The Prime Minister also said he was confident that when the two state governments, their officials and Chief Ministers sit together a mutually satisfactory solution could be found.
"I am trying to persuade both governments to sit together, I have not succeeded so far, but I have not given up hope, if good sense prevails, as I do believe will prevail, I am confident in the leadership of both Tamil Nadu and Kerala, that in a mutually satisfactory manner, this problem can be resolved," Singh said.
Singh was asked by newsmen to comment on the view expressed by the Supreme Court that the Prime Minister is the most suitable authority to take a lead role in finding a soution to the dam row between the two neighbouring southern states.
The Prime Minister said both Tamil Nadu and Kerala are two very very important states of India, the well being of both the States is very dear to the "hearts of the Central Government, and to my heart as well."
"There is a problem that has arisen, it is my sincere belief that there is no problem which cannot be resolved through dialogue, debate and discussion," he added.