It is being executed on a priority basis to harness indigenous hydropower resources to improve the ratio of hydel electricity in the national grid and help provide relief to the consumers.

On its completion, the Gulpur Hydropower project will generate about 465 Gwh of inexpensive electricity annually to earn revenue of about Rs 1 billion.

Being an environment-friendly hydropower project,[citation needed] it will help reduce dependence on expensive thermal power, thereby saving foreign exchange amounting to $36 million (equivalent to Rs 3 billion) to the country.

The Asian Development Bank (ADB) is providing the loan to Mira Power, run by three Korean companies, which will build and operate a 102MW hydropower plant.

Basin and Reservoir ◦ Catchment Area 3,625 km2 ◦ NHWL EL.540.0m ◦ L.W.L EL.538.0m ◦ 100yr frequency flood 13,340m3/s ◦ PMF 21,640m3/s ◦ Reservoir Capacity(NHWL) 21.893 millionm3 Main Dam ◦ Type CGD ◦ Design Flood 21,640m3/s(PMF) ◦ Height 35.0m ◦ Crest EL.545.0m ◦ Length 238.0m Spillway ◦ Radial Gate Size W10.0m×7Gates (EL.518.0m) ◦ Under Sluice Gate Size W10.0m×4Gates (EL.515.0m) ◦ Energy Dissipation Submerged Bucket River Diversion ◦ Type Partial cofferdam(1st) + Sheet File(2nd) ◦ Design Flood 2,517m3/s (25yr frequency) Intake Weir ◦ Gate Nos.