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The performance by the
Board of the functions specified in, or prescribed under, sections 12 and 13 shall be subject to the
following conditions, namely:--
(a) no multi-purpose dam referred to in clause (c) of sub-section (1) of section 13 shall be
constructed by the Board unless the State Governments concerned make available the land required
for the purpose;
(b) no dam or project referred to in clause (d) of sub-section (1) of section 13 shall be constructed
by the Board unless the State Governments concerned make available free of cost the land required
for its execution and also undertake to take over its maintenance on and from the expiry of such
period after its completion as may be specified by the Board;
(c) no dam or other works shall be undertaken by the Board unless the State Governments
concerned agree to provide all such assistance as may be required for the construction , operation and
maintenance thereof;
(d) such other conditions (including conditions relating to the sharing by the State Governments
concerned of the whole or any part of cost of dam or other works constructed by the Board) as may be
specified by the Central Government by general or special order published in the Official Gazette:
Provided that before undertaking the construction of any such dam or other works, the Board shall
apprise the State Governments concerned of the cost of construction of, and the benefits likely to accrue
from, such dam or other works and the proportion in which the State Governments shall share such cost
and benefits:
Provided further that if the Board and the State Governments are unable to agree in respect of the
sharing of the cost and benefits of any such dam or other works, the Board shall refer the matter to the
Central Government for decision and the Central Government shall decide such matter after consulting
the State Governments and the decision of the Central Government shall be final.
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