(1) As from the appointed day, the State Electricity Boards constituted under the Electricity (Supply) Act, 1948 (54 of 1948), for the States of Andhra Pradesh and Madras shall be deemed to have been constituted for those States with their areas as altered by the provisions of Part II of this Act.
     (2) The undertakings and assets of a State Electricity Board referred to in sub-section (1), situated in the territories specified in the First Schedule or, as the case may be, the Second Schedule shall, as from the appointed day, pass to the State to which the territories are transferred.
     (3) Subject to the provisions of sub-section (2), the assets and liabilities of the State Electricity Boards referred to in sub-section (1) shall be apportioned between them in such manner as may be agreed upon between the Governments of Andhra Pradesh and Madras within one year from the appointed day, or in default of such agreement, as the Central Government may by order determine.
     (4) Notwithstanding anything contained in sub-section (2), the arrangement which, immediately before the appointed day, was in force in regard to the generation or supply of electric power for the territories specified in the First Schedule or the Second Schedule shall continue to be in force after the appointed day on such terms and conditions and for such period as may be agreed upon between the Governments of Andhra Pradesh and Madras, or, in default of such agreement, as the Central Government may by order direct.