The Madhya Pradesh State Aid to Industries Act, 1958

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MADHYA PRADESH ACT

No. 20 of 1958

THE MADHYA PRADESH STATE AID TO INDUSTRIES ACT, 1958

TABLE OF CONTENTS

Sections :

CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.

2. Definitions.

3. Classification of Industries.

CHAPTER II

GENERAL PROVISIONS REGARDING THE GIVING Of STATE AID

4. Constitution of State Industries Committee.

5. Term of Office.

6. Cessation of membership.

7. Casual vacancies.

8. Members of Committee not be communicate information.

9. Forms of State Aid.

10. Industries to which several forms of State aid may be given.

11. Formation of a company.

12. Form and contents of application for State aid

13. Member of the Committee not to take part in proceeding in which he is
pecuniarily interested.

14. Imposing conditions on an industry to which state aid is granted.
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CHAPTER III

PREVISIONS REGULATING THE GIVING OF STATE AID

15. Limitations of amount of loans.

16. Loan how secured.

17. Inspection and returns.

18. Power of State Government to stop State aid, ,etc. .

20. Repayment of loans.

21. Guaranteeing of cash credits, etc. with banks,

22. Guarantee of minimum return on capital.

23. Subsidies.

24. Disposal of profits when conditions of State aid not fulfilled.

25. Government control of industry aided

26. Penalty for breach.

27. Recovery of money due under this Chapter,

28. Special provision for small scale industries.

CHAPTER IV
SUPPLEMENTAL
29. Finality of decision of State Government and bar of suits and proceedings in
civil and Criminal Courts.

30. Power to make rules.

31. No state aid to be given save in accordance with the provisions of Act.

32. Repeal and Saving.

MADHYA PRADESH ACT

No. 20 of 1958

THE MADHYA PRADESH STATE AID TO INDUSTRIES ACT, 1958
(Received the assent of the Governor on the 21st July 1958; assent first published in the
Madhya Pradesh Gazette on the 1st August, 1958)

An Act to regulate the grant of State aid to industries

Be it enacted by the Madhya Pradesh Legislature in the Ninth Year of the Republic of
India as follows:-
Chapter I
Preliminary
1. 1) This Act may be called "The Madhya Pradesh state Aid to Industries Act, 1958"
2) It extends to the whole of Madhya Pradesh.

3) It shall come into force on such date as the State Government may, by
notification, appoint in this behalf.

2. Definitions.- In this Act, Unless there be something repugnant in the subject or
context,-

1) the "Committee" means the State Aid to Industries Committee constituted under
Section 4;

2) "Company" means a company within the meaning of the Indian Companies Act
for the time being in force:

3) "Director" means the Director of Industries and includes any officer appointed
by the State Government, either by name or by virtue of this office, to perform
any of the functions of this Director or under this Act;

4) "Industry" me ans any industrial business or enterprise involving any
manufacturing process or operation conducted or undertaken either by an
individual or by a company, association or body of individuals, whether
incorporated or not; and includes a Marketing Society, a Processing Society and
a Resource Society; within the meaning of the Madhya Pradesh Co -operative
Societies Act, 1960);

5) "machinery" includes plant, apparatus, tools appliances and other mechanical
equipment required for the purposes of carrying on any industrial operation or
process;

6) "Prescribed" means prescribed by rules made under this Act,

3. Classification of industries,- For the purposes of this Act, the industries shall be
classified as follows:-

(i) Large-scale industry meaning an industry the capital outlay of which on land,
building, installed machinery, railway siding or other fixed assets exceeds
rupees ten lakhs;

(ii) medium-scale industry meaning an industry the capital outlay of which on
land, building, installed machinery, railway siding or other fixed assets
exceeds rupees 3(two) five lakhs does not exceed rupees ten lakhs;

(iii) small-scale industry meaning an industry other than a large scale industry or
medium scale industry.

