LexThe Odisha State-Aid to Industries Act, 1978
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The Orissa State-Aid to Industries Act, 1978
Act 32 of 1978
Keyword(s):
Co-Operative Society, Industry, Machinery, Small Scale Industry, Village
Industry
ORISSA ACT 32' or: 1978
THE ORTGSA STATEAFDi TO* IN.DUSTRIES ACT, 19'78
CONTENTS
CHAPTER I
PRELIMINARY
1. Short title, cxtent and commencement
2. Definitions
CHAPTER If
GENERAL PROVISIONS REGARDING THE GIVING OF STATE-AID
3. Constitution of Board of Industries
4. Forms of State-aid
5. Delegation of powers to give-certninb forms. of! Sta te-aid
6. Industries to which several forms of Stateaid may be given.
7. Application for State-;:id
CHAPTER IE
PROVISIONS REGULATING THE GIVING OF- STATE-AID
OTHERWISE THAN BY THE SUPPLY OF
~.IACHINERY ON RE PURCHASE-
SYSTEM
8. Limitation of nmont of loan
9. Loan how to be secured
10. Inspection and returns
11. Power of State Government to adjust security during the currency of loan
12. Guaranteeing of cash credit with Banks
I 3. Termination of Stat paid
14. Repayment of loans
15. Power of Stsltc Government to recovcr loan
16. Subscription for shares or deb2ntures or guarantee of minimum return of capital
17. Subsidies
13. Di~p3;itl proh:s wvltzn c~nli~ions of Stat,:-aid lot fulfilled
19. Government control of aided industries
20. Recovcry of money due under this Chapter
21. Lcvy of fees
553
CXArnR IV
SUPPLY OF MACHINERY ON THE HIRE PURCHASE SYSTEM
22. Percentage of cost to be deposited by hirer
23. ParticuIars to be specified in the order when application is allowed
24. Conditions of supply of machinery on Hirc purchase system
25. Consequence of defaul by the hirer
26. Option of hircr to purchase machinery seized in default
27. Termination of hering by liirer
28. Liability of hircr on termination of hering under sections 24 and 26
29. Termination of hcring on payrncnt of cost of machincry
30. Penalties
3 1. Rccovery of sums due under this Chapter
HAPTER V
MISCELLANEOUS
32, Supersession of Board
33. Removal of member
34. No Stateaid to bil given savc in accordance with provisions of this .4cL
35. Rcmissioll of interest
36. Exemption of certain classes of persons
37. Finality of decision of State Government and bar of suits and procecdi~lgs in
Civil and Criminal Court.
38. Power to make rules
39. Rcpcal i\nd snvings
ORISSA ACT 32 OF 1978
Orissa Act
2 of 1963.
!THE ORTSSA STATEAID TO
INDUSTRW ACT, 19781
I Received the asserzd of the Governor on the 26th
Novenzber 1978, first published it1 uit extl.aordi-
nary issue of the Orissa Gazette, dated
the3rd Novernbe~' 19781
AN ACT TO REGULATE WE GRANT OF
STATE-AID TO INDUSTRIES
BE it enacted by the Legislature of the State of
Qrissa in the Twenty-ninth Year of the Republlc of
India, as follows:-
Preliminary
1. (I) This Act may be called the Orissa State-Aid Short lltbD
to Industries Act, 1978. extent and
Cornen-
rnenl. (2) It extends to the whole of the State of Orissa.
(3) I# shall come into force on such date as the
State Government may, by notification, appoint in
that behalf.
2. Tn this Act, unless the context otherwise Definiitons
requires,-
(a) "Board" means the Board of rndustries
constituted under section 3 ;
(b) LLc~-operati~e society" means a co-opera-
tive society registered or deemed to be
registered under the Orissa Co-operative
Societies Act, 1962;
(c) "co age industry" means any industrial
business or enterprise carried on in any
preuiises to which the Factories Act,
1948 does not apply and includes any
industy carried on by a co-operative
I. For Statcmmt of Objccts and Reasons sce Orissa Gazerre, Extraordi-
nary, clatcd the 16th FcSmary 1978 (No. 202) and for Report of thc Selcct
Cornmittcc Sw Orissa Gfl:tu~fc, Extraordinary, datcd the 26th August 1978
1208).
2. Cam: iotoFora with cffccl horn the 1st February 1979, Vidc-Industria
Dcpartmcnt Notification No. (2860).dated tb 31sl January 1979.
886 THE ORISSA STATE-AID TO INDUSTRIES ACT, 1978 [Or. Act
souie@ or an indivisual- hinlself or with
thehhelp of.' membersb 05 his family and
labourers includes szricuIture,
cdture, horticuhre;. dhiry farming,
p~altry. famihg; bee keep?'@- and Iac
nmEng;-
(61 "District, Industries Officer" means any
person ag okted' By the State Govern-
d nrent to scharge the' functions of a
Distxict.W8trks, officer, under: thj.ie Act;
@): bWkrnr" mans, tEieDire~tor oF&dbs-
tries and includes any Nfrgon- aypmed
by the, St&. G~xernrnent to discharge
the functim of tfie ]Director under this
Act;
. "industrya" means any industrial business
or en~rpri$e ific~udingone conneckd with
Agriculture, condn~ted: an& undertaken
hy aniadiwisual.o~lq a C.0.-opera-
tive Society or by a Company, association
or Body o$ indinisuds; wHetlier incarpora-
tag - ar. nor and indub- a marketing !
society established under e Odssa q2fy96$;t
Coroperative, Societies, Act,. 1962;
k) "machinery" includes plant, ap,paratus,
mds, agplianca and other. mechanical
eq*ruent .requii8dd for; ae, purposes of
carrying on any in.dbstriaT operation or
pPomss;:
@-); "~wribed'l' means pescribed by rriles
made unda &i% Act ;:
(i), "Small scale indus~y'' means-an industry
*, cagitd QU~~R of 'which,, at its incep-
tibn, oa plant ana macbjnery does not
aced-
@), fitteemlakb: d mpm in the case of an
industry which is ancilary to mother
industry no.t 6ejfig a. cottage or viIlage
ijndizst ~y ;.
