Handing over of water supply schemes.

(1) Where a local authority is prepared to take over and maintain any scheme as a beneficiary, the State Government shall hand over the development, management or control of such scheme to such local authority subject to such conditions as the State Government may deem fit to impose. (2) The local authority, which takes over a scheme under sub-section (1) of this section, shall fix water rate as it considers necessary and shall be responsible for the efficient management of such scheme. (3) The water rate that the local authority may fix shall, in no case, exceed the water rate as may be specified by the State Government under section 5. (4) The water rate levied by the State Government, if any, shall cease to have effect on the fixation of such rate by the local authority.