Balimela Dam is in Malkangiri District, which is 35 km, from the east of Malkangiri. A Hydro-electric Project has been established near about the Town jointly by the Government of Odisha and Andhra Pradesh. A dam is being constructed at Chitrakonda, 25 km. from Balimela across the river Sileru. The total inflow into the reservoir is shared equally by the two Governments. The share of the Andhara Pradesh Government flows downstream the river while that of Orissa Government is diverted to a high head power some 15 km. south of Balimela.