Power to construct water courses at cost of permanent holders

(1) Notwithstanding anything contained in the foregoing provisions of this Chapter, the State Government may, subject to rules made under this Act, enter in to a contract with one or more of the permanent holders of irrigable land in a village, mahal or chak whereby the State Government undertakes to construct water-courses and the permanent holders undertake to bear the cost of construction and maintenance. (2) When land not held by a permanent holder bound by such contract is required for the construction or a water-course, it shall be deemed to be required for a public purpose and shall be acquired in accordance with the provisions of the Land Acquisition Act, 1894 (1 of 1894).