State governments, including Andhra Pradesh and Telangana, will auction securities totaling ₹25,100 crore in face value. The auctions are part of the RBI’s Benchmark Issuance Strategy to improve market transparency and investor clarity.
States to Raise ₹25,100 Crore Through SGS Auctions
Several state governments have announced auctions of State Government Securities (SGS) to raise an aggregate of ₹25,100 crore. Notable issuances include re-issuances of 7.46% Andhra Pradesh SGS 2035 and similar tenors from Telangana, Madhya Pradesh, and Rajasthan. The auctions will be conducted through price-based bidding via the RBI’s electronic platform.
The move aligns with the Reserve Bank’s Benchmark Issuance Strategy (BIS), currently in pilot mode for 18 states and one Union Territory. The BIS seeks to standardize issuance calendars, improve secondary market liquidity, and enhance predictability for investors. The indicative calendar for October–December 2026 shows increasing adherence to systematic borrowing plans.
For capital market and public finance practitioners, the expanding SGS market presents opportunities in public debt instruments. Legal advisors should monitor issuance terms, credit risk profiles, and tax treatment under the Income Tax Act, particularly for municipal and infrastructure-related borrowings. Harmonized calendars support better debt management and investor planning.