COVERNlvlEl.

{T OF [-liMACI{AL Pl{A DES II

DEPARTMENT OIT MPP& POWEI{

Datcd: Shimla- 17rc42, 05'l' October, 201 L

No. MI)P-F (10)- 241201I

NOTIFICATION

The Governor, Flimachal Pradesh is pleased to nqtify the revised

Guidelines for management of Local Area Development Fund
(LADF) in respect of
guidelines notified
Hydno Elecu-ic Projects as Annex-I. These guidelines supercede the
earlier vide No. MPP-F( l0)- I 5/2006 dated l6-09-2009'

By Order,

Principal Secretary (Power)

Government of Himachal Pradesh

Endst.No.-MPP-F (lO)-24n0tl Dated: Shimla- 171002, 05h October.20ll-.

Copy forwarded for information and necessary action to: -

1.,:"" All the Administrative Secrttaries, GoFIP, Shimla- 171002' l

\_.'5- The Director, Directorate of Enerry, ShantiBhawan, Sector- 6, Phase- 3' New
- Shimla- l7lOO9.
3. The Divisional Commissioger,. Shimla/ Mandi/ Kangra at Dharamshala.
.1. AtI the CMDV MDS, TIPSEEU TTPPCTI T*TCIJ STINL/ BBMB/ NHPC/
NTPC.
5.TheCEO;.Himurja,SDAComplqx,Kasumpti,Shimla,H'P':,^171009'
6. The Dircctor, NIL, Strimta-tZiOO2 for hosting the notificationi on' ' the official
website'of ih; C;;;mehiorH.p. and DirebtJdte of snersv:
7. AII the Deputy Comrnissioners, Himachal Pradesh' .-- - '|., -
o 8. The Controller, Printing and Sthtionery, Himachal Pradesh, Shimla-5 for
publication in the RajPatra.

t of Himactial Pradesh

urfir'
je::,
9\
 (;OVEI{NNIILN'['OIrflIN'IAC]llt\l'PI{ADIISII
l) Iil';\ lll'liNl XlNl' OI' lVII'l' & I'OWliR

l)cvclopmcrtt Ilu.tl (LADp)

Ircvisctl (J,itlclincs {ur t.:tnltgcntcnt,,ir,,,.r, Area
in resJtccl of llytlro_[lcctric 1'rojects'

I L}.{CKGR()TJND

T'he Hydro Power Policy,2006, providcs

that 1.5% of the final cost of the projects
t.l
up to 5 MW shall be contributed to a I-ocal
above 5 MW and lohof the final cost o1'pro.iects
is applicable for new as well as ongoing
Area Devclopment Irund (LAD1;;.'I'his provision
projccts at the time o{'noiification t,f thc policy. Thc
lluidclines for managenrcnt of Local
Area Development l.-und (LADF) in respect of i-lydro Illectric Projects were notified vide no
'
Mpt,-rr-(toi istzooo tlaletl 16.9.2004.
datcd
1.2 Thcreafter Governtrtent of IlP vide notification No'-MPP-F(\)-212005-V
in line with the provisions of Governrnent
30.11.2009 has brought in additional provisions
of lnclia's new Hydro Power Policy, 2008'

(one percent) free power after commissioning of hydro

power
a) Additional l%
provide a regular tT"ST of revenue for
projects shall be eannarked for thc LADF to
incomc generation and welfare schemes, crlation
of additional infrastructure'and
of the project.
fu";il;;;;. on a sustained and continued basis over the life
"o,rrmon
provide a matching 1olo from its
b) 1he government of Himachal Pradesh may also
provisions for schemes where the
share of tZ% iee power through plan/budgetary
free power provided by the Developer
normal plah/budgetary provisions and the 1i/o
for infi'astructure or
(s) to the LADF is'ntt adequate to meet the requirement
schemes.

Activities..is to be
1.3 This entire contribution towarcis Local Area Development
by a toTTitt:.t called Local
-6ommittee which will be administered
maintained in the ,tr;;; "iiADF (LADC) comprising- of various stakeholders including
Area Development
Covernment A"purt*entr, project d"r"lop"is
und public representatives/nominated

members from Project Affected Areas'

feedback froln Project Developers
1.4 The implementation of this policy and continuous
need to revisit these guidelines in order to
on LADF management have brougnt up the
of LADC an objective' transparent and
in
administer the LADF and to manage the activities
and create a stake of the community in the
efficient manner, irc.eas" local plrticipation is accordingly being
;.;;dl*;, rrurr..ring oipo*". potential. A revision of the guidelines
carried out.

