The objectives of this policy are: to harness the hydropower capacity of the State in a manner that is consistent with policy of the State Government; to generate and provide employment opportunities to the people of the State, particularly those who live in the project areas; to develop hydropower projects in an eco-friendly manner causing minimum distress to affected people; to secure the long term financial interests of the State; to provide for creation of social and development infrastructure of local area through hydro power developers and Local Area Development Fund; to accelerate the pace of hydropower development through private sector participation; and to bring in the investment from private sector and associated efficiency.