The Housing and Urban Development Corporation (HUDCO) sanctioned Rs. 475 crore loan to Nellore Municipal Corporation (NMC) to draw water from the nearby Sangam barrage. The project that involves development of a water channel from Sangam barrage that is 40 km away, transmitter mains, treatment plants, service reservoirs and overhead tanks to meet drinking water needs of Nellore city until 2047.
Currently, Nellore town’s drinking water needs are being met with water drawn from Penna river bed and Nellore tank. The Sangam anicut was developed in 1885 on the Pennar river from which four canals branch out, with one of them supplying water to Nellore tank (Swarnala Cheruvu).