The 20 MW Hanzel Hydropower Project is located on Gilgit River, which is a right bank tributary of Indus River. The project (weir site) is located 17 km from Gilgit Town. Gilgit Town is headquartering of the Northern Areas of Pakistan and the biggest city in the whole area.
Water and Power Department Gilgit Baltistan (W&PD) has taken initiative to conceptualize an important hydropower project for Gilgit City. This project is being funded through Federal Public Sector Development Programme (PSDP). Ministry of KA&GB Islamabad is the sponsoring ministry. Government of Gilgit Baltistan also have keen interest in execution of this project in order to meet the gap between supply and demand of electricity of Gilgit city.