Section 7 in The (Bihar State) Aid to Industries Act, 1956
7. Limitation of amount of loans.
(1)No loan shall be granted to any industry of an amount exceeding seventy-five per centum of the net value of the security offered including collateral security, if any, after the deduction of the value of all incumbrances existing at the time when the application is made :Provided that, in the case of new or nascent small-scale industry, the State Government may grant a loan equal to the value of the security offered including collateral security, if-(i)the State Government is satisfied that it is necessary to promote the development of the industry in the interest of the State and the industry in question cannot be established without the grant of such assistance; and(ii)the applicant agrees to associate a nominee of the State Government with the management of the industry and to regulate the expenditure out of such loan in the prescribed manner:Provided further that a loan may, subject to such other conditions as may be prescribed, be given to a small-scale industry on the security of movable properties including stock-in-trade only for a period not exceeding one year.(2)Notwithstanding anything contained in sub-section (1),-(a)in the case of a small-scale industry, a loan up to one thousand rupees may be given on a personal bond of the applicant, and upto five thousand rupees on the security of one or more personal sureties;[ [Added by Act No. 8 of 1982.](d) rhl gtkj :i;k ;k mlls vf/kd ds izLrkfor iwathfofu/kku ls csdkj vfHk;Urk ;k foKku Lukrd ;k rduhf'k;u }kjk LFkkfir fd;s tkus okys y?kq m|ksx dh n'kk esa] izLrkfor fofu/kku ds ipgRrj izfr'kr ;k chl gtkj :i;k rd] tks Hkh de gks] m/kkj nks izfrHkwfr;ksa dh oS;fDrd izfrHkwfr ij bl vfrfjDr 'krZ ij fn;k tk ldsxk fd m/kkj x`ghrk ,sls m/kkj ls cuk;h x;h vkfjr;ka ;Fkkfofgr cU/kstksa ,oa 'krksaZ ij jkT; ljdkj dks cU/kfdr dj nsxk(](b)in the case of an industry owned or managed by a society registered under the Bihar and Orissa Co-operative Societies Act, 1935 (B. & O. Act VI of 1935), the State Government may grant a loan without any security.(3)The valuation of the security under sub-section (1) shall be made by the Director in the prescribed manner.Explanation. - For the purpose of such valuation, the additional assets which may be created by the grant of such State aid may be taken into account to such an extent as may be prescribed.
