Eswaran, the Erode MLA was instrumental in bringing the Bhavanisagar Dam Project.

The first major irrigation project executed in Tamil Nadu after Independence, it turned Erode, Tiruppur, and Karur districts into a fertile landscape, irrigating 2,47,247 acres for the cultivation of paddy and other crops, besides generating 18 MW through two power generation houses.

The eastern catchment area includes the Upper Bhavani, Avalanche and Emerald lakes, Kundha, Gedhai, Pillur and Nellithurai .

The western catchment area includes Portimund, Parson's valley, Pykara, Glenmorgan, Singara, Maravakandy, Moyar and Thengumarahada.

[6] The dam has two hydroelectric power stations, one on the east bank canal and the other on the Bhavani river.