The decision was taken at the Cabinet meeting here chaired by Chief Minister Devendra Fadnavis.
This authority will have one Chairman and four members. Chairman will be either the Chief Secretary or an equivalent rank officer or retired High Court Judge, an official said.
Expert members will be from ground water management sector, law and justice along with one member each from river basin agency area, he added.
The Cabinet today also approved 115 post for caste certificate scrutiny committees for smooth functioning and speedy delivery.
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