The water level in the Papanasam and Manimutharu dams across the river was enough only to meet drinking water requirements, District Collector M Karunakaran said in a release.
The suspension was ordered even as a PIL seeking a stay on drawing of water by the two companies from the river was filed last year before Madras High Court Bench in Madurai.
A division bench led by Justice T S Sivagnanam ordered the government to file its counter and posted the case for hearing on April 27.