The Cuddalore District Administration is very keen to develop tourism activities at Parangipettai, a coastal town situated remotely right on the seashore, northern bank of the Vellar estuary. The Sub-Collector, Chidambaram, on his routine visit to Parangipettai, identified the Vellar estuary as a suitable place for the operation of Water sports activities. Incidentally, the Centre of Advanced Study in Marine Biology of Annamalai University, Chidambaram has already established an Aquatic Adventurous water sports facility under the aegis of the University Grants Commission (India) to cater to the needs of students at the Parangipettai campus since 2009. 

On the direction of the Sub-collector, the CAS in Marine Biology, the Faculty of Marine Sciences conceived the idea and drafted the proposal for setting up of Water sports complex and later got approved by the District Administration. Subsequently, Annamalai University entered into an MoU with Parangipettai Town Panchayat to operate Water sports for the general public in Vellar backwaters, flowing right in front of the Centre of Advanced Study in Marine Biology campus, on revenue revenue-sharing basis. As per the terms and conditions of the MoU, Parangipettai town Panchayat is responsible for extending basic infrastructure for 58.80 lakhs.