Bare Acts

CHAPTER V GOVERNMENT GRANTS, GUARANTEES AND OTHER CONCESSIONS


21. Grants and contribution.— (1) The Central Government may support the Institution through
grants or contribution, as and when necessary, in the form of cash or marketable Government securities.
(2) Without prejudice to the generality of the foregoing, the Central Government shall, by the end of
the first financial year from the establishment of Institution, grant or contribute an amount of five thousand
crore rupees to the Institution in the form of cash or marketable Government securities.
22. Concessional rate of Government guarantee.—The Government shall prescribe a concessional
rate of fees, not exceeding 0.1 per cent. at which Government guarantee may be extended to the Institution
for borrowings from multilateral institutions, sovereign wealth funds, and such other foreign institutions as
may be prescribed.
23. Hedging costs.—Hedging costs in connection with any borrowing of foreign currency by the
Institution for the purposes of granting loans and advances or its repayment, to insulate the Institution from
any fluctuations in the rates of exchange, may be reimbursed by the Central Government in part or in full. 

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