India - Orissa Water Resources Consolidation Project : environmental assessment (revised)

GOVERNMIENT OF ORISSA (INDIA) DEPARTIENT OF WVATER RESOURCES ORISSA WRCP ENVIRONMENTAL ASSESSPVIENT (REVISED) PREPARED BY: DEPARTMENT OF WN'ATER RESOUIRCES (ORISSA) AND SNOWY MOUNTAINS ENGINEERING CORPORATION AdO3 319 MARCH 1995   ORISSA WVATER RESOURCES CONSOLIDATION PROJECT ENVIRONMENTAL ASSESSMLENT TABLE OF CONTENTS Page 1. INTRODUCTION 1.1 PERSPECTIVE ON WRCP AND EA REPORT 1 1 1.2 OBJECTIVES AND SCOPE 1I1 1.3 APPROACH TO REPORT COMPILATION 1-2 1.4 SCOPE AND FORMAT OF EA REPORT 1-2 1.5 ACKNOWLEDGMNIENTS 1-3 1.6 EA STUDY TEAM 1-4 2. ENVIRONMENTAL POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2.1 PERSPECT'IVE 2-1 2.2 GENERAL POLICIES AND LEGISLATION FOR PRZOJELCT APPROVALS 2-I 2.2.1 General Policies and Legal Requirements 2.2.2 National Environmental & Development Policies 2.2.3 National and State Water Policies 2.3 SPECIFIC ACTS AFFECTING PROJECT APPROVALS 2-4 2.3.1 Recent Notification under the Environment Protection Act (1986) 2.3.2 Water Resource and Pollution Control Acts 2.3.3 Forest Conservation Act (1980) and its Amendment 2.3.4 Land Acquisition Act (1894) - amended in 1984 2.3.5 Other Relevant Acts and Approval Requirements 2.4 LENDING AGENCY REQUIREMENTS 2-6 2.4.1 The World Bank EA Requirements 2.4.2 ADB and Other Agencies 2.5 CONSTRAINTS AFFECTING PROJECT APPROVALS 2-8 2.5.1 Environmental and Other Legislative Requirements 2.5.2 Firest Department (DFEF) Clearance Requirement 2.5.3 Rehahilitation and Resettlement Policy 2.5.4 Catchnient Area Ma;inagtement Plans 2.5.5 Rationalisation uto EA Requireiiiemits 3. OUTLINE OF ORISSA %%'RCP 3.1 PERSPECTIVE 3-1 3.2 PRIORITIES FOR ORISSA WRCP 3-1 (i)  3.3 COMPONENTS OF ORISSA WRCP 3-2 3.3.1 Institutional Strengthening of DONV'R 3.3.2 Mulfi-Sectoral Water Rsoutiree Planning 3.3.3 Irigation SchemcmReIeIhili.sIiurI.IruIueVL OperatiIn 111nd M int'et 'Ce an1J Water User lZlv(IVilieleit (S I ) 3. .41 ('>lBCompletiol loi Oil<ui,g I'i ejt. 4 ENVIRONMENTAL OVERVIL.V 4.1 PERSPECTIVE 4-1 4.2 AVAILABILIT'Y OF DATA 4-2 4.3 GEOLOGY AND MIINERAL RESOURCES 4.3 4.3.1 Perspective 4.3.2 Implications to Water Resource Sector 4.4 HYDROLOGY AND WATER QUALITY 4.5 4.4.1 Availability of Data 4.4.2 Implications to Water Resource Planning, andi Management 4.4.3 Water Quality Protection Requirements 4.5 AQUAT1lIC ISCOLOGY AND FI:SHERIES RIESOURCES 4.7 4.5.1 Current General Situation 4.5.2 Fislheries Production antd Potentials 4.5.3 ImplictEions to Water Resource Sector 4.6 FOREST AND WILDLIFE RESOURCES 4-12 4.6.1 Perspective on Forestry Aspects 4.6.2 Perspective on Wildlife Aspects 4.7 ECOLOGICALLY SENSITIVE AREAS 4-13 4.8 WAThRLOGGING AND SALINITY PROBLEMS 4-14 4.9 OTHER INMPORTANT ENVIRONMENTAL ISSUES 4-15 4.9.1 Land Use. Population Growth and Socio-economic Status 4.9.2 Archaeoluoical and Cultural Aspects 4.10 MEDICO-ECOLOGICAL AND PUBLIC HEALTH ASPECTS 4-17 4. 10.1 Water-horne Diseases 4.10.2 Water-related Diseaises 4. 10.3 Water Supply and Sanitation 4.10.4 Implications to Water Resources Sector 4.11 SOCIO-ECONO\11C IMPACTS AND RESETTLEMENT ASPECTS 4-18  5. ENVIRONMENTAL STATUS AND INMPACTS OF \N'RCP SUB-PROIR(2S 5.1 INSTIT'UTIONAL STRENGTHENING 5-l 5.2 RIVER BASIN AND NIULTI-SECTORAL PLANNING 5-3 5.3 REHABILITATION AND IMPROVED 0 & NI1 FOR LXIS I'ING P'ROJILCTIS 5-5 5.4 COMPLETION OF PROJECTS 5-7 5.4.1 Upper Jonk Project 5.4.2 H:rillarjure Project 5.4.3 Baclanalai Project 5.4.4 Harabhangi Project 5.4.5 Baghua II Project 5.4.6 Ren-ali Project 5.4.7 Naraj Barrage Project 5.4.8 Mahanadi Chitrotpala Project 5.4.9 Ohlier Water Sector Related Issues 5.4.10 Conclusions and Recommendations 6. ENVIRONMENTAL CAPABILITIES AiND INSTITUTIONAL STRENGTHENING REQUIREMENTS 6.1 GENERAL ASSESSMIENT 6-i 6.2 WATER RESOURCE SECTOR RELATED CAPABILITIES AND REQUIREMENTS 6-2 6.2.1 Department ol Water Resources 6.2.2 State Polluti6n Control Board 6.2.3 Department of Forest and Environment (Environment) 6.2.4 Forest. Wildlile and Fisheries Depanments/Directorate 6.2.5 Health Services and Public Health - Engineering Departments 6.2.6 Orissa Remote Sensing Application Centre 6.2.7 Orissa Industrial & Technical Consultants 6.2.8 Universities and Other Educational InstiLutes 6.3 [NSTITUTIONAL STRENGTHENING OF [RRIGATION/NVATER RESOURCES DEPARTMENT 6-6 6.3. I Environnmental Groups tfor DOWR 6.3.2 Environmintal Assessment Training Options 7. I'NVIRUJNNIlNTIAI. AC HON l'I.AN lFO)R \IWI' 7.1 BASIC OBJECTIVES OF WRCP ENVIRONMENTAL AC'ITION PLAN 7-I 7.2 ENVIRONMIENTAL NEEDS. FUNCTIONS A,ND RESI'ONSIILITIIES FOR DOWVR 7-1 7.3 WRCP ENVlI'()NMIFNTAL ACTION PLAN 7-2 7.3.1 I'riority Environmental Action Plan Components 7.3.2 State Water Policy 7.3.3 Institutional Strengthening  7.3.4 Measuremcnt an(l Monitoring Capabhilities 7.3.5 Ground wacetr Maniagement 7.3.6 Cctchmient Management 7,3,7 Consul;cncy Services and Traininig I,,l H Av1ll11. ge.l.i,i 'gs"e 7.4 FUNDING 7.5 OVERALL ASSESSMIU:;T LIST OF FIGURES FIGURE I Location of Orissa in India Map FIGURE 2 Political Map of Orissa FIGURE 3 Location Map - WRCP Projects in Orissa FIGURE 4 Location Miap - Water Budies and Irrigation Areas in Orissa FIGURE 5 Map ot Mineral Resources and Industrial Areas in Orissa FIGURE 6 Map of Population Density in Orissa FIGURE 7 Eco-Sensitive Areas In Orissa FIGURE 8 Functioznal Organisation Chart of DOWR ANNEXURE I Check list of Impact Assessment ANNEXURE II Inter Linlkage of Depanment for Developing Environmental Mtanagement Network. APPENDICES REFERENCES l.IST ()F TA lBLE liS I. Table 5.1 Sumniarv of Environmental Status and Assessment Institutional Strengthening. 2. Table 5.2 Summarv of Environmental Status and Assessment River Basin and Miulti-sector2 Water Resource Planningc. 3. Table 5.3 Sumniarv of Environmnental Stltus and A>es,me . ke1 It.lihl il;t Ili: Improved (&) t0r existinti majur and medium irrigation projects. (iv)  4. Table 5.4 Summary of Environmental Status and Assessment (a) Completion Projects - mediium-sized irrigation schemes. (h) Completion Projects - major-sized irrigation schemes. 5. Table 7.1 Summary of Main FLunctions, Responsibilities and Tasks for DOWR Environmental Groups. A - River Basin Planning Directorate (RBPD). B - Project Planning and Formulation Directorate (PPFD). (v)   1. INTRODUCTION 1.1 PERSPECTIVE ON *YRCP .ND ENVIRONM'IENTAL ASSESSMENT The proposed Orissa Water Resources Consolidation Project (\'RCP) is intended to upgraide the capabilities, management and operaLional procedures of the Departmnent of WVater Resources of Orissa (DOWR). The WRCP's main objective is to rectit) existing suh-optitniuimi allocation and supply of waters to various users, particularly to the irrigation sector's small farnmers through improved resource planning, allocation and operations ano maintenance of existing and ongoing projects. Environmental considerations and heneflits are integrally included within thie WRCP objectives and sub-projects. More ef'ticient water use, reductions in disparity of delivery, reductions in local water logging and salinity problems and detailed integration of environmental planning at the river basin and project planning levels, plus rc%vie%ving and monitoring (of environmental implications of WRCP sub-projects are included in the prograimne. *rle overall environmental effects of the WRCP and its project components would be positive with the most obvious and main benefit being the insiitutional strengthening of key units involved in planning, formulating and implementing the State's water resources projects. DO\\'R would also benetit substantially from implementing the pruposed Environmental Action Plan outlined in Section 7 as an integral part of the WRCP programme. 