The proposed Upper Karnali HEP is located on the main course of the Karnali River and has a catchment area of . This project is one of Nepal's most economically attractive runoff- river diversion schemes (900 MW), with daily peaking capacity and high firm energy. Project facilities will be located in three districts: Surkhet, Dailekh and Achham. Project hydrology is based on data from station 240 at Asaraghat. The river is snow fed and the mean annual estimated flow at the headworks is . The project has been allocated to GMR of India for development on BOOT basis.