It is a part of the Kakkad Hydroelectric Project. Water from the power station is released to the Moozhiyar reservoir after being used for power generation.
The Upper Moozhiyar Dam, constructed as a part of Sabarigiri Augmentation Scheme, is an earthen dam constructed across Moozhiyar river in Seethathodu. The Sabarigiri Hydro Electric Project is the second largest hydroelectric project in the state.