The primary purpose of the dam is hydroelectric power production and it is a run-of-the-river-type.

The dam diverts water to the Chibro Power Station (240 MW) which is then returned to the Tons River before being fed to the Khodri Power Station (120 MW).

[2] Adjacent to the dam and on its left bank, water is diverted into a 6.2 km (4 mi) head-race tunnel which leads south to the underground power station at 30°33′23″N 77°47′53″E / 30.55639°N 77.79806°E / 30.55639; 77.79806 (Chibro Power Plant).

Water enters the intake and then travels south down a 7.5 km (5 mi) head-race tunnel which leads to the power station on the Yamuna River at 30°30′30″N 77°47′59″E / 30.50833°N 77.79972°E / 30.50833; 77.79972 (Khodri Power Plant).

There, the water powers four 30 MW Francis turbine-generators before being discharged into a tail-race channel behind the Dakpathar Barrage.