No bar on nodal agencies from directly taking up implementation of mini hydro projects up to 2 MW at any site without inviting bids from IPPs. 

•  Thenodal agency shall examine the feasibility of the self-identified site for setting up of the hydro power project and determine the optimum power potential that can be harnessed. 
• Additionally, Swiss challenge method shall be adopted with the first right of refusal given to the party which identified the project. 

• IPP shall develop the necessary infrastructure to facilitate connectivity/synchronization with the grid.
• For supply of committed power i.e. free power plus power procured by state in grid-connected or isolated mode, available transmission/distribution networks of the state’s transmission/ distribution utilities shall be utilized and IPP will not be required to pay wheeling/transmission charges.
• For supply of balance power,(other than committed power to J&K),the state transmission/distribution networks of transmission/distribution utilities can be used, for which open access charges shall be borne by the IPP as per JKSERC regulations.
• The T&D losses for intrastate wheeling/transmission shall be as per JKSERC regulations for state transmission utility/state distribution utility network, and as per CERC regulations for wheeling/transmission beyond STU on CTU network. 

• Priority will be accorded to IPPs for dispatch into the grid ahead of merit order and any other source of supply, subject to any system constraints/grid disturbances or restrictions imposed by the state government in the interests of the state.

• No entry tax will be levied on power generation/transmission equipment and building material used for mini-hydro plants.
• Govt. land, if required, for power projects shall be allotted on 40 years lease at a premium of Re. I/sq.m. However, in case of non-availability of govt. land, land shall be acquired by Science & Technology/ JAKEDA/LREDA/KREDA and leased out to the IPP.
• Exemption from court fees for registration of land lease documents.

• 3% interest subsidy payable on working capital available from commercial banks to IPPs for a period of 5 years from the date of allotment and reviewed after5 years.

• l0% subsidy on capital investment subject to a ceiling of Rs.60 lakhs in addition to central subsidy for power projects ranging from I MW to 2MW after successful project installation & commissioning.

• Exemption from "water user charges" for a period of l0 years from commercial Operation Date (COD)

• The IPP shall be responsible for providing and submitting all documents to the concerned authorities within l5 months from the date of allotment.
• Statutory clearance shall be obtained by the IPP within 18 months of allotment.
• IPP shall achieve financial closure within three months from date of receipt of all statutory approvals and clearances given by the state and central governments. Financial closure would imply firm commitments for financing the entire project, with all pre-disbursement conditions having been fulfilled.
• The project shall be completed and made operational within a period of 36 months after receiving all statutory clearances.
• The IPP may surrender the allotment back to the state government if on completion of DPR it has sufficient grounds to establish that the project is techno-economically unviable, subject to acceptance by the nodal agency. In that case, upfront premium shall be refunded.

Not available 

http://jakeda.jk.gov.in/policy.aspx 

 http://jakeda.jk.gov.in/links/HP.pdf