1.2 OBJJLC'I'IVE AND SCOPl' OF EA REP'ORt'l' This Sectoral Environmental Assessment (SEA) Report is essentially a baseline status and recommendation document relating to the environmental situation and issues associated with water resources planning, development and management in Orissa State of India. It is part of the Water Resources Consolidation Project (WRCP) and has been prepared jointly by the Consultant provided by the World Bank and the Department of \\'ater Resources (DO\W'R). Supplementary EA work related to the operation and management of the completed schemes wvill he undertaken during implementation of the WRCP. For all new candidate schemes. such as M1ahanadi Chitrotpala and others, EA work will be done according to \W'orld Bank standards and policies. Training for water quality management, the installation of water qualitv laboratories, water quality and cluantity data collection and interpretation will he taken-up by the National Hydrology Project (NH P). The SEA investigations have been included in the Institutional Study component of the initial phase of the WRCP, but are actually more closely related to the functions of DOWR's Central Planning Unit (CPU). The report has the following general objectives: Undertake a basic environmental overview of the status, key resources and issues associated with the water resources sector in Orissa; Outline the critical environmental legislation alfectinig water resources development, particularly that affecting the irrigation sub-sector; Evaluate the capabilities within the relevant State authorities in respect of Environmental Assessment(EA) for the watcr resources sector and indicate the associated requirements for institutional strenothening, panicularly those required for WRCP; Assess and make recommendations relating to needs for, critical issues of and estimate manpower and. budget inputs for a comprehensive Environmental Action  Plan (EAP) tor the proposed WRCP in Orissa as an integral part of that proje (See section 7). The SEA has not as an objective to substitute for further EA work to be done c the WRCP sub-projects. Mlost of the follow-up environmental work on thes components will be done during project implementation with extensive help c local and foreign environmental technical assistance in the forrn of an on-the-jo. training approach. Most of the sub-projects have environmental impacts, which ar relatively easy to mitigate. Considerable delays in obtaining approvals to proceed with major water resource projects ha., occurred at both the Central and State Government levels in India in recent years. These have been due to the complex procedures involved in obtaining project clearances from the Centra, Government and to some extent to the lack of environmental expertise within DOWR. Tht rehabilitation and resettlement (R & R) aspects have been the main focus of concern in many such instances. Consequently, the WVorld Bank has commissioned a separate evaluation of this aspect within the framework of the WVRCP. As rehabilitation and resettlement are often considered to be an integral part of the EA approval procedure, some reference is made to this aspect as necessary, but not in any detail, in this report. Rehabilitation and resettlement issues are presented in a different report. 1.3 APPROACII TO EA REPORT CONIPILATION Essentially this report is based on a preliminary review of data relating to the environmental background of Orissa. available from within DOWR and various Government agencies and through discussions with the panies listed in Appendix A. On 24th Feb, 1994 an interdisciplinary group discussion on environmental issues of the Water Resources Development Project was held at Secha Sadan. Bhubaneswar and the valuable suggestions of the participants were considered. It is Ielt that an adequate coverage has been made of the main agencies directly related to environmental. assessment and indirectly involved through having official responsibilities linked with environmental implications of water resources development and management. This EA report has been prepared jointly by DOWR and the Consultant with a view to providing a general perspective uf the existing environmental situation affecting or being affected by dam, reservoir, irrigation. iluod control and drainage projects. The recommendations relating to the requirements and an Environmental Action Plan for the initial seven years of the Orissa WRCP have been made a:xording t) policies of the World Bank in order to assist the future planning, development and management in Orissa's water resource sector. These recommendatioas give due recounition to the status ot the various projects included in the WRCP and the changes in EIA requirements by the Government of India (GOI) relating to environmental assessment requirements as outlined in Section 6.3. 1.4 SCOPE AND FORMAT OF EA REPORT The preliminary SEA report prepared in April/May 1993 has been extensively reviewed within DOWR and by the relevant panies in the World Bank. This final report is intended to be a "Sectoral Environmental Assessment (SEA)' as provided under the World Bank's Operational Directive on EA (i.e. OD 4.00: Annex A: October 1989). The SEA component focuse primarily upon the Environmental Action Plan t(or the \\RCP programme. The basic format of the Orissa WRCP SEA Report is as tOllows - Section 2 - Environmental Policy. Legal and Administrative Framework panicularly those directly or indirectly affecting irrigation projest approvals and opera.-Jns; 1-2  - Section 3 - An outline of the Orissa WRCP programme as determined and documrnted by the World Bank in its Aide Nlemoire dated 18 March, 1994: - Section 4 - Environmental Overview of the general status of key water related natural resources, ecologically sensitive areas, and other important environmental issues suth as land use and population growth, and medical ecologi:alipublic health aspects: - Section 5 - A summar) Review of the Environmen;al Status, Potential Impacts and NMitigating Actions associated with the WRCP sub-projects; - Section 6 - Environmental Capabilities and Institutional Strengthening Requirements; in general rclatin- to water resources sector and in p3rticular to the DOWR's responsibilities relating to water allocation; water conservation, water quality protection and water resources management; - Sectiun 7 - Rectommended \VRCP Environmental Action Plan, outlining the environmental status, potential implications and required mitigating actions and EA inputs for the projects included in the WRCP and basic plans and budgets for initialing and operating the two environmental assessment, management and monitoring groups within DONVR. 1.5 ACKNOWVLEDGMENTS In general, DOWR and the Consultant would like to thank those who openly provided advice and information during interviews, parnicularlv those senior staff of the Orissa State Government organisations listed in Appendix A is gratet'ully acknowledged. Particular appreciation however must be expressed by the Environmental Consultant to the following persons, without whose assistance his tasks would have been more difficult: Dr. R.P. Nlishra, who as the Consuiltant's counterpart provided excellent insights to Orissa. and arranged numerous appointments on short notice and sometimes under trying circumstances: * iMr. A.C. Nayak. Director of the DOWR River Basin Planning Directorate, whose enthusiasm and assistance during compilation of the final EA report was rewarding and is gratefully acknowledged: * ir. S.S. Patnaik. Deputy Director of DO\VR's River Basin Planning Directorate, who also provided excellent insights into Orissa and the DOWR, ably assisted in report editing and who extended his good companionship on the field trip; Dr. S.K. Kar. Senior Research Scientist of Orissa's Wildlife. Department, whose iistant triendship and advice was most welcomed. - A special thanks is extended to the Executive Engineers at the Rengali and Hirakud Damn projects t'ur the varm hospitality of their project and ouest house staff and themselves during field work. 1-3  1.6 E,A STUDY TEAM The Study Team involved in researching, compiling, reviewing and ediiing the WRCP Sectora] Environnmental Assessment (SEA) report included: From Department of Water Resources (DOWR) NMr A C Nayak, Director, River Basin Planning Directorate Mr S S Patnaik, Deputy Director, -do- *Mr Mi R Mishra. -do- -do- 8 MSr N C Mohanty, Assistant Director, -do- Mr P K Mohapatra, -do- (Eco) -do- Mr D D R R Pattnaik, -do- -do- * Mr S R Das, CAD Engineer, -do- From Snowy Mountains Engineering Corporation (SMEC) a Mr S Raadsma, Project Coordinator, Mr I Prosser. Environmental Consultant, MIr J Cantor. Institutional Study Consultant. 