Chapter V GOVERNMENT GRANTS, GUARANTEES AND OTHER CONCESSIONS

1. (1) The Central Government may support the Institution through grants or contribution, as and when necessary, in the form of cash or marketable Government securities.
2. (2) Without prejudice to the generality of the foregoing, the Central Government shall, by the end of the first financial year from the establishment of Institution, grant or contribute an amount of five thousand crore rupees to the Institution in the form of cash or marketable Government securities.

The Government shall prescribe a concessional rate of fees, not exceeding 0.1 per cent. at which Government guarantee may be extended to the Institution for borrowings from multilateral institutions, sovereign wealth funds, and such other foreign institutions as may be prescribed.

Hedging costs in connection with any borrowing of foreign currency by the Institution for the purposes of granting loans and advances or its repayment, to insulate the Institution from any fluctuations in the rates of exchange, may be reimbursed by the Central Government in part or in full.