Just a short drive from Athirapilly is the Vazhachal Falls, which is close to dense green forests that are home to many endangered and endemic species of flora and fauna.

The 145 kilometres (90 mi) long Chalakudy River, originates in the Anaimalai mountains of the Western Ghats[2] and flows through the Vazhachal Forest toward the Arabian Sea.

Athirappilly is situated on a state highway connecting Tamil Nadu and Kerala, in a thick forest and so night travel is not permitted.

The journey from Chalakkudy to the Athirappilly Falls passes through a landscape of winding roads, small villages and lush green trees.

[6] However, environmental groups and people's collectives opposed the project on grounds that it would damage the environment, infringe on human rights, and threaten tourism.

Environmentalists also expressed concern over whether the proposed hydroelectric project at Athirappilly waterfalls would lead to displacement and eventual extinction of the primitive tribal group, 'Kadars,' in the area.

[9] In 2005, the Kerala Ministry of Environment and Forests approved the project on the basis of a report by Water and Power Consultancy Services (India) Ltd. (WAPCOS), an environmental impact assessment (EIA) agency.

On 29 January 2011, the chairman of the Western Ghats Ecology Expert Panel (WGEEP) Madhav Gadgil opined that the Environment Impact Assessment (EIA) of the Athirappilly hydel power project was not properly carried out and 70% of it is bogus.

The Western Ghats Ecology Expert Panel (WGEEP), on 6 September 2011 recommended to the Union Ministry of Environment and Forests against granting permission to carry out any construction activities at the sensitive Athirappilly-Vazhachal region.

The panel, which submitted its report to Union Environment Minister Jayanti Natarajan in the capital, named Athirappilly as one of the 18 eco-sensitive localities (ESL) in the state.

M. Sivasankar, a KSEB chairman and MD states the need of more environment-friendly power projects with lower operating costs and higher output like supercritical boiler plants.