Tamil Nadu allocates Rs 10,000 crore to strengthen water supply infrastructure in Budget
As per the Budget announcement, Ring Main Pipeline Project, connecting all water distribution stations to ensure equitable distribution, will be implemented in Chennai at an estimated cost of Rs 2,423 crore.;

Tamil Nadu Budget for 2025-26 was presented by State Finance Minister Thangam Thennarasu
CHENNAI: The State government has planned an ambitious vision to ensure the entire capital city and over 29 lakh residents in seven districts across Tamil Nadu get uninterrupted and sufficient drinking water supply and has allocated more than Rs 10,000 crore in the 2025-26 State Budget.
Of the total allocation, more than a quarter of the fund will be spent to improve water supply in Chennai. As per the Budget announcement, Ring Main Pipeline Project, connecting all water distribution stations to ensure equitable distribution, will be implemented in Chennai at an estimated cost of Rs 2,423 crore. The project will be implemented by the Municipal Administration and Water Supply Department over the next three years.
Presently, the city receives drinking water from five water treatment plants and three seawater desalination plants. Each plant is designed to supply specific areas of the city through separate main pipelines making it difficult to divert surplus water from one area to another, at times of shortage.
Once this project is completed, all the water distribution stations will be connected to ensure equitable distribution of water supply to all the water distribution stations.
Further, the government allocated Rs 350 crore to the Water Resources Department (WRD) to create a new reservoir in Kovalam sub-basin near Chennai to store flood water during monsoon season. The reservoir will be developed in the area between Old Mahabalipuram Road and East Coast Road near Thiruporur. The new reservoir will be the sixth one for Chennai and will have a storage capacity of around 1.6 TMC.
"This project will fulfill the demand of the people in Chennai city by a significant and long-term supply of potable water of 170 MLD every year," according to the Budget announcement.
Moreover, the Tamil Nadu Water Supply and Drainage Board will renovate and revive 102 Combined Water Supply Schemes (CWSS) across the State that are in operation for more than forty years. Under the project, inefficient electric pumps and pipes will be replaced, renewing water sources, and enhancing the overall efficiency at a cost of Rs 675 crore.
Combined Water Supply Schemes in Pudukkottai, Mayiladuthurai, Tenkasi, Thoothukudi, Tirupur, Erode and Tiruvallur districts will be implemented at a total of Rs. 6,668 Crore.
Seven districts to get combined water supply scheme
District Beneficiaries Cost
Pudukottai 4.07 lakh Rs. 1,820 crore
Mayiladuthurai 11.22 lakh Rs 2,200 crore
Tenkasi 5.64 lakh Rs 864 crore
Thoothukudi 1.3 lakh R. 370 crore
Tirupur 4.91 lakh Rs 890 crore
Erode 92,000 Rs 374 crore
Tiruvallur 76,000 Rs 150 crore