CHAPTER II

GENERAL PROVISIONS REGARDING THE GIVING OF STATE AID

4. Constitution of State Aid to Industries Committee :-
(1) There shall be constituted a State Aid to Industries Committee consisting of the
following members, namely :-

(a) the Minister for Commerce and Industry who shall be the Chairman of the
Committee;

(b) the Deputy Minister for Commerce and Industry;

(d) the Director of Industries;

(e) the Managing Director of the Financial Corporation of the State;

(f) Not more than three officers to be appointed by the State Government by
virtue of office;

(g) ten members to be appointed by the State Government, of whom at least one
shall represent each class of the industrial specified in section 3 and the
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remaining shall represent other industrial, commercial and allied interests;

Provided that for any meeting of the Committee the Chairman may invite any
person for advising the Committee on any matter in question before the meeting
but the person so invited shall have no vote.

(2) The election or appointment of members under clauses (c), (f) and (g) of sub -
section (1) shall be notified and such members shall enter upon their offices from
the date of such notification.

(3) The Director of Industries shall be ex officio Secretary to the Committee.

5. Term of office :-
(1) The members of the Committee elected under clause (c) of sub-section (1) of
section 4 shall hold office for a term of three years or till such time as they
continue to be members of the Legislative Assembly, whichever is earlier.
(2) The members of the committee appointed under clause (g) of sub-section (1) of
section 4 shall hold office for a term of one year.
(3) Notwithstanding anything contained in this section, an outgoing member shall,
unless the State Government otherwise directs, continue in office till the date
the election or appointment of his successor is notified under sub-section (2) of
section 4.
(4) An outgoing member shall be eligible for re-election or re-appointment.

6. Cessation of membership - Notwithstanding anything contained in section 5, if
before the expiry of his terms any member elected under clause 3(c) of sub -section
(1) of section 4 ceases to be member of the Legislative Assembly, he shall forthwith
cease to be a member of the Committee.

7. Casual vacancies.-
(1) If any vacancy is caused in the membership of the Committee by reason of the
provision of otherwise of a member of the Committee, the vacancy so caused
shall in the case of a member of the Committee under clause 2[(c)] of sub-
section (1) of section 4, if the Legislative [Assembly is not then in session, be
filled in the session next following the date of the vacancy, and in the case of a
member of the Committee appointed under clause 1{(g)] of sub -section (1) of
section 4, then within a period of 9 months from the date of the vacancy.

(2) No act of the Committee shall be deemed to be invalid by reason only that the
number at the time of the performance of such act was less than the number
provided under section 4.

8. Members of Committee not to communicate information -
(1) No members of the Committee shall communicate or allow to be communicated
to any person not legally entitled thereto any information relating to any matter
under the consideration of the Committee which has become known to him as
such member.
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(2) The Committee may, by a resolution passed at a meeting thereof recommend to
the State Government the termination of the membership of any member who
in its opinion has contravened the provisions of sub-section (1);

Provided that no such resolution shall be passed until the member to be
thereby affected has been given a reasonable opportunity of being heard by the
Committee against the action proposed to be taken in regard to him.

(3) Upon a recommendation made under sub -section (2), the Stat e Government
may, by notification, terminate the membership of such member.

9. Forms of State aid - State aid may be given in all or any of the following forms,
namely :-

(a) the grant of a loan;

(b) the guarantee of a cash credit, overdraft or fixed advance with a bank;

(c) the guarantee of a minimum return on the whole or part of the capital of a
joint- stock company for a period fixed in accordance with rules made under
this Act;

(d) underwriting the issue of stock, shares, bonds or debentures by a limited joint-
stock company;

(e) the guarantee of principal and interest on debentures issued for or by a limited
joint-stock company;

(f) the acquisition of shares in a limited joint stock company either by the
payment of money or in consideration of the grant of any facility specified in
clause (e), according as the State Government may deem fit;

(g) the grant, on favourable terms, of land, raw material, fuel, water or any other
property or right vested in the State Government, subject to the provisions of
any law, rule or order for the time being in force;

