In the 1950s a village in Kerala is preparing itself to be included in the nation's electric grid. Things are looking up for villagers and everyone is optimistic about the progress that electrification will bring. However soon some trouble brews starting with petty quarrels on trees being felled for the power lines. A series of unfortunate events follow the electrification as the village comes into terms with rapid modernization.

Chidambaram is based on a short story by noted Malayalam writer C. V. Shriraman. The film is a deeply symbolic exploration of the man-woman attraction leading to betrayal and eventually to the purgatory of guilt.

Esthappan is a fisherman, who lives in a seashore colony. His story unfolds through narrations by other fishermen about his miraculous acts. Through the contradictory statements of these people, a mystical figure of Esthappan unfolds.