Rules and Guidelines

Local Area Development Fund (LADF) Guidelines

Overview

LADF Guidelines establish the framework for allocation, management, and utilization of 2% of project cost for development of local areas affected by hydropower projects.

Legal Basis

• Hydropower Policy 2007 & 2008: Mandatory LADF provision
• MoEF&CC Conditions: Environmental clearance conditions
• State Government Orders: DHPD administrative circulars

Fund Allocation

Percentage: 2% of total project cost allocated to LADF

Calculation: Based on approved project cost in concession agreement

Timing: Allocated progressively during project construction and operation

Structure: Typically distributed as:

• 60% during construction phase
• 40% during operations phase

Fund Management Structure

LADF Committee Composition:

• District Collector (Chairperson)
• DHPD representative
• Project developer representative
• Village Headmen from affected villages
• Women representatives (minimum 2)
• NGO representative
• Community elected representatives

Committee Functions:

• Priority identification through community consultation
• Project selection and approval
• Implementation monitoring
• Financial management
• Grievance redressal
• Performance review

Eligible LADF Projects

Education:

• School building construction
• College facility development
• Classroom construction
• Skill training centers
• Computer labs and libraries
• Scholarship programs

Health:

• Primary health center construction
• Community health clinics
• Ambulance services
• Medical equipment
• Health worker training
• Sanitation and hygiene programs

Water and Sanitation:

• Drinking water supply systems
• Water treatment plants
• Community toilets
• Waste management systems