As a part of its corporate diversification plan, DCL ventured into power generation soon after this sector was opened up for private investments. The Company took up implementation of a Hydro Power Project of 3.75 MW installed capacity on the Guntur Branch Canal (GBC) of the Nagarjuna Sagar Right Main Irrigation Canal (NSRMC), at a location near Narsaraopeta, Guntur District. This project was taken up for implementation in 1995 and commissioned in April 1996.

The Hydro - electric Power Unit comprises of a Power House consisting of 3 Nos of 1.25 MW Horizontal Full Kaplan Turbines, coupled to Squirrel Cage Induction Generators with guaranteed out put of 1375 KW each. The Power House is equipped with a Dewatering System, Oil Pumping Units, Cooling Water Facility, Computerized Control Room (CCR), standby DG set, Emergency DC Battery Back-up etc.

The plant is designed for an annual generation of 21 million electrical power units per / annum and the entire power generated is wheeled for captive use in the cement plant of the company, for which the company has entered into a Power Wheeling and Banking Agreement with APTRANSCO.

The Switchyard comprises of 3 Nos of 1.6 MVA Transformers and 200 KVA auxiliary generators. Power is evacuated at 33 KV on the APTRANSCO's Double Circuit Inter-connection Point in the Switchyard. The Switchyard is equipped with Capacitor Banks with protection equipment and metering facilities.