(1) After receipt of the scheme from a user, the Authority shall consider the viability of the scheme by taking into the account the following factors, namely :––
(a) whether the purpose of the proposed scheme is consistent with the State Water Policy ;
(b) whether the works required to be executed for the proposed scheme are detrimental to any existing, ongoing or proposed water supply, irrigation, flood control or any other scheme in the area ;
(c) whether the proposed scheme is consistent with the requirements of drinking water, irrigation, navigation, flood control or any other public purpose,
and make such inquiries and undertake such other studies, as it may deem necessary.
(2) If the Authority is satisfied that the proposed scheme is viable and meets all the requirements, it may, either approve the scheme as submitted by the user or with such modification as it may deems fit, or reject the same by assigning grounds for such rejection :
Provided that in case of a scheme relating to use of water for generation of electricity, the Authority shall submit its recommendations to the Government for approval of the scheme.
(3) If the user is aggrieved by an order passed by the Authority modifying or rejecting his scheme, he it may prefer an appeal to the Government within a period of thirty days from the date of such order and the decision of the Government thereon shall be final.
(4) In case of a scheme relating to use of water for generation of electricity, the Government may, on receipt of the recommendations from the Authority, take a decision either approving the scheme with or without modifications or rejecting the same :
Provided that no order shall be passed under this sub-section without the agreement of the Power Development Department and in case there is no such agreement, the scheme shall be submitted for orders of the Cabinet whose decision shall be final and binding.