1-4  2. ENVIRONMENTAL POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2.1 PERSPECTI VE There are many policies and legislated acts at both the Central Government and Orissa State levels which aftect DOWR's present project planning, design. financing, construction and operations. 0t most concern from the environmental assessment viewvpoint are those directly affecting planning and obtaining the required approvals and clearances for proceeding to detailed project feasibility and design and project implementation. The project approval procedure is ultimately to be regulated primarily by the Environmental Protection Act (1986) and associated Rules and Notifications at the State and Central Government levels. The present policies and general requirements relating to the obtaining approvals are outlined in Sections 2.2 through 2.4, with the main associated constraints noted in Section 2.5. The objectives of Sections 2.2 and 2.3 are to preliminarily indicate some of the implications of relevant policies and acts. of the Environmental Protection Act (1986) and its recent notification relating to EIA requirements which has been officially gazetted on 27th January 1994 (see Appendix C). 2.2 GENERAL POLICIES AND LEGISLATION FOR PROJECT APPROVALS This section highlights the main -eneral policies and legislation affecting approvals for water resource development projects (mainly medium and major irrigation projects) in Orissa. 2.2.1. General Policies and Legal Requirements The Government of India (GOI) requires environmental assessments (EA) for certain types of development projects. The Nlinistry of Environment and Forests (MOEF) has published guidelines for EA tfr specitic project types. Guidelines for major and medium sized water resource development projects are entitled Guidelines for River Valley Projects" and were issued in 1985, preceding the Environment Protection Act in 1986. The basic procedure for environmental clearance of such projects within the GOI policy incluiding that of the Environment Protection Act (1986) consists of the followving: - Preparation of the EA by the project's executing agency; - Review of the EA at the State level (e.g. by thc Orissa Department of Forest and Environment (DFEE). the Department of Harijan and Tribal Welfare (DHTW) and the Orissa State Poillution Control Board (SPCB)); Review at the Central Government level through the nodal agency of the Central Water Commissitn (CWC) to key authorities such as the Ministry of Environmental and Forest (MOEF) and the Ministry of Social and Tribal Welfare; Provision for compulsory reviewal by an appointed Review Committee composed of representatives trom MOEF and NGOs plus independent professionals and obligations to 0ollovW an! courses of action recommenaed by the Committee; Rulin- bv and conditions of approval by the Central Government relating to the projects environm-rntal clearance' and approval for implementation. 2-1  Deficiencies in the EA may be noted at any step in the process, as a result of which addlitional information and analysis may be required of the project's executing agency. As noted in Section 5, all or the projects except three major projects proposed under the WRCP in the 1994-2001 period are projects predatin- existing environmental legislation and do not require an "official clearance' from the Central Government through a project approval process by the federal planning agencies. None otf the medium projects included in the WRCP would require any tfurther "environmental clearince- at Central Government level unless these are specifically requested by the NIOEF. However. out of the three. two major projects nameiy Naraj Barrage and Miahanadi Chitrotpala are recent projects lor which environment clearance have been obtained during 1992-93. The third project namely the Rengali Irrigation Project is pending for clearance by the Central Governnment. Further, it is considered likely that many of the future projects to be investigated and likely to he implemented by DO\VR in the long term would fall within the ambit of' requiring 'environmental clearance' at the Central Government level. The State and Central Government's involvement relates to provisions in both the Environment Protection Act 1986 (Section 3) and the revised Notificalion (January 1994) relating to obtaining Environmental Clearance. Ior submitting Environmental Impact Assessments (EIA) Reports and associated Environnental Management Plans (EMP) to MOEF including requests for additional inputs in respect ot' these documents as outlined below in Section 2.3.1 and in Appendix C. 2.2.2 -National Environmuental and Dei'eltprnent Policy Whilst there are no legal re,quirements as such associated with the Ministry of Environment and Forest's (NMOEF) 'National Conservation Strategy and the Statement on Environment and Development Policy" (June 1992). it does have a number of objectives which are directly related to Water resource manaigement anJ consenration wvhich in Orissa are essentially the functional responsibilities of DOWVR. In summ3ry. the relevant strategy and policy objectives which also do support and help justitf this report's recommendations regarding the setting up of the EA groups in DOWR and r.aiinaalization ut' the State's approach to water quality monitoring include the followvin,,: (a) Section 5 - Priorities and Strate,ies for Action (Sub-section 5.2.1 - Land and Water Conservation) 'Buildin- up a network for assessment and monitoring of soil and water (surface and -roundwater) quality throughout the country which should be on a permanent basis, as in the case of meteorological stations - Measures for water conservation. recycling and optimal conjunctive use of surface and groundwater tor specitic uses Le-islative rneasures to check over-exploitation of surface and groundwater for specitic use.' (b) Sub-section 6.1 Development Policies for Agriculture and Irrigation (Sub-section 6.1.2 as an example). "6.1.2 Irrigation Priority to small projects to meet the requirements of irrigation without causing significant alteration in the environmental conditions 2-2  Investi-Pation and revival of cradizional w3ater management systems and development it' alcernate irrication systems such as harvestinm and conservacion of run-off' rain water Measures flr increasing the efficienc) ol water use, vater conservation and recyclin': leasures ftir provision of drainage as an inte-ral coniponent of irrigation projects to prevent WJ1erl0 " ing and salinization %Vatershed managenient through catchment treatment of the drainage areas, protection ol vegetal 'cover and measures to prevent siltation, to be executed in an integrated and t'ullv parlicipative manner with the irrigation authorities being fully accountaible; catchmenr treatment wvould be so designed as to have a direct impact on the lit'e of the reservoir. hvdroloeical regime and life support systems of the population in the watershed. It would depend on location specific conditions in each case Adoption of command area development approach for all irrigation projects to ensure optirrmal utilization Critical assessment of irrigation projects and delivery systems to ensure optimal utilization of' water resources akin; with measures to mitigate environmental and social damaae Focus on decentralised network of small irrigation and water projects with minimum environmental disruption which would be of great value to local communities and yet capable of generating surpluses for other areas at low cost Design and implementation of irrigati(on projects which are environmentally sustainahle based on lessons learnt from a critical analysis of all past projects and Continuous and ongoing evaluation and monitoring of all projects." (e) Section 8 - SuLport Policies and Systems Sub-section S. I Stren-thening of Institutions and Legislation "Strengthening of existing institutions at different levels" and "including close linkage among the cumpanmentalized sectors" (e.g. establishing liaison and co- operation regar3din- data collected and dissemination between authorities involved in water quality sampling network in Orissa). Sub-section .2 - iNational Resource Accounting 'Requirenent ol annual bud-eting of availability, demand and use of resources, like 'land and water. etc and allocating these according to go6d "conservation and sustainable development' principles.' Sub-section 8.4 Objec:tive oft increasing of environmental awareness as outlined in Section 5 with DOWR havin- a key role in respect of efficient use of wvater resources and water qjuality protection and monitoring.' 