(h) the grant, free of charge or on favourable terms, of the service of experts or
persons in the service of the Government for starting or advising an
industry ;

"(h-1) guarantee of the price of machinery and equipment purchased by any industry
on a hire purchase agreement from the National Small Industries Corporation
or any other concerns approved by the State Government"; and

(i) the payment of subsidy-

(i) in the case of any large-scale or medium scale industry, for the conduct of
research; and for such other purposes as the State Government may by
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notification specify;
(ii) in the case of any scale industry, for one or more of the following purposes,
namely :-

(a) the purchase of land, machinery and equipment;

(b) the construction of factory, buildings, godowns, wells, watch-house;

(d) the employment of efficient managerial and supervisory personnel
for a limited period;

(e) the training of workers employed in the industry;

(f) for the conduct of research

(g) for such other purpose as the State Government may by notification
specify.

10. Industries to which several forms of State aid may be given :-

(1) State aid may be given-

(a) in any of the forms specified in section 9, to -

(i) in new or nascent large-scale industry or medium scale industry;

(ii) a large-scale industry or medium scale industry newly established in an
area where such industries are undeveloped;

(iii) any large -scale industry or medium scale industry other than those
specified in sub -clauses (i) and (ii) where the State Government is
satisfied that special reasons exist for such aid; or

(iv) any small-scale industry;

(b) in the forms specified in clauses (b), (c), (g) and (h) of the said section, to any
industry.

(2) The State Government may require any industry in receipt of State aid to locate
its head office in the State.

Explanation:- In the case of any industry which is a company registered under the
Indian Company Act, 1913 (VII of 1913) or the Companies Act, 1956 (1 of 1956),
the expression "head office" means its registered office within the meaning of the
Act under which it was registered.
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Formation of a company:-

11. (1) The State Government may take such steps are necessary or desirable to secure
the formation of a limited company confirming to the prescribed conditions
and have it registered under the Companies Act, 1956 (1 of 1956) withy they
object or providing industrial credit.
(2) The State Government may, with regard to industries generally or to any
particular class or industries, and subject to such conditions or restriction as it
may deem fit to impose delegate to the company with all or any of its powers
under this Act other than the power to make rules under section 30.
(3) Rules shall be made under this section regulating the conditions subject to
which a company shall be formed under this section and such rules may
provide that a breach of any such or conditions shall be punishable with fine
which may extend to one hundred rupees.

12. Form and contents of application for State aid :-

(1) Applications for State aid shall be made in such form and shall contain such
information as may be prescribed.

2) Every application shall be p laced before the Committee for its advice and no
application shall be allowed if two - third of the members of the Committee
present at the meeting advice its rejection.

3) If the extent of the aid applied for exceeds rupees five lakhs, and in any other
case in which this procedure may be considered necessary, the State
Government shall publish a notice in the prescribed manner calling upon any
person engaged in the same kind of industry who objects to the grant of the aid
applied for, to State hear such ob jections and make or cause to be made such
enquiry as may be necessary.

4) The State Government may refer to the Committee any matter relating to the
establishment of an industry in the State or to the grant of State aid under this
Act or any industry and it shall be the duty of the Committee to examine the
matter referred to it and to advise the State Government on it.

13. Member of the Committee not to take part in the proceeding in which he is
pecuniarily interested :- No member of the Committee shall vote or take part in the
discussion of any question coming up for consideration at a meeting of the
committee, if the question is one in which he or any of his relatives has any direct
or indirect pecuniarily interest or he is interested in such question in his
professional capacity on behalf of his client or as an agent.

Explanation:- For the purpose of this section, expression "relative" shall have the
same meaning as assigned to it under section 6 of the Companies Act, 1956 (1 of
1956).

14. (1) The State Government may, before granting State aid to any industry or dur ing
the continuance of any State aid so granted, impose such conditions as may in its
opinion be necessary or expedient to safeguard its interests by securing the
training of apprentices.