(2) ten lakhs of rupees in the caseof any
, o$~indust~;y,;ox~~~h.orher:surn~ tile
State Govemmnt. may, from time. to
time determine;
(j) "village industryY"means any industry
n&ich -forms !the -nor-ma1 occuprt604,
whether whole-time or part time, 6f .any
class of the rural popula'cion of the State.
3. (13 The ;State ~Meriltnent shall ~~omtituteta consliturloa
Board of Iadus tries consisting of -.the .fdltawing or Board or
members, namely: - Industries.
-to) five Wrnbers:to be-eleaed.dn rtlie paso*
-bed 'manner -by ~~e State kegisl'mbve
.Assembly 4rom ,ainarzg its membe~:
-Provide& that "in f he case or dissolu.tion lof .the
State LegisIative Assembly, the members . elected
under >this, -clause rand Qoldmg office-on dh dde of
such -dissolution shd poontinue in omee \till ?hew
members a$e elected !by bhe said ,Assembly af&r ?its
reconstitution;
.(b) 'fivc:fietnberQ to be .ileeted ~ih 'the prescri-
bed manner, one ,by .eadh .df 'five such
associations or ather bodies as :the .State
,'Goverfime~t may sdect as &,st represent-
'iag any garticukr class of hdustries ar comn~ercial aad allied interests;
~[c) Seeref aris to the'state '~ovem i'a
Fidahce, Ifrigdm 'md 'Pbmr 3t1d 'fXle Induseies Depafitmen ts, , the Director, the
Resistray of' 'Co-operative Soiiitie, be
Managing Director of the 'StateAFin&cial
Cor,poration and tho ,Managing Wector
-of .the :State Small ,Sc& :Zadusfl.ks Qm-
. porafion ~11.0 .shall be gx-~ficjo -m&q&rs;
and
(8) .five members to be *appdin{ed by Qe State
-'Govemmmt af whoi-i~ at lcast .two shaU
'be 'from 'wc]~ ams OF the State ae decla-
'red, from time to 'time, by ~e G0ver.n-
ment of India to be industrially backward
areas.
j(2) The Cfiairrnan 'ad the 'Secretary of ,he .had
:&%all 'be 'appoirlted %y fhe 'State 'Govern-rn from
among the members of the Board.
888 THE . . ORISSA STATE-AID TO INDUSTRIES ACT, I 978 [ Or. Act
(3) The names of the members who have bzen
elected or appointed shall be published in the Oflicial
Gazette.
(4) Savc as otherrvisc provided in this Act, a
member clcctcd under clause (8) of su b-section (1)
or appointed undd clause (d) of that sub-section shall
hoId office for a period of three years commencing
from the dace of publication of his name in the
Official Gazette:
Provided that the State Government may, from
time to time, by notification, extend the said term
of office by such period not exceeding one year at a
time, as may be spccificd in the notification, so,
however, tl~at: tho total period of extension shall in
no evcnt cxceed two years.
(5) Any casual vacancy in the membership of
the Board shall he filled up by election or, as the
case may be, appointment in tho same mt?mer as is
provided in sub-section (I) and the member so elected
or appointed shall hold office for the unexpired term
of his predecessor in office.
(6) The Board shall, for the discussion of any
particular question coming up for consideration
before it, have power to co-opt experts specially
qualged to advise on the matter in question or having
spec~al knowledge of local conditions in any area
where the industry in queslion is situate:
Provided that a member so co-opted shall have
no right to vote.
(7) No member of the Board shall vote or take
part in the discussion of any question coming up
for consideration at a meeting of the Board if the
question is one in which he or his partner or reiatives
have any direct or indirect pecuniary interest or in
which he is interested protessionalty on behalf of a
client or as agent for any person other than tl~e
State Government, the Central Government or a
TocaI authority.
Expla~lation --For the purposes of this section,
the expression '' relative " shall have the same mean- - -- --
ing asaasiigned to it under section 6 offhe CompaniesI orlpjb
Act, 1956.
(8) Whenever the Secretary to Government in
the Finance Department is unable to attend any
meeting of the Board, he may nominate any oEccr
of that Depai-tmsnt, who shall attend such meeting
and shall have the same rights and privileges as the
said Secretary has in respect of such meeting.
(9) No act or proceedings of the Board shall be
deemcd to be invalid merely by reason of the existe-
nce of any vacancy in the Board.
