The territorial administration has repaid ₹100 crore taken as loan through Open Market Borrowing in 2008-09. The amount was repaid to the government security holders through the Reserve Bank of India, Finance Secretary V. Candavelou has said.
The government is taking all steps to repay another loan amount of ₹250 crore availed during 2008-09. The amount has to be repaid in March 2019, he said in a release.
The Reserve Bank of India had allowed the territorial administration to go for market borrowing when the Union Territory opened a separate account in 2007.
Options before govt.
While allowing the Union Territory to borrow from open market, it had given the liberty of paying interest alone and put a moratorium on repayment of principal for 10 years.
The timely repayment of loan was mandatory for the Union Territory to avoid getting a defaulter tag.
The repayment would allow the administration to go for open market borrowing and availing loan from other institutions in future, a senior official said.