It also announced releasing of water from Mettur dam for the first time in the season despite low storage levels.
Chairing a review meeting of the situation, Chief Minister J Jayalalithaa blamed low water levels in the dam to Karnataka not releasing its due share of water from Cauvery to Tamil Nadu even under the distress sharing formula.
The implementation of the formula sharing method would have ensured around 43 tmcft of water to the state, she said.
This had resulted in storage levels dwindling to 38 tmcft, " badly affecting" the Kuruvai (short-term) crops, the Chief Minister said.
She said with some government intervention like ensuring power supply for drawing underground water for irrigation in the Cauvery delta areas, short-term crops have been planted on 1.60 lakh acres (against the 3.20 lakh acres).
The government decided to release water from Mettur Dam from September 17, 2012, in anticipation of rains from north-east monsoon which normally sets around the third week of October, Jayalalithaa said in a statement.
She announced Rs 53.53 crore as subsidy for farmers taking up Samba crops.
The funds would also be utilised for sowing undertaken under the System of Rice Intensification (SRI) and other modern methods of cultivation which would ensure lesser duration of the crop season, among other things.
Further, this amount would also be used towards procuring and renting various modern farm equipments, she said.
She recalled her two letters to Prime Minister Manmohan Singh demanding convening of Cauvery River Authority (CRA) meeting and seeking his direction to Karnataka to release water to Tamil Nadu.