4. Stateaid may Be given in all or any of theFormiof
following forms:- Stataaid
(a) the grant of a loan;
(b) the giving of a guarantee in respect of a
loan, cash credit, over-draft or hed adva-
nce with a Scheduled Bank, Life Tnsura-
nce Cor oration, Co-operative Socicty,
K or with t e Industrial Financial Corpora-
tion of India, the Orissa Sfslte Financial
Corporation or such other Industrial Finan-
cing Agency as may be approved by the
State Government;
(c) the ,taking of shares or debentures;
(4 the guarantee of a minimum return on the
whole or part of the capit,tiI of a joint
stock company fdr a period fixed in
accordance with the rules made under this
Act;
,fe) tbe underwriting of the issue of stocks,
shares, bends or debentures By a limited
jokt stock company;
(f) the grant on favourable terms, .of InQd, raw
mdte~ial, fuel, Water or any ojher property
or right vested in the State Government
subject to the provision of any law, rule
or order for the timc being in force;
(g) the phyment of subsidy-
(1) in the case of Small-scalo or Cottage Iildu-
stry, for one or more of the following pur-
poses, namely: -
ti) the durchase of land, machinery and
equipment ;
(ii) the construction of factory buildings,
mgodowris, wells and sheds;
(112-73 (a) Law)
(iii) technical improvement to the machinery
used in the industry;
(iv) the employment of eEcient Manager
nnd Supervisory personnel for a limited
period;
(Y) the training of workers employed in the
industry;
(pi) the conduce of research; or
(vii) my other purpose as tho State Govern-
ment may, by notification, specify;
(2) in the case of any other industry, for the
conduct of res~arch or purchase af machi-
nery or for any other purpose as tho State
Government may, by notification, specify;
(Ti) the supply of machinery on the hire
purchase system including the guarantee
of thc price of the machinery and equip-
ment purchased by any industry on hire
purchase agreement from the Nationa:
Small-scale Industries Corporation or any
other concern approved by the Sta'is
Government;
([I the suppIy of eIectrica1 energy at coilcc:
sionaI rates from a source which is tha
property of the Statc Governmenl or the
grant of subsidy or rebate on the sata
(including mini mu charges) payable by
any industry for supply of electricity
to it;
( j) the lending of sorvices of experis or
persons in the service of the Govermont
for starting or advising an industry free
of charge or on favourable terms; and
(k) to any individual, by the grant of a Ioaa
for the purpose of investment in the share
capital of any Co-operative Sodety or
any joint stock company within the
rncxing of the Companies Act, 1956 1 1996.
cngaged in any industry or for purchase
,uf share held by Government in any
Gc~:e:nment company, within tho meaning
of tiie mid Act engaged in any indust.ry.
5. Subject to such conditions or restrictions as :;i;t:;;o
it may deem fit to impose the State Government may, ,iw ,aa;n
orms of by norification, from time to time, delegate f
Srate-ald its power to give State-aid in one or more of the
forms spccificd in clauses (a), (b), (g) and (h) of
section 4 in favour of such authorities, not being
below the rank of a District Industries Officer, as may
be speceified in the notification.
6. (1) State-aid may be given in any of the forms ,,,,,, i,, ,,
specified in section 4. which
several
forms 01 (2) The State Government may roquire any state-=td
industry in respect of State-aid to locate its Head may
Office within the State of Orissa.
Expla~mfion-"Head OEce7' means the place
from which the affairs of the company, business
or industry are actually controlled and includes tho
reg is t er ed-office of a camp any registered under the
1 3f 1956. Companies Act, 1956.
(3) Every industry in recoipi of Srate-aid shall
make such provision for the training of apprentices
as may be prescribed.
7. (1) Applications for S tate-aid shall bo made ~~~lic~~i~~
to the authority c-mpowered to give the State-aid in r3r State-a'd
such form and shall contain such particulars as may
be prescribed.
(2) No State-aid shall be given of an mount or
valuo exceeding such sum as may be prescribed udess
the application thorefor bas been published in tllo
prescribed manner together with a notice caning upon
porsons objecting to the giving of sucIz aid to submit
thcir objections in such manner as may be prescribed,
(3) The State Government or the authority to
whom the State Government has delegated its power
to give Stzteaid, as the case may be, shall consider
overy such objection and after making such enquiry,
jf any, as it may em necessary, shall make an order
either admittins or disallowing it.
(4) Every application for Statc-aid of an mount
or value cxceeding thirty thouand rupees in respect
of any one industry not being an application for the
disposal of which power has been delegated underq . -
section 5, shall be placed before the Board at a
meeting for its advice and no such application shall
be allowed if a majority of the mombers of the Board
present at the meeting adviso its rejection.
(5) If an application for State-aid is rejected in
whole or in part by an authority to whom power has
been delegated under section 5, tho State Government
may, on its own motion or on an application made
j~ this behalf, rovise the order and give such aid in
such form and of such amount as it may deem fit.
(6) Every application for State-aid shaI1, as far as
practicable be disposed of within a period of three
months from the date of the application.
Provisions regulating the giving of State-aid otherwise
than bY the supply of machinery on hire
purchase system
limitation 8. (1) No loan shall be granted to any indushy,
of amount of other than a smalI scale industry, of an amount excee-
lo an. ding seventy per cent or to any small scale industry
of an amount exceeding ninety per cent of the net
value of the assets of the industry after deduction of
the value of all encumbrances existing at the time the
' application is made :
Provided that in the case of a new or nasceqt
scale industry. the State ~overnment may
grant a ioan equal to the value of the security offered
including collateral security, if-
(i) the State Government is satisfied that it is
necessary in the interest of the State to
promote the development of such industry
and the industry can not be established
without the grant of assistance ; and
(ii) the applicant agrees to associate a ao~nee
of the State Government with the manage-
mmt of the industry and to regulate
expenditure out of such loan in the
prescribed manner :
Provided further that subject to such other condi-
t ions as may be presqribcd, a Igan for a period not
exceeding two years may be given to a small scale industry bn the security of movable property inclu-
ding stock in trade.
