(1)- Notwithstanding anything contained in any law for the time being in force under which any local body is constituted and except as otherwise provided in sub-section (5), the Nigam shall, with effect from the date of its establishment, be the only local authority authorised to borrow any sum of money for water supply and sewerage services :
Provided that a local body having jurisdiction over a local area not included within the jurisdiction of a Jal Sansthan may with the approval of the State Government, which shall consult the Nigam before giving such approval, borrow any sum of money for such services.
(2)- Without prejudice to the provisions of sub-section (1) the Nigam may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as the State Government may, by general or special order determine, borrow any sum required for the purposes of this Act, whether by the issues of bonds or stock or otherwise or making arrangements with bankers or other bodies or institutions approved by the State Government for this purpose.
(3)- Stock issued by the Nigam under this section shall be issued, transferred, dealt With and redeemed in such manner as the State Government may, by general or special order, direct.
(4)- The Nigam may advance any part of such borrowings to any local body for the performance of functions relating to water supply and sewerage services on such terms and conditions as the Nigam may determine.
(5)- Where the Nigam has borrowed any sum for advancing loans to a Jal Sansthan or a local body for water supply and sewerage services, the Nigam shall transfer such loans to such Jal Sansthan or local body at such terms and rates of interest, in such amount and subject to such conditions of repayment as the Nigam and Jal Sansthan or the local body may by agreement provide, for the efficient promotion, execution, operation and maintenance of water supply and sewerage services in its area.
Provided that a local body having jurisdiction over a local area not included within the jurisdiction of a Jal Sansthan may with the approval of the State Government, which shall consult the Nigam before giving such approval, borrow any sum of money for such services.
(2)- Without prejudice to the provisions of sub-section (1) the Nigam may, from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as the State Government may, by general or special order determine, borrow any sum required for the purposes of this Act, whether by the issues of bonds or stock or otherwise or making arrangements with bankers or other bodies or institutions approved by the State Government for this purpose.
(3)- Stock issued by the Nigam under this section shall be issued, transferred, dealt With and redeemed in such manner as the State Government may, by general or special order, direct.
(4)- The Nigam may advance any part of such borrowings to any local body for the performance of functions relating to water supply and sewerage services on such terms and conditions as the Nigam may determine.
(5)- Where the Nigam has borrowed any sum for advancing loans to a Jal Sansthan or a local body for water supply and sewerage services, the Nigam shall transfer such loans to such Jal Sansthan or local body at such terms and rates of interest, in such amount and subject to such conditions of repayment as the Nigam and Jal Sansthan or the local body may by agreement provide, for the efficient promotion, execution, operation and maintenance of water supply and sewerage services in its area.