LADF Guidelines

Introduction to LADF

The Local Area Development Fund (LADF) is a mechanism ensuring that communities affected by hydropower projects receive direct tangible benefits through infrastructure and service development.

Policy Basis: Hydropower Policy 2007 & 2008 mandate 2% project cost allocation to LADF

Objective: Contribute to sustainable development of project-affected communities while ensuring responsible hydropower development

LADF Framework

Legal Mandate

State Policy: Hydropower Policy 2007 mandates LADF allocation

Central Conditions: MoEF&CC environmental clearances include LADF requirements

Project Agreements: Concession agreements specify LADF obligations

Monitoring: SLMC oversees LADF implementation compliance

Fund Allocation Mechanism

2% Allocation: Based on total approved project cost in concession agreement

Phased Release: Tied to project construction progress, released against approved milestones with community-verified expenditure and independent audit trail

LADF Committee Structure

Composition

Permanent Members: District Collector (Chairperson), DHPD Representative, Project Developer

Community Members (Majority): Village Headmen, Women Representatives (minimum 33%), Youth Representatives, Elected Representatives, NGO Representative

Quorum: Minimum 50% presence for meeting validity

Committee Functions

The LADF Committee handles planning and identification, project approval, implementation oversight, fund management, and grievance handling for community development projects.

Community Consultation Process

The annual planning cycle includes five phases: needs identification (January-February), project formulation (March-April), approval (May-June), implementation (July-December), and completion and handover.

Community engagement mechanisms include quarterly village meetings, focus groups for women and youth, village-level sub-committees, bilingual public notices, and structured grievance redressal.

Eligible Development Categories

LADF funds can be utilized across these sectors:

Education (20-25%): Schools, skill training centers, digital literacy, scholarships, hostels
Health (15-20%): PHCs, CHCs, ambulance services, medical equipment, maternal health
Water and Sanitation (15-20%): Piped water supply, treatment plants, community toilets, rainwater harvesting
Transportation (10-15%): Access roads, bridges, culverts, school bus services
Community Infrastructure (10-15%): Community halls, markets, street lighting, parks
Livelihood Support (10-15%): Vocational training, business development, agricultural extension, SHG support
Environmental Restoration (5-10%): Afforestation, watershed management, biodiversity conservation

Fund Utilization Standards

Geographic Distribution

Minimum 80% within project-affected area with equitable distribution across villages and priority for disadvantaged communities.

Beneficiary Focus

Landless laborers (20% minimum), Scheduled tribes (proportional), Women (33% minimum direct benefits), Disabled and elderly, BPL families.

Financial Management

The fund flow process covers developer contribution (2% of project cost), milestone-based releases, committee authorization, implementation payment, and auditing.

Transparency measures include quarterly fund balance announcements, biannual expenditure details, public access to meeting minutes, annual audit publication, and community access to asset registers.

Monitoring and Evaluation

Progress monitoring includes monthly site inspections, community feedback, quality assurance, and budget monitoring. Impact evaluation covers school enrollment, health service access, water quality, community income, and employment generation.

Third-party verification includes annual independent audits, social audits by external NGOs, beneficiary surveys, and compliance assessments.

Document Download

Download LADF Guidelines (PDF)

Download Ranganadi LADF Notification 2021 (PDF)

Contact for LADF Queries

Commissioner, DHPD Email: commrdhpd.arn@gmail.com Phone: 8731931119 (PIO)

Civil Secretariat, Itanagar - 791111

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