Multifuel power plant is the largest thermal power plant in Nepal. It is located in Bansbari Morang, Biratnagar, which happens to be one of the largest industrial areas in Nepal. In the first phase, 4 units each of 6.5 MW were installed with financial assistance from Finland Government in FY 1990/91. Later, 2 more units of the same capacity were installed in FY 1997/98 to complement the energy deficit during winter and evening peak, which was also financed by Finland Government reaching the total capacity of 39 MW.

The cumulative generation ofMultifuelPower Plant has now reached generated 578.69GWh from its first run. This station generated 23.49 GWh of energy in FY 2010/11 and mere 0.62 GWh in FY 2011/12.

The major overhauling of engines of all the six units of Multifuel power plant started in FY 2009/10 and the contract agreement with Wartsila took place on 10 April, 2010. The overhauling has been successfully completed this year. The project was jointly funded by World Bank under Power Development Project, GON and NEA. The project cost was USD 7.7 million. The main works of this project was the overhauling of 6×6.5 MW Wartsila DG sets.