Dudhkoshi Storage HEP is a 670 MW seasonal reservoir-based project, designed to utilize the waters of the snow-fed perennial Dudhkoshi River, which originates from Mount Everest and its surrounding Himalayas. The Dudhkoshi River, a tributary of the Saptakoshi River System, joins the Sunkoshi River near Ghurmi and Harakpur Bazaar. The project’s main dam will be constructed approximately 1 kilometer southwest of Rabuwa Bazaar, a small market on the left bank of the Dudhkoshi River at the border of Okhaldhunga and Khotang Districts.The main 600 MW powerhouse will be an underground facility on the left bank of the Sunkoshi River near Dhitung village in Halesi Tuwachung Municipality, Ward No. 8, Khotang District. The 70 MW Dam-Toe powerhouse, also underground, will generate energy from environmental flow release and is proposed at Chisankhugadhi Municipality, Ward No. 6, in Okhaldhunga District. A 220-meter-high concrete-faced rock-fill dam (CFRD) will create a 31.5-kilometer-long reservoir with a capacity of 1,581 Mm3. The dam site is located approximately 210 kilometers east of Kathmandu by road.

For the main 600 MW powerhouse, a natural head of 132 meters will be available from a 13.15-kilometer-long main water tunnel, supplemented by an additional 210-meter artificial head from the reservoir. The design discharge for the main powerhouse is 224.4 m3/s. The Dam-Toe Powerhouse is designed to operate with a rated head of 182 meters and a design discharge of 40 m³/s.