Article 293 of CoI : Article 293: Borrowing by States.

Explanation using Example

Example 1:

Scenario: The State of Maharashtra wants to borrow ₹10,000 crores to fund a new infrastructure project.

Application of Article 293:

1. Clause (1): Maharashtra can borrow this amount within India using the security of its Consolidated Fund, but it must adhere to any borrowing limits set by its State Legislature.
2. Clause (2): If Maharashtra needs additional funds beyond its borrowing capacity, it can request a loan from the Government of India, which can provide the loan under conditions set by Parliament.
3. Clause (3): If Maharashtra already has an outstanding loan from the Government of India, it cannot raise a new loan without the consent of the Government of India.
4. Clause (4): The Government of India may grant consent for Maharashtra to raise the new loan, but it can impose conditions, such as requiring Maharashtra to use the funds for specific purposes or to adhere to certain repayment terms.

Example 2:

Scenario: The State of Tamil Nadu has an outstanding loan of ₹5,000 crores from the Government of India and wants to borrow an additional ₹2,000 crores for a healthcare project.

Application of Article 293:

1. **Clause (1)...

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