2-3  Thus, it is considered that the recommended environmental programme outlined in Section 7 Would assist the DOWR in meeting their obligations under this GOI resource conservation strategy and pulicy and would assist in providing direction towards the conservation of the State's water resources. 2.2.3 National and State Water Policies ' The Government of India adopted the National Water Policy (NWIP) in September, 1987 which provides general guidelines for all marters related to development of water resources of the country. There are stipulated requirements relating to environmental and ecological considerations, resource conservation prevention of land erosion maintenance of surface and groundwater quality etc. The relevant matters are dealt with in Chapters 1.7, 4.3, 4.4, 13 and 17 of the policy. In all water resource development projects the necessary aspects related to environment as outlined in the National Water Policy shuuldl be integrated for sustained development. A State Water Pulicy (SWP) for Government of Orissa (GOO) has been issued after approval by Govt. of Orissa. In the SWVP, provisions have been made for 'Environmental Management" and these would serve as guidelines for addressing the environmental issues related to development of water resources in Orissa and the W 'RCP EA programme would provide the ways and means of effectively implementing these guidelines. 2.3 SPECIFIC ACTS AFFECTI.NG PROJECI APPROVALS 2.3.1 Recent Nolification Under the Environmental Proitection Act (1986) In addition to the general requirements outlined under the Environmental Protection Act (1986) as noted in Section 2.2, an extraordinary 'Notification' delineating the classifications of projects and procedures for obtaining Environmental Clearance and submitting Environmental Impact Assessment (EIA) Reports and associated Environmental Mianaoement Plans (EMP) was published in The Gazette of India on January 27. 1994. This Notilication delineates the types of projects to be environmentally cleared and reviewed at the Central Government and includes provisions for: - 'Aftected panies to request reviews by the Federal Ministry of Environment and r-urests of Environmental Clearances approved by the Central Governmilent; - The Impact Assessment Agencv (AA) to hold public hearin,s and make available any project EIA and ENIP 'i'r public reviewal at environmental agency offices. 2.3.2 Na';lcr RLmourcL; and Pollution Controil Acts There have been variouis laws and acts relatino to water resour:e development administration, allocation and mana-enient in place since the early 1900's. The need for more stringent law enforcement relating t) the prevention of tvater pollution has been 3 priority in the last one or two decades and accordin-ly necessary le!islation. and acts have been r7Jmulgated including: (a) The Water (Prevention and Control of Pollution) Act-1974, as Amended in 1988 (W\'PCP Act) The \VPCP Act was enacted in 1974. water being a St3te resource as defined in the 7th Schedule of' the COnstitution of India. Some states. includ.na Orissa. did not enforce this act when it was trigtnally gazetted a3s they had similar 2:1s in force for prevention of water pollution. Hou%ever. Orissa officially adopted this A;: in 1983. 2-4  The Central B3oard I';r (lic Prvcnnt on zind Con(rol Of aWer l'Al LIILun (ClPCS, and, similarly the Suate Pollution Control Boards (SPCB) were formed under Section 16-'17 of the Water (Prevention and Control of Pollution) Act, 1974 and Air (Preventico and Control of Polltition) Acts. [9S1 as amended in 1987. According to the \VPCP Act. all industrial units and local bodies which discdarge wastewater (includino domestic waste water) into a stream sewer or on land have to take "Consen" trom the State Boards or the Central Board (Section 25/26 of Water Act). (b) The \Vater (Prevention and Control of Pollution) Cess Act 1977 as an amended in 1991 The users of water trom natural sources are required to pay a "Cess" to the State Board of Pollution Control depending upon the quantity of wacer drawn, purpose of its use and the extent of treatment before discharge. This act is applied in Orissa by the SPCB. 2.3.3. Fort.st Conservation Act (19S0) and its Aniendmenit The Forest Conservation Act (19S0). which has been amended in 1988. is administered by the Orissa Forest Department (DFEF) through the Oftice of the Chiief Conservator of Forests (Nodal) and recquires that re-allocation of any torest land exceeding 5 ha in area (public or private) has to he appruved by the Central GOvernment. In most cases. project site access is restricted. as the Orissa Forest Department caa give permission for line surveys only: noti l;r an) clearing of trees (such as can he required for access to and survey ot darn sits). Access to areas under Reserved or Demarcated Forests specified for use by the Forest Department. such as iNational Parks. Sanctuaries and forest inventory plots, cannot generally be accessed or re-allocated to non-forest purposes. A t'ormal 'Forest Clearan&e' is required under this Act for projects affecting forest lands exceeJdin- 20 ha in extent from the Central Government's Department of' Forests, including a basic forest invenborv of all trees to he felled during project development. Specific require=ents tor (his forest inventory in support of the project's application for an environmental or forest clearance are det-ined. Ctompensatory Afforestation reqtuirements relating to replacement of areas aftected b, projects are complicated hv factors such as: - Land has to he oft;icialhv re-allocated by- the project in favour of' the Forest Depar-.ment including acquisitiOn ot private lands if necessary: - It' land is not ava6ilable. a reqtuest tfrtim the Chiet Secretary is reqUired lor using degraded l0rest land for these purposes: - A detailed plan and hud-let and appropriate funds oir compensatory afforeitation h1ve to hie provided by project sponsor: - Transt'er oit' any lands acquiredn must he completed hel'ore the project can be commtnced; (xNote: this requiremnent can cause excessive delays in project imrilementa!:n. as lan._ has to he resumed throu:h the Revenue Depanmenk). Gazetted Reserved or Protected Forest land also cannot be re-allocated lor re-abilitatiGn and resettlement purposes. which limits project resettlement opptions. Acatchnient marrta-emen: plan, includin- soil conservation requirements. must he prepared and budgeted for incc.sion in r:oject 2-5  2.3.4 Lund Acquisition Act IS94 - aiicnded in 19S4 This Act is administered by the Revenue Departrnent wvith the Board of Revenue becomit directly responsible it more thin 1.000 ha of land is to he acquired. The DOWR Executih Engineer responsible tor the project make-s the requests for land acquisition through the Distrif Revenue Ofticer. An outicial notice of proposed land acquisition is published in the Offici, Gazette, newvspapers and subse(luently posted in affected villages as required. Any privat propcrty owner may object to land acquisition, including, initiating representation through leg; advisers and delaying tactics are common. The land acquisition process for water resource development projects is complicated by severa factors including: - Needs for rationalization of ownership and vested interests in land and legal objection! that can be made throughout the process; - Public notifications are valid for one year only, which frequently is insufficient due to delays in surveying and ne-otiatin- with owners; - Re-commencement of the land acquisition process is required if original land acquisition process is not completed within two years. 2.3.5 Other Relevant Acts and Approval Requirements There are numerous other acts and policies which affect planninn and approval of water resource projects in Orissa. Mars of these. and related requirements for project approval by other authorities. are described in Chapters Xi and XII of the hook Irrigation in Orissa" (Reference 2). 