Giri Nagar is situated at a distance of approximately 5 km from Dhaula Kuan. It gets its name from Giri river, near which it is situated. Giri Nagar has a power house, which produces 60 M.W. of electricity.
This powerhouse was constructed with a 6 km long tunnel after diverting the Giri river. The produced hydropower energy is not only used in Himachal Pradesh but is also distributed to Uttar Pradesh and Punjab.