Balimela is a block 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 Orissa and Andhra Pradesh. A dam is being constructed at Chitrakonda, 25 km from Balimela across the river Sileru and the reservoir would submerge a rich forest area of the district.

The total inflow into the reservoir is shared equally by the two Governments. The share of the Andhra Pradesh Government is flow downstream the river while that of Odisha Government is diverted to a high-head power some 15 km. south of Balimela. It is estimated that the power-house is generating 240,000 KW at 60% load factor. The tail water is subsequently utilized for irrigation about 2.4 lakh acres of land in Malkangiri and Motu plains.