State Industrial Development Corporation to form subsidiary corporations.

(1) The State Industrial Development Corporation may, if it consider it necessary to do so, form subsidiary corporations under the Companies Act, 1956 (Central Act 1 of 1956), and register them under that Act. (2) The State Industrial Development Corporation may, by order in writing, transfer the undertaking or part thereof to a subsidiary corporation or other agency of the Government and any such transfer shall be subject to such terms and conditions as may be specified in the order. (3) The subsidiary corporation or other agency of the Government shall, on and from the date of such transter, be deemed to be substituted in the licence or other instrument referred to in sub-section (3) of section 4 in place of the State Industrial Development Corporation as if such licence or other instrument had been granted to the subsidiary corporation or other agency of the Government and shall hold such licence or other instrument for the remaining period for which the State Industrial Development Corporation would have held such licence or other instrument. (4) On transfer of the undertaking or part thereof to a subsidiary corporation or other agency of the Government the liabilities required to be discharged, by the State Industrial Development Corporation under sub-section (2) of section 5 shall, in so far as they relate to the said undertaking or part thereof so transferred to the subsidiary corporation or other agency of the Government be discharged on and from the date of such transfer by the subsidiary corporation or other agency of the Government as and when any such liability is required to be discharged. (5) Save as otherwise expressly provided in this Act, references in this Act to the State Industrial Development Corporation shall in respect of the said undertaking or any part thereof which is transferred to a subsidiary corporation or other agency of the Government be construed as references to such subsidiary corporation or other agency of the Government.