After a high-level emergency meeting, Chief Minister Arvind Kejriwal termed the situation serious and appealed to people to conserve water as much as possible.
Delhi Jal Board said seven out of nine water treatment plants across the city have been closed due to disruption in supply of raw water from Munak Canal in Haryana which is under siege of the Jat agitators.
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The apex court today agreed to give urgent hearing on the issue tomorrow.
The Delhi Government order excludes Rashtrapati Bhavan, residences of the Prime Minister and CJI, defence installations and hospitals.
"Rationing of water will include all sections barring Rashtrapati Bhavan, residences of Prime Minister, Chief Justice of India, defence installations, hospitals and fire brigades.
I am appealing to all to conserve water water," Kejriwal said adding his residence and office will also come under water rationing.
Deputy Chief Minister Manish Sisodia said that the schools will be closed tomorrow and the examination and admission process will be postponed due to the water crisis.
"It is feared that there will be no water tomorrow morning and the Delhi government has directed closure of all schools, including private ones tomorrow.
The ongoing examinations and admission process will be postponed.
The situation will be assessed tomorrow and further decisions will be taken afterwards," Sisodia said.
Calling the crisis "unprecedented", Kejriwal said Delhi Government has been pursuing the Haryana and Central governments since yesterday to seek army help to open the Munak canal.
Meanwhile, the Jat quota stir reached Delhi today as the agitating community held demonstrations at various places across the city including in Nangloi, Madhuban Chowk, Narela, Najafgarh, leading to severe disruption of traffic on several arterial roads in South, West Delhi and Outer Delhi.
There also were reports of damage to public property by the protesters, who blocked major state border entry points, including Sindhu border, Nangloi-Bahadurgarh Road, Karnal road, Tikari, Jharoda and Madhuban Chowk in southwest and outer Delhi.
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