The project, a run-of-river scheme on the Kunthipuzha river, a tributary of the Bharathapuzha, and expected to generate an average of 214GWh annually, has generated opposition from environmentalists due to its proximity to the Silent Valley national park and the eventual submergence of 4.1ha of forest land by the reservoir. Of the total area expected to go under water, 2.9ha are in forest land and 1.2ha in river and river basin.

The project will also result in the displacement of six families due to the acquisition of 4.72ha of private land for the power house.

Environmental groups have campaigned against the project, arguing it would cause grievous stress to the Silent Valley National Park, a major rain forest area and home to a rich variety of flora and fauna.

A proposal for a larger hydro project in the Silent Valley area was dropped two decades ago due to opposition from environmental groups.