(2) Notwithstanding anything contained in subv
section (11, a loan of an ai11ount not exceeding five
hundred rupees may be given in the case of an indus-
try owned or managed by an artisan on the personal
bond of the applicant or on the security of one or
more personal sureties.
(3) Tho valuation of the assets or the security, as
thc case may be, under sub-section (1) shall be made
in the prescribed manner by the Director or any
ptber person authorised by him in tTut behalf.
Bxp1attafiu11-For the purpose of such valuation
the additional assets which may be created by th
grant of such State-aid may be taken into account t .
such extent as may be prescribed.
9. Every loan granted to an industry shall, sub- Loan how to
ject to the provisions of section 8, be secured by a seCUrC.
mortgage or a floating charge upon the property of
the industry subject to any oncambrances existing at
the time when the loan is granted and of such colla-
teral security, if any, as the State Government may
require.
Explanntion-For the purposes of this section the
"property of an industry" shall not include
raw materials acquired for the purposes of finished
goods produced by or the stock in trade or other
floating assets of the industry.
10. In any case in wbich an application for a Inspection
loan has boen made under section 7, the applicant~i~,
and at any time during tbe currency of the loan
that has beon granted, tho grantee, shaU be bound-
(a) to comply with any general or special
order of the State Govsrnrnent or the
Director of Industries relating to tlm
inspection of the promises, buildings,
rnachinory and stock-in-hand of the
industry ;
(b) to pormit the inspection of all accounts
relating to the industry;
(G) to furnish in the prescribed manner fd
returns of all products manufactured or
sold both as regards des~ription and
quantily;
(d) to maintain such spccIa1 acc~unts and to
furnish such statements as the State
Government may, from time to time,
rzquire; and
(c) to submit the accounts of the industry
to such audit as the State Goverment
may prescribe:
Provided that before requiring any grantee to
comply with any of the recluirements of this section,
notice shall bs given to him in the proscribed
manner.
power of 11. If at any tirnc the outstanding balance of the
~~atGoy; loan granted under this Act is fouud to exceed
adjust scfu- the percentage specified in section 8, the State Govern-
rity during ment may either recover so much of such balanco
$Io~~eaCY as is in excess of such percentage or accept such
additional or collaterat security as it may deem
sufficient.
Guarantee-
ing of cash 12. (1) The provisions of sections 8 to 1 f in
cicdit wjlb Pe~peCt of loat1 s shall, subject to any rulas that
Banks- may be made under this Act,apply,sofarasmay
be, to guarantees of loan, cash credit, overdraft
and fixed advanccs with a scheduled ~ank and to
debenturc.~ issued to the pubIic.
(2) Nothing in sub-section (I) shall apply to .an,y
cottage industry for which I Statc-aid granted
docs not exceed one thousand rupees in value or
to a small-scale industry ottur than a cottage
industry for which tke State-aid grailted does -not
cxccod five thousand rupees in value or to a'fi
individual to whom thc State-aid granted for invost-
ment in the share capital of a CO-operative society
or a joint-stock company does not cxmed five hundred
rupees.
Termination
oi state-aid. 13. (1) The State Guver~~mcnt or the authority
who has sanctioned the Statc-aid may, after consi-
dering the explanation, if any, offered by tho owner
of any industry, ordor termination of State-aid
sanctioned to such industry on any of the following
grounds, namcIy: -
(b) that thsre has been breach by the owner
of the industry of the provjsions of this
Act or of any 1~u1e madc thereunder or
of any condition of the grant;
(c) that the application on which the State-
aid has bccn granted contained or was
accompanied by any material statement
by the owner which he knew to be false,
or that thcro has been any intentional
concoalmeni by him of any material fact
which, in the opinion of the State Govern-
mcnt or the said authority it was his duty
to disclose or that any suc5 false statement
or concealmeat was intentionally made in
any enquiry held under this Act or in any
return furnished under this Act or in any
reply to any requisitio? for information
issued under this Act or with the
connivance of the owner or person in
charge of fhc management of the
industry
(4 that the grantee has failed to comply with
any order under clause (a) of section 10 or
does not permit or objects to the
inspection of the accounts of the industry
or makes default in cornplying with the
provisions of any of the clauses (c), (d)
and (e) of section I0 ; or
(e) that the industry is being managed in such
a manner as to impail, the repayment of
the value of the State-aid granted
thnreto.
(2) Subjcct to such conditions or rmesfrictions
as may be pi-escribcd, the State Government may
ddegate io such authority as may be proscribed, its
power under sub-section (1) to terminate tho State-
aid of an amount or value not exceedkg thirty
thousand rupees iu respect of any om industry.
(3) Any person aggrieved by an order, other
than an order passed by the State Government,
terminating the State-aid may prefer an appeal to
such authority and within such period as may be
prcscri bed,
(4) The appellate authority may, after hearing the
parties concerned and after holding such enquiry as
may be prescribed, pass such orders as it may
dcem fit.
Rr:ll~ytyrneut
bi loans. 14. (1) Every loan granted under this Chapter
shall be made 1-epayable by instalments within such
pcriod from the date of actual advance of the loan
or, when the Ioan is advanced in instalments, from
thc date of paymerlt of thc last instalment, and shall
bear interest at such rate and payable in such manner
as may be ked by the order granting the loan.
