Tamil Nadu diverts annually an average of 21 TMC of water from the Mullaperiyar reservoir. Using the above waters, Tamil Nadu is presently irrigating a gross ayacut of 2.5 lakh acres and getting an annual return of around Rs.325 crores. Also, Tamil Nadu is generating electricity from the above waters to the tune of 490 Million Units per annum. Considering a minimum sale price of Rs.4 per unit of electricity, the annual income from power generation is about Rs.196 crores. Thus Tamil Nadu is reaping a total benefit of around Rs.521 crores per year from the Mullaperiyar waters.
Meanwhile, Government of Kerala receives an annual lease rent of Rs.2.58 lakhs per annum for an area of 8692.97 acres leased out to Tamil Nadu. The royalty which Kerala receives from power generation comes to Rs.7.67 lakhs per annum. Thus the total financial benefit to Kerala comes to only Rs. 10.25 lakhs per annum from the loss of Kerala’s own Mullaperiyar waters.
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