(2) Any conditions imposed under sub-section (1) shall be notified.

CHAPTER III

PROVISIONS REGULATING THE GIVING OF STATE AID

15. (1) No loan shall be granted to any large-scale industry or medium scale industry of
an amount exceeding 66 per cent or to any small -scale industry of an amount
exceeding 75 per cent, of the net value of the assets of the industry after the
deduction of the value of all encumbrance existing at the time when the
application is made;

Provided that the State Government may, subject to such restriction as may be
prescribed, relax th e provisions of this section, in the case of any particular
application in regard to an industry referred to in sub -clauses (i) and (iv) of
clause (a) of sub-section (1) of section 10.

Explanation:- In this sub -section the net value of the a assets of any industry
includes the value of any collateral security prescribed under section 16.

(2) The valuation of the assets under sub-section (1) shall be made by such persons
and in such manner as may be prescribed. 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 extent as may be prescribed.

16. Loan how secured :- Every loan granted to an industry shall be secured by a mortgage
or floating charge upon the whole of the assets of such industry subject to any
encumbrances existing at the time when the loan is granted, any by such collateral
security, if any, as the State Government may prescribe.

17. Inspection and return :-.In any case in which an application for a State aid has been
made under this Chapter, the applicant and, at any time during the continuance of the
State Aid, the grantee shall be bound -

(a) to comply with any general or special order of the State Government relative to
the inspection of the pre mises, buildings, machinery a stock -in-hand of the
industry;
(b) to permit the inspection of all account relative to the industry;
(c) to furnish full returns of all products, manufactured or sold both as regards
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description and quantity;
(d) to maintain s uch special accounts and to furnish such statement as the State
Government may, from time to time, require; and
(e) to submit the accounts of the industry to such audit as the State Government may
prescribe;

Provided that before requiring any grantee to comply with any of the requirements
of this section, reasonable notice shall be given to him.

18. If at any time the outstanding balance of the loan
granted under this Act is found to exceed the
percentage fixed under section 15, the State
Government may either recover much of such
balance as is in excess of such percentage or
accept such additional or collateral security as it
may deem sufficient.
Power of State Government
to so adjust security during
currency of loans.
19. Notwithstanding anything contained in any other
provisions of this Act, in the case of an industry
to which State aid has been given in any form, if
the grantee-

(a) fails to comply with any order under clause
(a) of section 17;

(b) does not permit or obstructs the inspection of
the accounts of the industry;

(d) disposes of any profits in contravention of
section 24;

(e) contravenes any rule framed under section 30;
or

(f) commits any breach of any condition laid
down for the grant of the State aid; or

If on inspection of the accounts, returns and
statements or audit report of such industry, the
State Government is of opinion that the State aid
should be withdrawn, the State Government may,
after considering any representation the grantee

may make within such time as the State
Government may allow in this behalf, make an
order directing-

(i) that the balance of any loan outstanding shall
be recoverable forthwith;

(ii) that the guarantee given in pursuance of
clause (b) of section 9 shall cease from the
date of such order;

(iii) that the full value of the land, if any, given
under clause (g) of section 9 shall be payable
forthwith and that on failure to make such
payment the State Government shall be
entitled to re-enter and take possession of the
land;

(iv) that the full value of any other State aid
given under clause (g) or (h) of section 9 and
enjoyed till the date of order shall be payable
forthwith and the grant of such State aid
beyond such date shall be discontinued,

(v) that an amount equal in value to the subsidy
given under clause (i) of section 9 shall be
repayable forthwith;

Provided that the State Government may, in lieu
of any action as aforesaid, accept from such
grantee such sum of money as it may deem fit.
20. (1) Every loan granted under this Chapter shall
be made repayable by instalments within
such period from the date of the actual
advance of the loan, or when the loan is
advanced instalments, from the date of actual
payment of the last instalment, and shall bear
interest at such rate and be payable in such
manner as may be fixed by the order granting
the loan.