(2) Tbe period fwed as aforesaid shd not exceed
twerity years unlcss the State Government, by goneral
or special order, otherwise dirccts.
Power of
State
Govcrnrncnl
i o mover
1~an.
15. After an order under section 13 has been
passed terminating the Stato-aid in respect of any
indus~ry, the State Government may, notwithstandint
anything to the contrary contained in any other
provision of this Act br in any other law for the
time being in force, proceed to recover from the
owner of the industry as an arrear of publrc
demand-
(a) the whole amount of the Ioan outstanding
together with such interest as may be due
thereon ; ,or
(b) in case where the aid is given otherwise
than by the grant of a loan, &e money
value of the grant or concession asked
at the. time the loai was made together
with interest at such rate as may be
prescribed, from the date of the grant or
concession, as the caso may be, till the
date of realisation ; and
(c) tbe cost of recovery.
su bscriplion 16. The conditiclns of taking of shares or debea-
brdl=csor t~re~ by the State Government or the guarantee leben~urcs or of a minimum return on the whole or part of the
luinlmrrm capital of any industry shall be-
; durn of
r apital. (a) that the industry shall be subject to the
conditions laid down in section 10 in
respect of inspection and returns ; and
(b) that for all shares and debentures takeri
by the State Government, there shall
be taken by the other pexson shares or
debentures of an amount which shaU be1
at least fifty percenturn of tho amount
paid by the State Government.
17. (1) Exwpt in the case of co-operative subs~dirs
societies and persons trained in particular trades at
Government cost, no subsidy shdl exceed the pres
cribed percentage of the cost involved in the purposes
for which the subsidy bas been granted.
(2) Tho condition of grant of subsidy to
industries, other than smaI1-scale or cottage industries,
for the conduct of research or the urchase of
B machinery or of any other payment un er guarantee
of minimum return. on the paid-up capital or the
grant, on favourable terms, of land, raw materids,
firewood, water or other property of the State
Government or of ihe supply of electrical energy at
concessional rates from a source which is the property
of the State Government, shd ordinarily be that
such State-aid shall be discontinued if the industry
be shown to the satisfaction of the State Government
to be earning profit in excess of such rate as may
be prescribed.
18. No recipient of State-aid shall pay any P
dividend or distribute or take any profits in excess pro fits wbsn condidom of of such permnttige of the capital of the industry as stat~ald ~t
the State Government may, from time to time, fix md.
un~l the conditions on which State-aid has been
granted are faled. The balance of the profits after
necessary amounts have been set aside for deprecia-
tion or obsoles&fice of plant, machinery ' and
buildings and for the payment of interest on deben-
mres or loans, shall be carried to a reserve fund to
be utiIised in such manner as the State Government
may approve :
Provided that the State Government may relax
the provisions of thia section in the case of any
jndustry aided by the grant on favourable terms,
of loan or raw materials, fuel, water or any other
property or right of the State Government or the
grant, free of charge or on favorable terms, of services
of experts or person in the service of the State
Government or by the payment of a subsidy for the
conduct of research.
Govcrnmcnt
conrrol of 19. Notwithstanding anything contained in any
aidd indust- 0th provision of this Chapter, if in any case thc
HCS. amount or value of the Stato-aid given thereunder
amounts to or exceeds two Iakhs of rupees, or the
face vaIue of the shares heId by tile Stato Govern-
ment exceeds twonty-five por coat of the value of the
authorised share capital, tho State Government, shall,
and in any other case may, by appointnient ,of
Government directors o theywise, take .power t~ -ensure
such control over the industries as shall be shacient
,in its lop,inion to safe-guard its interest.
Recovew of
money due 20. (1) A11 moneys recoverable under this ha pi-
under this er includ,ing any interest- chargeable >-hereon and it&
Chapter' ~~~fs;.-if apy, incur~qd, .if qot paid when they aredue, lip~y; on .a.:iequisitiop made by the Direcfor; be!i&eb-
- ,+fed from! ' the person aided.,and his sur 9, if.;&Ff5
it& $f t& &@re;a rrears of. public*. demand, %-:* L #!
, c. . , ,,.. .- A ". ..- :. ' +<I::+-.- ,, . , <aivfi: ,'
I!, -r- en .$i)T 1.;; mo-qe - , . y, hqb, is, piid'fQ $)-$, .gid$i&
, brAQ# %&ya. ~'t r~;r&d+$r~d.~raW tp : bt;BhF$YHis
&by $he ,4?ir<ard~,, !he ,;Di~e~tbs - s4a11,. , t l;e -,of? 2v, ..,4
,-,ap B$c .Ba$p: ~f. @ .surety, $g far- &s $ossble, , , .+<, ;:. tekdv$r ,. ,,? ,--
:,'&$ $w~B, fro@'the persw aided <4y4 -,~qy- I! ,! YO, 'iJe
'- sutet'y. 0.
. ,,., ,, ! . - . 0.
, ., ..,? . * ,. 8 . J;,-;c: .,ti
(3) Where any industrial concern under liability
- ! ,(to, t~e,:Si~'-!Gov~rgment~ makos 'ally defaultrin the . , ..
. . -I,.-'
. . . ;l matkc ofitispayment of any Joau or advmcs, i OF.
