Category I: Projects with installed capacities above 1 MW and upto 25 MW will be allowed to operate in both grid and isolation mode, provided they have all components and features of conventional hydro power projects providing grid quality power.

Category II: Projects with installed capacities over 100 kW and up to 1000 kW should be designed for stand-alone mode for providing dedicated power to village/habitat /locality/cluster of villages, with or without grid connectivity. Power supply to consumers to be provided either at High Voltage or Low Voltage , as needed.

Category III: Projects with installed capacities of up to 100 kW shall be designed for stand-alone mode dedicated to village/habitat, directly distributing power to the households without high tension systems. 

Developer shall take responsibility for constructing/extending required transmission network from project to point of sale specified in the Letter of Comfort on Transmission (LCT). 

Prospective developers shall furnish, at the time of application for allotment of projects,a legal undertaking to engage the following technical personnel, either as permanent employees or partners in the organization.

The selected developer shall deposit the prescribed processing fee and minimum base-line upfront premium to the state government. The upfront premium is a non-refundable, one-time commitment fee, which shall not have any bearing on the project account.1.        

Engagement of additional technical staff, including ITI certificate holders, by the developers in addition to the minimum criteria, is preferred. Allocation of the project will depend on the financial soundness and past experience of the developer in the field of power and electricity management/project planning, designing and implementation of civil, electrical, and industrial projects. 

• The state govt. shall facilitate obtaining subsidies, tax concession etc., available from the central government for SHP development.
• The state govt. shall allow to the extent of 50% share of Carbon Credit benefit as may be available from Carbon Trading under CDM.
•  Indigenous tribal entrepreneurs shall be exempted from supplying free power to the state govt. under this policy for projects up to 5 MW capacity.

All projects under this policy, shall, on timely completion, be granted a moratorium of free power as given below. The moratorium period will be counted from the scheduled Commercial Operation Date (COD).
 

(Amended on 13th Oct. 2008)

Developers may avail tax concessions given under Central Government policies

Not available

http://www.arunachalpradesh.nic.in/small-hydro-power-policy.html 

http://www.arunachalpradesh.nic.in/pdf/Small_Hydro_Power_Policy.pdf