The Reserve Bank of India (RBI) announced that 11 states will collectively raise ₹268.15 billion through market borrowings on January 13, 2026. These loans, issued as state development loans (SDLs), are aimed at financing fiscal needs and infrastructure projects. The auction will be conducted by RBI under its borrowing calendar.
In a significant move to meet fiscal requirements, the Reserve Bank of India (RBI) has confirmed that 11 states will tap the debt market on January 13, 2026, raising a total of ₹268.15 billion. These borrowings will be carried out through state development loans (SDLs), a key instrument for states to fund infrastructure and manage budgetary gaps.
The issuance comes at a time when states are balancing rising expenditure with the need for liquidity. Analysts note that SDLs remain a crucial mechanism for financing long-term projects while maintaining fiscal discipline.
Key Highlights:
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Total Borrowing: ₹268.15 billion to be raised collectively.
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Number of States: 11 states participating in the auction.
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Instrument: State Development Loans (SDLs).
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Date of Auction: January 13, 2026.
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Purpose: Financing fiscal needs and infrastructure development.
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RBI Role: Conducting the auction under its borrowing calendar.
This borrowing plan underscores the reliance of states on SDLs to bridge fiscal gaps while continuing to invest in growth-oriented projects.
Sources: Reserve Bank of India (RBI) Release, Business Standard, Economic Times