- Lifeline of people- The dam is like a lifeline for the people of Madras Presidency for irrigation and drinking.
- Hydropower generation- The dam is also significant for the generation of the power in lower Periyar water station as the region is is shadow and arid.
- Agriculture- The State government insists on raising the water level in the dam pointing out the failure of crops.
- Full control- The government has also asserted that it has full right over the control of the dam citing the Periyar lease deed.
- Periodic repairs- The State claims that though it has undertaken periodic repairs on the dam, the Kerala government has not allowed it to raise the water level.
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- Dam safety- The Mullaperiyar dam suffers from structural issues and the possibility of a dam-break cannot be ruled out.
- Earthquake prone area- It is located in an earthquake prone area and small time earthquakes that happened in 1979 and 2011 caused some cracks in the dm.
- Outdated designs- The technology which was put into use for constructing the dam 130 years ago was obsolete compared to the sophisticated construction methods used now.
- Impact on livelihood- According to the UN University report, 35 lakh people in Kerala will be directly hit in the case of a dam-break.
- Loss of biodiversity- It will also have its impact on the National Periyar Park which hosts some of the endangered species.
- Decommission the dam- Kerala has proposed to decommission the dam and to construct new dam.
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