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