P.R.No.359
Tamil Nadu promise ledger
P.R.No.359·8 Jul 2026·order
Salem Gets Rs 1,035-Crore 24x7 Water Supply Project for 10.8 Lakh Residents
On CM Joseph Vijay's directive, the Municipal Administration and Water Supply Department gave revised administrative sanction of Rs 1,035.61 crore (up from Rs 758.13 crore) via G.O. dated June 4, 2026 for a 24x7 uninterrupted water supply project covering 10,83,506 residents of Salem Corporation. SUEZ Project International Private Limited, selected via tender, signed the contract on June 19, 2026; the project is funded by Rs 227.44 crore from AMRUT 2.0, Rs 393.92 crore from the state government, and Rs 414.25 crore from the contractor, who will also handle 25 years of maintenance worth Rs 3,259.73 crore.
Linked Person
JO
Joseph Vijay Thiru. C.
Chief Minister
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Press Release Content
Municipal Administration and Water Supply Department
On the Orders of Hon'ble Chief Minister of Tamil Nadu Thiru. C. Joseph Vijay: Scheme for Uninterrupted 24-Hour Drinking Water Supply for Areas under Salem Corporation
To rehabilitate drinking water infrastructure and create new infrastructure in Salem Corporation so that the 10,83,506 residents of Salem city may benefit, administrative sanction was accorded for a 24-hour drinking water supply scheme across the entire city at an estimated cost of Rs. 758.13 crore, vide G.O. (Ms.) No. 39, Municipal Administration and Water Supply (MA2) Department, dated 06.03.2024.
Accordingly, after tenders were called for and scrutinised through multiple stages, the Salem City Corporation Council passed a resolution to implement the project through M/S SUEZ Project International Private Limited, which had quoted the lowest bid, and a Letter of Award (LOA) was issued to the company on 09.02.2026.
Hon'ble Chief Minister of Tamil Nadu Thiru. C. Joseph Vijay accorded a revised administrative sanction of Rs. 1035.61 crore for the project as per the revised estimate, and the corresponding G.O. (4D) No. 16, Municipal Administration and Water Supply (MC5) Department, dated 04.06.2026, was issued. Of this amount, Rs. 227.44 crore will be contributed by the Government of India under the AMRUT 2.0 scheme, Rs. 393.92 crore by the Government of Tamil Nadu, and the remaining Rs. 414.25 crore will be contributed by the selected contracting company implementing the project.
Pursuant to the said Government Order, an agreement was signed on 19.06.2026 between Salem Corporation and M/S SUEZ Project International Private Limited.
To implement the project in Salem city, the contracting company will, in the first year, survey the existing drinking-water-related infrastructure facilities, and over the subsequent four years will upgrade the existing infrastructure related to the water supply scheme and create new facilities, carrying out works estimated at Rs. 1035.61 crore.
Furthermore, the company will carry out continuous maintenance work for the next 25 years under this project at an estimated cost of Rs. 3259.73 crore.
During this maintenance period, targets have been set and built into the project to ensure efficient management of drinking water distribution, prompt redressal of public grievances relating to water supply, and that the company carries out infrastructure and maintenance work in an exemplary manner.
Accordingly, the agreement was signed at the Secretariat on 19.06.2026 in the presence of Thiru. Kakan Deep Singh Bedi, IAS, Additional Chief Secretary to Government, Municipal Administration and Water Supply Department; Thiru. P. Madhusudhan Reddy, IAS, Director of Municipal Administration; Thiru. Simranjit Singh Kahlon, IAS, Managing Director, Tamil Nadu Urban Infrastructure Financial Services Limited; and Thiru. Pierre Pauliac, Head of Administration, M/S SUEZ Project International Private Limited, with Thiru. Lalith Aditya Neelam, IAS, Commissioner, Salem Corporation, and Thiru. Rasmi Ranjan Ra, Chief Administrative Officer, M/S SUEZ Project International Private Limited, signing the agreement on behalf of their respective organisations.
Issued by: Director, Directorate of Information and Public Relations, Chennai-9
Issued By: Directorate of Information and Public Relations (DIPR), Chennai
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