India - Private Infrastructure Finance (IL&FS) Project : environmental and social report (Vol. 3 of 6)

INFRASTRUCTURE LEASING & FINANCIAL SERVICES LIMITED ENVIRONMENTAL AND SOCIAL REPORT VOLUME m: REFERENCE DOCUMENTS TO TIE ESR November 1995 .ALi __ -. . .I S~~~~~~~e't cb >.-  VOLUME I: REFERENCE DOCUMENTS TO THE ESR I  LIST OF REFERENCE DOCUMENTS TO THE ESR Attachment I : Distribution of Legislative Power between t'ie Centre and the State Attachment 2 : Relevant Treaties Signed/Ratified by India (Environmental) Attachment 3 : Summary of Key Environment Legislations in India Attachment4: Environmental Rules and Notifications Relevant to Infrastructure Projects Attachment 5 : Specified Project Categories as Listed in Schedule I of Envirornment Impact Assessment Notification, 1994 (MoEF) Attachment6: Enviromnental Guidelines for Siting of Industry, Report of the Working Group, Ministry of Environment and Forests, Government of India, August, 1985 Attachment 7 : Prohibited Activities in CRZ (Coastal Regulation Zone Notification, 1990) Attachment 8 : Organisation Structure for Environment Management at the State Level Attachment 9 : Categories Requiring Environmental Analysis as per World Bank OD 4.01 Attachment 10: Constitutional Provisions Related to Social Issues Attachment II: Illustrative Policies on R&R Attachment 12: Recognition of Project Affected Groups by Some Salient Documents Attachment 13: Nature and Extent of Entitlements Recognised by Some Salient Documents Attachment 14: Operational Agencies: Key Players in R&R Plans and Implemen- tation Attachment 15: Social Impact and Entitlement Framework for World Bank Financed Projects 2  Attachment 16: Guidelines for Preparing Resettlement Action Plan (source: World Bank) Attachment 17 : Indigenous Peoples Developrnent Plan Recommended Content and Fornat Attachment 18: Public Consultation and Consensus Building Process Attachment 19: Suggested TOR Format (source: FINNIDA guidelines) Attachment 20: Guidelines for Description of Environmental Components Attachment 21: The Details of EIA Attachment 22: Suggested Review Checklist for Decision-makers Attachment 23: Environment Appraisal Checklist Attachment 24: Suggested Project Monitornig/Evaluation Questions (Environment) (adapted from: CIDA, 1988) Attachment 25: Social Appraisal Checklist Attachment 26: Suggested Project Monitoring/Evaluation Questions (Social) (adapted from: CIDA, 1988) Attachment 27: Guidelines to Creating a Risk Assessment Checklist 3  LIST OF ACRONYMS ADR - Altemative Dispute Resolution BOO - Build Own Operate BOOT - Build Own Operate Transfer BOT - Build Operate Transfer. CBO - Community Based Organisation CC - Corporate Consultant CFD - Contractual Framework Documentation COD - Committee of Directors CPCB - Central Pollution Control Board CRZ - Coastal Regulation Zone DFIBR - Detailed Feasibility and Investment Banking Report DPI - Detailed Process of Implementation EA - Environmental Assessment EAP - Environmental Assessment Process EAR - Environmental Assessment Report ED - Executive Director EIA - Environmental Impact Assessment EMP - Environmental Mitigation Plan ESMG - Environmental and Social Management Group ESR - Environmental and Social Report FRI - Forest Research Institute GOI - Government of India IL&FS - Infrastructure Leasing and Financial Services Limited IPDP - Indigenous People Development Plan ISR - Initial Screening Report ITRC - Indian Toxicology Research Centre LA - Local Authority LAA - Land Acquisition Assessment MA - Multilateral Agencies MoEF - Ministry of Environment and Forests MOU - Memorandum of Understanding NDP - Neighbourhood Development Plan NEER] - National Environment Engineering Research Institute NGO - Non Governmental Organisation O&M - Operation & Maintenance OD - Operational Directive PAP - Project Affected Person PRA - Participatory Rural Appraisal 4  R&R - Rehabilitation & Replacement RSAP - Resettlement Action Plan REP - Risk Evaluation Process RMG - Risk Management Group RMP - Risk Mitigation Plan SA - Social Assessment SAMP - Social Assessment and Management Plan SAP - Social Assessment Process SAR - Social Assessment Report SDP - Staff Development Plan SIA - Social Impact Assessment SPCB - State Pollution Control Board SPV - Special Purpose Vehicle TOR - Terms of Reference UMTS - Urban Mass Transit System WB - World Bank WII - Wildlife Institute of India 5  Atachment DISTRIBUTION OF LEGISLATIVE POWER BETWEEN THE CENTRE AND THE STATE Union List (List l) Includes defence, foreign affairs, atomic energy, interstate transportation, shipping, major ports, regulation of air traffic, regulation and development of oil fields, mines and mineral development and interstate rivers State List (List II) Includes public health and sanitation, agriculture, water supplies, irrigation and drainage and fisheries Concurrent List (List III) Parliament and State legislatures have overlapping and shared jurisdiction. Includes forests, protection of wildlife, mines and mineral development not covered in the Union list, population control and family planning, minor ports and factories 6  Attachment-2 RELEVANT TREATIES SIGNED/RATIFIED BY INDIA (ENVIRONMENTAL) (I) Convention Relative to the Preservation of Fauna and Flora in their Natural State (London, 1936) (2) International Convention for the Regulation of Whaling (Washington, 