The Centre cannot declare an area as tiger reserve without recommendation from the state government, he told reporters here after a high-level meeting with senior officials of forest, revenue and police departments.
His statement comes in the wake of public protests over a reported move to declare the sanctuary as a tiger reserve.
An Elephant Task Force will be constituted to deal with the threat arising from wild animals to cattle, crops and human settlements. The task force, based in Wayanad, would be given adequate training to deal with wild animals, he said.
Chandy also reviewed the steps taken to capture the stray tiger that was on the prowl in Naikatty area in the district, striking terror in villages bordering forest tracts.
The government will continue search operations for the tiger until it is captured, he said. Government would also withdraw all cases registered against the people who had resorted to protests demanding the tiger's capture.
Compensation for the people, who had lost their cattle, would be increased, Chandy said, adding that the staff strength of the forest department in Wayanad would be increased.
Earlier, Chandy also visited Naikatti and Muthanga regions and heard personally the difficulties faced by local from wild animals.