Para 10.9.7 — CAM

10.9.7 Para 5.15.2

(iv) may be referred to in connection with retrospective conversion of a grantin-aid given to a State or UT Government into a loan.

(iv) Conversion of Grants in aid to Loans and vice-versa: It includes cases where any decision is taken by Central Government for conversion of a Grant-in-aid given during any earlier financial year to a State Govt. / U.T. Govt. /Entity into a loan or conversion of a loan given earlier into Grant-in-aid with retrospective effect. This is done after issue of necessary sanction and necessary appropriation as applicable. In the cases whereby the earlier grants are converted to loan, the progressive figure under the respective loan head (see Para 10.9.7 also) will be increased through "Proforma Correction" after affording contra credit for a corresponding amount under "Government Account". This will also be reflected in the ledger of balances in "Form CAM41","Government Account" in Form CAM-42, and indicated in the material for Finance Accounts submitted to CGA. A note will also be kept in the loan register, indicating briefly the terms and conditions of the repayment of loan. In the case of retrospective conversion of a loan given earlier into Grant-in-aid, the relevant sanction order should indicate the treatment to be given to the portion of loan and interest paid to the Govt. by the recipient of the loan. "Proforma Correction" would similarly be required to decrease the progressive figure under the relevant Minor Head under the relevant Minor Head of respective loan head by affording contra debit to "Government Account" in the documents referred to above.