[26B. Power of State Government to transfer schemes to Company.- (1) Notwithstanding anything contained in this Act, the State Government may, by notification published in the Official Gazette, transfer to the Company such schemes which have come into force under section 10, subject to such terms and conditions mutually agreed upon between the State Government and the Company (including any condition regarding giving of any guarantee by the State Government) as may be specified in the notification.
(2) On transfer of the schemes to the company under sub-section (1),-
(a) where any work or part thereof under any such schemes is carried out or to be carried out at the cost or part cost of the State Government, and such cost is to be recovered from the owners of lands (other than Government) included in the schemes as shown in the statement prepared under section 13 or in the interim or final statement prepared under section 13A, then the rights and liabilities of the State Government under this Act and the rules and regulations made thereunder for the recovery of such cost or part cost from the owners of lands shall, with effect from the date specified in such notification, stand transferred to the Company in relation to such owners of lands ;
(b) the Company shall pay to the State Government an amount equal to the cost or part cost of the schemes transferred as aforesaid ;
(c) the State Government shall inform the owners of lands concerned of such transfer of rights and liabilities ;
(d) the owners of lands shall pay to the Company the amount or balance of the amount, as the case may be, which is to be recovered from them as aforesaid ; and
(e) any payments made to the Company accordingly shall discharge the owners of lands of their liability to make payment to the State Government under such schemes.
(3) Save as provided in sub-section (2), all the provisions of this Act shall apply in relation to the schemes transferred to the Company under sub-section (2) as those provisions apply in relation to schemes prepared and executed by the Company under this Act.]