States to Raise ₹21,600 Crore via Government Securities Auction
- ▸Nine Indian states will auction ₹21,600 crore of government securities on June 16, 2026 via RBI's E-Kuber system.
- ▸Andhra Pradesh, Maharashtra, Rajasthan lead with ₹4,600 crore, ₹4,000 crore, and ₹4,000 crore respectively.
- ▸Retail investors can bid through RBI Retail Direct portal with non-competitive bidding facility available up to 10% of notified amount.
The state securities auction encompasses borrowing needs across India's major and emerging economies. Andhra Pradesh is raising ₹1,000 crore through a 6-year yield auction and ₹3,600 crore via re-issues of existing securities at 7.79% and 7.81% coupon rates. Maharashtra, India's financial hub, is mobilising ₹4,000 crore through re-issues at 7.55%, 7.77%, and 7.79% rates across different tenors. Rajasthan and Punjab are also significant borrowers at ₹4,000 crore and ₹3,000 crore respectively. Smaller states like Uttarakhand, Jammu and Kashmir, and Telangana are raising ₹500 crore to ₹2,000 crore each. The auction mechanism employs both competitive and non-competitive bidding windows. Competitive bids will be submitted between 10:30 AM and 11:30 AM, whilst non-competitive bids will be accepted until 11:00 AM on June 16, 2026. Results will be announced the same day, with settlement on June 17, 2026. The non-competitive facility allows eligible individuals and institutions to bid for up to 1% of notified amount per security, with aggregate allocation capped at 10% of total issuance.
State government securities (SGS) are crucial for state finances in India's federal structure. This ₹21,600 crore auction represents significant borrowing by major states to fund development and revenue expenditure. The inclusion of retail investment through RBI Retail Direct democratises access to state bonds, traditionally dominated by institutional investors and banks meeting their SLR requirements. States like Andhra Pradesh and Maharashtra's substantial borrowing reflects their infrastructure and fiscal needs, whilst the spread across nine states indicates broad-based capital requirements across India's economy.
Cite This Article
EconoLens Editorial Team. (2026, June 16). States to Raise ₹21,600 Crore via Government Securities Auction. EconoLens. https://econolens.co.in/news/state-government-securities-auction-21600-crore