Tanahu Hydropower Limited (THL) was established as a subsidiary company of Nepal Electricity Authority (NEA) on 25 March 2012 to develop Tanahu Hydropower Project (previously known as Upper Seti Hydropower Project). The Project site is situated 150 km west of Kathmandu on Seti River near Damauli of Tanahu District in Gandaki Provionce. The overall management of THL is entrusted to the Board of Directors, headed by the Managing Director of NEA.

The Project is storage type hydropower project with installed capacity of 140 MW and an estimated average annual energy generation of 587.7 GWh (Years 1-10) and 489.9 GWh (Year 11 onwards). The total project cost is estimated at $505 million including Rural Electrification, taxes, duties, interest charges during implementation and contingencies.

The company also envisages developing Lower Seti (Tanahu) Hydropower Project at the lower reaches of Seti River, i.e. downstream of the Tanahu Hydropower Project (THP). It is envisaged as the integrated system of THP which will be utilizing its releases with about six hours of peaking capability during dry season.