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Tamil Nadu constitutes 4 percent of India’s land area and is in habituated by 6 percent of India’s population, but has only 2.5 percent of India’s water resources. More than 95 percent of the surface water and 80 percent of the ground water have already been put into use. Major uses of water include human/animal consumption, irrigation and industrial use.Pennai River is playing a prominent role in Agricultural sector in the Tamil Nadu state is due to mostly of its irrigational facilities. This river has a unique element of the cultural, religious and historical significance attached to it. The competing roles of the river basin economic development, livelihood resource generation, energy supply and bio diversity conservation, necessitate well researched trade- offs and synergistic alliances.