2 A]o/rS & OBJECTMES:

on the environment'
whiie developing hydro power projects, there is an impact need to be addressed
resources, etc' This
existing infrastructure,lndividual and community
in the project design and cost' Provision for
by making appropriate and adequate provisions like Environment
mitioatins these adverse consequences is provided for in schemes
Plan (CAT Plan), resto'ation of loss
ffilX;":;",i;';,;, @t\*), Catchmert Arca'l'i.eatrnent
r\1-1or-cstation and Net Present Valrte pa-r'mcnt'
ol enyiropntent through CoinpensatLri'.\ iirltl J')nlpensation for damage to crops 6li1L: to
Itchabilifation ancl Re-setllernent PIlrtt:: Ftrnd (L'ADIrl
ltollLrticrn. ctc.
In addition, a special pr,,"'isi"l, of Local Area Del'elopnlclit
 has been made under the State l{ydro l)ower Policy
to carry out local de vclopnrcnt activities
so as to ensurc visiblc additional bencfit to local comnrunlties
in the pro-;""i arca as part of
the cost of a projcct- Irurther allocation of this LADF
conhibution to ichcmes and purposes
needs to be based on pre-detcrmined, objective parametcrs.
The peoplc of thc affected area
should be arvare of the allocations likely to flow to them so
thaton the one hand gainful
infrastructure trnd local developmertt activities can be planrred
wcll in advance and on the
other hand local communities develop an interest in explditious
completion of projects.
3 DEFINITIONS:

3.1 PROJECT AFFECTED FAMILY (PAF):

Mean-s a family whosc land or house or other properry

or source of livelihood has
been partly or fully acquired for the development of projeci.

3.2 PROJECT AFFECTEDAREA (PAA):

3'2'l Project Affected Area (PAA) means the area where actual project
components
including submergence arealmuck dumping area, mine/quu.ry^u.Ju, infrastructure
including roads, project dedicated township, offices, consiruction Acititi"r,
welfare
facilities and any other facilities directly rclated to project implementation
are
located' Townships and offices such as design office or head oifice
not diiectly
'Affected with the particular project site arelxcluded. Unit for declaring project
connected
Area would ordinerrily be the Cru- puociuyut. rro*ru"., il;;
case of
Projects upto 5 MW capacity, where component(s) pertains only to
specific wards
.and do not impact the rest of the Gram Panciruyut tf,.n those wards shall be
separately enumerated and considered as pAA.

3.2'2 In case of reservoir or storage projects involving reseftlement, the area for
resettlement shall also be covered as pAA.
: i

3.3 PROJECTAFFECTED ZONE (PAZ):

Project A{fec'ted Z. one (PAZ) means the area surrounding such project
affected area
u'hbre impact of the ploject on the lives of people is considerable .r"n ifro
direct project
activity is bklg place there. The categorizaiion of PAZon the basis of project size
will be
as under:

3.3.1 For Projects of capacity upto 5 MW

Only such adjoining Wards/Panchayats to PAA as are considered to.be impacted
by
the project.

3.3.2 For Projects of capacity from 5 MW to I00 MW

All ite adjoining Panchayats to PAA as are considered to be impacted by the project
in the sanie or adjoining districVs.

3.3.3 For Projects of capacity above 100 MW

Entire block or all such adjoining Panchayats to PAA as are considered to be
-impacted by the project in tne same-or adjoining D.ishict/s.
Note: l) Project Affected Families in all cases shall be declared by the concerned DC.
Project Affected Area and Project Affected Zone rvill be ieclared by Govt. of
Himachal Pradesh on the recommendation of concemeil DC fur projecis over 100

2-
 MW ancl by the cotrccnrcd Dcputy'Cionrrnissioner Ibr projects uptol00 MW. In
casc ol' tr project lalling in rnr)rc than onc District the lr,\A it pnZ
r.vill be
declared by GoFII'. No expcnclitrrrc u,ill be incurred till the pAA and pAZ
are
notificd.

