(1) Except in the case of co-operative societies and persons trained in particular trades at Government cost, no subsidy shall exceed the prescribed percentage of the cost involved in the purposes for which the subsidy has been granted.



(2) The condition of grant of subsidy to industries, other than small-scale or cottage industries, for the conduct of research or the purchase of machinery or of any other payment under guarantee of minimum return on the paid-up capital or the grant, on favourable terms, of land, raw materials, firewood, water or other property of the State Government or of the supply of electrical energy at concessional rates from a source which is the property of the State Government, shall 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.