10. Government of Nepal may Utilize or Develop Water Resources:
(1)  Nothing mentioned in this Act shall be deemed to have prevented Government of Nepal from utilizing or developing water resources on its own.
(2) Government of Nepal may, for purpose or extensive public uses, acquire and develop water resources and the land, building, equipment and structures relating thereto utilized by any person under this Act.
Explanation: For the purpose of this Act, “Extensive Public Use” means the use which does not cause substantial adverse effect to the existing use and serves benefits to larger population that the existing population benefited from it.
(3) Government of Nepal shall pay compensation as prescribed, to the concerned person for the land, building, equipment or structures relating to the utilization of the water resources taken over by it pursuant to Sub-section (2).
(4) The amount of compensation payable pursuant to Sub-section (3) shall be determined on the basis of the current price (after deducting, wear, tear and depreciation) of the land, building, equipment and structures owned by
Government of Nepal