(1) The undertaking of the Company shall be run by the State Government and shall be used and utilised by the State Government for purposes of production of o‘as and supply thereof to industrial undertakings, hospitals' and other welfare institutions, to local authorities for street lighting and for other purposes, if any, and to the public in general for domestic consumption, and for this purpose the State Government shall have all the powers of the Company under Act V of 1857.
(2) The State Government may for effectively carrying out the purposes of this Act add, at its own cost, to the undertaking of the Company such new works, workshops, plants, machineries, posts, pipes, pipe-lines, appliances, apparatus, accessories, furniture, equipments, stores, lands, buildings, erections or fixtures as it may consider necessary.