(1) It shall be the duty of the licensee to develop and maintain an efficient coordinated system for the economical and optimum utilization of water and distribution of the same in accordance with the provisions of the Act.
(2) The licensee shall be liable to pay water usage charges (tariff) for the water utilized as per the provisions of the Act.
(3) Where any user has constructed an irrigation scheme, drinking water supply scheme, dam (for purpose of generation of electricity), or any other hydraulic structure or installed any unit for usage of water prior to the commencement of the Act, such user shall, within a period of six months from the date of commencement of the Act, apply for a licence under the Act and the licensing authority shall pass an order with regard to grant of license within a period of six months from the date of receipt of application in accordance with the provisions of the Act.
(4) If the user as mentioned in sub-section (3) fails to apply or obtain a licence within the time stipulated therein, the prescribed authority shall forthwith stop the supply of water to him until he obtains a licence as per the provisions of the Act.
(5) Every licensee shall be under an obligation to ensure the safety of the life and property of inhabitants of the area under the operation of the scheme, and of water sources and hydraulic works and protection thereof against any damage or danger caused or likely to be caused by the uncontrolled release of water or hazardous waste caused by the collapse or failure of any unit, dam, barrage or hydraulic work.
(6) Every licensee shall be bound to allow the licensing authority or any other officer authorised by licensing authority to have access at any time to the design, construction, alteration, repair, maintenance and operation of the licensed unit for its satisfaction.
(7) Every licensee shall provide efficient services to the consumers as required under the terms and conditions of the licence.
(8) Every licensee shall be bound to follow and observe such safety measures as may be specified by the Authority under section 105.