Kerala Chief Minister V D Satheesan proposed that Kerala build a new Mullaiperiyar dam at its own cost, with Tamil Nadu deciding the design, location, and construction, while ensuring Tamil Nadu's full water share. The proposal was made at the 31st Southern Zonal Council meeting.

At the 31st Southern Zonal Council meeting, Kerala Chief Minister V D Satheesan raised the Mullaiperiyar dam issue and proposed constructing a new dam. He said Kerala would bear the entire cost, while Tamil Nadu could decide the design, location, and construction of the proposed structure. He also stated that Kerala was willing to ensure Tamil Nadu received its full share of water from the new dam. The proposal is significant given the long-running dispute between the two states over the 130-year-old dam. An expert committee constituted by the National Dam Safety Authority is scheduled to begin structural evaluation of the dam in September.
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