(1)Notwithstanding anything contained in this Act but subject to the provisions of paragraph 12 of the Seventh Schedule, all rights and liabilities of the State of Madras in relation to the Tungabhadra Project or the administration thereof shall, on the appointed day, be the rights and liabilities of the states of Andhra and Mysore subject to such adjustments as may be made by agreement entered into by the said States after consultation with the President or, if no such agreement is entered into within two years from the due regard to the purposes of the Project, and any such order may provide for the management of the Project jointly by the said States or otherwise :Provided that the order so made by the President may be varied by any subsequent agreement entered into by the States of Andhra and Mysore.
