Dams play a vital role in the economy of a country by providing essential benefits like irrigation, hydropower, flood control, drinking water, recreation etc. However, in the unlikely and rare event of failure, these may cause catastrophic flooding in the down stream area which may result in huge loss of human life and property worth billions of dollars The loss of life would vary with extent of inundation area, size of population at risk, and the amount of warning time available. Also a severe energy crisis would befall a nation whose energy is heavily dependent on Hydro Electric Power. This would in the long run hamper industrial progress and the economic development of the nation.