Shares to be issued by the State Industrial Development Corporation for the value of the assets transferred to it by Government

(1) An amount equal to the value of the assets of the undertaking and the properties sold which are transferred to, and vested in, the State Industrial Development Corporation under sub-section (2) of section 3 shall be deemed to be the contribution made by the Government to the equity capital of the State Industrial Development Corporation; and for the contribution so made, the State Industrial Development Corporation shall issue (if necessary after amending its memorandum and articles of association) to the Government paid-up shares, in the equity capital, having a face value equal to the amount specified against the undertaking in the corresponding entry in column (3) of the First Schedule. (2) Where any liability is assumed by the Government under sub-section (1) of section 26 they may call upon the State Industrial Development Corporation to issue (if necessary, after amending the memorandum and articles of association of the Corporation) to the Government additional paid-up shares, in its equity capital having a face value equal to the amount of the liability assumed by the Government under the said sub-section.