(1) On and after the appointed day, no person shall establish or operate a saw mill or saw pit except under the authority and subject to the conditions of a licence granted under this Act:
Provided that no person shall establish or operate any saw mill or saw pit within a reserved forest, protected forest or any forest area or within ten kilometers from the boundary or any such forest or forest area.
(2) Notwithstanding anything contained in Sub-section (1),:
(i) a saw mill or saw pit, established by the Orissa Forest Development Corporation Limited or by any other agency of the Government prior to the appointed day, may continue to be operated by such Corporation or agency, as the case may be, and in such case, the Corporation or agency, as the case may be, shall be deemed to be a licensee for the purposes of this Act;
(ii) a saw mill or saw pit other than one referred to in Clause (i) and established prior to the appointed day, may continue to be operated, and shall be deemed to be a saw mill, or saw pit, as the case may Appointment of Licensing Officer"The State Government may, by Notification Establishment and Operation of Saw Mill and Saw Pit Orissa Act 14 of 1972 3 be, licensed under this Act, "
(a) for a period of three months from the appointed day; or
(b) in an application made in accordance with Sec. 6 for a licence is pending on the expiry of the period specified in Clause (a), till the disposal of such application under Subsection (2) of Sec. 7.