Punjab Govt Gets Centre’s Nod to Raise ₹2500 Cr for Development Projects
The Punjab government has decided to raise ₹2,500 crore through market borrowing to manage its financial needs. The loan will be taken for a tenure of 15 years. The government issued a notification on July 25, 2025, regarding this borrowing plan.
Government will raise the loan through an open auction in the market on July 30
The government will raise the loan through an open auction in the market on July 30, according to the notification. Sources indicate that the government intends to use the borrowed amount to meet essential expenses like employee salaries for the upcoming month. These salaries are starting August 1. The borrowing will also cover other liabilities. A part of the loan will also go toward servicing interest payments on earlier borrowings.
borrowing Plan : Punjab Govt to Use ₹2500 Cr Loan for Capital Projects, Repayment by 2040
The government will use the funds to support capital expenditure on schemes, infrastructure, and other development projects. As per Article 293(3) of the Constitution of India, the Punjab government has obtained the required consent from the Central Government to float this loan.
The Stock will be of 15-year tenure. “The government will commence the tenure of the stock on July 30, 2025, and will repay it by July 30, 2040.”
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