2) The declaration of PAA and I'AZ is to bc cornpleted prior to signing of IA.

The
project developer will subrnit thc proposal to tire Deputy Comrnlssioner
within 2
(two) years of signing of MOU,il,lA.

3) In case of scattered and isolated PAA c.g. mining and dumping areas
ctc., the
PAZ will be only such adjoining Panchayats to PAA as are considered to
be
impacted by the project.

] COMPOSITION OF LADF:

The LADF shall comprise of contribution by project based on project

cost and free
power after commissioning as envisaged in the state ana national hydropower
policies. The
' hydro project developers in the State shall contribute towards LADi
in hvo stages.

4.1 Prior to Commissioning of the project

4't'1 The Project developer shall contribute a minimum of 1.5%o of final

cost of the
Pro-iect for projects of more than 5 MW capacity and a
minimum of lyofor projects
of capacity upto 5 MW. While the project authoiities have to contribure-minimum
of
l'5o/o or lYo (a.s the case may be) of project cost to LADF,
they may contribute more
if they so desire. Initially the LADF r,vill be worked out on the basis of the project
cost as per DPR_for depositing with the concerned DC. After
completion of the
Project, the LADF wiil be worked out on the final completed
cost.

4'l'2 The Project cost will_be as approved by cEN State Govt. and inctude
IDC, CAT,
R&R expenses, etc. Escalation will be included when revised iEC t.;r"n.
as tr,"
entire cosr is included in calculating tariff for PPAs u, p". regulatory
-for grid;ii*r;^j;
would be appropriate to follow the same guidelines cllculating" the LADF
contribution. Therefore, the total cost as pir TEC will be taken
calculating LADF contribution. It would be adjusted as and when
is basis for
TEC is revised in
the course of project construction /com plet i on.

4'1'3 The balance amount of LADF worked out on final cost shall be deposited
by the
Developer within one year of Commercial Operation Date (COD)
of ttr" project.
4.2 After Commissioning ofthe project

Project developers of all capacities shall contribute lo/o freepower for

LADF over
and above the rates of royalty agreed to be paid to the State Cou".irrn-*t in the
Implementation Agreement/ Supplementary Implernentation Agreement, as
the case may
be' This additional l%o (one percent) free power, over and auJve trr. .oyarry
provided to the host State will be a pass through in tariff. The revenue "o.por"nt
collected
Nodal Agency @irectorate of Energy) from sale of such lYofreepower (conrribution
ty the
from
the Project Developer) will be transfered to the Local Area Development Fuld
for each
proj cc t.
 5. REALIZAI]ON OF LADF CONTRITUTION

5.1 llrior to Comtnissioning of thc project:

5'1'1 conhibution to be made prior to commissioning

of the project shall bc released by
project developers in the following manner:

a) l0'o/o amount within three months of signing of implementation

Agreement
GA).

b) 15% aurount within rg months of signing of the IA.

c) Balance 75%o amounF in tfuee equal annual

instalments during construction
periocl of the prcject. The first instalment
will be paid withinlh'ree months of
zero tlale as given in the IA or 31tt December whichever
thereafter by 3l't December on annual basis.
is later and

5'1'2 If any Project Developer wishes to make a contribution in

advance of this schedule,
it will be accepted

5't'3 In case of failure to adhere to the time lines as prescribed

under a), b) and c) above,
the project developer shall be liable to puy iot.."rt
on the due amount of LADF
@12% pei annum.

5.2 hfte. of ilre Project:

"omnrissioning
Tnc iTo free p^ower contribution to LADF shall be
sold by the state government
alongwith its share of l?ee power. The amount equivalent
to average net realization per unit
multiplied by the number of units for which rziis t9
uf puia *ru be plac_ect at the disposal.
of LADC amually. The average price_ per unit will be'worked
out on the basis of net
proceeds of total free power sale by GoHT divided
by tstalnumber of units involved, after
I
allowing paisa per unit to be ietainr4 by th" aiut"
e;;ffi;;';."';;;enses
of
Directorate of Energy.

