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Can state government issue sovereign bonds?

Can state government raise finances on their own? I am inclined to believe they are not, then on what basis did states issue sovereign bonds for discom's debt under UDAY?
तदबीर से बिगड़ी हुई तक़दीर बना ले, अपने पे भरोसा है तो एक दाँव लगा ले।
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