A proposal by the Government of Karnataka to build a hydroelectric project across the river and its tributary streams has generated controversy and opposition from environmentalists.
The Gundia's headstreams include the Yettinahole, Kerihole, Hongadahalla and Bettakumbri streams and the river basin straddles the districts of Dakshina Kannada and Hassan.
There are 239 plant species in the area including 119 tree species across several vegetation types including tropical evergreen and semi-evergreen forests, moist deciduous forests, scrub jungles, grasslands and riparian vegetation.
Besides the generation of electricity, the project also envisages the diversion of waters to the Tumkur, Kolar, Chikballapur and Bangalore Rural districts for irrigation.
[6] The proposal however has run into opposition from local farmers and environmentalists with the Western Ghats Ecology Expert Panel headed by Madhav Gadgil recommending that the project be scrapped.