The proposal(s) which meet the following criteria may be considered for funding from PSDF:—
(i) the proposal(s) which are not covered under any scheme formulated for funding, fully or partially, under the State Government/Central Government/Project Entity schemes;
(ii) proposal(s) may broadly cover the works of the following nature:—
(a) improvement in LT/HT/EHT distribution system of Distribution Licensee to ensure the smooth and reliable power supply to the consumers and also improvement in distribution system beyond the interconnection points where the renewable power generators have connected;
(b) transmission/distribution systems of strategic importance based on operational feedback by Himachal Pradesh State Load Despatch Centre (HPSLDC), STU or Distribution Licensee for relieving congestion in Intra- State Transmission/ Distribution system;
(c) installation of special protection schemes, pilot and demonstrative projects,standard protection schemes and for setting right the discrepancies identified in the protection audits; and
(d) scheme in furtherance of the above objectives such as technical studies, capacity building, improvement of voltage profile, hardware/software for upgradation of HPSLDC/ HPALDC, Smart Grid initiatives, Energy Storage, Demand Side Management, Power System communication & communication hardware, Monitoring and Measuring schemes including installation of Phasor Measurement Unit (PMU), etc;
(iii) the proposal(s) should be useful for the safe, smooth and efficient operation of a larger part of the State Power System instead of a few individuals; and
(iii) private sector schemes shall not be eligible for assistance from the PSDF.