This project aims to transforming the drought-prone areas in Coimbatore, Tiruppur, and Erode districts of Tamil Nadu, and Palakkad district of Kerala.
The project accomplishes the diversion and integration of eight west-flowing rivers: six in the Anaimalai Hills (Anamalaiyar, Sholayar, Thunacadavu, Nirar, Peruvaripallam, and Parambikulam) and two (Aliyar and Palar) in the plains.
On May 29, 1970, the two States signed an agreement with retrospective effect from November 1958.
Apart from Parambikulam, eight other dams are part of the network, the combined capacity of which is about 31.5 thousand million cubic feet (tmc ft).
Hydro power stations have a total capacity of 210 MW.
In 2019, Chief Minister-level conference on inter-state water agreements had agreed to renew the pact.
If Kerala agrees to the diversion of 2.5 tmc ft from the Anamalayar to Tamil Nadu along with the Nirar-Nallar multi-purpose straight-cut scheme, the problem of water shortage in the western districts can be minimised.