'. '- : insfalmept thereof or' othe~wise fails do~mgdy mi&
,L ,'!#. , ;:tbe)tems;of:.t~e agreement;-the,3D;irwbrj,with!g y&pv
io4 safeguarding ,the interest afi the? Gowernnzledt :md
-i s.wurit$of the Golrernment dues. lad: xfielt: .; gi~ing
. dmsopihle :notice. to the parties in. d~fa.ult,?~haIl,
,jsubje@-@::the control.,~f the: State .G~wram&t, ,haye
- thd:dig$t: .to take possessi~n of the. as-sets o:rrtf.~(&ke
, ..ovh~ the ; management of the indust~id: ,; ~oiiw~~~ :@s
!mu.. as ?the. ,right to ;transfer by way~o;f Ie,se: or s3Je
tho property pledged, mortgaged, hypntbe~tec;!: .or
assigned to the State Goveixment and to realise the
...$ he dues gfthe:State Goveirnment:. ', . . . r
n :r .
f'" Provided .that wher~ the panag~rjiiiit~~~of,
,'@d&&l c6ncer.n is taken over- by t& : Direc tb.r, he
sba!l,bglde.qyd to be the owner of the conckip fhr
*-t& i~urposes of suit; by or against the co$e@;aiid , , ,
'&AIL bue and:he sued in the qameaf the copcbm:, , -. ,."-- , .: , .
(4) 'hy.transfer of property made by the 'r~iri~t-
or in exercise of his powers under sub-section (3) ah311
vest in the tr ansfesee all rights, in ,or t s the property
transferred as if the transfer had been made by the
owner of the property.
.", ... 24. (1) -The Governlnent may charge in LCVY of foa
resgjpt - !of+ .- ;~pplisatibns, enquiries, inspections and
apdit by waomsoover made under the provisions of
this Act,-such fee as may be pi.e,scribed.
, , (2) The State Government may charge such fee
$S .- gay be prescribed for any guarantee,given by it
ripder the provisions of this Act.
1 ., ,
CHAPTER XV
, ' . , SupflJ! , . of machinery on the hire-purchzi'~e*s~stem C
' 2% No machi-nelry shaI1. be aupplied on hirc- Pcrccntage
pWcLi;ise system1 unBss the appl.icant-.foil the State-aid ~~~~~~1~~ $
dcposites wit& -the, Director such.pe'rken.tagi= (not being hlrcr.
beIow : ten .per cent) of the cost.. thereof as may bo
prmafiibed.. .
... , .
1 23, Whvn an application for such St-iie-aid is all- topjcc-
~ypd' the Director shall, subject. €0 and, &acdbrdance 4 in
with 'any 'rules that may be made. -~ader this Act, order whm application
malte an- order specify jng tho followipg' particulars, .II.,&. ' '
,'!$p# :!T . - ,
, : :(a) khemuount?f-eaoh ;inistalrrient. of rent to
. ,, . -. . : ..:':::[be. :paid,30r the hire.,of.tha.,mchinery and
.I . ! !I : m~-the.~numh~.ofsu~b~instaImentstobe paid
before the mactzine~y~ shaU become tho
property of the hirer;
. . ..
(b), the amount of interest, if :any, to be paid
. . along. with each instalmont of rent on the
t remaining unpaid instalment;
, '(c) the dates on which and the manner in
which the aforesaid paymsnt shall be
made; and
(4, such other particulars as may be prescribed.
{''
'24. Until the hiring is terminated in the mmer c~ndia~n.
hcreinarteter provided, the following provisions shall ~~~~?~a
,,~ppJly~ namely:- hjfc"' &dl-
,.;r ,',; '+ & sysf&&::'
., (i) the .hirer shdl pay punctually without'
' s:.. - -
,.: demand, the instalrnents of rent and m-
. ,, .,:. -, - unt sf interest.specified in the o~der refer-
?,. , . . red to. in section 23;
r! r. . . .
900 TEfS ORISSA STATE -AID TO INDUST RJES ACT, 1478 [Or. Act
(b) the hirer shau retain the machinery in his
own possession in good and serviceable
condition and shall not without the previ-
ous written consent of the Director make
any addition thereto or alteration therein,
nor shall remove the machinery from the
premises specified in the application for
the supply thereof;
(c) the machinery shall remain &e sole and
absolute property of the State Government
and any transfer thereof or assignment
of any right, tide or interest therein or the
creation of any mortgage, encumbrance or
any other charge thereon by the hirer shall
be void as against the State Government
unless it has been made with, the previous
written consent of the Director;
(d) Th? machinery shall not be liable to &st-
ralnt, attachment or sde by any process
. ,. under any law for the time being in force;
(e) the machinery shall bear a metal pIate in
~e prescribed form and any person who
.. wilfully removes or defaces such plate
shall be liable to a fine not exeeding five
hmdred rupees and it shall be presumed
until the contrary is proved that the
machinery bearing such metal plate is the
property of the State Government hired
out under this Chapter;
(f) the hirer shall permit the Director or any
person acting under his authority ia this
behalf to inspect the machinery at all
reasonable times, and the Director or
such other person shall have all such
powers of entry as may be necessary for
the purpose of making an inspection; and
(g) the hirer shalI be bound by such other
conditions as may be prescribed or as
may be imposed by the Director in any particular case.
~enslqutn- ces of default 25 If the hirer makes default in payment of the
by ,, ce, rent of the machinery, the interest or any other
charges payable by him under this Chapter, or fails
to comply with any of the conditions specified in or
imposed on him undor section 24, the Director may,
after wnsidering the explanation, if my, offered by
the hirer, terminate the hiring, and may himseIf enter
or authorise any other officer in this behalf, to
enter upon the premises, in which the machinery,
for tbe time being, is kept and seize and tako away
the same, whether such premisea belong to the
hirer or not.
