The dam is part of the Koyna Hydroelectric Project. It contributes in the 3rd stage of power generation of the Koyna Hydroelectric Project. The electricity is generated in the underground power station located at the base of the dam. The total installed generating capacity of the 3rd stage of the project is 320 MW. The project is run by the Maharashtra State Electricity Board, also known as the MSEB. The area behind the dam is one of the most sparsely populated areas in the state.