The first tranche of market loans by twenty seven State Governments for the year 2001-02 will be issued on May 8, 2001 for an aggregate amount of Rs. 3,800.00 crore. The loans will bear interest at 10.35 per cent per annum for 10 year maturity.

The State-wise allocation is as under:

Interest will be paid half-yearly on November 8 and May 8 each year. The loans will be redeemable at par on May 8, 2011.

Applications together with payment in the form of cash/ bank draft or cheque will be received for the loans of all State Governments on Tuesday, May 8, 2001 up to the close of banking hours at the offices of the Reserve Bank of India at Ahmedabad, Bangalore, Bhubaneswar, Calcutta, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Mumbai(Fort), Nagpur, New Delhi, Patna and Thiruvananthapuram. The subscriptions for respective State loans could also be made within the State at the designated branches of the State Bank of India / Associate Banks at the specified district headquarters. In the event of May 8, 2001 being declared holiday by any State Government under the Negotiable Instruments Act, 1881, the subscriptions will be received by the receiving offices concerned in that State up to the close of banking hours on the next working day. Applications for the loans must be for Rs.1,000 or a multiple thereof.

Copies of the notifications and application forms may be obtained from any of the receiving offices mentioned above. Securities will be issued in the form of Stock (i.e. Stock Certificates) or Subsidiary General Ledger Account Form.