(1) 'l'he Uonrd shall di11hurae gra.ni11 in ncc01·dnnce with un:tl nt rates and on terms sanetined hy the Stutu (fovern• ment. in respeet of each industry, from lime to time, '!'ha State Govern ment may, on its motion or on tht> r(><•omm~nilntion of thl: Hoa.rd or of the Khadi and Village Industries Commission, modify ox supersede tle financial ratet1 unu terlJIH ureviou1:1ly 1:1nu,,tionecl.
(2) 'l'he Board may reduce tho rntes at which grantH nre payable in individunl cases to Buch extent, us it thinks necessary, but shall not enhance such rates except with the prior appruvul of the State lovernmont.
(3) Grants shnll be 1mid to institutions registered under the Societies Registration .Act, 1860 (XXI of 1860), .or under the .Bt•n~al Co-operative Societies Act, 1940 (Heu. Act XXl of 1940), or u. Public rrust.