26. If the machinery is seized and taken away option of hiis to
under section 25, the hirer shall have the option to be ,,,,
exercised within one month after such seizure or such machi-
seized In longer period as may be allowed by the Director, of ,,,,,,-
purchasing the same on payment to the Director of
the unpaid balance of the cost thereof, such propor-
tion of the interest on the said costs as may be pres-
cribed and the expenses incidental to such seizure and
removaI.
27. The hirer may at any time terminate the Termination of hiring by hiring by returning the machinery to the State Govern- -,
ment in the manner prescribed.
28. Tf the Director terminates the hiring under Uabtlit~ of
section 25 and the hirer does not purchase the machi- birer on t~imination
new under section 26 or if the hirer returns the of hiring
under - mazhinery to the State Government under section 27, lions
the hirer shall not entitled to the refund of the ~er- 26.
cent* of cost deposited by him under section 22, or
u&ss the State Government ot henvise directs, to the
refund or remission of any payment made by or any
amount due from during the hiring and he shd be
liable to pay such amount as determined by the Dire-
ctor in respect of any loss or damage, other than by
reasonable wear and tear, that may have been caused
to the xhachioery during the hiring.
29. When the hirer, after deposit of the per-.rermination
oentaga of cost with the Director under section 22, ;::JZ;;
has paid in full, all the instahents of rent, mentioned mst oc
in clam (a) of section 23 togather wiih the interest, machinefy.
cost and other charges payable by bim under thja
Chapter, he shall become the owner of the machinery
and sha1I thereupon remove the metal plate mentioned
in clause (0) of section 24:
Provided that if at any time during the hiring the
hirer pays in advance the remaining instalments of
rent, the interest payable in irespect thereof shall b
remitted.
902 W : QRISSA , STATE-AID TO INDUSTRIES ACT, 1978- . [Or. -Akt
( Sees. 30-33 )
~cnaltiu 30. (1). If the hire,r wilfuliy owits aftor rccciving dve
notice to remove the metal p1,ato from any @acfiirny
which h.y become his, property under sectia~l 29 agd
to return' the saw to the Director, he shall be lia,ble
to'~a~ a penalty which may extend to fifty ru@,ees.
(2) If the hirer causes any interference in tlzc
action qf the Director or any other officer,auth,~rised
by him xn this behaIf in entering upon the ' premises
. . in which the machinery for the time being'is kept, . .
,. ok in seiziog or taking back such machtnery,
, whetber: the premises belong to the hirer or riot, :as
proqidedjn section 25;the hirer shall be ligble to: pay
d pefidty which may extend to one hundred rupees.
. ..
Recovery of . 3b, AU :sgms pay3blg. under .-this ,cha~ter,sml Bums due
uodcr thin bkrec&verable asAif they are arrears of public.demand.
Chapter.
. : .. , . .. - , >
CHqPTER V
.., - . . ,. . a Misc$Uaiieeus , ..,-. . .
..,
suvr-ion 32. (1) If at any time. it appears toTtb.. State O'BP"rh. ! ': ' . ' &+ertkkfit that .the Board is got prppeily' perfor-
. -: - :&inglthe:duties, imposed ,upon it by or rnddr tqis
, . ., , ,. . Act, :'$ !may , .after, .consider$g the .explangti6$'$~G$i, - ,i,! . . .
, : , - &&&j 1 ';by '- 'the' Bdard, ' by. jd' - ,vmg, ~goj*~!,qhd- 6esb.s for h, do?&, ~k~&;ig, ,d~e ,;mgm+@@b: :of .- tfieL: Bgar&d o&bf:j 5~gn:? & kgo &o .:&&be* :&na;d,[email protected] the~:+Aoafi'&ies<ihail ct'h$&jvzn
.86 filIqdd:up by election in respect of elecied &&@&
.an) by appdi.fltmqn$ . . in respec%: of ', ap$bin& w&@eis.
'i- (2). D~rj.gg the : .&o& iqtcryening,, b;&eei he date of an orde~ under sub-sectigq, ,(I) . EL& the
reconstitution of the Board, the powers and duties
of the, Board ,.sha]l be exercise,d and pe,rf0rmed by suchperson and in such manner, as the State Gobern-
qent! may direct.
~ornoval if 33. .If the State Government is satisfied that any
member. me&ber of the B-oad elected under clause (b) 'bf
s~b~section (1) of section 3 or appointed u$#ir clause (4 of that sub-section has-
(a) failed to attond three consecutive meetings
of the Board without sufficient causa ;
(b) taken part at a meeting of the bard-'in
viola tion of tho provisions of this ;lict
the rules made thereunder ; or
#.. ,
(c) conducted himself in a manner causing
hindrance to the smooth functioning of
the Board,
it may, after considering the explanation, if any,
offered by the member, by an order in writing,
specifying the reasons for so doing, removo the
member from office.
34. No State-aid shall be given to any industry, pb::~:id
except Agriculture save in accordance with the pro- save rn
visions of .this Act : accordaue
with pro-
.:-:Provided that nothing in this Act shll apply- visions of
this Act.