1946) (3) International Plant Protection Convention (Rome, 1951) (4) The Antarctic Treaty (Washington, 1959) (5) Convention concerning the Protection of Workers Against Ionizing Radiation (Geneva, 1960) (6) Treaty Banning Nuclear Weapon Tests in the Atmosphere, in Outer Space and Under Water (Brussels, 1975) (7) International Convention on Civil Liability for Oil Poliution Damage (Brussels, 1975) (8) Convention on Wetlands of International Importance, Especially as Waterfowl Habitat (RAMSAR, 1972) (9) Convention conceming the Protection of World Cultural and Natural Heritage (Paris, 1972) (10) Convention on International Trades in Endangered Species of Wild Fauna and Flora (Washington DC, 1943) (11) Protocol of 1978 Relating to the Intemational Convention for the Prevention of Pollution from Ships, 1973 (MARPOL) (12) Convention on the Conservation of Migratory Species of Wild Animals (13onn, 1979) (13) Convention on the Conservation of Antarctic Marine Living Resources (Canberra, 1980) 7  (14) United Nations Convention on the Law of the Sea (Montego Bay, 1982) (15) International Tropical Timber Agreement (Geneva, 1983) (16) Convention on Climate Change (Rio, 1992) (17) Convention on Biological Diversity (Rio, 1992) (18) Montreal Protocol on Substances that Deplete Ozone Layer (1987) (19) Rio Declaration on Environment and Development (Rio, 1992) (20) Agenda 21, the operational programmes for sustainable development also adopted at the UNCED, Rio de Janeiro (June 1992) 8  Attachment-3 SUMMARY OF KEY ENVIRONMENT LEGISLATIONS IN INDIA NAME SCOPE AND OBJECTIVE KEY AREAS OPERATIONAL AGENCIES/KEY PLAYERS I. Water (Prevention To provide for the prevention and Controls sewage and industrial effluent Central and State Pollution and Control of control of water pollution and discharges Boards Pollution) Act, 1974 enhancing the quality of water 2. Air (Prevention and To provide for prevention, control Controls emission of air pollutants Central and State Pollution Control of Pollution) and abatement of air pollution Boards Act, 1981 3. Forest Act, 1927 To consolidate acquisition of Regulates access to natural resources; state State govemment; Forest common property such as forests has a monopoly right over land; categorises Settlement Officers; forests 4. Forest Conservation To halt India's rapid deforestation Restriction on dereservation and using Central govemment Act, 1980 and resulting environmental forests for non-forest purpose degradation _ 5. Wildlife Protection To protect wildlife Creates protected areas (national Wildlife Advisory Boards; Act, 1972 parks/sanctuaries); categories of wildlife Central Zoo Authorities which are protected 6. Environment To provide for the protection and An umbrella legislation; supplements Central government; nodal agency (Protection) Act, improvement of the environment pollution laws; rules under this Act MoEF; can delegate powers; State 1986 important Departments of Environment 9  Atachment-4 ENVIRONMENTAL RULES AND NOT1FICATIONS RELEVANT TO INFRASTRUCTURE PROJECTS The Central Government has the authority to regulate any operntion that is not in keeping with the following rules: (1) The Hazardous Wastes (Management And Handling) Rules, 1989 (2) The Manufacture, Storage And Import of Hazardous Chemicals Rules, 1989 (3) Manufacture, Use, Import, Export And Storage of Hazardous Micro-Organisms And Genetically Engineered Organism or Cell Rules, 1989 (4) December 1989, The Environment (Protection) Rules Were Amended To Prescribe Ambient Air Quality Standards In Respect Of Noise (5) The Environmental Impact Assessment Notification, 1994 as amended on 4-5-94 This notification lays down specific project categories that require environmental clearance from the Ministry of Environment and Forests, Governnent of India, prior to establishing an industrial unit. It also addresses the inclusion of affected population and environmental groups in a coinsultation and participation process (6) Environmntl Statement This notification requests that in cases where consent is required under the Water/Air Act or authorisation under the Hazardous Wastes (Management and Handling) rules, an environmental statement must be submitted yearly to the Pollution Control Board (7) Procedure For Clearance From The Forest Angle De-reservation of forests, transfer to forest land by way of lease, and clearing of trees for the purposes of reforestation require prior approval from the MoEF 10  (B) Site Clearance In addition to the site clearance required under the Impact Assessment notification, there are environmental guidelines for Siting Industry given by the MoEF (9) ProhibiedArcas MoEF has prohibited and restricted specified industrial activities in certain areas of the country: Doon Valley in Uttar Pradesh, Antop Hill in Bombay, and Dahanu Taluka (Maharashtra) (10) Coastal Regulation Zone To further supplement the law on site clearance there is a notification declaring coastal stretches as Coastal Regulation Zone (CRZ) and regulating activities in the CRZ 11  fachment-5 SPECIFIED PROJECT CATEGORIES AS LISTED IN SCHEDULE I OF ENVIRONMENT IMPACT ASSESSMENT NOTIFCATION, 1994 (MoEF) The following project categories are required to obtain environimental clearance, prior to establishing an industrial unit New projects For industrial units in the following project categories, if investment