Section 28(3) in Karnataka Electricity Reform Act, 1999
(3)The State Government may guarantee in such manner as it thinks fit, the repayment of the principal or the payment of interest (or both) on any loan proposed to be raised by any licensee or generating company, which is for the time being wholly or partly owned by the State Government or the discharge of any other financial obligation of any licensee, provided that the State Government shall, so long as such guarantees are in force, lay before the State Legislature during the budget session in every year a statement of the guarantees, if any, given during the current financial year of the State and an up-to-date account of the total sums, if any, which have been paid out of State revenues in each case by reason of any such guarantees or paid into State revenues towards repayment of any money so paid out.
