Ministry : RAIL VIKAS NIGAM LIMITED (Not Applicable)

Part III-Section 4

Subject : Extra Ordinary

Auction for Sale (Issue / Re-issue) of Government Security (GS)

The Ministry of Finance has notified an auction for the issuance and re-issuance of three government securities totaling ₹33,000 crore, aimed at mobilizing long-term capital through competitive and non-competitive bidding mechanisms.

Key Points

• The auction includes two new floating-rate securities—New GS 2029 (₹9,000 crore) and New GS 2033 (₹11,000 crore)—with coupon rates to be determined based on the auction’s cut-off yield, payable semi-annually on January 27 and July 27.
• A re-issued 7.24% fixed-rate government security (GS 2055) worth ₹13,000 crore will carry a set coupon rate, with interest due until January 26, 2026, and future payments on February 18 and August 18 annually.
• The auction will be conducted electronically via the RBI’s E-Kuber system on January 23, 2026, with non-competitive bids accepted between 10:30 AM and 11:00 AM, and competitive bids until 11:30 AM.
• Up to 5% of the notified amount (₹1,650 crore) is reserved for non-competitive bidders, including retail investors, via aggregators like banks or stock exchanges, promoting broader public participation in government securities.
• The government retains an option to accept additional subscriptions of up to ₹2,000 crore per security, enhancing fundraising flexibility.
• Payment and settlement for successful bidders will occur on January 27, 2026, with accrued interest included from the original issue or last coupon date, and principal repaid at par upon maturity.

India Raises Long-Term Debt Through Targeted G-Sec Auction

This gazette outlines a strategic government borrowing program to finance fiscal requirements by issuing medium- to long-term securities, while encouraging retail investor participation through a non-competitive bidding window. By leveraging digital infrastructure like the E-Kuber system and enabling access via aggregators and the Retail Direct Gilt Account (RDG), the move advances financial inclusion and deepens the domestic bond market. The auction reflects India’s growing emphasis on diversified investor engagement and transparent, market-based debt raising, aligning with broader financial reforms. Its timing in January 2026 positions it as a key early-year borrowing event in the government’s fiscal calendar.