2. Sir J. D. REESasked the Secretary of State for India whether he can give the House any information regarding the provincial loan recently raised in Bombay?
§ Mr. MONTAGUThe Government of Bombay anticipate that during the next five years they will require 30 crores of rupees to finance industrial housing, reclamation and development, and the operations of Bombay local bodies. With a view to inaugurating this important programme, the Government of Bombay recently issued a development loan in India. The terms of the loan were as follows: Issue price, par; rate of interest, 6½ per cent., free of Income Tax; loan to be repaid at par in 1935. No limit was announced to the amount of subscriptions that the Government would be willing to receive, and when the lists closed at the end of October the gratifying sum of 9⅓ crores had been subscribed. The issue, which is the first of its kind in India, has been a pronounced success, on which the Government and citizens of Bombay are to be warmly congratulated.