6 I}.ISTITUTIONAL ARRANGEMENT FOR ADMINISTRATION

OF LADF
6.1 There shari be a state Level comTlt. headed
uy l,ilncipal Secretary (Mpp &
Power) to monitor the operatio-n of the IADF uourg"*#s,
adherence to guidelines and
time lines-for deposit in the'fund at-vat'ious rtd";.
empowered to clarifl any un-addressed issues
ft" state Level commitfee is
and"remove any difficulties to ili;""
smooth tunctioning in implementation o{.!h.ese guioerines.
rrr. pt*.i.iJt.';i;;;rgy witl
be the nodpl agency at state level and witt keepl
to be deposited by each project developer and manage
r.r*d;i;;;A##;i,Jr,L"rru
from i y'o additional free power to thi concerned
*" of revenue generation
hereafter.
iapc "ir".ution
to be constituted as described

6'2 The LADF will be admfutistered by a committee called the Local Area Development
committee (LADC) which will be constituted fr..; p;;j..i
,.purutrly, immedia tety after
t]ryin-g of the lmplemerltation.Agreement. AII the LADis
constitured within the District
shall function under the overall superintendence and
control of rh* Deputy Commissioner.
The LADCs for various sizes of projects will be as under:
 6.2. 1 Di.srrlc! rlcye ,L t,;\ l ](. li1pq1cot.s pfut.r
.y,c il ),_N,l W capacily:
l. l)cputyConrntissioner
2. nistrict le'cl olficers ol I)W, Ipll, I'orest
:::]::il::lff Chainran
I{ural Dcvclopment, I{calth, I{orticulturc Mernbers
l)cpilrtrr)cn ts
3. Chainnan & Vice_Chairman, Zila parishad
(for Di.stricr levcl allocation onlyj Concerned -do-
parishad
4' chairman & vicc-chainnan pancha.r,ar pancrrayat Samiti
Sarniti Members
(flor Illock Ievel allocation only)
-do-
5. Pradhan(s) of all affected Granr
Panchayat(s) pAA. Concerned area -do-
in

6. Reprcseniative of the project Del,elopers project

Concerned Member Secretary
6.2.2

l. Deputy Commissioner
Concemed Dishict
(Sub Divisional Magishate for Chairman
to 25 MW capacity)
Projects up (Concemecl Sub_
division)
2. Sub-Division level officers of pW,
Ipl{, Concerned Area
Forest, Rural Development, Health, Members
I{orticu I ture Departments

3' Chairman & vice-chainnan ziraparishad concemed parishad

(tbr District level allocation only) -do-
4' chairman &' vice-chairm an panchayat
concerned samiti
Samiti -do-
(for block level allocation only)
5. Pradhan(s) of all affected
Panchayat(s) in pAA
Gram Concerned area _do_
o. Representative of the project Developer
Concerned project Member Secretary
6.2.3

1. Sub Divisional Magistrate or Tehsildar

(As may be decided by the DC
Concemed Sub- Chairman
from time to div./Tehsil
time)
1 Sub-Division level officers of pW,
Forest, Rural Development, - ijJtn, IpH, Concerned Area
Members

Pradhan(s) of all affected Gram Concerned project/

Panchayat(s) in pAA or the Wa.d -do-
."mi".,
of affected wards as the case may be
Concerned Ward
4 Representative of the project Developer
Concerned project Member Secretary
 6'2'4 In casc any pro-icct lies in more than one District, thcrc
shall be a separate LAIIC t.r
cach clrstrict artd lhc I-ADC flor the District having only
a snrall part of the project
rnay be lreaded by SDM/T'ehsildar regardless of the sizc
of the projcct.
6'2'5 'l'hc abovc prroposal wili entail scparate LADC lor each project in each district
cnabling bcttcr targcting and execution of schemos.