' (I) to any State-aid given in the form of the
grant of a loan to any industrial concern
', ' , . as defined in the Siate Finaricial ,Corpora-
63 or 1951 tions , Act, 195 1, through :the agency of the
~i . , . , State Financial Corporatjon in persuance
,I ., .: . , . ., . 4f cIquss (ee) bf sub-s$-ctiori (I) of
'section -25 of that'Act ; or
I.,. ... . .
/.'. ,
. . . (2) i~ any Stateyaid given tp''siek, industry ; or
(3) to any State-aid in t;he*form-a£ a guarantee
. : giyen , to - spy, industry whjch is a publio 'iiidertahng ;. or : . . ', , ,. ,
,,,- '*! '. ., .
(4) to the power of the State ~ohernment to-
: , (4-:start .or conduct an- ,hdhstr,y ' &pr experi- . . /?[. . - . .
1; "! ;, ,'
, ., " lmental purposes 'hith a view to
.-, ., . .. . , . stimul-ati ng industrial develop-meqt ; ;. .r :, I. ,< .
:,I ;. . .f
-j ! f,, + ,, *'
!. . ,. 0;- b!f->
C) .ass~st!kn sintlustry 'by giving free-~f kh&fs
ok OP &.jbur&ble teri-rs, t5e seijyi&esr-df , : ...
1 :, .. . . aovehmedt 6fficials or, experts ei thtir
4 !'I '
in ,the c,apacity of advisers or for a liuitred
'-period not Weding one year:for ' stardng
or conducting such industry ;
,'
(a) assist an industry m mnnecti~~ with .. industrial education or the tr'aiairtg of . . -:
.. . apprentices ; I. . I( ..I .
::;::>: :. -
. acidire land unaer .t!le prpyisiqns .df fie
,,,,, .ii; -. . : Land, Acquisition Act, 1-89,4, 'for a
!.,.,. !. : company,; . -
(f) assist a company formed for the purpose
of supplying electricity, gas, water or any
other service which in the opinion of the
State Government is likeIy to prove useful
to the public ; or
(g) assist a village industry in any manner
which may be determined by the State
Government.
Explanation-For the purposes of this section-
(i) "sick industry" shall mean an industry
which continuously fails to generate
internal surplus and depends for its
running on mancia1 aid from outside ;
(ii) an industry shall be deemed to be a pubIic
undertaking if it is owned by-
(a) a Government company witbin the
meaning of the Companies Act, 1956 ; r of l@jl
(b) any corporation established by law which
is owned, controUed or managed by any
Government ;
(c) a Grama Panchayat constituted under
the Orissa Grama Panchayat Act, 1964 ; %&:
or
(d) A Panchayat Samiti constituted under
the Orissa Panchayat Samiti Act, 1959. p,h9id
Rtmiskn of 35. If the owner of an industry or any other
m-t. person to whom State-aid has been given in any
of the forms mentioned in section 4, pays the money
recoverable from him under Ghapter 111, or as the
case may be, the instalments of rent payable by him
under the provisions of Chapter 3;V in accordance
with the terms and conditions laid down in this Act
and the rules made thereunder, he shall be entitled
to a remission on the rate of interest by two
per cent.
Exemption
of oertain
classes or
persons.
36. Nothing in clauses (c), (d) and (e) of
section 24, or in any other section which the Stas
Government may, by notification in the officjaI
gazettee, specify, shaU apply to the grant of a loan
or the suppIy of machinery on the hire-purchase
system involving the advance or expenditure of an
amount not exceeding five hundred rupees to a person
belonging to the Scheduled Castes or Scheduled
Tribes or to a person whose annual income at the
time of the application for State-aid did not exceed
one thousand rupees, for the growth and develop-
ment of small-scale industry or cottage industry.
Explanntion I-"Scheduled Castes" shall have
reference to the Scheduled Castes specified in respect
of the State of Orissa in the Constitution (Scheduled
Castes) Order, 1950.
Explanatiorr li--"Scheduled Tribes" shall have
reference to the Scheduled Tribes specified in respect
of the State of Orissa in the Constitution (Scheduled
Tribes) Order, 1950.
37. (1) The decision of the State Governrnent~imt~~f
as to whether the conditions laid down in or under:$tonof
any of provisions of this Act, have been satisfied shall ~ovcrnment
be final and no suit shall be brought in any Civil and bar of suits and
Court to set aside or modify any such decision OT prooxdings
any order made under this Act. Criminal in Civil and
i
court. (21 No prosecution, suit or other proceeding i
shall fie against any Government Officer or clther
authority vested with powers under this Act for
anything in good faith done or intended to be done !
thereunder.
38. (1) The State Government may, after previ-povVcr lo
I I
ous publication make rules for carrying out all or make rule^.
any of the purposes of this Act.
(2) In particular and without prejudice to the
generality of the foregoing power, the State Govera-
ment may make rules in respect of a11 or any of the
following matters, namely:-
(a) the manner of election of the members
of the Board and the conduct of business
of the Board including the manner in
which notice of the meetings shall be given,
the quorum at a meeting and the recording
of proceedings ;
(b) the delegation of power to give State-Aid
as provided in section 5 ;
(c) the manner of making applications for
State-aid under sub-section (I) ; and all
matiers rclating to the publication of .such
application and tho submission and
disposal of objections undor .su b-sections
(2) and (3) of section 7 ;
(n) the manner of ascertaining .the net value
of the sccurity offered and the. psrcent age - -
of such value which may be grgnted -as a
loan under section,8 ;
(e) the nature of tho securityExcerpt shown. Open the full act in Lexace.