(1) Applications for S tate-aid shall bo made ~ ~ ~ l i c ~ ~ i ~ ~ to the authority c-mpowered to give the State-aid in r3r State-a'd such form and shall contain such particulars as may be prescribed.
(2) No State-aid shall be given of an m o u n t or valuo exceeding such sum as may be prescribed udess the application thorefor bas been published in tllo prescribed manner together with a notice caning upon porsons objecting to the giving of sucIz aid to submit thcir objections in such manner as may be prescribed,
(3) The State Government or t he authority to whom the State Government has delegated its power t o give Stzteaid, as the case may be, shall consider overy such objection and after making such enquiry, jf any, as it may em necessary, shall make an order either admittins or disallowing it.
(4) Every application for Statc-aid of an mount or value cxceeding thirty thouand rupees in respect of any one industry not being an application for the disposal of which power has been delegated underq . - 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 mombers of the Board present at the meeting adviso its rejection.
( 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, tho State Government may, on its own motion or on an application made j~ this behalf, rovise the order and give such aid in such form and of such amount as it may deem fit.
(6) Every application for State-aid shaI1, as far as practicable be disposed of within a period of three months from the date of the application.
Provisions regulating the giving of State-aid otherwise than bY the supply of machinery on hire purchase system limitation 8. (1) No loan shall be granted to any indushy, of amount of other than a smalI scale industry, of an amount exceelo an. ding seventy per cent or to any small scale industry of an amount exceeding ninety per cent of the net value of the assets of the industry after deduction of the value of all encumbrances existing at the time the ' application is made :
Provided that in the case of a new or nasceqt scale industry. the State ~overnment may grant a ioan equal to the value of the security offered including collateral security, if- ( i ) the State Government is satisfied that it is necessary in the interest of the State to promote the development of such industry and the industry can not be established without the grant of assistance ; and
(ii) the applicant agrees to associate a a o ~ n e e of the State Government with the managemmt of the industry and to regulate expenditure out of such loan in the prescribed manner :
Provided further that subject to such other condit ions as may be presqribcd, a Igan for a period not exceeding two years may be given to a small scale industry bn the security of movable property including stock in trade.
(2) Notwithstanding anything contained in subv section (11, a loan of an ai11ount not exceeding five hundred rupees may be given in the case of an industry owned o r managed by an artisan on the personal bond of the applicant or on the security of one or more personal sureties.
(3) Tho valuation of the assets or the security, as thc case may be, under sub-section ( 1 ) shall be made in the prescribed manner by the Director or any ptber person authorised by him in tTut behalf.
Bxp1attafiu11-For the purpose of such valuation the additional assets which may be created by th grant of such State-aid may be taken into account t .
such extent as may be prescribed.
9. Every loan granted to an industry shall, sub- Loan how to ject to the provisions of section 8, be secured by a seCUrC.
mortgage or a floating charge upon the property of t he industry subject to any oncambrances existing at the time when the loan is granted and of such collateral security, if any, as the State Government may require.
Explanntion-For the purposes of this section the "property of an industry" shall not include raw materials acquired for the purposes of finished goods produced by or the stock in trade or other floating assets of the industry.
10. In any case in wbich an application for a Inspection loan has boen made under section 7, the a p p l i c a n t ~ i ~ , and at any time during tbe currency of the loan that has beon granted, tho grantee, shaU be bound-
(a) to comply with any general or special order of the State Govsrnrnent or the Director of Industries relating to tlm inspection of the promises, buildings, rnachinory and stock-in-hand of the industry ;
(b) to pormit the inspection of all accounts relating to the industry;
(G) to furnish in the prescribed manner fd returns of all products manufactured or sold both as regards des~ription and quantily;
(d) to maintain such spccIa1 acc~unts and to furnish such statements as the State Government may, from time to time, rzquire; and
(c) to submit the accounts of the industry to such audit as the State Goverment may prescribe:
Provided that before requiring any grantee to comply with any of the recluirements of this section, notice shall bs given to him in the proscribed manner.
power of 11. If at any tirnc the outstanding balance of the ~ ~ a t G o y ; loan granted under this Act is fouud to exceed adjust scfu- the percentage specified in section 8, the State Governrity during ment may either recover so much of such balanco $ I o ~ ~ e a C Y as is in excess of such percentage or accept such additional or collaterat security as it may deem sufficient.
Guaranteeing of cash