Several state governments, including Andhra Pradesh and Gujarat, will conduct auctions of state government securities (SGS) for a total of ₹25,100 crore. The auctions will include re-issues of existing stock.
State Governments to Auction ₹25,100 Crore Securities
Several state governments have announced auctions of State Government Securities (SGS) aggregating ₹25,100 crore. The auctions, conducted through the Reserve Bank of India, include re-issuance of existing securities such as the 7.46% Andhra Pradesh SGS 2035 and other tenors across multiple states.
Andhra Pradesh led the list with ₹1,000 crore in re-issued securities, while other states including Gujarat, Himachal Pradesh, and Rajasthan are also participating. The auctions are being conducted under the price-based method, allowing market-determined yield discovery. These borrowings form part of the states’ fiscal plans for the current financial year and contribute to the overall government borrowing calendar.
For institutional investors, these auctions offer opportunities to diversify into state-level sovereign debt. The re-issue format enhances liquidity in the G-Sec market and supports price stability. Legal and compliance teams advising on public debt must monitor auction notifications and post-settlement documentation requirements.