In the upper drainage basin of the Mahanadi River, centered on the Chhattisgarh Plain, periodic droughts contrast with the situation in the lower delta region where floods may damage crops. The dam was constructed to help alleviate these problems by creating a reservoir and controlling river flow through the drainage system. The dam regulates the flow of the Mahanadi River and produces hydroelectricity through several hydroelectric plants.[4] The dam helps control floods in the Mahanadi delta and irrigates 75,000 km2 (19×106 acres) of land. Hydroelectricity is also generated. The Hirakud Dam regulates 83,400 km2 (20.6×106 acres) of Mahanadi's drainage. The reservoir has a storage capacity of 5.818 km3 (1.396 cu mi) with gross of 8.136 km3 (1.952 cu mi).[2] It drains an area of 133,090 km2 (32.89×106 acres), more than twice the area of Sri Lanka. The project provides 1,556 km2 (384,000 acres) of kharif and 1,084 km2 (268,000 acres) of rabi irrigation in districts of Sambalpur, Bargarh, Bolangir, and Subarnpur. The water released by the power plant irrigates another 4,360 km2 (1.08×106 acres) of CCA in Mahanadi delta. The dam can generate up to 307.5 MW of electrical power through its two power plants at Burla, on the dam's right bank and Chiplima, 22 km (14 mi) downstream from the dam. In addition, the project provides flood protection to 9,500 km2 (2.3×106 acres) of delta area in district of Cuttack and Puri. Chiplima has gained prominence as the second hydroelectric project of the Hirakud Dam. A natural fall of 80 to 120 ft (24 to 37 m) in the river Mahanadi is used to generate electricity. The place is mostly inhabited by fishermen, whose deity Ghanteswari is revered in the neighboring area. The state livestock breeding farm and agricultural farm are located here.