You must remember that this is the first time that India is planning a sovereign bond issue and it has never been done in the past. There are other options also available to raise resources. Here are a few of them.

· There are nearly $94 billion of NRI deposits that are maturing this year. The government can come out with a special NRI scheme for getting their deposits into the fold. This will be the easiest method.

· Government can look to borrow the money internally from the domestic markets. It may put some pressure on the bond markets but it would still be safer than carrying the currency risk on the books.

· Gold monetization is a scheme that India has attempted in the past but with little success. Indian households are sitting on around 22,000 tonnes of gold worth nearly $1.05 trillion. Even if a part of that is brought into the mainstream, the government funding problems should be resolved.

· Government should seriously consider rupee bonds abroad where the currency risk is shifted to the lender than to the borrower. That would be less of a pressure on the currency risk factor.

The PMO has raised an issue of currency risk and that is justified considering that India has already a huge oil bill considering that it depends on oil imports for 85% of its daily needs.