is more than Rs. 50 crores: (1) Nuclear power plant and related projects, such as Heavy Water Plants, nuclear fuiel complex, rare earths (2) River valley projects including hydel power, major irrigation projects and a combination, including flood control (3) Ports, harbours, airports (except minor ports and harbours) (4) Petroleum refineries including crude and product pipelines (5) Chemical fertilizers (Nitrogenous and Phosphatic other than single superphosphate) (6) Petrochemical complexes (both Olefinic and Aromatic) and Petrochemical intermediates such as DMT. Caprolactam, LAB etc. and production of basic plastic such as LDPE, HDPE, PP, PVC (7) Exploration for oil and gas and their production, transportation and storage (8) Synthetic Rubber (9) Hydrocyanic acid and its derivatives (10) Primary metallurgical industries (such as production of Iron and Steel, Aluminium, Copper, Zinc, Lead and Ferro Alloys) 12  (11) Electric Arc Furnaces (Mini Steel Plants) (12) Chlor alkali industry (13) Viscose staple fibre and filament yam (14) Storage batteries integrated with the manufacture of oxides of lead and lead antimony alloy (15) Therna' power plants (16) Pulp, paper and newsprint (17) Cement For industrial units in the following project categories, irrespective of the investment (1) Pesticides (Technical) (2) Bulk drugs and pharmaceuticals (3) Asbestos and asbestos products (4) All touism projects between 200-500 meters of a High Tide Line and at locations with an elevation of more than 1,000 meters with investments of more than Rs.5 crores (5) Mining projects (with leases of more than 5 hectares) (6) Highway projects (7) Tarred roads in the Himalayas and/or forest areas (8) Distilleries (9) Raw skins and hides (10) Dyes (11) Foundries (individual) (12) Electroplating 13  Note: Small scale industrial units intending to manufacture any item of the project categories mentioned above, with investments less than Rs.l crore and which is on the reserved list, are exempted from environmental clearance Who Requires Site Clearance ? Site clearance from the Ministry of Environment and Forests is to be obtained in case of the following projects: (I) Mining (2) Pit-Head thermnal power stations (3) Hydro power, major irrigation projects and/or their combination including flood control (4) Ports and harbours (excluding minor ports) (5) Prospecting and exploration of major minerals in areas more that 500 hectares For obtaining site clearance, application is to be submitted giving the location of the project alongwith requisite details, to the Ministry of Environment and Forests. The Ministry of Environment and Forests will convey its-decision about the suitability of the proposed site within a maximum period of 30 days 14  Atchme6 ENVIRONMENTAL GUIDELINES FOR SITING OF INDUSTRY, REPORT OF THE WORKING GROUP, MINISTRY OF ENVIRONMENT AND FORESTS, GOVERNMENT OF INDIA, AUGUST, 1985 The following areas should be avoided by entrepreneurs for siting an industry in order to minimise the adverse impact on the environment: (I) Ecologically and/or otherwise sensitivc aras: at least 25 kin: depending on the geo-conditions, the requisite distance will be increased by the appropriate agency (2) Coaal Areal: at least 1/2 km. from the high tide line -(3) Flood plains of the Riverine Systems: at least 1/2 km from flood plains or modified flood plains affected by dams located upstream, or by flood control systems (4) Transpog/Communication Syms: at least 1/2 kmn from any highway and railway (5) MAlor settlement (3-00-000) population: distance from settlements is difficult to maintain because of the urban sprawl. At the time of siting of the industry, if any major settlements notified limit is within 50 kIn, the particular directions of growth of the settlement, for at least a decade, must be assessed, and the industry shall be sited 25 kmns from the projected growth boundary of the settlement 15  AttschmenaL- PROHIBITED ACTIVITIES IN CRZ (COASTAL REGULATION ZONE NOTIFICATION, 1990) (I) Setting up of new industries and expansion of existing industries, except those directly related to water front or directly needing foreshore facilities (2) Manufacture or handling or storage or disposal of hazardous substances as specified in the Notifications of the Government of India in the Ministry of Environment and Forests No.S.0. 594(E) dated 28th July 1989, S.0 966(E) dated 27th November, 1989 and GSR 1037(E) dated 5th December, 1989 (3) Setting up. and expansion of fish processing units including warehousing (excluding hatchery and natural fish drying in permitted areas) (4) Setting up and expansion of units/mechanism for disposal of waste and effluents, except facilities required for discharging treated effluents into the water course with approval under the Water (Prevention and Control of Pollution) Act, 1974; and except for storm water drains (5) Discharge of untreated wastes and effluents from industries, cities or towns and other human settlements. Schemes shall be implemented by the concerned authorities of phasing out the existing practices, if any, within a reasonable time period not exceeding three years from the date of this notification (6) Dumping of city or town waste for the purposes of landfilling or otherwise; the existing practice, if any, shall be phased out within a reasonable time not exceeding