Hydropower Development Policy (2058) emphasizes the need of implementation of mitigation measures in the project-affected area. The developer should have responsibility for resettlement and rehabilitation of affected people. The policy states that Resettlement and Rehabilitation works shall be conducted as per approved criteria of the GoN. The policy clearly states that hydropower development shall be emphasized with due consideration of environmental conservation and as an alternate of bio and thermal energy. 

Section 5, sub-section 5.7 , 5.8, 5.20 are about related to environmental protection, mitigation planning of the affected resources and opportunity for local people in employment correspondingly. Section 6 particularly sub-section 6.1 is about the environmental release, assistance in the land and property acquisition, responsibility for resettlement and rehabilitation of affected people.

Section 6.3 deals with the provision for investment in generation, transmission and distribution whereas section 6.1.2.3 (a) deals with different kind of license required at different level of project development. The article 6.3 and 6.1.2.3 (a) are relevant for project planning and investigation including EIA.