(1) If it is necessary to use or acquire someone else's real estate to do any of the following for the use of water resources, the person who has received the permit may make an application to the Government of Nepal as prescribed:-
(a) to construct a dam or embankment,
(b) to dig a canal, ditch or tunnel,
(c) to construct water tanks or lay pipelines above or below ground,
(d) to construct ponds or establish water distribution centres,
(e) To carry out other necessary construction works related to the development of water resources.
(2) If an application as per sub-section (1) is received, the Government of Nepal may, after conducting the necessary investigation in this regard, acquire such real estate to the person who has obtained the permit in the same manner as it acquires land to an organization organized in accordance with the prevailing law.
(3) The Government of Nepal or a person who has obtained a permit may prohibit the use of the construction work in the place where such construction work takes place or the real estate within a specified distance around the place so that no one else can use it for the purpose of any specific work. The Government of Nepal or the person who has received the permit shall pay compensation as prescribed for the damage caused to the concerned person due to the reason specified in that way.