Chapter III GENERAL PROVISIONS REGARDING THE GIVING OF STATE

The forms of State aid which may be AID

givenmay include the following, namely:-

1. (a) the grant of a loon;
2. (b) the grant, sale or lease on favourable terms, ofland, raw material,water or any other property right vested in the State Government for the purposes of the State Government.
3. (c) the guarantee to the cash credit, overdraft or fixed advance witha Bank;
4. (d) the supply of machinery on the hire-purchase system;
5. (e) the guarantee of a minimum return on the whole or part of the capitalofajoint stock company for a period fixed in accordance with therules made under this Act;
6. (f) under-writing the issue of stock, shares, bonds or debentures by thelimitedjoint stock company;
7. (g) the acquisition of shares or debentures, provided that the amount paid by the State Government for such shares or debentures shall not exceed the amount already paid by another person or shares and debentures in the same industry;
8. (h) the grant, free of charge, or on favourable terms, of the services of experts or persons in the service of the State Government or starting or advising an industry:
   • (i) the payment of subsidy-
   • (i) in the case of any large-scale or medium-scale industry for the conduct of research;
   • (ii) in the case of any small-scale industry for one or more of thefollowing purposes, namely:-
9. (a) purchase of land, machinery and equipment; (b)the construction of factory building, godowns, watersupply, ware-houses;
10. (c) the making of technical improvements in the machineryin actual use in the industry;
11. (d) the employment of sufficient managerial and supervisorypersonnel for a limited period;
12. (e) the training of workers employedin the industries;
13. (f) the conduct of research; and
14. (g) supply of electric energy at concessional rate from a source which is the property of the State Government, in a manner prescribed in the rule.

State aid may given to-

1. (a) a new or nascent industry;
2. (b) an industry to be newly established in an area where such industriesare undeveloped; or
3. (c) a cottage industry or village industry; or
4. (d) an industry which needs revival, or development by modernmethods.

Applications for State aid shall be made to the Director in such form, and shall contain such information, as may be prescribed.