The project, located on the tributary of the river Kali just across the Nepal border town of Dharchula, has been developed to generate 1134M units of power every year.

The project has been constructed by National Hydroelectric Power Corporation with partial funding from the Japan Bank for International Cooperation (JBIC). The project included the construction of a 56m high concrete face rockfill dam, a 750m long diversion tunnel and a 5.3km long head race tunnel through which water will be taken downstream to an underground power house. A 437m long tail race tunnel returns the water back to the river.

The dam and part of the head race tunnel was constructed by Kajima-Daewoo, a Japanese Korean joint venture, while the power house and the remaining part of head race tunnel was constructed by a joint venture of Korea’s Samsung and India’s Hindustan Construction Company.