(1) Where any land in a slum area or clearance area has been acquired under this Act the State Government shall make the land available to the competent authority for the purpose of executing any work of improvement or carrying out any order of demolition or for the purpose of re-development;
Provided that where local authority is appointed as the competent authority the State Government may either hold the land under its own control and management or transfer the land to the local authority and the local authority shall be liable to pay the cost of acquisition of the land or of such portion thereof as the State Government may fix in each case :
Provided further that where on any representation from the competent authority, the State Government is satisfied that any such land or any portion thereof is unsuitable for the purposes mentioned in this section the State Government may use the land or allow it to be used for such other public purpose or purposes as it may deem fit.