Forms of State aid

General provisions regarding the giving of State Aid

Subject to the provisions of this Act and of the rules made thereunder, the Government shall have power to give State aid to an industry in one or more of the following ways:,

1. (a) by granting a loan;
2. (b) by guaranteeing of cash credit, overdraft or a fixed advance with a bank;
3. (c) by taking fully paid up shares or debentures: Provided that the amount paid by the Government for such shares and debentures shall not exceed the amount already paid by other persons for shares and debentures in the same industry;
4. (d) by guaranteeing interest on preference shares or debentures,
5. (e) by guaranteeing a minimum return on the whole or part of the capital of a joint stock company,
6. (f) by the granting on favourable terms of land, raw materials, firewood, water or any other property of the Government subject to such terms and conditions as respects the repayment of the value of the aid granted, as may be prescribed;
7. (g) by paying a subsidy for the conduct of research or the purchase of machinery subject to such terms and conditions as respects the repayment of the value of the aid granted, as may be prescribed;
8. (h) by supplying machinery on hire purchase system.