A new dam is the only solution to the Mullaperiyar issue, and the State has earmarked a special fund in the budget for the construction, said the Kerala Finance Minister, Mr. K.M. Mani.

He said here on Monday that the Prime Minister should immediately intervene to settle the inter-State dispute and make the Tamil Nadu Government respond creatively to Kerala's demand for construction of a new dam. The issue involved the existence of over 40 lakh people and five districts in Kerala.

The Minister made it clear that the State would not yield to any pressure from any quarters and withdraw from its demand for a new dam.

Mr Mani pointed out that Kerala was making use of its own resources and land to construct a new dam at around Rs 600 crore for ensuring the safety of its people. If Tamil Nadu was opposing such genuine attempts, the State would be forced to just ignore its stand and proceed, he added.

Referring to the study reports highlighting the pathetic condition of the existing dam to resist the frequent tremors in the region, he said that the State did not want any further delay in the matter. The State was ready to give an assurance to the Tamil Nadu Government that there would not be any interruption to the water supply arrangement that would affect its agriculture sector.

The Minister expressed confidence that the Union Government would come up an appropriate decision that would help change the stand of the Tamil Nadu Government. For alleviating the anxiety of the people, the Tamil Nadu Government should also cooperate for reducing the water level at the reservoir to 120 feet.

Special package for coconut farmers

Earlier, speaking at a party function, Mr Mani said that the Government would work out a special package for coconut and arecanut farmers in the State to ensure better returns from their occupation. The package would be included in the Government's next budget.

The Government would also launch an entrepreneurial training programme for 50,000 youth, which was announced in the current year's budget, from next month.

The youth would be given opportunity to start their ventures in groups after the training and each group would be given a subsidy of up to Rs 20 lakh, he added.