2.4 LENDING AGE'NCY' REQUIREMENTS 2.4.1 World Bank EA Requirements The World Bank has issued Operational Directive 4.01 Annex A: Environmental Assessment", which prescrihes Eas for certain types of projects. (OD 4.00 Annex A is reprinted in the Bank's "Environmental Assessment Souirce bolok' (Reterence 29) which also provides extensive guidelines on all aspects of EA preparation. OD 4.01 specifies that Project-specific EAs, Regional EAs and Sectoral EAs are the miain options in complving with Bank's policy, depending on the type of credit or loan mechanism being provided by the Bank. The basic criteria tor these options are as tollows: - Project specific EAs. are used to analyse specilic investment projects (e.g. dams, factories. irrigation s%stems) having significant environmental impacts Regional EAs are used where a number of signiticant Jevelopment activities are planned tor a reasonably localised area - Sectoral EAs are used for, the desi-n ol sector investmen: programmes. OD 4.01 classities project reqluirements lor Environmental Assessment as Category A throu-h C in relation to the severity of potential impaats. Category A projeJts normally require an EA, as the project may have diverse and simnificant environmental impacts, a;cording to Bank policy, World Bank environmental cate-ories are as follows: 2 -6  Category A -EA is .normaliv reutiired as the project maiy have diverse and significant environmental impacts. Cate-!ory A projects( which relate to water resources management). include (among others): Dams arnd Reservoirs Irrigation and Drainage (l:rge scale) WVater SuppIly and Sewerage Systems Land Clearance and Levelling Aqa3culture/Mlariculcure (large scale) Reclamation and New Land Development River Bisin Development Rural Roads." "Category B - lMore limited environmental analsis appropriaate as the project may have specific environmental impacts.' "Category C - Environmental analysis is normally unnecessary.' According to World Bank policy. -EAs should address the following issues, which are subject to the Bank policies and guidelines identilied helow (which may be applicable to Department of Water Resources. Orissa s activities in the long term): Agrochemicals: projects and sector development plans which involve use of ai-rochemicals shoiuld incorporate integrated pest management (IPMl) in the design of the project. with L,uidance on Bank policy contained in OD 4.01 - Annex C; Biolloical Diversity: the Bank promotes coinservation of endangered plant and animal species: Cultural properties involves active protection of archaeological sites, historical monuments and historical settlements with Bank policy provided in OD 4.50; Dams zind rservolirs. with specific guid3ance in EA preparation offered by OD 4.00 - Annex B: Intern:atioLal Treaties and Ag,reements onl the Envir(onment and Natural Resources (e,. RANISAR Convention and Chilika Lake): Involuntarv resettlement. with guidance provided in OD 4.30; Land seitement: - atural hazards Jin1ludinw floods ard drou-ht): Tribal peoples. w%ith OD 4.40 providing specilic guidance on protecting the rights of tribal peoples. inJluding traditional land and water rights; - Watersheds. with Bank policy promoting the protection and management of watersheds as an element of lending criteria for dams, reservoirs and irrigation systems: \Wetlands and W\'ildlands (eg. coastal mran-roves), with the Bank promoting the conservation ol wetlands and wildlands. 2-7  Generally the Environmental Assessment is prepared during the project formulation and planning phase and a Summary EA is included in the NVorld Bankl's project appraisal report. The World Bank "Environmental Assessment Sourcebook' states that: 'The borrower should submit the final EA reporn to the Bank prior to Bank appraisal. The EA report is the borrower's property, but the Bank encourages the borrower to release relevant information to appropriate interested parties. The Final Executive Project Summary should summarise the EA's status and describe how major environmental issues have been resolved or are to be addressed, noting any proposed conditionality. The appraisal mission should review boLh the procedural and substantive elements of the EA with the borrower, resolve any issues, assess the adequacy of the institutions responsible tor environmental management in light of the EA's findings, and determine if the EA's recommendations are properly addressed in project design and economic analysis". Sectoral EAs, such as this document often include sub-projects for which many detaiis may not be known at the time ot appraisal or which do not require full EAs. Thlerefore sub-projects should be screened and appropriate environmental considerations made according to Bank directives as exemplitied in Sections 5 and summarised in Tables 5.1 through 5.4. A key objective of this Sectoral EA is to stren-then the DOWR's capability to: - Screen. scope and munitur sub-projects included in the WRCP from the environmental viewpoint. - Establish internal EA capabilities and to extend the Department's capacity for preparation of any special environmental assessments or management plans required including EA inpuLs to river basin plans and/or projects EAs; - Review any EA reports directly or indirectly relating to irrigation or water resource developments and management; - Implement environmental monitoring and mitigation plans for specific projects. 2.4.2 ADB auid Otler A'wtnciti All mtajor lending and bilateral aid a:encies including the Asian Developimient Bank (ADB) now have environmental (impact) assessment requirements for major projects including dams, reservoirs and irriLantion development. Similarly. agencies such as United Nations Development Prog,ramrme (UNDP) and the FoodJ and Agriculture Organisation (FAO) require environmental considerations and detailed ae;s:ssmnnt (where necessary) in respect of the projects or sub-sectoral programmmes tfunded by their or-anisations. 1t would be essential Iv'r the EA\ roups thus ttirmned within the DOWR to obtain the relevant environmental assessment cuidelines irOm those agencies. boih for comparative purposes and for tture reterence in dealingl with -such agencies regarding assistance or lendiing programiiencs for water resources developments in Orissa. 2.5 CONSTRAINTS AFFECTING PROJECT APPROVALS Several severe constraints presently characterize the approval prbcedures for water resources projects dLue to the complexitv tit' the prozedures as outlined above and in Appendix C. In particular, these relate to the foilovwine aspe.ts. 2-8  I 2 '.3.1 En vironniental :aid 0i t:r Legislahtitri Requirenients Legislation at the tfderral level is hased on Rules anLi 'iutifications which appear to be promulgated by individual Ctntral MIinistries wiih no cross-reference tO previous ministerial legislation or that ot' other minisiri2s. (i.e. no mention is made of superseding of previous legislation or reference to related Central or State Government acts or policies). Likewise at the State level. policy and directives are issued by interdepartmenral letters; State Government Resolutions (eg. -pproval of Central Government legislation); Minutes of Cabinet Mfeetings and Departmental Rules and Notifications linked to speciFic State acts or legislation. These tend to be policy and administrative or specific issue'oriented and any direct relationship to previous and other legislation is ot'ten not specified. Because environmental assessment in general and tor specific projects covers a range of administrative responsibilities. questions ot priorities. over-ruling legislation and policies and joint compliance reqIuirenients are dil'ticult to ascertain without le2zI advice. Likewise, compliance with one legislative reqiuirement can conflict with others (e.g. duplications in 'Environmental" and 'Forest Clearance" requirements). Otlher recent p)olicies such as reliance on tiher government departments to provide inputs to environmental imlpact assessment reports also cannot he maintained without jeupardizing progress towards elfective prroject EA approval and implementation processes. Some problem appears to exists due to the dil'f'erences in expectations implicit in Central Government environmental le:islation and by approval authorities and the capabilities and the capacity of Orissa State Government organisations to perceive and implement such requirements. Federal le-islation tends to he all-encompassing and with implied expectations equivalent to international environmental assessment objectives and standards. Federal environmental assessment evaluation and clearin- a|encies such as the MIOEF and CWC. have high expectations on the quality and comprehensiveness oit' EAs (aSC0ordin- to their guidelines) considerahly in excess of the present capacity to produjce thLse in state government 2gencies. panicularly in project sponsoring anencies such as DOWR. Similarl,. at the State level there is likely to be a shorta,e of expertise, academic or in -overnment. with relevant experience to pr.operly evaluate environmental assessnients of' m:jor water rc.ource projec.ts. involving a coniplexiiv of issues. 