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The power ministry is framing guidelines for the implementation of local area development fund (LADF) to ensure state governments pass on the intended monetary benefits to people affected by hydel projects. The Centre's revenue from the sale of 1% free power to discoms goes to the LADF. (The government doesn't pay hydel stations for power given free to project-affected people, it is, in fact, entitled to get its entire share – 12% – of power procured from the hydel stations free of cost). The LADF policy has been in place since 2006 and applicable to both public sector and private hydel projects. However, many hydro-rich states have still not laid down guidelines for the use of the LADF and as a consequence; the money does not reach the intended beneficiaries.