Commissioning pf Phase II raises the total generation from Basochhu to 56MW, with the Upper Stage (Phase I) already generating 24MW. The Lower Stage is eventually expected to generate 40 MW; the additional 8MW will be generated by diverting flow from the nearby Rurichhu river. All the equipment for the Lower Stage power plant is from Austria except for the switchyard and the transmission lines, which were built by the Bhutan Power Corporation.

Construction of the Basochhu Lower stage was started in March 2002.