The right bank canal of the Upperkrishna Irrigation Project, taking off from the Narayanpur dam, has a drop of 35m at its 54th km, which is negotiated in the irrigation Canal by a chute. The canal flow of 92 cumecs (in the ultimate stage) and the drop in level of 35m is utilized in the Small Hydel Scheme to generate power. The scheme is developed by M/s Narayanpur Power Company.

The scheme has an ultimate capacity of 24 MW, consisting of 4 x 6MW and would be implemented in 2 phases each of 2 x 6MW = 12 MW. The scheme as planned involved the construction of a diverted approach channel of a length of 580m with bed width of 7.0m, and a depth of 5m, starting from a point upstream of the start of the Chute along with an ungated byepass weir 125m long and an approach pool upto the Intake structure.

The first phase of the power generation Scheme consists

1	A well type intake structure along with an approach channel on the upstream of the left bank hill mass, and with the control gates,
2	Two steel penstocks 2700mm Dia and 134m long with 10mm steel plates.
3	A surface power house 32.5m long and 14.5m wide with concrete substructure and steel sheet roofing for 2 units along the Service bay.
4	A tail race pool and tailrace channel suitable for the ultimate stage of 4 units of 6 MW.
5	An outdoor switch yard 80m x 40m suitable for 4 units with an installation for two units.
6	The Power house in the 1st phase has two vertical axis, full Kaplan turbine generators along with all accessories. The 1st unit of 6mw has been commissioned in March 2006 and the second unit is due for commissioning in June 2008. The Scheme will generate annually 70.4 GWhs of energy in the first phase.