(2) The period fixed as aforesaid shall not exceed
twenty years unless the State Government, by
general or special order, extends the same.

Repayment of loans.
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(3) Notwithstanding anything contained in sub -
section (1), where any sum is received by the
State Government from the Khadi and
Village Industries Commission constituted
under the Khadi and Village Industries
Commission Act, 1 956 (No, 61 of 1956), or
any other body corporate for the purpose of
granting interest free loan to small scale
industries, any loan granted by the State
Government out of such sum shall not bear
any interest.
21. The provisions of sections 15, 16 and 18 in
respect of loans shall, subject to any rules made
under this Act, apply so far as may be to the
guarantee of debentures issued to the public, a
cash credit and an overdraft or fixed advance with
a bank.
Guaranteeing of cash credits
etc., with banks.
22. The condition of the guarantee of a minimum
return on the whole or part of the capital of any
industry shall be that an amount equal to the sum
paid or part thereof as may be determined by the
State Government shall be repaid to the State
Government at the close of such term of years as
may be fixed by the State Government in this
behalf, if within that term the industry be shown
to the satisfaction of the State Government to be
paying interest or a dividend upon the capital
invested in such industry in excess of such rate as
the State Government may determine.
Guarantee of a minimum
return on capital.
23. (1) No subsidy for the conduct or research shall
exceed forty percent of the cost thereof and
no subsidy for any other purpose shall
exceed fifty per cent of the cost thereof.

(2) The condition of a grant of subsidy for the
purchase of machinery shall ordinarily be
that an amount equal in value thereto, as may
be determined at the time of making the
grant, shall be repaid to the State
Government at the close of such term of
years as may be fixed by the State
Government in this behalf, if within that
Subsidies.
13

term the industry be shown to the
satisfaction of the State Government to be
paying interest or a dividend upon the capital
invested in such industry in excess of such
rate as the State Government may determine.

(3) The condition of a grant of subsidy for the
conduct of research or grant, on favourable
terms, of land, raw material, fuel, water or
any other property or right of the State
Government or the grant, on favourable
terms, of the ser vices of experts the value
thereof, as may be determined, at the time of
making the grant or concession, shall be
repaid to the State Government at the close
of such term of years as may be fixed by the
State Government in this behalf, if within
that time the industry be shown to the
satisfaction of the State Government to be
paying interest or a dividend upon the capital
invested in such industry in excess of such
rate as the State Government may determine.

(4) Without prejudice to the provisions of sub -
section (3), the condition of a grant of a
subsidy for the conduct of a research may
further be that the State Government shall
have a share not exceeding twenty -five
percent in the patent rights arising out of
such research.

(5) State aid granted to any industry shall be
discontinued if the industry be shown to the
satisfaction of the State Government to be
paying interest or a dividend upon the capital
invested in such industry in excess of such
rate as the State Government may determine.
24. (1) Until the conditions on which the aid has
been granted are fulfilled the profits of the
industry in respect of which aid has been
granted shall, if taken or distributed, be
taken on distributed only after interest due
on debentures and loans has been paid and
a reasonable amount has been set aside for
depreciation or obsolescence of plant and
Disposal of profits of when
conditions of State aid not
fulfilled.
14

