Powers of borrowing

Subject to the prior approval of the State Government, the Authority shall have the power of borrowing money, and it shall be deemed 10 be local authoritv as defined in the local Authorities Loans Act, 1914 for the purpose of borrowing money under that Act, and the making, and execution of a Plan and Scheme shall be deemed to be a work which such local authority is legally authorised to carry out. Provided that the state Government may guarantee the repayment of the principal and the payment of the interest thereof in respect of loans borrowed by the Authority from the Life Insurance Corporation of India and other financial institutions, with the prior approval of the State Government for the execution of a plan and a Scheme.