Chapter II GENERAL PROVISIONS REGARDING THE GIVING OF STATE-AID

1. (1) The State Government shall constitute a Board of Industries consisting of the following members, namely: -
   • (a) five members to be elected in the prescribed manner by the State Legislative Assembly from among its members: Provided that in the case of dissolution of the State Legislative Assembly, the members elected under this clause and holding office on the date of such dissolution shall continue in office till new members are elected by the said Assembly after its reconstitution;
   • (b) five members to be elected in the prescribed manner, one by each of five such associations or other bodies as the State Government may select as best representing any particular class of industries or commercial and allied interests;
   • (c) Secretaries to the State Government in the Finance, Irrigation and Power and the Industries Departments, the Director, the Registrar of Co-operative Societies, the Managing Director of the State Financial Corporation and the Managing Director of the State Small Scale Industries Corporation who shall be ex-officio members; and
   • (d) five members to be appointed by the State Government of whom at least two shall be from such areas of the State as declared, from time to time, by the Government of India to be industrially backward areas.
2. (2) The Chairman and the Secretary of the Board shall be appointed by the State Government from among the members of the Board.
3. (3) The names of the members who have been elected or appointed shall be published in the Official Gazette.
4. (4) Save as otherwise provided in this Act, a member elected under clause
   • (a) of sub-section
5. (1) or appointed under clause
   • (d) of that sub-section shall hold office for a period of three years commencing from the date of publication of his name in the Official Gazette: Provided that the State Government may, from time to time, by notification, extend the said term of office by such period not exceeding one year at a time, as may be specified in the notification, so, however, that the total period of extension shall in no event exceed two years.
6. (5) Any casual vacancy in the membership of the Board shall be filled up by election or, as the case may be, appointment in the same manner as is provided in sub-section
7. (1) and the member so elected or appointed shall hold office for the unexpired term of his predecessor in office.
8. (6) The Board shall, for the discussion of any particular question coming up for consideration before it, have power to co-opt experts specially qualified to advise on the matter in question or having special knowledge of local conditions in any area where the industry in question is situate: Provided that a member so co-opted shall have no right to vote.
9. (7) No member of the Board shall vote or take part in the discussion of any question coming up for consideration at a meeting of the Board if the question is one in which he or his partner or relatives have any direct or indirect pecuniary interest or in which he is interested professionally on behalf of a client or as agent for any person other than the State Government, the Central Government or a local authority. Explanation --For the purposes of this section, the expression " relative " shall have the same meaning as assigned to it under section 6 of the Companies Act, 1956.
10. (8) Whenever the Secretary to Government in the Finance Department is unable to attend any meeting of the Board, he may nominate any officer of that Department, who shall attend such meeting and shall have the same rights and privileges as the said Secretary has in respect of such meeting.
11. (9) No act or proceedings of the Board shall be deemed to be invalid merely by reason of the existence of any vacancy in the Board.

State-aid may be given in all or any of the following forms:-

1. (a) the grant of a loan;
2. (b) the giving of a guarantee in respect of a loan, cash credit, over-draft or fixed advance with a Scheduled Bank, Life Insurance Corporation, Co-operative Society, or with the Industrial Financial Corporation of India, the Orissa State Financial Corporation or such other Industrial Financing Agency as may be approved by the State Government;
3. (c) the taking of shares or debentures;
4. (d) the guarantee of a minimum return on the whole or part of the capital of a joint stock company for a period fixed in accordance with the rules made under this Act;
5. (e) the underwriting of the issue of stocks, shares, bonds or debentures by a limited joint stock company;
6. (f) the grant on favourable terms, of land, raw material, fuel, water or any other property or right vested in the State Government subject to the provision of any law, rule or order for the time being in force;
7. (g) the payment of subsidy-

1. (1) in the case of Small-scale or Cottage Industry, for one or more of the following purposes, namely: -
   • (i) the purchase of land, machinery and equipment;
   • (ii) the construction of factory buildings, godowns, wells and sheds;
   • (iii) technical improvement to the machinery used in the industry;
   • (iv) the employment of efficient Manager and Supervisory personnel for a limited period;
   • (v) the training of workers employed in the industry;
   • (vi) the conduct of research; or
   • (vii) any other purpose as the State Government may, by notification, specify;
2. (2) in the case of any other industry, for the conduct of research or purchase of machinery or for any other purpose as the State Government may, by notification, specify;
   • (h) the supply of machinery on the hire purchase system including the guarantee of the price of the machinery and equipment purchased by any industry on hire purchase agreement from the National Small-scale Industries Corporation or any other concern approved by the State Government;
     • (i) the supply of electrical energy at concessional rates from a source which is the property of the State Government or the grant of subsidy or rebate on the rates (including minimum charges) payable by any industry for supply of electricity to it;
   • (j) the lending of services of experts or persons in the service of the Government for starting or advising an industry free of charge or on favourable terms; and
   • (k) to any individual, by the grant of a loan for the purpose of investment in the share capital of any Co-operative Society or any joint stock company within the meaning of the Companies Act, 1956 engaged in any industry or for purchase of share held by Government in any Government company, within the meaning of the said Act engaged in any industry.

Subject to such conditions or restrictions as it may deem fit to impose the State Government may, by notification, from time to time, delegate its power to give State-aid in one or more of the forms specified in clauses (a), (b),

1. (g) and
2. (h) of section 4 in favour of such authorities, not being below the rank of a District Industries Officer, as may be specified in the notification.

1. (1) State-aid may be given in any of the forms specified in section 4.
2. (2) The State Government may require any industry in respect of State-aid to locate its Head Office within the State of Orissa. Explanation-"Head Office" means the place from which the affairs of the company, business or industry are actually controlled and includes the registered-office of a company registered under the Companies Act, 1956.
3. (3) Every industry in receipt of State-aid shall make such provision for the training of apprentices as may be prescribed.

1. (1) Applications for State-aid shall be made to the authority empowered to give the State-aid in such form and shall contain such particulars as may be prescribed.
2. (2) No State-aid shall be given of an amount or value exceeding such sum as may be prescribed unless the application therefor has been published in the prescribed manner together with a notice calling upon persons objecting to the giving of such aid to submit their objections in such manner as may be prescribed.
3. (3) The State Government or the authority to whom the State Government has delegated its power to give State-aid, as the case may be, shall consider every such objection and after making such enquiry, if any, as it may deem necessary, shall make an order either admitting or disallowing it.
4. (4) Every application for State-aid of an amount or value exceeding thirty thousand rupees in respect of any one industry not being an application for the disposal of which power has been delegated under section 5, shall be placed before the Board at a meeting for its advice and no such application shall be allowed if a majority of the members of the Board present at the meeting advise its rejection.
5. (5) If an application for State-aid is rejected in whole or in part by an authority to whom power has been delegated under section 5, the State Government may, on its own motion or on an application made in this behalf, revise the order and give such aid in such form and of such amount as it may deem fit.
6. (6) Every application for State-aid shall, as far as practicable be disposed of within a period of three months from the date of the application.