Dibyashwari Hydropower Limited was established in B.S 2063/10/25 under The Companies Act, 2063. The company was converted into a public limited company on 2069/07/03. The basic objective of the company is to generate electricity through utilization of water resources abundantly available in the country. The company has its corporate office at Old Baneshwor-34, Kathmandu, Nepal.

The company undertook the task of developing a 4 MW project in the Sabhakhola river at Dhupu VDC of Sankhuwasabha district at Eastern Development Region as its first project. The PPA of 3300 KW, i.e., 3.3 MW, was signed through the Nepal Electricity Authority in 2068/11/17, and the project extended its capacity of generating electricity to 4 MW and did its amendment PPA of 4 MW in 2070/08/19.

Initial Environment Examination report (IEE) of this project has been approved from the Ministry of Energy on 2068/09/04 and Supplementary IEE was approved from MOE on 2071/09/29. Energy Generation License from the Ministry of Energy was obtained on 2071/12/26