Delhi Govt Raises Rs 25,000 Crore Through Market Borrowings For Infrastructure Projects: CM Gupta

(MENAFN- KNN India) New Delhi, Sep 16 (KNN) Delhi Chief Minister Rekha Gupta said the Delhi government has raised Rs 25,000 crore through market borrowings for capital expenditure in the city, following the separation of its account from the Centre and approval for public borrowing.

Addressing an Engineers' Day function on Tuesday, Gupta noted that the government initially planned to finance capital expenditure through market borrowings but found that Delhi did not have a separate account and the necessary permission for public borrowing.

“We planned to arrange funds for capital expenditure through market borrowings but learnt that Delhi could not do it because it did not have a separate account. In the next six months, we got our account separated from the Centre and obtained permission for public borrowing,” the Delhi CM said, as quoted by PTI.

Account Separation Enabled Market Borrowing

In January, the Delhi government signed a memorandum of understanding (MoU) with the Reserve Bank of India (RBI), enabling the central bank to act as its banker, debt manager and financial agent.

The arrangement has enabled Delhi to raise funds through State Development Loans, automatically invest surplus cash, undertake professional cash management and access low-cost liquidity facilities as prescribed by the Union government and the RBI Act, she said.

Funds Earmarked for Infrastructure

According to Gupta, the Rs 25,000 crore raised from the market is being used for key capital expenditure projects across the city.

The funds will support projects related to Yamuna rejuvenation, drinking water supply, health infrastructure, public transport, roads and flyovers.

She said the separation of Delhi's account from the Centre and subsequent approval for public borrowing has created a mechanism for the city government to mobilise market funds for infrastructure development.

(KNN Bureau)

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