66Special provisions with regard to Tungabhadra Project

(1) Notwithstanding anything contained in this Act but subject to the provisions of paragraph 12 of the Seventh Schedule, all rights and liabilities of the State of Madras in relation to Tungabhadra Project or the administration thereof shall, on the appointed day, be the rights and liabilities of the States of Andhra and Mysore subject to such adjustments as may be made by agreement entered into by the said States after consultation with the President or if no such agreement is entered into within two years from the appointed day, as the President may by order determine having due regard to the purposes of the Project, and any such order may provide for the management of the Project jointly by the said States or otherwise:

Provided that the order so made by the President may be varied by any subsequent agreement entered into by the States of Andhra and Mysore.

(2) An agreement or order referred to in sub-section (1) shall, if there has been an extension or further development of the Project after the appointed day, provide also for the rights and liabilities of the States of Andhra and Mysore in relation to such extension or further development.

(3) The rights and liabilities referred to in sub-sections (1) and (2) shall include

(a) the rights to receive and to utilise water which may be available for distribution as a result of the Project,

(b) the rights to receive and to utilise the power generated as a result of the Project.

(c) the rights and liabilities in respect of the administration of the Project and the construction, maintenance and operation thereof,

but shall not include the rights and liabilities under any contract entered into before the appointed day by the Government of Madras with any person other than Government.

(4) The President may from time to time give such directions as may appear to him to be necessary generally in regard to any of the matters specified in the foregoing provisions of this section and, in particular, for the completion of the Project and its operation and maintenance thereafter:

Provided that no such direction shall be issued or have effect after an agreement has been entered into by the States of Andhra and Mysore under sub-section (1) or after an order has been made by the President under that sub-section, whichever is earlier.

(5) In this section, the expression "Tungabhadra Project" or "the Project" means the project agreed to between the Government of Madras and the Government of Hyderabad before the appointed day and, so far as the State of Madras is concerned, intended for the supply and distribution of water from the Tungabhadra river by means of high-level and low level canals to the districts of Bellary, Anantapur, Cuddapah and Kurnool, and for the generation of electric energy, both hydro-electric and thermal, and its transmission and distribution to the said districts and includes any extension or further development after that day of that Project for the said purposes.