Section 17(h) in The State Financial Corporations (Amendment) Act, 2000
(h)granting loans or advances to, or subscribing to debentures of, an industrial concern, repayable within a period not exceeding twenty years from the date on which they are granted or subscribed to, as the case may be: Provided that the Financial Corporation may, with the prior approval of the Small Industries Bank, exceed the said limit of twenty years up to a further period of ten years: Provided further that nothing contained in this clause shall be deemed to preclude the Financial Corporation from granting loans or advances to, or subscribing to debentures of, and industrial concern to which may be attached an option to convert such de entures or loans into stock or shares of the industrial concern: Provided also that the Financial Corporation may, in the exercise of such option, convert the amounts outstanding on such debentures or loans into stock or shares of the industrial concern if such concern increases its subscribed capital by the issue of urther stock or shares in accordance with and subject to, the provisions of section 81 of the Companies Act, 1956 (1 of 1956 ). Explanation.- In this clause, the expression" the amounts outstanding on such debentures or loans'' shall mean the principal, interest and other charges payable on such debentures or loans as at the time when the amounts are sought to be converted into st ck or shares;
