Jalaput Dam (and Reservoir) impounds 34.273 Tmcft of water for the needs of downstream 120 MW Machkund Hydro-Electric Scheme (MHES), which is in operation since 1955. The dam and the MHES are the joint projects of Andhra Pradesh and Odisha states. The existing six number power generation units have become old and obsolete compared to the latest technology. It is much economical to install a new hydro-electric scheme with a 15 km long tunnel using nearly 400 meters available level drop between Jalaput reservoir and the existing Balimela Reservoir backwaters. There is also the possibility to install a huge capacity Pumped-storage hydroelectricity station for the needs of peaking power using high water level drop. This reservoir will serve as the upper pond and the existing Balimela reservoir as the tail pond for installing Pumped-storage hydroelectricity units. Thus this reservoir water can be put to use more productively. The existing MHES can also be kept in operation by diverting the surplus water from the nearby upper Kolab reservoir into the Machkund river basin by joining with nearly 4 km long tunnel. This would facilitate to use of excess water from the upper Kolab reservoir for enhanced electricity generation in MHES and downstream Balimela powerhouse by using nearly 200% more available head in Sileru river basin before putting finally for irrigation use.