Under Section 27(2), the Central Government may guarantee, in such manner as it thinks fit, the repayment of the PRINCIPAL and the payment of INTEREST on loans borrowed by the Authority under:

Section 27(2) empowers the Central Government to guarantee BOTH principal repayment AND interest payment specifically in respect of loans the Authority borrows under Section 27(1) (bonds, debentures, or other instruments, with the Government's consent or general/special authority) - not loans/grants provided directly by the Government under Section 23 (which are already Government-sourced funds, requiring no separate guarantee), not surplus-fund investments under Section 24, not development fee collections under Section 22A, and not any generic Companies Act guarantee mechanism. This guarantee power specifically supports AAI's market borrowings by enhancing lender confidence, distinct from the Government's direct capital-provision role under Section 23.