6'2'6 Local MLA shall.be an invitee to every meeting of all the abovc
committees.
6 3 ITLINCTIONS. RI]SPONSIBII.ITIES OF rhe LADC

6.3.1 Each LADC shall be responsible for:

a) Realisation of contributions to LADF from project promoters

as per norms fxed by
the State Government. _

b) overall management, control and administration of LADF

including documentation
and maintenance of accoun.ts.

c) Scrutiny oI the proposed schemes to ensure adherence

to these guidelines.
d) Approval of shelves of schemes and finalization of Annual
Action plan (AAp) in
respect of each FILP and allotrnent of funds
to executing agencies. Each scheme
included in the shelf or AAP shall be only on the basis
of recommendation of Gram
Panchayat/Panchayat samiti or zila Parishad concerned.
The commiftee will not
thrust any scheme in to the shelflAAP at its level
and ensure no in-eligiute s"heme is
sanctioned by it.

e) Monitoring and supervision of implementation of schemes

approved under LADF.

0 Review the progress of all administrative and statutory

clearances with a view to
remove local hurdles, if any, and settle local issues to
iacilitate il., ;-;ution of
the power projects.

The Directo*i.- wjll inform the concemed Depufy commission er/sDW

Tehsildar (chairman olr-ADC)9l lnergy
auout the sigrung rrpr;;;;i;;tn agreement and th";;;d;;
amount (1.5Y, or 1% of the prqect cost as th;jT! "f
may be)
LADE on the basis of the cost reflected in the DPR submitted
il;fr;;
ilre"rrop"ro"rrropr.
"g"inr,
or the initial TEC as the cale may ue.
(This amount shall be updated sub_sequenfly onfirming
,p or trr" cost). This amount in
turn will be intimated to the Gram ranchayatsnt:"Fpryfiiil;;;" "o*pletion first meering of the projec!
LADC, enabling the concemed body to prepare their shelf of ."t
as per the allocation expected
by each of them. "rn?r

8. PARAMETERS FOR ALLOCATION OF FLINDS

8.1 Prior to Commissioning of the project:

The following allocation of funds will be applicable for Run

of the River schernes.
(The. allocation
for the reservoir or storagJschemes shall be decided Uf it" stut,
Level Comlnittee on case to case basis.)
 l\llolnrcnt ol'lunds fbr local iirca devcloprnent rvorks slrall be rnade strictly in
accordancc lvith the folltlwirrg nonns:

Nonns fbr allocation of LAn Funds during the

construction phase

Sr. Project Affected Zone (PAZ)

Category of F{EPs. Project
No. Project Project Project
Affected Area
(PAA) affectcd affected affected
Panchavat(s) Block(s) District (s)
I Upto 5 MW Capacity 70% 30% Nil NiI
2 5-100 MW Capaci8 60% z0% 10% t0%
a
J >100 MW CapaciW 50% 20% t5% l50h

8.1.1 Further allocation of funds amongst the Panchayats in Project Affectdd Areas shall
be determined on the basis of a formula that assigns weightage to the following
parameters in respect of 50Yo of the funds proposed to be allocated for PAA atpara
8.1 above :

a) Extent of private land used for project components including submergence of

land 45%
b) Extent of land affected above underground componentsl5oZ

c) Extent of land used for infrastructure (Roads, Colony, warehouses etc.)

20%

d) Affected stretch of river /stream on both banks in respect of Diversion

structure and Power House 20Yo

Note: These ratios will be finalized by the LADC Chairman in consultation with
the project developer based on factual details and gtound realities. In case the
projeci involves iamilies to be displaced and relocated somewhere else,
funds shall also be allocated to the host Gram Panchayats in the ratio of
nurnber of PAFs displaced to total PAFs. Till the host Gram Panchayat is
identified, this amount shall not be distributed.

8.1.2 The balance of the funds to be allocated forPAA atpara 8.1 above, shall be
5Oo/o
allocated on the basis of ratio of population of each.concerned GP to the total
population of the entire area in PAA as on 1'lJanuary of theyear of allotment of the
project.

8.1.3 Funds arnongst CPs in thePAZ shall be allocated as perratio of population of each
GP to the population ofall GPs in thePAZ.

