The Tamil Nadu government at the beginning of the project had prepared a cost estimate report of Rs 1,334 crore. Later, a team headed by managing director of Water Supply and Drainage Board proposed an increase in the project cost.
The JICA had released Rs 899.10 crore for the project on March 10, 2008 as first instalment. Also, it had promised to release an additional Rs 686.50 crore as second installment, which has now been released. The JICA has provided financial assistance to the tune of Rs 1,585.60 crore in total for the project. Apart from the financial aid provided by the JICA, funds have been collected from various local organisations.
The City Municipal Councils and Town Panchayats have contributed Rs 307.48 crore and Rs 35.72 crore has been collected at the Gram Panchayat level.
According to a Tamil Nadu Government order, the project cost now stands at Rs 1,928.80 crore. As per the revised project, the beneficiaries coming under Dharmapuri and Krishnagiri districts are 40.5 lakh. With the implementation of the project 6,755 rural families living in areas covered by three CMCs, 17 Town Panchayats and 18 Gram Panchayats, will get drinking water.
Apart from the financial aid provided by the JICA and various local organisations, the Tamil Nadu government has sanctioned Rs 318.35 crore for the maintenance of the project over five years. The Tamil Nadu government which has said the project would be completed by December 2012, has decided to secure the project’s maintenance cost through water tax.