Provisions regulating the giving of State aid

(1) No loan shall be granted to any large-scale industry or medium scale industry of an amount exceeding 66 per cent or to any small-scale industry of an amount exceeding 75 per cent, of the net value of the assets of the industry after the deduction of the value of all encumbrance existing at the time when the application is made; Provided that the State Government may, subject to such restriction as may be prescribed, relax the provisions of this section, in the case of any particular application in regard to an industry referred to in sub-clauses (i) and (iv) of clause (a) of sub-section (1) of section 10. Explanation:- In this sub-section the net value of the a assets of any industry includes the value of any collateral security prescribed under section 16. (2) The valuation of the assets under sub-section (1) shall be made by such persons and in such manner as may be prescribed. For the purpose of such valuation the additional assets which may be created by the grant of such State aid may be taken into account to such extent as may be prescribed.