2.5.2 Foirest Departrriint- (M)FEf Clearonce Rcluironwnetlls Dit'ficulties aind delays ocur in inventorying and evaluating the t:-nber values in reservoir areas by the Forestry Deparintent. In omre cases reviewed the extent of :.oresi inventory %%ork undertaken has heen nminimal and dIoes not atccurately reflect the extent and .alIue of forest resoiurces affected (eu. no consideration oit' oprrtunity coSts ot torest resourc;s :'.~egone due to thr project). In other cases. DOWR had no) r;.el inndication ovl' actual f'orest losses .r how tlheS-e WOlid be disposed ofo r ito what extenit Cowief% n.t:o ry .A\l t'restatitin \would K1% re iu rJ: . Similarly. delms and constra:nts re'.;:rdling acquisitiOn of' lands :Jr CLniopensatorx I 'orestation involves the Revenue Depa:r,,.nt deI;ineLting and acquirin- L-:.'s (wastelands) -a.d the Forest Department dioin, the planning and implementation of' the proj ;:: all Without i..-lS, or liaison with DONVR except for their rLur.ding otf the programmes involve_. The Central NIOEF and St-te Forest D;partment standards a.lJ clearance recuirernents and expectations are diffticult to achieve in reality with -on -roLJ." situations in project areas, reqtuiring consi'derable exchun - of -"tticial" correspondence and causing del*.s beyond the control of DOWR. Uncertain or excessive obligations toL satis;\ Forest Derartment requirements relating to assistance anJ tmJnJir here also occurred in sonr rcaes. 2-9  2.5.3 Reliabilitatic)m aud Rfsettlement Policy Recent policy and administrative initiatives in respect of rehabilitation and resettlement R&R) have been established by the Orissa State Government including: - Delineation of a Rehabilitation Policy under the Office of the Chief Minister dated June 8. 1990, updating earlier established policies; - Provisions relating to financial support for one year and requirements for locally affected parties to he ennaged in a project's unskilled and clerical work force; - Creation of Rehabiiitation and Resettlement (R&R) Directorate under Depanmrxne of Water Resources fur implementin, R&R policies; Provision for an actual setting up of Rehabilitation Advisory Committees on a project basis,. including those for ongoing projects. The exact status of these initiatives was not investigated directly for the EA in any detaLl. However, the potential constraints. which include land acquisition, compensation, rehabilitation and resettlement aspects. need to be recognized. as inputs to the EA process. This requiremem could be a major constraint as tinal decisions on land available for relocation of families requires considerable investigations and negotiations involving complicated legislation such as the Land Acquisition Act (19S4) and can involve legal settlement of objections by aggrieved partie. The logistical problems of preparing and determining the proper scope of documentation of rehabilitation and resettlement aspects for compliance with Environmental Clearance and other EA documentation needs to be critically reviewed as an integral part of the Environmental A;ion Pla= funded under the WRCP programme. 2.5.4 Cutclhni:tit Area Nian:gten.nt Plans Most catchments affected by projects consist mainly of agricultural land and/or degraded foresz lands controlled by the Forest Department tor other government agencies. The needs for catchment manaaement plans are recognized hy all parties concerned, inctluding the DOWR. Catchment area managertient plans have been required as part of recent project approva alpplications (Reference 23). Fundin t'or these plans and their implementation has been a projec: cost borne by DOWR and necessary ftinds provided to the Soil Conservation Department to execute the works. In some instances the catchment management plans have focussed primarili. on- erosion cintrol works in the reservoir drawdown z(one, in proximity to dams and othe- infrastructure (eg.. hrid=es. Preparation orf c.xprehensive catchment area management plans and imiplementation c. these is also a politically sensitive issue te.g. interstate catchnients). It also invariably involvs sever_ cross-sectoral interests. pairti.cularlv if aspects such as areas used for shisting cultivation jy Triba groups. andiotr degraded Protecied or Reserved Forests. are involved. Conflicts of inte-ests exis: with the expectations of 'what can be charged tl) the projiect sometimes at variance wi i projec: objectives and econtnmic viabilitv. Negotiations on such matters can become a sensi:ve inter- departmental issue and a constraint on project approval procedures and timing. Policy and guidelines relating to the approach and scope to bh adopted for catchmrent area management plans for water res,ource sector projects would he included in the WRCP-EA programme. 2-10  2.5.5 Ratio,nialisatio,n of EA Rtcluireimexits for DO%V'R A complete review of actual legal requirements and rationalization of the size and types of projects and the appropriate approaich to and scope.of environmental assessment to water resource development projects need to be une of the tasks of tihe Environmental Action Plan included in the initial stages of the WRCP programme. The possibility of delineating, negotiating and incorporating into State or. at least in DO\N'R policy and establishing of appropriate in-house guidelines tor the Environmental Assessment of %vater resource sector projects should be considered in detalil by the proposed river basin planning and project formulation and planning EA groups. Recommendations relating to this should he made to the Water Resources Board (WRB) and the Orissa Department of Environment. Any analysis of this aspect should give due reco-nition to the following: - Preparing a specitic initial 'environmental screening" checklist applicable to Orissa State water resource development based on a review of locations, scope, size and environmental factors associated with typical projects and obtaining "Site Clearances- for access and field investigation for all types of planned irrigation projects oir Works: - Preparin, specific EA guidelines for major and medium projects under investigation or proposed under the NVRCP programme, based on GOI and institutional lending ag,ency requirements. and setting the priority for EAs based on the WVRCP objectives and outlining ways and means for inclusion of these EAs, in project feasibility study budgets. regardless of source of funds; Preparing a general approach and guidelines to be adopted for modernisation of existing irrination components of major and medium projects with an objective of approval being required only at the State level: - Preparing guidelines tor the preparation of river basin and sub-basin environmental management plans. including water bodies like Lake Chilika, and monikoring progress for the medium-lon- term including integration with SPCB (State Polluti(on Control Board) monitoring (e.g. irrigation water quality monitorinrw) and reservoir fisheries management programmes. The need 'tir acceptance of.a holistic approatch to Environmental Assessment in river basin plans is recOgnized. Integrated river basin plans would noit entirelv focus on negative impacts and potenti.L1 "controversial' issues hut vould also detine and highlight primary and secondary environmental ne. ative zind posit ive impacts and socioeconomic benefits. particularly those relatinig to increased a-ricultural productivity and welfare Of comiiniunities and sectoral interests to benefit from