Tamil Nadu is the custodian of the dam and its surrounding areas. In 2006, the Supreme Court of India has allowed for the storage level to be raised to 142 feet (43 m). However, the Kerala Government promulgated a new "Dam Safety Act" against increasing the storage level of the dam, which has not been objected by the Supreme Court. Tamil Nadu challenged it on various grounds. The Supreme Court issued notice to Kerala to respond; however, did not stay the operation of the Act even as an interim measure. The Court then advised the States to settle the matter amicably, and adjourned hearing in order to enable them to do so. The Supreme Court of India termed it as not unconstitutional. Meanwhile, the Supreme Court constituted a Constitution bench to hear the case considering its wide ramifications. The case involves pre-constitutional agreement between two entities which does not exist now.
Kerala's Stance:
Kerala did not object giving water to Tamil Nadu. Their main cause of objection is the dams safety as it is as old as 110 years. Increasing the level would add more pressure to be handled by already leaking dam. No masonry dam may survive for 999 years so a new dam may replace the existing one in near future.
Tamil Nadu's Stance:
The State wants that the 2006 order of Supreme court be implemented so as to increase the water level to 142 feet (43 m).
In September 2009,
The Ministry of Environment and Forests of Government of India granted environmental clearance to Kerala for conducting survey for new dam downstream. Tamil Nadu approached Supreme court for a stay order against the clearance; however, the plea was rejected. Consequently, the survey was started in October, 2009. The survey team looked at three spots for the final report.
The arguments of Kerala and Tamil Nadu are continuing in the Constitution bench of Supreme Court. Adv. Harish Salve appeared for Kerala and Adv. Parasaran appeared for Tamil Nadu in Supreme Court. Kerala argued that if Mullaperiyar is an interstate river, the Supreme Court has no jurisdiction to intervene in the issue and that it must be dealt with by an independent tribunal. It also argued that if Mullaperiyar is an intrastate river, then the Dam Safety Authority of Kerala is constitutional, and that the Supreme Court has no jurisdiction to intervene in a pre-constitutional agreement. Thus, the water provision is now done under the 1970 review agreement between the States. Together with safety concerns, now the Kerala government argues that if the water level is increased to 142 feet, wide forest areas that are inhabited by conserved flora and fauna will be inundated. Tamil Nadu insists that the non-implementation of Supreme Court Order to increase water level by Kerala is the first issues tobe tackled. Tamil Nadu also asserted that Mullaperiyar is not an interstate river, and thus, there is no need for forming a tribunal. The Tamil Nadu counsel pointed out that Kerala has an ulterior motive to make a new dam and keep it under its control. Tamil Nadu fears that the water supply will be restricted if Kerala builds a new dam and controls it.
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