Section 19 in The Bengal State Aid To Industries Act, 1931
19. Forms of State aid.
(1)[The State Government] [Words substituted for the words and figures 'Subject to the provisions of section 21, the State Government' by W.B. Act 16 of 1956.] on the recommendation of the Board may grant State aid to an industry in all or any of the following forms, namely :-(a)the grant of a loan to be secured and repaid in the prescribed manner and upon such terms as may be fixed by the order granting it:[Provided that] [First proviso first substituted by W.B. Act 15 of 1954 and then again substituted by W.B. Act 16 of 1956.]-(i)the maximum amount of such loan shall not exceed [one lakh of rupees] [Words substituted for the words 'twenty-five thousand rupees' by W.B. AcT 12 of 1961.] in any one case ; and(ii)no such loan shall exceed seventy-five per cent, of the net value of the assets of the industry to which such loan is granted and of any other property, if any, which may be offered as collateral security for such loan ; and(iii)for the purpose of ascertaining the net value of the assets of the industry to which such loan is granted and of the property, if any, offered as collateral security-any amount outstanding on account of any mortgage, charge or lien subsisting in respect of such assets or such property at the time of the grant of the loan shall be calculated and deducted in the prescribed manner; andany additional assets which may be created by the expenditure of the loan to be granted shall be taken into account to such extent as may be prescribed:Provided also that every such loan shall, unless the [State Government] [Words 'Provincial Government' first substituted for the words 'Local Government' by Government of India (Adaptation of Indian Laws) Order, 1937, and thereafter, the word 'State' substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.], for reasons to be recorded in writing, otherwise directs, be repayable within not more than ten or where the whole loan is secured on land or buildings or both within not more than twenty years after the date of the advance of the loan or, where the loan is advanced in instalments, after the date of the advance of the last instalment:Provided also that the [State Government] [Words 'Provincial Government' first substituted for the words 'Local Government' by Government of India (Adaptation of Indian Laws) Order, 1937, and thereafter, the word 'State' substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.], for reasons to be recorded in writing, may, on the application of the owner of an industry to which such loan has been granted, in exceptional cases, vary the terms fixed by the order granting the loan;(b)the guarantee of a cash credit, overdraft, or fixed advance with a bank to be secured and the amount realised thereunder by any industry to be repaid in the prescribed manner;(c)the taking of shares and debentures;Provided that the amount paid by the [State Government] [Words 'Provincial Government' first substituted for the words 'Local Government' by Government of India (Adaptation of Indian Laws) Order, 1937, and thereafter, the word 'State' substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.] for such shares and debentures shall not exceed the amount already paid by other persons for shares and debentures in the same industry ;(d)the guarantee of interest on preference shares or debentures to be secured and the amount realised thereunder by any industry to be repaid in the prescribed manner;(e)the guarantee of a minimum return on the whole or part of the capital of a joint-stock company to be secured and the amount realised thereunder by any industry to be repaid in the prescribed manner;(f)The grant on favourable terms of land, raw material, firewood, water or any other [property vested in the State Government] [Words 'property vested in His Majesty for the purposes of the Province' first substituted for the words 'property of the Local Government' by the Government of India (Adaptation of Indian Laws) Order, 1937 and thereafter, the words 'the State Government' substituted for the words 'His Majesty for the purpose of the Province' by Adaptation of Laws Order, 1950.];(g)[ the payment of a subsidy for - [Clause (g) substituted by W. B. Act 15 of 1954.](i)the conduct of research, including research about marketing ;(ii)the purchase of machinery; and](h)subject to the prescribed conditions, the supply of machinery on the hire-purchase system.(2)In the case of the grant of any of the forms of State aid specified in clauses (f) and (p) of sub-section (1), the [State Government] [Words 'Provincial Government' first substituted for the words 'Local Government' by Government of India (Adaptation of Indian Laws) Order, 1937, and thereafter, the word 'State' substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.] shall ordinarily in the order granting such aid fix a period of years and a rate of interest on the capital invested in the industry so aided, and, if within such period the industry pays a rate of interest or a dividend in excess of the rate so fixed, the value of the aid granted, as ascertained by the prescribed authority in the prescribed manner, shall be paid at the expiration of the said period by the owner of the industry to the [State Government] [Words 'Provincial Government' first substituted for the words 'Local Government' by Government of India (Adaptation of Indian Laws) Order, 1937, and thereafter, the word 'State' substituted for the word 'Provincial' by Adaptation of Laws Order, 1950.],(3)In no case shall the total value of all State aid granted to an industry, as ascertained by the prescribed persons in the prescribed manner, exceed the limit specified in the first proviso to clause (a) of sub-section (1).
