahead-of-2026-polls/articleshow/122653882.cms
[3] https://government.economictimes.indiatimes.com/news/economy/rs-27000-crore-worth-government-securities-fully-subscribed-on-friday/122761924