(1) The Authority shall have and maintain a separate fund to which shall be credited,-
(a) all moneys received by the Authority from the State Government by way of grants, loans, advances or otherwise;
(b) grant-in-aid and loans made available by the Central Government for developmental activities in the Command Area under the Central Sector Schemes;
(c) any other funds provided for taking up any of the various development activities for specified programmes;
(d) loans raised by the Authority from financing agencies; and
(e) all other funds received by the Authority from any other source.
(2) The fund shall be applied for the purpose of the Act in such manner as may be prescribed.