78. Water Resources Development and its Management.-
(1) Notwithstanding anything contained in this Act but subject to the provisions of section 79, all rights and liabilities of the existing State of Bihar in relation to water resource projects in relation to,-
(i) Ganga and its tributaries; and
(ii) Sone and its tributaries,
shall, on the appointed day be the rights and liabilities of the successor States in such proportion as may be fixed and subject to such adjustments as may be made, by agreement entered into by the said States after consultation with the Central Government, or, if no such agreement is entered into within two years of the appointed day, then the Central Government may, by order, determine within one year having regard to the purposes of the project:
Provided that the order so made by the Central Government may be varied by any subsequent agreement entered into by the successor States after consultation with the Central Government.
(2) An agreement or order referred to in sub-section (1) shall, where an extension or further development of any of the projects referred to in that sub-section after the appointed day is undertaken, be the rights and liabilities of the successor States 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 right to receive and utilise the water available for distribution as a result of the projects; and
(b) the right to receive and utilise the power generated as a result of the projects,
but shall not include the rights and liabilities under any contract entered into before the appointed day by the Government of the existing State of Bihar with any person or authority other than Government.