Odisha to Raise ₹1,000 Crore via Government Bond Auction This Month
Odisha to raise ₹1,000 crore through 8-year and 24-year government bond auctions this October via RBI’s e-Kuber platform. Investors eye secure returns amid growing interest in state securities.
Bhubaneswar : The Odisha government is set to mobilize ₹1,000 crore this month by auctioning state government securities (SGS), a move aimed at supporting its development and infrastructure projects. According to the Reserve Bank of India (RBI), the state will issue two categories of bonds — one with an 8-year tenure and another with a 24-year tenure — each targeting ₹500 crore.
This initiative is part of a broader nationwide bond issuance plan in which eight states, including Odisha, are collectively seeking to raise ₹12,800 crore in October through state government bond auctions. Maharashtra leads the list with a target of ₹5,000 crore, followed by Uttar Pradesh (₹2,000 crore), Bihar (₹1,500 crore), and Gujarat and Tamil Nadu (₹1,000 crore each).
The auctions are scheduled to be conducted on October 14 via the RBI’s e-Kuber platform, which serves as the central hub for state government securities issuance. Retail investors will have the opportunity to participate directly by submitting bids on the RBI Retail Direct portal, making it easier for individuals to invest in secure government-backed instruments.
Growing Investor Interest in State Bonds
Government securities (G-Secs) are increasingly viewed as one of the safest investment avenues, offering stable returns and minimal risk. In August, multiple states together raised approximately ₹28,892 crore through similar auctions. The surge in investor participation underscores the growing trust in state-level fiscal management and the attractiveness of fixed-income returns amid global market uncertainties.
During the previous round of auctions, Odisha successfully raised ₹1,000 crore through an 8-year bond with a 7.25% yield, signaling strong investor confidence. The yield, representing the annual return on investment, highlights the steady income potential for participants seeking long-term stability.
Market analysts note that demand for state bonds has been robust, with bids often surpassing the total amount on offer. “The consistent oversubscription of state securities indicates investors’ preference for low-risk instruments that guarantee fixed returns,” said a senior financial expert familiar with the RBI auction process.
Fiscal Caution and Long-Term Planning
While investor enthusiasm remains high, states have been cautious in accepting bids, ensuring they do not agree to high-cost borrowing. The focus is on maintaining fiscal prudence while meeting development needs. Some states are also considering the issuance of long-term securities with tenures of 25 to 30 years to fund large-scale projects and stabilize debt servicing over time.
Experts believe that Odisha’s move to diversify its borrowing through both medium- and long-term securities will strengthen its financial position. The proceeds are expected to be used for capital expenditure in sectors such as infrastructure, irrigation, and public welfare, contributing to sustained economic growth.
Encouraging Retail Participation
The inclusion of retail investors through the RBI Retail Direct platform reflects the government’s commitment to democratizing access to secure investment opportunities. By enabling individuals to directly participate in bond auctions, the RBI aims to deepen financial inclusion and promote awareness about government securities as a viable savings option.
With the auction scheduled for mid-October, financial observers anticipate strong participation from both institutional and retail investors. Given Odisha’s steady fiscal performance and investor-friendly environment, the upcoming bond issuance is expected to attract significant interest.
