(1) Where it appears to the Central Government that the arrangement in regard to the generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be, modified to the disadvantage of that area by reason of the formation of successor States, the Central Government may, after consultation with the successor States, give such directions to the State Government or other authority responsible for the maintenance, so far as practicable, of such arrangement before the appointed day.
(2) The Central Government shall within a period of three months from the appointed day, by order, also determine the share of the successor States in the entitlement of the existing State of Madhya Pradesh to power produced by the Central Government undertakings having due regard to the likely disadvantage which might have been occasioned to any successor State as a result of modified arrangements for generation and supply of electric power.