The dam was built in 1957 across the Amaravathi River about 25 km (16 mi) upstream and south from Thirumoorthy Dam. Capacity of the dam has shrunk 25% from 4 tmcft to 3 tmcft due to siltation. The dam was built primarily for irrigation and flood control. In 2005 - 2006 the state reported revenue from medium commercial irrigation from the Amaravathi Reservoir Project was Rs. 43,51,000. During 2003–04, the Tamil Nadu Electricity Board proposed to increase the dams utility by installing 4 MW capacity hydro-electric power station, which is now operating.