THIRUVANANTHAPURAM: The state government has decided to borrow another Rs 1000 crore this month after a dispute with the central government regarding the borrowing limit.

The auction will be held in Mumbai on 26th through E-Kuber. At least 7.85 percent interest will have to be paid. The interest rate, which was previously 6.5 percent, increased sharply after the Reserve Bank increased the rate. The repayment period is twelve years. Rs 2000 crore loan was taken earlier this month. The state was targeting a loan of Rs 8000 crore in the first quarter of this financial year. But due to shortfall in revenue it had to be increased. This year the loan is Rs 28646 crore.

The state's calculation was that it would get it. It went wrong when the Centre became stricter. The state is preparing for a legal battle against this.