The project is located in the former Muchok, Takumajh Lakuribot and Saurpani VDCs of Gorkha District.

It has a catchment area upstream from the intake of 224 square kilometres (86 sq mi), and long-term annual average flow at this point of 17.7 cubic metres per second (630 cu ft/s).

The revised design would give installed capacity of 6.5 MW and would deliver 35.51 GWh per year.

In December 2013 the project director reported that work had begun on the intake structure, sedimentation site and office camp, and expected completion within one and a half years.

From the switch yard the power is transmitted over a 14 kilometres (8.7 mi) 33kV single circuit line to the Gorkha substation.

[1] It was assumed that the Daraundu hydropower project and dam would obstruct migration of fish and severely reduce their population.

[1] The project reduced water available for irrigation at some sites, causing much resentment by farmers.

[7] The farmers at Daraundi A expected road improvements and an electricity supply from the project, but received neither.

[8] The plant is developed and partially owned by Daraundi Kalika Hydro, an Independent Power Producer.