Restrictions on government guarantees

Notwithstanding anything contained in any other acts: (1) Government guarantee shall ordinarily be extended by the Government on behalf of Departmental Undertakings, Public sector Undertakings, Local Authorities, Statutory Boards & Corporations, Co-operative Institutions and other Authorities and Agencies under the Government. Provided that no government guarantees shall be extended to co-operative sector unless the share capital contribution from the non-government sources is not less than ten per cent of the total equity proposed. (2) No Government guarantees shall be given in respect of any loan of any individual, private institutions or private companies.