He revealed that MLAs from the Cauvery basin had urged the government to release water for irrigation but were informed that current storage levels do not permit such a decision.
Reddy said the Detailed Project Report is ready and efforts are under way to provide alternative land to the Forest department to expedite necessary clearances.
The AICC Karnataka in-charge described Reddy as one of the party's most experienced leaders and said the entire top leadership had intervened to resolve the issue.
Reddy -- announced his resignation from the DKS cabinet on Friday -- said he held detailed discussions with CM Shivakumar and that further consultations were under way.