Sholayar Reservoir is built near Valparai. The plateau where this reservoir is constructed experiences heavy rain throughout the year. During the rainy season, the water level reaches almost 162.77 feet against the full reservoir level of 160 feet. In case of excess of water in this river, water is let off to Parambikulam reservoir through the saddle dam. Once the water level of Sholayar Reservoir reaches 160 feet, surplus water flows through the saddle dam, which is situated on the rear side of the dam. If the water level crosses 165 feet, then the surplus water spills over to the Kerala Sholayar reservoir.

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