¹[(2) On the purchase of the undertaking, the Contingencies Reserve, after deduction of the amounts drawn under sub-paragraph (1), shall be handled over to the purchaser and maintained as such Contingencies Reserve :
  

     Provided that where the undertaking is purchased by the Board or the State Government, the amount of the Reserve computed as above shall, after further deduction of the amount of compensation, if any, payable to the employees of the outgoing licensee under any law for the time being in force, be handed over to the Board or the State Government, as the case may be.]
  

     ²[VA. (1) There shall be created a reserve to be called the Development Reserve to which shall be appropriated in respect of each accounting year a sum equal to the amount of income-tax and super-tax calculated at rates applicable during the assessment year for which the accounting year of the licensee is the previous year, on the ³[amount of investment allowance] to which the licensee is entitled for the accounting year 3[under section 32A of the Income Tax Act, 1961] :
    

     Provided that if in any accounting year, the clear profit [excluding the special appropriation to be made under time (va) of clause (c) of sub-paragraph (2) of paragraph XVII] together with the accumulations, if any, in the Tariff s and Dividends Control Reserve less the sum calculated as aforesaid falls short of the reasonable return, the sum to be appropriated to the Development Reserve in respect of such accounting year shall be reduced by the amount of the shortfall.
   

      (2) Any sum to be appropriated towards the Development Reserve in respect of any accounting year under sub-paragraph (1), may be appropriated  in annual instalments spread over a period not exceeding five years from the commencement of that  accounting year.
   

    (3) The Development Reserve shall be available only for investment in the business of electricity supply of the undertaking.
  

    (4) On the purchase of the undertaking, the Development Reserve shall be handed over to the purchaser and maintained as such development Reserve :]
  

     ⁴[Provided that where the undertaking is purchased by the Board or the State Government the amount of the Reserve ⁵[(whether such amount is in the form of cash or other assets)] may be deducted from the price payable to the licensee.]
  

     ⁶[VI. (a) The licensee shall provide each year for depreciation such sum calculated in accordance with such principles as the Central Government may, after consultation with the Authority, by notification in the Official Gazette, lay down from time to time.
  

     (b) Where in any particular year depreciation cannot be adjusted against revenues, the same may be carried over to subsequent years.
  

     (c) The provisions of this paragraph shall apply to the charging of depreciation for the year in which the Electricity (Supply) Amendment Act, 1978, comes into force.]
  

¹Subs. by Act. 30 of 1966, s. 21, for sub-paragraph (2) (w.e.f 1-4-1966). 
²Ins. by Act. 101 of 1956, s.27 (w.e.f. 1-4-1957). 
³Subs. by Act 23 of 1978, s.23 for certain words. 
⁴Added by Act 30 of 1966, s.21 (w.e.f. 1-4-1966) 
⁵Ins. by Act.23 of 1978, s. 23. 
⁶Subs. by s.23, ibid., for paragraphs VI, VII, VII, IX, X and XI