water resource development. Likewise. a holistic approach (on a river basin basis) of lurescry aspects such as inventorying otf potential losses and compensatory forestry requirements warrants consideration and should he negotiated with the Orissa Forestry Department. The potential iniplications ot resource allocation requirements tir sectors such mineral resource and industrial development would be evaluated in their environmental context as well as their demands for water resources. Current probleniatic. conflicting and project delaying situations involving use of other government agencies to determine impacts and to devise mitinating measures (eg. Forestry Department and Revenue Department regarding Compensatory A ftorestation prograrnme) should be re-evaluated and a streanmiined approach to EA investications. repuoring and evaluation negotiated with the parties involved. t is important in the context of long-term project planning to have primarily State-based approval procedures for Environmental Clearances. Extensive co-operation and liaison is essential between State government agencies during the initial site clearance and the 2-11  preparation ul and evaluation ot Environmental Assessment of water resource development projects. Responsibilities tor preparing the river basin plans (including environmental components) and project Environmental Assessments would remain a function of the DOWR. Thus, its capacity to initiate and complete comprehensive Environmental Assessments and associated reports are essential and need to be upgraded during the WRCP programme (i.e. the setting up of the EA groups as outlined in the Environmental Action Plan prepared Section 7). 2-12  3. OUTLINE OF ORISSA %VRCI> The Orissa Water Resources Consolidation Project (WRCP) is proposed by the GOO and the GOI for tundin.- under the World Bank lending prooram for the 1995 to 2002 period, in order to continue with onooing water resource developments (primarily for irrigation) and upgrade existing int'rastructure and maintenance for existing irrigation schemes. The WRCP also includes a compunent of institutional strengthenino for a reorganised Department of Water Resources (DOWR), the Orissa Lit' Irrigation Corporation (OLIC) and the Minor Irrigation and CADA. 3.1 PERSPECTIVE In the past 20 to 25 years manv ne%v water resource development projects have been initiated by DOWR; some now completed and others yet 1o be completed. DOWR's project management staff and limited finances have now become widely dispersed throughout numerous construction and operational sites. Because of the backlog in project completions, project investments are not returning the economic benetits originally forecast given though substantial investments have already been made. Also. Water management is currently sub-optimal, mainly due to underfunded Operations and Mlaintenance activities, because funds are spent on project construction. Various sections of the irrigation. drainage, flood control and water supply infrastrucEure are in disuse, disrepair or inet'ticiently operated. The area presently irrigated is substantially less than commanded by main canals or proposed under project design resulting in insufficient water supplies to some users and excess supply in other cases, particularly during the monsoon period in the head reach of command areas. The primary general objectives of the Orissa WRCP include: - To improve allocation, supply and use elficiency of the State's water resources; - To locus future sector investment on maximisin, benefits from existing and on-oin" developments in tirder to improve irrigated agricultural production; - To enhance the resource and environmental sustainability through improved planning. implementation and operation of water resource development projects; - To plan t'r anJ execute institutional adjustments which would improve water resource sec;or planning and manaoement. 3.2 f'RIORITIES I-OR ORISSA %N'RCP Tihe initial "project preparation' stage ot' the Orissa WRCP has included considerable invest:i"ation. assessment and rn-t;3utaion as to what should he the priorities and components of the prOpo.sed \WRCP program it, he fundJd fOr the 1995-2002 period. The immediate priority is to ensure that I'unds are availa-'e over the medium term for the completion and maintenance of assets. created throUgh consiJtrahle investments. These projects shou!d be completed in order to derive the intended benelits from these projects. The key priorities for the WRCP, as outlined in the World Bank's Aide Nlminire date lSth March. 1994 are - Rehabilitation. nitidernisatitin and improved water management (including water user's participation in ailklcatin and 0 & MI activities): - Introiductitin a J irnplen%:ntation ol' improved operation and maintenance practices throuihout the states Irrh3ation systems: tEffective comrnpletion otongoip- viable projects to maximise investment returns; 3 -1  - mInitiation and implementation of miilti-sector wvaler resouirce planni ng procedures at both ithe river hasin and project levels. - Restructuring and capacity huilding within the new Department of Water Resources (DOWR) including appropriate capabilities to meet environmental legislative and management requirements. By tocussing on the above priorities in the next seven years, the WRCP would yield basic support for substantial long term gains in agricultural productivity and improvements to the general weltare of the State's rural communities, particularly those located within or associated with irrigation schemes. The schemes taken up under O&M project completion sub-project are shown in Fig.-3. 3.3 COMIPONENTS OF ORISSA %%'RCP 3.3.1 'Institutional Stren-thening or DOW'R As noted above, a primary focus during formulation of the WRCP has related to the restructuring of DOWR, in the context of incorporating all water resource planning and management functions into one administrative unit i.e. the Department of Water Resources (DOWR). The institutional changes required. the approaches to achieve and a program for the implementation of the recommended institutional restructuring of the DOWR are detailed in the Orissa WRCP- Institutional Study dated Mlay 1993. An integral component of the Terms of' Reference for the Orissa WRCP - Environmental Assessment was to determine the institutional strengthening required. for the DOWR (or its successor) to assume tull responsibilities for EA requirements under existing or proposed environmental and related lecislation. Details of the present status of the capabilities in the Orissa State Government main Departments associated with environmental matters and of DOWR are outlined in Section 6. The recommendations relating to the setting-up, stafring, responsibilities, tasks and the funding for the Environmental Assessment groups within DOWR are outlined in Section 7. 3.3.2 Multi-Setural NN'ater Resource Plainning To date. plannine l't.r the lon" terimi development oit' Orissa's wvater resources has been most 1reqttenitlv on a projet haski. The GOO has created .a Siate-level Water Resoturces Board (WRB) headed biy the Chliie Sccretar%. *llle WRB would be responsible lbr decision-making relating to water planning and allocatioin between sectoral water users. This is an important function in view of the increasing demands 't.r water to support industrial development and urban expansion. Within the DO\'R. a separate OWPO (Orissa Water Planning Organisation). would be set-up and operated. With its main responsibilities relating to the preparation of river basin (and eventually sub-czatchnent area) plans and preparation ot' and advice relating to the proposed 'State Water Policv" and "Integrated State Water Plans'. Orissa has eleven river basins and the 75% dependable yields has been estimated as 7.S19 millitin ham. The river basins of Orissa are the loIlo)wing: (I) SuLharnarekha (') Budliabalang (3) Bailarani (4) Brahmani (5) Mahanadi (6) Rushikulva (7) \'anshadhara (S) Na-avali (9) Ktolab (10) Indravati (II) Bahuda. To date, backuorund data and compilation is pro,eedin- with 5 river basin plans with their present status being, iIllows: Baitarani - draft report issued; ,Mahanadi - dra't reporn issued: Rushikulva d dratt report issu.ed: 3-2  -. f lBrahmatnj - .1dr.t report issued. - Vansadlhara - dralt report issued; faca collection for the other six basins are in progress. The GOI has approved funds from the IVlWIP program to complete ihese river basin plans including the provision of a selected itern;nional consultant. Euroconsult. a consulting flirm of the Netherlands of international anding. has been appointed it take up hasin planning work wvithin DOWR. They commenced neir work since Novemher 1994. This w%ork would continue and would be supported under the IRCP, including support ti)r setting-u p and operating an Environmental Assessment group under )WPO headed by a Chief' Engineer. .3.3 Irri-alion SclIeI1e Rehahilitation. Improved Operationis and Alainitenance and Water User Involvenient (SIFT) ,-hese priorities are inter-related and are the main thrust behind the WVRCP. They would have videspread henetits and implications t`0r local communities and would indicate how the new )O%VR is perceived publicly. The key coimponents of this sub-project include: - Nloudernisation and rehabilitation of infrastructure in major and medium irrigation projects totalling some '52.446 ha: about one-third of the State's irriaation system including provisions tor training of enuineers in technical aspects of improved O&M and tfarnier or-anisation and outreach skills: - Preparation and implementation of' detailed Plans of Operation and Maintenance (POMNs). as outlined. are given below : * Some 92.160 ha ot' CCAs included under major projects including Sakhigopal, Kendrapara and Rushikulya: 1. Hirakud System - 10,760 ha 2. Mlahanadi Delia Stace-I - 18.500 ha 3. MIahanadi Delta Stage-Il - 28,800 ha 4. Rushikulva Irrigation S%stem - 14,400 ha 5. Baitarani Svsteni - 19,700 ha Some 53.123 h;a included in 1 2 medium projects at various locations .n the State; I. Dadaraghati - 3,508 ha 2. Aunli - 1.188 ha 3. Javai;m1ael. - 7.548 ha 4. Hiradharhati - 5.087 Ia 5. Ghod.tlhlada - 6.629 ha 6. Sunei - 8.910 ha 7. Budhatdluhiani - 2.953 ha 8. Pilasalki - 2.388 ha 9. I'italitallal - 2.030 ha 10. Kalo - 4,800 ha II. Baldiha - _ 3.832 ha 12. Bha;kel - 4,250 ha 3 -3  Sonme 107.163 ha in an additionial CCA in projeets already scheduled lor limited rehabilitation under the N%VNIP: 1. Hirakud Dam Project - 24,125 ha 2. NMfahanadi Delta Stage-l - 10,222 ha 3. Mahanadi Delia Stage-Il - 31,980 ha 4. Salandi Irrigation Project - 10,000 ha 5. Rushik-ulva Irrigation Project - 12,609 ha 6. Derjong Miedium Project - 5,951 ha 7. Salia Mtedium Project - 8,445 ha 8. Dhanei Niedium Project - 3,831 ha Selected additional drainage and flood protection works (e.g. crosslink drains in the Miahanadi Delta area) and further canal work to ensure reliable and equitable delivery of water to the primary and secondary distribution network; A pro-active program for the formation of Water User Associations (WUA) based on the minor canal command areas (i.e. about 300-500 ha), with each WUA being a registered society with its own lega1 status and operating bank accounts; Improved access and communication networks as required to link field operation offices with division and state irrigation headquaners. 3.3.4 Completion or Ongoing Projects There are likely three major dam/reservoir/irrigation projects, which have been scheduled to be taken up during the time frame of the WRCP. under WRCP funding. The status and scope of required works for completion of these major projects are as follows: Ren-ali Dam. reservoir, power house and headworks complete and downstream barrage nearing completion with LBC distribution network to be developed. the LMC up to 30 km covering an avacut of 8.483 ha is to be developed under %VRCP pro-ramme. Narai Barra,we The old dilapidated barrage vill he replaced by a new harraoe to be constructed at 250 meters downstream. This project received the approval from Planning Commission recently.. It will ensure irrihation of '06.000 ha. provide tlood prc:-ction to 160.000 ha and provides a management tzol for the conservation of Lake Chilika, a Ramsar sae. Miahanadi Chitrotipala. - This is extension of irrigation facilities in Delta Stage-I by providing a syphon tO provide irr. ation Water to the ll ahanadi Chitrotpala doa-b and Mahanadi-Paika doab covering an ayacut of .9,542 ta. This project needs additional investpgation: RAP. EA and some technical issues. In cast these i>sues are resolved. it vill be taken-up ur-2r the supplementary funding component. 3-4  There are tive nedtiuil size irrigalti)n projects (i.e. Iess than 10.000 hla) all involving simiall daIns and irrigation networks w%hich are proposed IlOr completion directly under the NVRCP; as follows: - Badanala Proje t - Located in the Ii raput District on a tributary of lhe Valnsadhara lRiver lor suipply of irri-ation water for 8,650 ha downstream on the left bank of the Vansadhara River: Hariharjore Project - Located on the left hank of a tributary to the Mahanadi River below its junction with the Tel River and commanding some 9,450 ha in the Bolangir district between the Hariharjore and Mlahanadi Rivers; Harbhangi Project - Reservoir and irrigation project located in the upper reaches of the Vansadhara River wvith a potential irrigation area of 9,150 ha; Upper Jonk Projet - Located in the upper lJnk, a tributary of Mahanadi River near the Madhya Pradesh border (south of the Raipur - Vizanagaram Highway) wvith an irrigation area of 9,425 ha located on both sides of the river downstream; Ba-hua If Project - Located in upper reaches of a left bank tributary to the Rushikulya River about 20 knm North of Chatrapur and supplying water to downstream CCAs totalling 6,240 ha located on either side of the Baghua River. This project will be included in the WRCP on the condition that a RAP is available before negotiations. With an indicated tot;al irrigation Command area of approximately 70.000 ha, these projects represent an incremental increas'e of 33.3 in the present irrig:ted area in the State and represent less than I % ot the prescribed potential irrigation area lir Orissa. 3-5  4. ENVIRONMENTAL OV'ERVIEWN' 4.1 PERSPECTIN'E Orissa is one ot' India's richest states in terms ol its natural resource base. It is located adjacent to the Bay of Bengal and has tour physiographic regions wvith several ecolonically significant areas, as followvs. - Coastal Plains - Chilika Lake and Bhitar Kanika estuarine mangrove ecosystem and adjacent coastal beach complex, which are the world's main breeding area for the Pacific Ridley Sea Turtle; Northern Plateau - Similipal Miassif, which has a diversity of flora (ie. over 3,000 species) and fauna (including the Similipal National Park and Tiger Reserve) and which has been recommended as a "biosphere reserve'; Central Tableland - Gandhamardan Hills complex, which is as yet unprotected, but includes a diversity of flora and fauna; Eastern Ghats - Mahendra-iri M1ountains complex, which is a transitional zone between the Himalayan and Indian peninsula ecosystems and which is also not protected as yet. Orissa State has extensively developed. and potentially developable, mineral resources, with mining and associated industries under expansion as outlined in Section 4.3. Orissa's annual average rainfall is over 1.450 mm: with over 80% generally falling in the June to September period. Annual rainfalls are of monsoon origin and extensive flooding is common, panicularly in the coastal zone. Orissa is predominantly an agro.econromic hased state. with over S67c% of its 31 Imillion po'ulation livinu, in rural areas. The general standarJ of living. in the rural communitiuiiiies is matrginal with the variations in climate such as drought and monsoonal flooding having substantial influence on farming activities and proiductivity. The general distribution of the State's population is shown in Figure 6 and the main irrigation areas are focussed on the delta reaches of the state's main rivers ic. the Mahanadi. the Baitarani and Rushiklulva and immediately downstream of Hirakud Dam in the Sambalpur District. Orissa's wvater Sources are extensive anJ include intlows from several interstate river systems, particularly thc NIahanadi and the Brahmani rivers. Overall. less than 3O0 oft the total water resource potential has been dcveloped providing irrigat:nn to approximately 35