Hyderabad: A new drinking water supply scheme will ensure daily supply of water to core areas of Andhra Pradesh capital Hyderabad and its surrounding areas.

Union Finance Minister P Chidambaram inaugurated the second phase of Krishna water supply project for Hyderabad and its outskirts Friday.

The project, built at a cost of Rs.10.82 billion, will bring water from the Nagarjunasagar dam on Krishna river. It will benefit the 7.5 million population of the state capital, who presently get water on alternate days.

Hyderabad metropolitan water supply and sewerage board supplies 290 million gallons per day (mgd) from all sources to Hyderabad urban agglomeration.

Officials hoped that they would now be able to supply drinking water daily to core areas in the city.

The second phase of the project will augment additional supply of 90 mgd of water from Krishna river to meet the growing demands of the twin cities of Hyderabad and Secunderabad and outskirts.

The Krishna project-II has six reservoirs, three pumping stations and 110 km-long pipelines.

Chidambaram inaugurated the project at Sahebnagar on the city outskirts in the presence of Chief Minister YS Rajasekhara Reddy, union minister S Jaipal Reddy and several state ministers.

Officials said the project would ensure supply to mega development projects like IT parks, international airport and other facilities.

The second phase has been launched at a time when water crisis looms over the city.

Water levels have come down drastically in Osmansagar, Manjira and Himayatsagar, the three major sources of drinking water, due to insufficient rains this season.

Officials have warned that if the water levels do not improve soon, they might have to ration water once in three days.