To meet the infrastructure and development needs of local population in Mumbai, the Maharashtra government has issued guidelines on the local area development fund (LADF) of central hydro-electric projects.
As per the National Hydro Power Policy 2008, an additional one per cent free power from the project would be provided and earmarked for LADF. The host state governments would also provide a matching one per cent from their share of 12 per cent free power towards this corpus.
These guidelines will be applicable to all central hydro-electric projects whose power allocation orders have been issued after August 31, 2008. The ministry has sought comments and suggestions from all stake holders.