three year from the date of this Notification (7) Dumping of ash or any wastes from thermal power stations (8) Land reclamation, bunding or disturbing the natural course of sea waste with similar obstruction, except those required for control of coastal erosion and maintenance or clearing of waterways, channels and ports and for prevention of sandbars and also except for tidal regulators, storm water drains and structures for prevention of salinity ingress and for sweet water recharge (9) Mining of sand, rocks and other substrata materials, except those rare minerals not available outside the CRZ areas 16  (10) Harvesting or drawal of ground water and construction of mechanisms therefore within 200 m of HTL; in the 200 m to 500 m zone it shall be permitted only when done manually through ordinary wells for drinking, horticulture, agriculture and fisheries (I1) Construction activities in ecologically sensitive areas as specified in Attachment-I of this Notification (12) Any construction activity between the Low Tide Line and High Tide Line except facilities for carrying treated effluents and waste water discharges into the sea, facilities for canying sea water for cooling purposes, oil, gas and similar pipelines and facilities essential for activities permitted under this Notification 17  Attachmen ORGANISATION STRUCTURE FOR ENVIRONMENT MANAGEMENT AT THE STATE GOVERNMENT LEVEL State AsFsoiated Deparbment of State Environment Departments Research State Polon Instituons Control Board (SPCB) egs. - Kerala Forest Research institute - M.P. Forest Research Insitute - A.P. Environment Protection & Training Institute - State Wasteland Development Board. Maharashtra 18  Attachent-9 CATEGORIES REQUIRING ENVIRONMENTAL ANALYSIS AS PER WORLD BANK OD 4.01 Category A: Projects/Components A full EA is required if a project is likely to have significant adverse impacts that may be sensitive, irreversible, and diverse. The impacts are likely to be comprehersive, broad, sector-wide, or precedent-setting. Impacts generally result from a major component of the project and affect the area as a whole or an entire sector (1) Dams and reservoirs (2) Forestry production projects (3) Industrial plants (large-scale) and industrial estates (4) Irrigation, drainage, and flood control (large-scale) (5) Land clearance and levelling (6) Mineral development (including oil and gas) (7) Port and harbour development (S) Reclamation and new land development (9) Resettlement and all projects with potentially major impacts on people (10) River basin development (I1) Thermal and hydropower development (12) Manufacture, transportation, and use of pesticides or other hazardous and/or toxic Materials 19  Category B: Projects/Components The project may have adverse environmental impacts that are less significant than category A impacts. Few if any of these impacts are irreversible. The impacts are not as sensitive, numerous, major, or diverse as category A impacts; remedial measures can be more easily designed. Preparation of a mitigation plan suffices for many category B projects. Few category B projects will have a separate environmental report; most may be discussed in a separate chapter of the project preparation or feasibility study (I) Agro-industries (small-scale) (2) Electrical transmission (3) Aquaculture and mariculture (4) Irrigation and drainage (small scale) (5) Renewable energy (6) Rural electrification (7) Tourism (8) Rural water supply and sanitation (9) Watershed projects (management of resettlement) and (10) Resettlement maintenance, and upgrading projects (small-scale) 20  Category C: Projects/Components An EA or environmental analysis is normally not required in this category because the project is unlikely to have adverse impacts. Professional judgement finds the project to have negligible, insignificant, or minimal environmental impacts (I) Education (2) Family planning (3) Health (4) Nutrition (5) Institutional development (6) Technical assistance and (7) Most human resource projects 21  AUachme10 CONSTITUTIONAL PROVISIONS RELATED TO SOCLAL ISSUES Fundamental Rights: (I) The State shall not deny to any person equality before the law or equal protection of the law (2) Expands on the right to equality and prohibits discrimination on the ground of religion, race, caste, sex or place of birth (3) Guarantees the right to life and liberty Directive Principles: (I) Ownership and control of the material resources of the community should be distributed such that is subserves the common good Fundamental duties (1) To value and preserve the rich heritage of our composite culture (2) To safeguard public property and abjure violence Fundamental rights for the protection of rights of Tribals (1) To conserve one's distinct language, script or culture 22  Attachment-1 ILLUSTRATIVE POLICIES ON R&R (1) Draft National Policy For Resettlement Of Persons Displaced As A Consequence Of Acquisition Of Land (Ministry of Rural Development) To comprehensive!y deal with all issues of resettlement, applying to all projects within the Public Sector, Government Sector and Private Sector for whom land is acquired under any legislation (2) Draft NGO Policy To set right the deficiencies in the above national policy, by including concepts such as avoiding displacement, encouraging participation and alternate means of compensation (3) The Orissa Resettlement Of Project Affected Persons Policy, 1994 To resettle and rehabilitate the affected persons such that they do not suffer from adverse effects and at least their former standard of living is restored 23  Aitachment-12 RECOGNITION OF PROJECT AFFECTED BY SOME SALIENT DOCUMENTS Documents ProJect Affected Groups Document Name Status Scope and Displace Persons Losing Land Persons losing Persons depending Host Applicability d person livelihood/ on CPRs and forest Persons tradeloccl ation resources/nomads Hfomestead Agriculture Agricultur Others . ~~~~~~~~~~~~~~~~~al labour With Others With Othcrs (usurrucV/ valid valid customary/ title title pana holder) I.Land Acquisition Act, Legislatio Acquires Land 1894 n (centre) for "Public 0 4i Purpose" 2. Maharashtra Project Legislatio Irrigation and Affected Persons n (State) can be made * * * Rehabilitation Act, 1986 applicable to other projects _ I 3. Madhya Pradesh Legislatio Irrigation, Parlyojana Ke Karan n (State) Power, Public Visthapit Vyakti utility 0 * X (Punshthapan) Adhiniyam, 1985 4. Draft National Policy for Draft Public sector, Resettlement of Persons Policy Govemment Displaced as a Sector and consequence of Private Sector * * a 0 a a * Acquisition of Land Projects, (Ministry of Rural Develogment, 1995) . . . 24  RECOGNITION OF PROJECT AFFECTED GROUPS BY SOME SALIENT DOCUMENTS (Contd..) Documents Project Affected Groups 5. Orissa Rehabilitatior. and Policy Water Resources Resettlement of Project Projects . S * * * * * * * Affected Persons Policy, 1994 _ . 6. NGO Response to NGO Pub!lc sector, Ministry of Rural Draft Govelnment Development's Draft Position Sector and E * * * * * * * E Policy, 1995 Paper Private Sector Projects, 25  Attachment-13 NATURE AND EXTENT OF ENTITLEMENTS RECOGNISED BY SOME SALIENT DOCUMENTS Nature of Entitlements Extent of Entitlements Document Name Cash Land Trade/occupation/ Homestead Grants/ Civic Others Adequacy Replace Developm livelihood/training Allowances Amenities (communit ment ent y benefits, value benefits resource ___________ ________ base) Agricultural Others I.Land Acquisition Act, * * 1894 2. Maharashtra Project Affected Persons * * * * * Rehabilitation Act, 1986 3. Madhya Pradesh Pariyojana Ke Karan Visthapit Vyakti 0 * 0 * (Punshthapan) Adhiniyam, 1985 4.Draft National Policy for Resettlement of Persons Displaced as a consequence of 0 S 0 * * * S Acquisition of Land (Ministry of Rural Development, 1995) 5. Orissa Rehabilitation and Resettlement of Project Affected 0 * 0 0 0 S Persons Policy, 1994 6. NGO Response to Ministry of Rural * * 0 0 0 * * * * Development's Draft Policy, 1995 _ _ . _ 26  Attcment14 OPERATIONAL AGENCIES: iKEY PLAYERS IN R&R PLANS and IMPLEMENTATION (1) Land Acquisition Act, 1894 (a) Central/State Government (b) Collector/District Magistrate/Chief Revenue officer (2) Maharashtra Project Affected Persons Rehabilitation Act, 1986 (a) Commissioner (b) Project Authority (c) Advisory committee (3) Madbya Pradesh Pariyojana Ke Karan Visthapit Vyakti (Punhstbapan) Adhinayam, 1985 (a) Chief Controlling Authority (b) Project Resettlement Officer (c) Advisory Board (4) Drft Natioiial Policy For Resettlement Of Persons Displaced As A Consequence Of Acquisition Of Land Scheme implemented by the Implementation Committed at the Project level. (a) Project functionary (b) Collector (c) NGOs (d) Representatives of Displaced Persons (e) Representative of Govt. Department of Welfare etc. (f) Subject matter specialists (g) Personnel Manager of the project (h) Representative of the DepartmentMnistry concemed 27  (5) Orissa Resettlement And Rehabilitation Of Project Affected Persons Policy, 1994 (a) Plroject level One officer for land Acquisition One officer for R&R along with supporting staff of different disciplines Developing/Construction wing Resettlement Advisory Committee (b) Govemment level Separate directorate of Land Acquisition/Resettlement and Rehabilitation (c) Community Organisations (d) Voluntary Organisation *e) Volunteers from among the displaced persons 28  Attacbment1 Social Impact and Entitlement Frariework for World Bank Financed Projects In contrast to the environmental legislation which exists in India and provides a reference for the environmental part of the Environmental and Social Report, no similar framework or legislation exists for the general social impacts of development projects, of resettlement and rehabilitation (R&R) in particular. In order to provide a framework for the R&R process in sub-projects where World Bank financing is involved, this ESR provides a list of entitlements for the project affected individuals, families and establishments. Each sub- project will have to demonstrate compliance with the World Bank Entitlement Framework as furnished in Table 1.3 Seven basic categories of issues/impact are foreseen under this entitlement framework: (1) Loss of land (2) Loss of structure (3) Loss of Livelihood/Trade/Occupation (4) Loss of access to common resources and facilities and (5) Loss of standing crops and trees (6) Losses during transition of displaced persons/establishments (7) Losses to Host Communities In five out of the seven impact categories the joint responsibility for ensring the provision of entitlements to the beneficiaries lies with the Special Purpose Vehicle (SPV) and the local Government In the case