Mattupetty Dam was built in order to conserve water for hydroelectricity. It has been a vital source of power thereby contributes considerably to the state revenue. The large amount of water allows wild animals and birds to flourish. Salinity that is caused by irrigation and water-logging are of major environmental concerns.

The reservoir is also known to be one of the visiting grounds of elephants. This dam is around thirteen kilometres from Munnar. It is located at an altitude of 1700 kms above sea level.

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