Govt unlikely to mobilise Rs 15,000 cr from gold bond scheme

By: |
New Delhi | January 18, 2016 4:11 PM

Aimed at curbing demand for physical gold, the government could mobilise Rs 246 crore from the scheme in the first tranche that closed on November 30.

Gold Bond SchemeGold bond scheme: Second tranche of the sovereign gold bond scheme is open for subscription from today till January 22.

Government is unlikely to mobilise Rs 15,000 crore from sovereign gold bond scheme, even as its second tranche was launched on Monday.

Raising Rs 15,000 crore from gold bond scheme by March end seems to be a difficult target, official sources said.

As per the second half borrowing programme issued by Reserve Bank in consultation with government, Rs 15,000 crore had to be raised through gold bonds.

The fund raised from gold bonds would be part of the market borrowing programme in addition to Rs 2.34 lakh crore to be raised through dated securities during October-March period of the current fiscal.

Aimed at curbing demand for physical gold, the government could mobilise Rs 246 crore from the scheme in the first tranche that closed on November 30.

Second tranche of the sovereign gold bond scheme is open for subscription from today till January 22.

The gold bonds are issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment.

The Gold Bond Scheme will have an annual cap of 500 grams per person.

Prime Minister Narendra Modi had on November 5 launched gold schemes to wean investors away from physical gold.

India imports about 1,000 tonnes of gold every year and the precious metal is the second-highest constituent of the import bill after crude oil.

The scheme is aimed at reducing demand for gold in physical form by encouraging people to buy the commodity in demat or the paper form.

In April-December this fiscal, gold imports rose to $26.45 billion, from $25.85 billion in the same period last year.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1GST evasion: CBIC asks field offices to exercise max caution, prudence in property attachment
2Consumer Friendly: Fresh spectrum purchase to further delay tariff hike
3India-UK Trade Deal soon? Talks on track, says UK High Commissioner