Mr. Palaniswami said the Kerala government was "obstructing" Tamil Nadu's work to strengthen Mullaperiyar dam for eventually increasing its height as per the Supreme Court judgment.
Earlier, the Tamil Nadu government had declined Kerala's offer saying that there was no need for help at the moment.
"Water is being supplied through tankers and desalinated water is also being distributed", Chief Minister E Palaniswami said.
After chairing a review meeting to take stock of the water situation, Palaniswami said that due to deficit rainfall, the four major reservoirs that supply Chennai - Chembarambakkam, Sholavaram, Poondi and Sengundram - are bone dry.
Taking note of Chennai's ongoing water crisis, the neighboring state of Kerala has offered to send 20 lakh litres of water by a train from Thiruvananthapuram to the drought striken city. He said this would cost Rs 65 crore. Water tanker trucks are being hijacked and violence is erupting between neighboring housing settlements, said Sharma. Of us took to social media to half their pleasure at seeing rain for the first time in about 190 days.
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People fighting in queues for water, many unable to take showers, and hotels warning people about water usage. In fact, Tamil Nadu has been facing water shortage for the past several months after Chennai's Porur Lake, which is considered one of the main sources of water, reached its lowest level. He added that the government resumed fund allocation after the MCC was lifted, hence being able to provide drinking water to the state.
Some residents get their rationed quota of water daily, while others get it once a week. It predicted that 21 cities would run out of groundwater by 2020 and recommended "urgent and improved" management of water resources.
Most of Chennai's population today is dependent on water tankers and curtailed municipal supply for daily requirement of drinking water.
"Only rain can save Chennai from this situation", an official told BBC Tamil.
It's not immediately clear how many are without water in Chennai presently.
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As far as Chennai was concerned, he said there was depletion of ground water as the city had experienced a dry spell of 190 days with no rains. Hotels have also started rationing water to guests.
A shepherd walks with his livestock at the dried out Puzhal reservoir on the outskirts of Chennai.
On the different hand on Thursday, there were stories of rain within town. "I urge Kerala govt to cooperate with us on this", he said.
"We retailer water in buckets and pots". Tamil Nadu is facing acute water shortage this summer.
The Indian media have reported slum-dwellers fleeing their homes in desperation for railway stations and shopping centres in the hope of finding functioning toilets and drinking water.
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"Governments are now scrambling to make sure people have water", said Jyoti Sharma, founder and president of FORCE, an Indian NGO working on water conservation.