8.1.4 GPs (or wards in PAA) if only wards are notified as PAA) may allocate funds'to any
eligible scheme after obtaining the approval of the Gram Sabha (Ward Sabha where
'
applicable).
 6'l'-5 funcls lbr schemes our ot-the
,1,1;"1:j:tof amounr kcpr fbr Irock or lJisrrict Iever

;i:[T,..1';i[,,,],*.,1,i,]"fJ$::H::f r*:ilili,,L,".,t,:.,,,l:,;,;:;;"l
"U re rh n cp o, ;, ;:it. ff lXl ii,ti,?;,",:,;:
I*:m:
a
li; :
on
; :U; " I,
H"J
8.2 After commissioning of
the proj.ect:

Thecovernment through the

DoE willprovide revenuc
po*'cr cornponent to the reccived from the r%
Locar Area o.;r*,'r; free
amount so received
shail be ailoned bI the l.r1d for each project. The
iAffij; rhe
:ir,ll"r3}iff ?:in t.odlrft ","0 a.*i "* ;' ; ";, d urin g the entire rire spanto
fbrm of a cash hansfer

8'2' r g50/' equarly,am^ong

ail rhe,,^::jj:*..:sidenr
register of the c.u, pur.hayatG) famiries
p.r;..i rar."r"o enrered in rhe parivar
allotment of the project. "r Area on the dare of

8'2'2 15Yo to all the BPL families

in the pAA. This
,n#amo_unt wiil be in
:::ffi r.",;ri,;r:f addition to
2 I above,,ul,"i.to tr,"
H:1?J"*,HH" .8
exceed r.s iil,"Ju,ffi;ffi:[ifflj;1,"ffii?"the
BPL a.niti.J ao., not

823
ffiffr;::I il'Ltffttr-qi:'11'.T :o,oensation ror rhe derays and

project proponent b, ffiilffi Jiitil:! :3 j I j""rrl ;::ffu

a cc r f
oun tail
o agi
shair
agitations by rhe locars
submir.n" ;
a*iJffi;'*ooou*r, on aciounr
;

.rJ' yr1" a.r"y, jir.'rrro"r of

approved bv the Srate
Level cg-rid"i \n of days) sha, be
Authorities. The financiur with Dishicr
accepted number of
"'rrrr,otion
rorr,to.,r" o.r.tr". *ir
be worked out for the
davs of derav(s) with
@es ign Enersy) una iiir ;;;*ilFJ
referen." l:T.*"o-** "iltur.
from lyo free power il*,r,"_;:;i:#"_,ffi l#i[l,fi :
*JirifiU"
paid to the Developer.
PREPARATION OF
SFIELF OF SCFIET4ES
9.1 The Mernber secretary,
concemed panchayar
LAD. wiil after approvalby
the chairman, inform
about rhe
project affe*ed panchavat irrli*.amount ttui *ii the
be avairabre for each
r" ;;;#;;; with provisiors in
9.2 furu 8. r above,

fitheil;,":,*Tffi
case rnay be, ur:"fJ:,r,
:l:';fljj:f ;[ff
1;,"ffi:ffi H;:,*.*:lrprpl.sby
y"iiy-gi2
,r the Gram Sabba/ LADC ^
would then be sent
Td;ffii;#'r""ffir;1ffi*?:rtr
every yrL'*A altered
if required.
to *," rtr"millsJri"" shelf so ,pp."?ri
of concemeo ro#t
9.3
ror preparation or sherr
811:',?lXyr:Lil:,H:' or schemes sha, be based
on rhe

i) ' ' Facirities meant for a panch

ayat on.rywi, be considered panchayat
scllcnres. like cement as
sanihrion' rain rvarer
l"rr,r"*" internal prrlh.s. r( )n,. Ievel
harvestine,'Rop"*uf., ,ir;,o,;,*i,';,i*"' srreer right,
 F-lrcililics scrviltu rflorn rlr,rn ,.rr^ r)
, ;; ;;, i,illf :: li:l} ::: j,ff l;f
"; ";
: ::
i ilH
iffi i,,j;i 1.".: i i": " ",
i J:lj I
Iracilitics for district levei
inliastruc(ure Iil<e Bus
1-raining Insrirures,. Iire Stand, Hospital, College,
ten<rers,;;;;r,,""., ;;r";;;
nceds, wilt be considcred oiner aistricr rcver
m Diil;;';v"t ,.heres
9.4 Thc following schemes/activities
wirr not be covcred out of
LADF arocations:
i) Kachl-ra pafhs/Roads

ii) of Light Vetricrcs associared with moniroring of the LADF

l:Hl?::
ii) Renovation/Repairs/A4aintenance
been received or is being
of individuar houses (if compensation
maae has
"""iir;i;^;;;r, ,n, orher purpose.

