The chief minister also announced a scheme for samba (long-term crops) at an estimated Rs 41.15 crore, covering the delta districts.
As on date, following good rains, the water level at the Mettur dam was 88.29 feet as against the full level of 120 feet, Palaniswami said.
"I have directed release of water from Mettur dam from October 2 for samba considering the present water level and anticipating inflows from reservoirs in Karnataka," he said in a statement.
He said the sluices of the reservoir, which feeds the Cauvery delta districts, could not be opened on the customary date of June 12 for short-term 'kuruvai' crops for want of adequate water following the drought last year.
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Similarly, the government will implement a Rs 41.15 crore samba scheme for the Cauvery delta areas covering Thanjavur, Thiruvarur, Nagapattinam, Tiruchirappalli and Karur among others, he said.
Cooperative and nationalised banks have been directed to provide adequate crop loans, he said.
The chief minister also referred to the Cauvery river water dispute between his state and Karnataka.
Despite the publication of the 2007 final award of the Cauvery Disputes Tribunal in a central gazette, Karnataka "does not release" Tamil Nadu's share of water from the river, he said.
Tamil Nadu had therefore moved the Supreme Court in 2013 calling for the formation of the Cauvery Management Board and Cauvery Water Regulation Committee, he recalled.
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