(1) There shall be a fund to be called the State Library Development Fund for modernization and development of public in the State .
(2) The State Library Development Fund shall consist of –
(a) grant received from the State Government other than the grant specified in sub-section (2) of section 15;
(b) any contributions or special grants from the Central Government for modernization and development of public libraries ;
(c) all money received by way of contributions or gifts made by the public or any other agency for modernization and development of public libraries .
(3) The money in the State Library Development Fund shall be utilize by the Director in consultation with the Council to defray the expenditure for the following purposes , namely:
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(a) modernization and development of public libraries in the State;
(b) payment of allowances to the members of the Council under section 10;
(c) such other purposes as may be prescribed .