I iv) Schemes of recirrring

expenditure or allowance

3'iuin,i:;,,:';::l;i.,j.,";i;.;#ffi :;, ; .:l ;il;:',,,

I O IMPLEMENTING AGENCY

The
implementing agency
for sanctioned schemes can
or a covt' Deparrment o1 t1r p.G, either be a Gram panchayat
Panchayat lever scheme.s riryeroper. rrr" Jr#i"n on
shair ri" *'iiirrrl.c.ram prr"rrr-r"at"r choice of qgency for
Ievet' rhe chairman ofthe schemes u"yora f* chayat
reodiriir""to" rhe impremenring agency.
1 I. E)GCUTION ALID MONITORING

11.1 The funds for sanctioned schemes would-

implementing agercy in be released by the LADC
installments based on to the
utilization. the progress of schemes/:rcfual

11'2
H:,lfjiJj't-"f,-r""H,Til:tffitaccounts arong wirh rrtitizationcerrificare and

1r 3
;::',:::f::;,l.i,,1ffXt6l':::::l and impremenration or schemes
sharr be

;iiffi;J;"ffi1,"J,ffi ;###:,;;"i:[';f ,:[il[[Hh1;f ,,,""#*g

11'4 while a government agency
executing the scheme wourd
have their own mechanism
ftn ,f":iili"ru':l 6ia,f*;m5,.: *J.i' *
" /rie,
"i' o u,"
1,,
n tn raoc *i rri,o
;; ;
i co n s u r ta rio wi
r; ;;# iJ:
of various works ura ,ugg.rt
irnpiou"rn"nt
r
ffi i"#;r:i,"# :: il:,";f,,|tr
required, if any.
12 MIANAGEMENT oF FLATD AND UTIL.ZATI'N oF INTEREST
)2.1 The frrnds o[ AM,TINT
depo.sirs ,,,,, ,i"1,'"1#:J,:J:,i;,1
,;
:J;liJ ;::I;:,1:,lXl":*:r;i"j::::;ft;
L)
 I'ADC shall be operated jointll' by the Chairrnan and Mernt,cr Sccretary of the
concerned LADC. The LADIr would be subject to Audit and instructions
(lovcrnment as issued lrom tintc to time.
cf State

l2'2 Member Secretary shall be responsible lor the maintenance of LADIr

accounts anrl
preparation of resolutions and minutes of the LADC meetings.

l2'3 LADC shall meet at leasl twice a year aisuch time and venue as decided by
the
Chairman.

12.4 The assets created under LADF shall belong to the institutions for which
they are
constructed or to locar body as the case may be, which wiil
be responsible for all
operation and maintenance of such assets.
t2.5 The interest eamed on the funds deposited in LADF will become part
of LADF. The
interest eamed may be used by LADC to cover cost of organizing
LADC meetings,
monitoring, offices expenses, audit pr to hire servicei of experts
for quallty
assurance, dispute resolution, etc. without imposing any obligation
on ihe State
Government.

13 ADruSTMENT LTNDER LADF OF EXPENSES INCURRED BY DEVELOPERS

PRIOR TO I.ITDRO POWER POLICY- 2006.

13.1 The expendihre incurred by project developer on Local Area Developmental

Activities as enumerated at para 9 above, in respect cf the Hydroelechic
irrojects
allotted prior to Hydro Power Policy 2006, sh;ll be admisiible for adjustirent
against the conhibution related to the period prior to commissioning
of a project.

13.2 Infraskuctural activities like approach roads, bridges and other works which are
essentially required to be executed as part of implementation of the projecr
shall not
be taken into account as admissible expenditure adjustable against
LADi under para
13.1.

l3-3 Only projects allotted prior to the notification of the Hydro policy 2006 shall be
eligible for this concession. They ryill apply to the Directorate of Energy with full
,roc
details of the expenditure for which they 'desire adjustment against tt fanp
"ir
conhibution. The Directorate of Enerry will send ihe d.t ilslto the concerned
Deputy Commissioner for certification. Based on such certification, the relevant
expeaditure will be adjusted against LADF contribution

l0