of loss of livelihood and loss of standing crops, the responsibility lies with the SPV. As a general principle, there will be a preference for providing land-for-land compensation 29  1.01 For the purposes of this framework, the following definitions will be applicable: (a) Proected Affected Persons (PAP) : PAP means those who arc: (i) physically displaced or economically advcrsely affected as a result of physical re-location; (ii) economically affected but not physically re-located (iii) whose access to community amenities and resources is adversely affected (b) Replacement Value : Replacement Value means market value excluding depreciation. Replacement value of land should be determined through a land market survey (c) Family: Family is defined in terms of members of a household who share a common kitchen (d) Cut-off date : Cut-off date is used to determine the eligibility of PAPs. The cut-off date will be the date of the baseline survey. The survey will identify the residents or users of the land being acquired (e) Land : The tenn land refers to land acquired under the Land Acquisition Act, or through private transactions. All land provided under the entitlement fiamework should be provided with secure tenure PAPs should 6e given choices regarding the entitlements provided. If land-for-land is chosen by the PAP, the land should be of equivalent value and/or productivity. Basic units or minimum economic holding should follow the norms of the national, state or local Govemment sufficient to restore or improve the standard of living 30  Table 1.1 SOCIAL IMUAI AND ElfllTEMENT FRAMEWORK FOR WORLD BANK FINANCE12 PROJECTS Type of Issue/lmpact Entitlement Entitlement Options Responsibility Beneniciary 1. Loss of land a. Homestead Govt/SPV (i) with valid title, or customary (i) Family (i) equiv. area of land or or usufruct rights cash comp. at replacenent value (ii) squasters (ii) Family (ii) developed plot as per Govt. norns b. Agricultural land (i) with valid title, or (i) Titleholders (i) alternate land of equiv.prod. custory or usufruct rights potential or cash payment at replacent value (ii) tenants, sharecroppers, (ii) Individual (ii) local std. for min. econ. land leaseholder, encroachers holding or cash payment for min. econ. landholding c. ComrnerciaU/ IndustriaU l Institutional (i) with valid title, or (i) Titleholder (i) equiv. land or casb at replacement customary or usufruct rights value (ii) tenant, leaseholder (ii) Unit (ii) equiv leased land, reimbursement for unexpired lease, transition allow. equiv. tol year's income (iii) squattr (iii) Unit (iii) equiv.land and transition aDlowance L ____________________________ equiv. to I year's income 2 Loss of structure a. House GovtlSPV (i) with valid tide. or customary (i) Family (i) structure of equiv. standard or or usufruct rights cash camp. at replacement value (ii) tenant leaseholder (ii) Family (ii) transition allow. to re-establish residence (iii) squaters pavement (iii) Family (iii) basic dwclling unit as per govtL dwellers norms or cash payment for bisic dwelling unit b. CommerciaV Industrial/ Institutional (i) with valid title. or customary (i) Unit (i) stuctur of equiv. std or cash or usufruct rights comp. at replacement value (ii) tenant, leaseholder (ii) Unit (ii) reasonable transition allowance equiv. to I year's income (iii) squatters, pavement (iii) Unit (iii) basic unit as per govt. norms or dwellers cash payment for basic unit 31  3. Loss of livelihoodltradeoccupation SPV a. Wage employment (i) agriculturc/ commercial/ (i) Individual (i) employmenL in reconstructed industrial/ institutional enterprise or package for re- employment or starting a busincss. and transition allow. cquiv. to I year's wages 4. Loss of access to common resources Govt/SPV and facilities a. Rural common property HH/ community (a) replacement CPRs/amenities or resources providing min. govt std b. Urban civic amenities 11/community (b) acccss to cquiv. amenities/serisces SPV S. Loss of standing cropshrees a. With valid title Family (ab,c) cash compensation equiv. to I t Tenant/lessee Family year's income for crops and twelvC c. Encroachers/Squatters Famnily years for trees 6. Losses during transition of de- GovtISPV placed persons/establistmeats a. Shifting/Transport Family/Unit (a) provision of transport or cash b. Maintenance Family/Unit equiv c. Construction Family/Unit (b) cash payment for one year (c) cash payment for materials and labour or provision of materials 7. Losses to Host communities a. Amenities/Services Community Restore losses as a result of re- Govt/SPV settlement or amenities/services equiv. to those provided to PAPs The entitlements for each of the impacts is described below: (1) Lf Land: This impact affects families access to space for housing (homestead), agricultural land or land for commercial industrial or institutional purposes. (a) Loss of land for honiestead may impact owners with valid titles, or customary and usufruct rights. The beneficiary unit is the family, and the entitlement options offered to PAPs will include the provision of an equivalent area of land in acceptable location or cash compensation at replacement value of lost property 32  In the case of squatters, the family will also be considered as a unit and they will be provided a developed plot as per Govemrnment norms with cash compensation