The Periyar Valley Irriagation Project envisages the utilization of the tail race discharge from the completed hydel schemes in the Muthirappuzha Tributory of river Periyar together with the controlled release from the Ennakkal Dam constructed by KSEB under hydel scheme across the Idamalayar tributary and the dependable run off from the uncontrolled catchment of Periyar River for irrigating an area of 32800 Ha. of land lying on the left bank of Periyar river through a network of canal system and controlling devices.

The project envisages to provide irrigation facilities to an area of 32800 Ha. lying in Kothamangalam, Muvattupuzha, Kunnathunad, Aluva, Kanayanoor and Paravur thaluk of Ernakulam district during the first two crops viz. viruppu and mundakan.  Further an area of 20,000 ha. also will be irrigated during the 3rd crop (puncha).  Thus the gross area of the schemes is 85,600 ha.

Apart from meeting Irrigation on left bank of Periyar and right bank of IIP project and  supplying minimum quantity of water through the river to check the ingress of salinity at lower reaches as well as meeting the requirements of many LI Schemes of the river Periyar, supply of water for drinking and industrial purposes will also be met by a portion of storage water in the barrage at Bhoothathankettu.  This is one of the few projects which supply water all throughout the year. 

The Project comprises of a barrage at Bhoothathankettu, in Kothamagalam Taluk.  It has been provided with 15 numbers of electrically operated framed steel shutters.  The main components of the Project are Main Canal of length 8 km, Low Level Canal of length 20.78 km, High Level Canal of length 24.312 km and network of distributories having a total length of 694.718 km.  The Low  level canal was commissioned during 1967 and High Level Canal commissioned during 1988.  The project was declared as completed in 1992.