The Bheri-Babai Multipurpose Project is an inter-Basin water transfer project prioritised for the development of irrigation in Bardia District . The intake of the Bheri-Babai (BR-1) diversion scheme lies on the Bheri River upstream of the confluence with the Karnali River. The tailrace outlet is located in the Babai River upstream of the existing Babai irrigation project diversion weir. The Bheri-Babai project aims to generate electricity and supply additional water to the Babai Irrigation Scheme in the Terai by diverting of water from the Bheri River into the Babai River. The project is yet to undergo a feasibility study.