Sholayar Hydro Electric Project is the second major hydro electric project commissioned in Chalakudy River Basin in Kerala. The installed capacity of the project is 54 MW (3X18). Annual energy generation expected from this project is 233 Million Units. There are three dams as part of this project. They are Sholayar main, Sholayar Flanking and Sholayar saddle dams. These dams create a single reservoir. The spillway arrangement is provided in the flanking dam. The storage capacity of the reservoir is 153 Million Cubic Metres. The FRL is 811.69m. The water from this reservoir is diverted to the power house located on the bank of Anakkayam stream with average head of 300 metre, generating 54 MW of power.