Kulekhani-II Hydropower Station, located at Nibuwatar, Makwanpur, is a cascade of Kulekhani-I with installed capacity of 32 MW and annual design generation of 104.6 GWh. It was commissioned in 1986 AD and developed in assistance from OCEF Japan and Government of Nepal at a cost of NRs. 124 million.

The Plant has faithfully cascaded the generation of Kulekhani-I while also boosted with water intake from Mandu and Rapti pumping. Every year Mandu intake is cleaned after the wet season to allow the filtered water to the intake pond. Survey was carried out to explore the possibility of addition of Mandu and Rapti in an extensive scale such that one unit could run while Kulekhani-I is not operated for storage of water.