Fundamentals of hydraulics and hydrology are used to present the basic theory necessary to understand hydropower engineering. The proposed hydel scheme lies on Upper Chenab Canal Lower at RD 283 using the available discharge data of UCC for past ten years, daily flow duration curve, hydrograph and rating curve are developed which are used to analyze and select suitable pattern for power generation. The proposed layout of the study recommended is conventional powerhouse with a spillway discharge downstream of RD 283. The procedures presented fill a need for an authoritative technique to help in the design and environmental aspects of planning for potential projects. Estimated total cost of the project is Rs. 219.509 million inclusive of Rs. 62.600 million as foreign exchange compared. Internal rate of return in case of this study is 32.95% Comparison of the results with equivalent diesel generation shows the economic viability of the project. Project is relatively marginal and very small in terms of energy contribution yet it is commended for implementation in view of acute shortage of electricity in the country at present.