THIRUVANANTHAPURAM: Saying the safety of millions of its residents is paramount, the southern Indian state of Kerala said it is pushing ahead with a plan to build a new dam to replace the 133-year-old Mullaperiyar Dam.

A panel of experts appointed by the Kerala government has identified the site for a new dam around 650 meters down from the existing structure after surveying three spots at different heights over a 10-kilometer area. The team is expected to submit its report this week.

The plan has provoked neighbor Tamil Nadu state, which operates the Mullaperiyar Dam, which is located in Kerala's Idukki district.

Tamil Nadu has strongly objected to the construction of a new dam, demanding instead that the water level of the existing dam be raised from 136 feet to 152 feet to hold more water to irrigate its farmlands.

The dispute is before the Supreme Court of India and is likely to be taken up for hearing later this month even as Kerala hopes to start work on the dam soon.

While Kerala says the existing "weak" dam poses threat to millions of people living downstream River Periyar in five districts on its side, Tamil Nadu fears that a new dam would ultimately deny water to its farmers in five districts.

Tamil nationalist Marumalai Dravida Munnetra Kazhakon (MDMK) leader Vaiko was held last week after he attempted to block Kerala-bound vehicles in protest. The firebrand politician has also threatened an economic blockade against Kerala that heavily depends on its neighbor for its food needs, including meat, vegetables, rice and milk.

The Lal Bahadur Shastri Center for Science and Technology would conduct detailed tests related to soil and rock conditions while Geological Survey of India would look into the nature of the land, possibility of large rocks underneath and the feasibility of laying the basement.

The state government decided to build new dam, citing the cracks and leaks in the existing dam. The federal Forest and Environment Ministry gave the clearance for the survey amid protests from Tamil Nadu, which unsuccessfully contested it in the apex court.

"The new dam is going to be a reality soon," said Kerala Water Resources Minister NK Premachandran. "We expect that all the formalities would be over in around two months."

The old dam was built under an agreement signed in 1886 between the British administration and the erstwhile maharaja of Travancore princely state, which later joined Cochin and Malabar to form the state of Kerala.

A recent study by the Indian Institute of Technology-Roorkee (IIT-R) commissioned by Kerala suggested that the dam would collapse in the event of a magnitude 6.5 earthquake. An IIT-Delhi study also concluded that the dam was "hydrologically unsafe."

Two months back, the 36-feet high Moolathara dam in Palakkad breached inundating several areas in Palakkad district, killing at least one person and displacing scores of families. It raised fresh concerns about the safety of old dams and Kerala immediately put the blame on Tamil Nadu, which benefits from the dam.

Kerala Chief Minister VS Achuthanandan recently fueled protests by shooting off a missive to Prime Minister Dr. Manmohan Singh seeking his intervention and asking him to rein in Tamil Nadu politicians.