The Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959
41. Special provisions with regard to Araniar Project.-
(1) Notwithstanding anything contained in this Act, all rights and liabilities of the State of Madras in relation to the Araniar Project or the administration thereof shall, on the appointed day, be the rights and liabilities of the States of Andhra Pradesh and Madras, subject to such adjustments as may be made by agreement entered into by the said States or, if no such agreement is entered into within a period of one year from the appointed day, as the Central Government may by order determine having 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 Central Government may be varied by any subsequent agreement entered into by the States of Andhra Pradesh and Madras.
(2) An agreement or order referred to in sub-section (1) shall provide also for the rights and liabilities of the States of Andhra Pradesh and Madras in relation to any extension or further development of the Project after the appointed day.
(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; and
(b) 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.
(4) The Central Government may, from time to time, give such directions as may appear to it 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 Pradesh and Madras under sub-section (1) or after an order has been made by the Central Government under that sub-section, whichever is earlier.