Guarantee by State Government of principal and interest on debentures

(1) The principal of and interest on the debentures issued under section 138 shall in respect of such maximum, amount as may be fixed by the State Government in this behalf, and subject to such conditions as it may think fit to impose therein, carry the guarantee of the State Government. (2) The State Government may, subject to such conditions as may be prescribed increase the maximum amount of any guarantee given under sub–section (1).