Chief Minister Jayalalithaa sanctioned half the amount as initial allocation.
She had approved the sum of Rs 300 crore for sewage and effluent treatment activities on 337 locations in Cooum and Adyar rivers and Buckingham canal, an official release said.
The Chennai Metro Water Supply and Sewage Board has been granted Rs 150 crore in instalments, which would be utilised towards laying pipes, setting up pumping stations and taking up upgradation activities among others towards this purpose.
The efforts would help prevent untreated sewage water flowing into these water bodies, which are already polluted, the release said.
Jayalalithaa also announced constituting a panel under Municipal Administration and Rural Development Minister K P Munusamy to identify recipients for the Chief Minister's Award for the Best Corporations and Municipalities, an initiative announced by her.
Local bodies delivering best services will be selected and awarded cash prizes ranging between Rs three lakh and Rs 25 lakh.
The effort would encourage local bodies to vie with each other to serve people better, the release added.