The Cabinet Committee on Economic Affairs has approved the INR 817.62 crore Krishna Drinking Water Supply project phase II under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Mr P Chidambaram union finance minister said that “The expenditure incurred up to March 2006 on the project is INR 211.12 crore. Therefore, the cost for reimbursement under JNNURM will be INR 606.50 crore.” He added that CCEA approved release of an additional central assistance to the extent of INR 212.27 crore as the centre’s share. Mr P Chidambaram union finance minister said that the project would augment an additional 90 million gallons a day of treated water to Hyderabad and its surrounding municipalities to bridge the gap between demand and supply. He added that “It would facilitate increase in present 80ltrs per capita daily to 150ltrs per capita daily as per the norms in surrounding municipalities.” He further added that the project would also help in taking care of water requirements of projects like Hyderabad International Airport, FAB City, hardware sector, textiles and IT sectors along with other industrial sector.