The feasibility study of Mai Hydropower Project (MHP) was undertaken by Sanima Hydropower Ltd. Initially, in June 2006, MHP was proposed as a daily peaking run of river project with installed capacity of 22MW. After discussion with Nepal Electricity Authority(NEA), the daily peaking option was abandoned (as recommended by NEA, the government’s power utility to purchase power from the Project) and an optimum simple run-of river scheme with installed capacity of 14.5MW was technically concluded with NEA in year 2007 with the energy price open for negotiation. With the amendment in the Power Purchase Agreement between Nepal Electricity Authority and Sanima Mai Hydropower Limited the capacity has been increased to 22MW from 15.6MW. Thus the total capacity of Sanima Mai Hydropower Limited is now 22MW. In Year 2008, Sanima (P) Limited (SMPL) established a special purpose vehicle company ""Sanima Mai Hydropower Limited"" for the implementation of Mai Hydropower Project (22MW) and Mai Cascade Hydropower Project (7MW). The PPA of Mai HP was signed on 8th Baisakh 2069 and MCHP on 12th Magh 2069. The construction of Mai HP started on Magh 2067 and that of MCHP started on Shrawan 2070.