buildings and further reasonable amount
has been carried to reserve fund to be
utilized in such manner as the State
Government may approve.
(2) No recipient of State aid shall pay any
dividend or distribute or take any profit in
excess of such percentage rate upon the
amount of the capital of the industry as the
State Government may, from time to time
fix, until the conditions on which State aid
has been granted are fulfilled;
Provided that the State Government may
relax the provisions of this section in the
case of any industry aided by the grant, on
favourable terms, of land, raw material ,
fuel, water, or any other property or right of
the State Government or the grant, free
charge or an favourable terms of the service
of experts or persons in the service of the
State Government or by the payment of
subsidy for the conduct of search.
25. Notwithstanding anything contained in this
chapter, if in any case the amount or value of the
State aid given there under amount to or exceeds
five lakhs of rupees, or the face value of the
shares held by the State exceeds 25 per cent of
the authorised share capital, the State
Government shall, and in any other case may, by
the appointment of Government Directors or
otherwise take power to ensure such control over
the conduct of the industry as shall suffice in its
opinion to safeguard its interest.
Government control of
industry aided.
26. (1) If any Director, Managing Agent, Manager,
secretary or other office of any company or
other body corporate to which State aid has
been given, commits a breach of any order
passed or rule made under this Act subject to
which such St ate aid has been given or of
any provision of this Act or any condition
notified under section 14, he shall be liable
to a fine which may extend to one thousand
rupees.

Penalty for breach
15

(2) No court shall take cognizance of any
offence punishable under sub -section(1)
except on a compliant in writing by the
Director.

(3) Any contract made on behalf of a company
or other body corporate in contravention of
any condition subject to which State aid has
been given to it shall as against such
company or such body corporate b e void;
but nothing herein contained shall prejudice
the right of any person affected by such
contract to claim by due process of law, any
relief to which he may be entitled against the
person entering into such contract.
27. (1) All moneys recoverable under this Chapter
including any interest chargeable thereon
and costs, if any, incurred, if not paid when
they are due may be recovered by the
Collector on a requisition from the Director,
from the person aided and his surety, if any,
as if they were arrears of land revenue.

(2) When any sum due as aforesaid is paid to the
Director by the surety or is recovered from
his or out of his property by the Director, the
Director shall, on the application of the
surety, so far as possible, re cover the sum
from the person aided and pay it to the
surety.
Recovery of moneys due
under this Chapter.
28. (1) Save as otherwise may be prescribed
nothing in sub-section (2) of section 12 and
sections 16 and 17 shall apply to small scale
industries.
(2) The State Government may, by order, direct
that all or any of the powers conferred on it
by or under this Act or rules made there
under shall, in relation to small scale
industries, be exercisable by any officer or
authority subordinate to it and when any
powers are so delegated, they shall be
exercised subject to such directions as the
State Government may issue from time to
time .
Special provision for small
scale industries
16

(3) Not withstanding anything contained in any
law for the time being in force, the powers
referred to in subsection (2) may also be
delegated by the State Government in the
same manner and to the same extent as is
specified therein to the M.P. Financial
Corporation or a Co -operative Credit
Society registered under any law relating to
co-operative Societies in force in any region
of the State and when any powers are so
delegated, they shall be exercised subject to
such directions as the State .Government
may issue from time to time

CHAPTER IV

SUPPLEMENTAL

29. (1) The decision of the State Government as to
whether the conditions laid, down in or
under any or the provisions of this Act have
been satisfied shall be final, and no suit shall
be brought in any Civil Court to set aside or
modify any other made there under.
2) No prosecution, suit or other proceedings
shall lie against any servant of the
Government or other authority vested with
powers under this Act for anything in goods
faith done or intended to be done there
under.
Finality of decision of State
Government and bar of suits
and proceedings in Civil and
Criminal Courts.
30. (1) The State Government may, after previous
publication, make rules consistent with this
Act for carrying out of all or any of its
purposes.
(2) In particular and without prejudice to the
generality of the foregoing power, the State
Government may make rules regulating or
determining all or any of the following
matters, namely :-

(a) the manner of election of the members
of the Committee referred to in clause
Power to make rules
17

(c) of sub-section (1) section 4, and the
conduct of proceedings of the
Committee including the manner in
which notice of a meeting shall be
given, the fixing of a quorum and the
due record of proceedings;

(b) the fixing of the period of the guarantee
of a minimum return under section 9;

(d) the manner of making application for
State aid under sub - section (1) of
section 12, and the manner of
publishing the notice under sub-section
(3) of the said section;

(e) the manner of ascertaining the net value
of the assets of an industry and the
percentage of such value which may be
granted as a loan under section 15;

(f) the nature of the security to be taken
and the condition under which State aid
may be given under section 16;
(g) the inspection under section 17 of the
premises, building, machinery and
stock-in-hand and the mode of keeping
and auditing the account and of
furnishing returns of any industry in
respect of which State aid has been
given;

(h) the guaranteeing by the State
Government debentures issued to the
public and of cash credits, overdrafts or
fixed advances with banks under
section 21 and the recognition of banks
for this purpose;

(i) the fixing of the period for the
repayment of loans under section 20
and the conditions and date of
repayment of sums paid under the
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guarantee of a minimum return under
section 22 and of subsidies and grants
under section 23;

(j) the application under section 24 of
profits in the cases in which the
conditions of which State aid has been
given have not been fulfilled.

(k) the appointment and functions of
Government directors under section 25
and the prescribing of other methods of
control of industries to which State aid
has been given;

( l) the conditions under which and the
security on which loan may be granted
or guarantees of debentures or of a cash
credit, overdraft or fixed advance with
a bank given to the industries specified
in section 28.

(m) the recovery of any sum payable under
this Act.
31. No State aid shall be given by the State
Government to any industry save in accordance
with the provisions of this Act.
Provided that nothing in this Act shall apply to
the power of the state Government to -
a) Start or conduct an industry for experimental
purposes or with a view to stimulate
industrial development or start or conduct an
industry either as a State monopoly or a State
managed unit;
b) assist an industry by agreement to purchase
on business terms the whole or a portion of
the product of the same;
c) assist an industry in connection with
industrial education or training of
apprentices;
d) assist an industry by giving free of charge or
on favourable terms the service of
Government experts or other persons in the
service of the State Government to advise,
No Sate aid to be given save
in accordance with the
provisions of Act.
19

start or supervise any industry for a period
not exceeding one year
(e) acquire land for a company under the
provisions of t he Land Acquisition Act,
1894 (1 of 1894);
(g) assist a company formed for the purpose of
supplying electricity, gas, water or any other
service likely to prove useful to the general
public.
(h) assist any small -scale industry started or
proposed to be started for the benefit of bona
fide craftsmen hereditary artisans, the
educated unemployed or destitute and
helpless persons.
31.A Notwithstanding anything contained in his Act,
where contained in this act, where the State
Government is of opinion that it is necessary or
expedient in public interest so to do, it may, by
order, specifying reasons thereof grant State Aid
to any industry in such forms, and in such
manner, to such extent and subject to such
conditions as may be specified in the order".
Grant of State Aid in order
cases
32. (1) The Central Provinces state Aid to Industries
Act, 1933 (XII of 1933), and the Madhya
Bharat state Aid to Industries Act, Samvat
2009 (Act No. 12 of 1952), are hereby
repealed.

(2) Notwithstanding the repeal of the acts
specified in sub - section (1), such repeal
shall not affect-

(i) the previous operation of the acts so
repealed or anything duly done or
suffered there under; or

(ii) any right, privilege, obligation or
liability acquired accrued or incurred
under the Acts so repealed; or

(iii) any penalty, forfeiture or punishment
incurred accrued of any offence
committed against the Acts so repealed;
or

(iv) any investigation, legal proceeding or
remedy in respect of any such right,
privilege, obligation, liability, penalty,
forfeiture or punishment as aforesaid;
and any such investigation, legal
proceeding or remedy may be instituted,
continued and enforced and any such
penalty, forfeiture and punishment may
be imposed as if this Act had not been
passed.

(3) Subject to the provision of sub -section (23)
anything done or any action taken (including
any appointment or delegation made,
notification, order, instruction or direction
issued, rule, regulation, form, bye -law or
scheme framed) under the Acts so repealed
shall be deemed to have been done or taken
under the corresponding provision of this
Act and shall continue to be in force
accordingly, unless and until superseded by
anything done or any action taken under this
Act.

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