for the lost structure, or a basic dwelling unit as per Govermnent nonns (b) Loss of agricultural property is envisaged to impact persons with valid titles or customary or usufruct rights. The beneficiary will be the title holder who will be entitled to choose between an alternative land of equivalent productive potential or cash compensation at replacement value In the case of tenants, sharecroppers, leaseholders or encroachers the individual will be the beneficiary. They will be entitled to choose between minimum. economic land holdings based on local standards or a cash compensation for the minimum economic land holding at its replacement value (c) Loss of commercial industrial or institutional land is envisaged to impact persons with valid titles,-customary or usufiuct rights. The beneficiary will be the title holder who will be entitled to choose between equivalent land in an acceptable location or cash compensation at replacement value In the case of tenants and lease holders, the beneficiary will be the commercial, industrial or institutional unit. The beneficiary unit will be entitled to equivalent leased land, reimbursement for unexpired lease and a transitional allowance equivalent to one year's income In the case of squatts, the beneficiary will again be the commercial, industfial or institutional unit. The beneficiary will be entitled to equivalent leased land and a transitional allowance equivalent to one year's income (2) Loss of Structur This category of impact includes families or units loosing their houses or other commercial, industial or institutional structures (a) Loss of houses will impact families with valid title, customary or usufruct rights. The beneficiary unit is the faumily which will be entitled to choose between a structue of equivalent standard in an acceptable location or cash compensation at replacement value In the case of tenants and lease holders the beneficiary unit will again be the family who will be entitled to a transitional allowance to re-establish residence 33  In the case of squatters and pavement dwellers, the beneficiary will be the family. They will be entitled to choose between a basic dwelling unit as per Government norms or cash payment for a basic dwelling unit at replacement value (b) Loss of commercial, industrial or institutional structures will affect units with valid titles, customary or usufiuct rights. The beneficiary will be the commercial, industrial or institutional unit. The beneficiary unit will be entitled to choose between a structure of equivalent standard in an acceptable location or cash compensation at replacement value In the case of tenants and leaseholders, the beneficiary will be again the commercial, industrial or institutional unit entitled to a reasonable transitional allowance equivalent to one year's income In the case of squatters and pavement dwellers, the commercial, industrial or institutional beneficiary units will be entitled to choose between a basic unit as per Government norms or cash payment for the basic unit at replacement value (3) iLos fLieioordCJW=o This impact affects individuals access to wage employment (a) Loss of agricultural, commercial, industrial or institutional wage einployment impacts specific individuals. The beneficiary individuals will be entitled to employment in re-constucted enterprise or a package for re- enployment or- starting a business, and a transitional allowance equivalent to one year's wages (4) Loss of Access to Commn Resources ad Facilities In this category of impacts, the beneficiary is typically communities (in the case of rural projects) or households (in the case of urban projects), and the losses include loss of rual common property resources or urban civic communities (a) In the case of rural common property resources, the beneficiary units will be the households or the community entitled to replacement of common property resources/amenities at minimum Government standards (b) In the case of urban civic amenities, the beneficiary units will be the households or the community entitled to access to equivalent amenities or services 34  (5) Loss of Standing Crs and Trees This category of impacts includes standing crops or trees for those with valid titles, tenants or lessees and encroachers or squatters In all cases, the family will be the entitlement beneficiary. In all cases again, the beneficiary family will be entitled to cash compensation equivalent to one year's income for crops and 12 years' income for trees (6) L Losses in this category include those during shifting/transport, maintenance, and construction. In all categories, the family or respective commercial, industrial o- institutional unit will be the beneficiary (a) For shifting and transport, the beneficiary family or the unit will be entitled to provision of transport or cash equivalent for the transportation arrangement (b) In the case of mainteance, the beneficiary family or the unit will be entitled to cash payment for one year (c) In the case of constuction, the beneficiary family or the unit will be entitled to a lump sum cash payment for materials and labour or provisimn of mnaterials for the construction of structures (7) Lose t lost Communities In this category of impact, the host community, particularly in the resettled area, its access to amenities and services has reduced. The