The project is located on the river Baspa, a tributary of river Satluj in Kinnaur District of Himachal Pradesh; the river originates from Baspa Bamak Glacier of great Himalayan ranges at an elevation of 5800 m. The diversion barrage is located on river Baspa at village Kuppa near Sangla and the power house is located near village Karcham about 800m upstream of the confluence of rivers Satluj and Baspa on NH-22 (Hindustan Tibet Road). Baspa Stage –II project has Karcham-Wangtoo hydel project on its downstream. 300 MW Baspa Stage II Project is the first Independent Power Producer (IPP) project after the Government of India liberalized the power policy by inviting private sector participation for setting up hydropower project on “BOO” basis. Baspa Hydro-electric project stage II (300 MW) is the first plant of this size in the private sector. The MOU was signed with Government of Himachal Pradesh in November, 1991 on "Build, Own and Operate" basis. The plant was fully commissioned on 8th June, 2003 and has since been generating power. In 2014, the plant was bought by JSW, together with Karcham Wangtoo hydroelectric plant for US$1.8 billion.