Banasura Sagar Dam is situated 21 km from the town of Kalpetta and is built on the tributary of the Kabini River. The dam was built in accordance with the Banasurasgar Project that was begun in 1979. The project was mainly implanted to supply regular water to the regions that experienced drought-like conditions during summer months. The Banasura dam has the distincton of being the largest earth dam built in India and the second largest in Asia. The dam has been built very strong using stones and boulders.
When the dam was built, its reservoirs sank the surrounding low lying areas of land resulting in the formation of small islands. The islands provide a breath-taking view of the Banasura hills. Many people use the dam for starting their trek to the beautiful mountains of the Western Ghats. The dam is therefore a huge attraction among tourists especially those from outside India.