Chief Minister Pinarayi Vijayan made the remarks in the Assembly in the wake of the Centre withholding permission given to Kerala to conduct an Environmental Impact Assessment (EIA) study for the project on the request of Tamil Nadu.
Vijayan, while replying to a submission on the issue in the Assembly, said the project was significant for Kerala as it was envisaging finding a solution for the acute drinking water scarcity in Attappady region.
The Centre took the decision after the Tamil Nadu government had sent a letter to Prime Minister Narendra Modi objecting the project, he added.
"The government's plan is to go ahead with the dam project. For this, we will try to arrive at a consensus with Tamil Nadu and the Centre," the chief minister said while replying to a submission raised by Opposition leader Ramesh Chennithala.
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As Siruvani is a tributary of the Bhavanipuzha, which is a branch of Cauvery river, a consensus with neighbouring states was necessary for Kerala to implement the project, he said.
Raising the submission on the issue, Chennithala said the Centre's decision to freeze permission for EIA study was an 'infringement' into the state's rights, which would destroy the federal system in the country.
He maintained that the "proposed dam is within the boundary of of the state, which is also across a state river".
According to the Cauvery Tribunal verdict, Kerala has to receive over four TMC water, he said adding the state government should approach the Supreme Court to protect its interest, if necessary.
Chennithala also alleged that the Centre had withheld permission for EIA study under pressure from Tamil Nadu, which was a clear neglect towards Kerala.