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 Zone. The company also envisages developing Lower Seti (Tanahu) Hydropower Project at the lower reaches of Seti River. The overall management of THL is entrusted to the Board of Directors, headed by the Managing Director of NEA.

The Tanau Hydropower project is the storage type hydropower project with the capacity of 140MW with an estimated average annual energy generation of 587.7 GWh (Years 1-10) and 489.9 GWh (Year 11 onwards). The Project is situated on Seti river of Vyas municipality near Damauli, the district headquarter of Tanahun District. Eight VDCs and Vyas municipality of Tanahun district are directly affected by the project. The estimated cost of the Project is US$ 505 million as indicated in the table: