Jaiprakash Hydro-Power Limited (JHPL), a part of the Jaypee Group was incorporated in 1994 with the object of implementing 300 MW Baspa-II HEP at District Kinnaur in Himachal Pradesh.

When the Government of India announced major policy reforms in 1991 allowing private sector participation in power generation to reduce the gap in generation and demand of power, the Government of Himachal Pradesh (GOHP) took an early initiative in inviting private participation in development and utilization of the untapped hydro potential. Baspa Stage-II project was one of the projects identified for private sector.

Subsequently, Jaiprakash Associates Ltd. (JAL) the flagship Jaypee Group company, formerly known as Jaiprakash Industries Ltd. (JIL) signed the Memorandum of Understanding (MOU) for Baspa Stage-II project in November 1991 and submitted the Detailed Project Report (DPR) in May 1992. Based on the criteria determined by the State Government, JAL was granted approval to develop 300 MW Baspa Stage-II Hydroelectric project in private sector on "Build, Own and Operate" basis for which an Implementation Agreement was signed with the Govt. of Himachal Pradesh in October 1992.

The Baspa-II project - India's Largest Private Sector Hydro-Power project has been fully commisioned on 8th June 2003 at a project cost of Rs 1624.72 crores and has started generating power.