Execution of bond by Government Undertakings or Autonomous Corporations :

The Board has decided that every undertaking owned and managed directly through any Ministry, Directorate or Directorates by the Central Government is exempt from the execution of any bond; or a State Government is hereby exempt from furnishing any security or surety for bond, where the execution of such bond, or, as the case may be furnishing of security or surety is required by or under any other provision of the rules made under Central Excise Act, 1944.

An undertaking owned or controlled by the Central Government or State Government does not include any undertaking belonging to corporation owned or controlled by the Central Government or State Government and established by or under a Central Provisional or State Act; or any undertaking belonging to Government Company within the meaning of section 617 of the Companies Act, 1956.