Banasura Sagar Dam impounds its waters in the Karamanathodu tributary of the Kabini River. The Banasura Sagar Dam is part of the Indian Banasurasagar Project started in 1979. The project consists of a dam and a canal project. The objective of the project is to support the Kakkayam Hydro electric power project and cater to the requirements of the demand for irrigation and drinking water in areas having the problem of water shortages in seasonal dry periods.

The Banasura Sagar Dam is located around 21 km from Kalpetta, in Wayanad District of Kerala in the Western Ghats. Banasura Sagar Dam is known as the largest earthen dam in India and the second largest in Asia. The Banasura Sagar Dam is also the starting point for trekkers and hikers into the lap of scenic mountains. An important tourist attraction, Banasura Sagar Dam is being renovated with all kinds of tourist amenities.

Amidst the dam reservoir, there is a set of islands that were formed when the reservoir submerged the neighboring areas. The islands along with the Banasura hills formed around the background of the dam provide a spectacular view.

Although the Banasura Sagar Dam is functioning, the Banasura Sagar Project is not yet complete. A huge monetary expenditure is done and is still under complete execution.

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