beneficiary host community will be entitled to restoration of losses as a result of resettlement or amenities/services equivalent to those provided to the project affected persons IL&FS will ensure that all plans are approved by the competent authorties. It will ensure that public consultation takes place at the necessary stages and that grievance redressal is a priority. IL&FS will also encourage the use of innovative financial mechanisms, such as annuities in the implementation of approved social entitlement schemes 35  In sub-projects where compensation has already been paid and it was not at replacement value, the rehabilitation package should include additional cash payments sufficient to meet this requirement or other measures, acceptable to the PAPs, which enable them to restore or improve their standard of living 36  Attachment- 16 TERMS OF REFERENCE for the preparation of A RESETTLEMENT ACTION PLAN (Source: World Bsnk) Introduction Infrastructure Leasing and Financial Services Limited (IL&FS) is considering the financing of a pipeline of commercially viable projects which include urban bypasses, mass transit systems, water and sanitation infrastructure, and integrated area development for infastructue development though the private sector in India. The Environmental and Social Report (ESR) provides a framework of policies, procedures and assessments to guide IL&FS and its borrowers in the identification, assessment and management of environmental and social concems at the organizational, and at the project level. The ESR has been formally approved by the Board of Directors of EL&FS and will serve as guideline for the preparation of thc Resettlement Action Plan (RAP). The Resettlement Action Plan should adhere to the policy objectives of the Environmental and Social Statement of IL&FS (ESR, Vol. 1, p.18) which commit each project to three cardinal principles: (a) Enhance the quality of life and environment in and around the project location (b) Prevent adverse enviromnental and social situations 'c) Mitigate possible advers- environmental and social impacts. This statement is being internalized by IL&FS into its business operations. Adherence to these principles will be monitored and highlights made public as part of the Annual Enviromnental and Social Audit along with the Annual Report In adhering to the Environmental and Social Statement, the RAP will incorporate all resettlement and rc-habilitation measures necessary to ensure compensation for assets acquired at replacement value, and mitigation of loss of livelihood for all Project Affected Persons (PAPs), on the basis of the Social Impact and Entitlement Framework for World Bank financed Projects (henceforth referred to as the resettlement and rehabilitation {R&R} Framework), summaridzd on pp. 43-46 of Volume II of the ESR (see Attachment 15, for full explanation). The R&R Framework reconciles the policies of the Government of India with the Operational Directive (OD 4.30) of the World Bank, and shal serve as the basis for preparation of the RAP. 37  Preparatory Steps Certain actions will be need to be undertaken by the project sponsor/SPV prior to the preparation of the RAP. This includes the following preparatory steps: 0 Establishment of a Neighbourhood Committee for the infrastructure project to make policy inputs into the RAP and review the consultant's outputs 0 Determination of the cxtent of adverse social impacts through a Land Acquisition Assessment (LAA) for each infrastructure project at the initial concept stage, as the basis for determining the scope of the RAP (guidelines for the LAA are provided in the next section) O Preparation of detailed terms of reference for the consultants on the basis of the specific R&R issues emerging from the LAA 0 Make available to the consultants a copy of the ESR, the LAA, and the project design with detailed maps of.the project for which the RAP is being commissioned 0 Providing feedback and policy guidance to the consultants when the results of the census and socio-economic survey are submitted to the Neighbourhood Committee. During this preparatory phase and throughout the preparation of the RAP, IL&FS, through its Environmental and Social Management Group (ESMG), will ensure that the activities are carried out in consonance with the principles and procedures enunciated in the ESR. It will assign one member of the ESMG to act as liaison person/counterpart for the RAP consultants. Guidelines for Land Acquisition Assessment (LAA) The LAA is a rapid assessment mechanism to determine the scope and extent of R&R measures which will need to be undertaken for project implementation. The LAA consists of a project-specific estimate of the amount of land to be acquired, the existing pattern of land tenure and land use, an estimate of the nunber of users, plots and dwellings, the process of land acquisition, and the land administration agency which has jurisdiction over the land. The LAA should be based on project planning documents, existing secondary sources (government statistics, land use maps, etc.), on-site verification by IL&FS staff;, and existing legislation and administrative practice with respect to land acquisition in the project area. The LAA provides the basis for the R&R Committee to determine what should be the scale of the study, and to decide whether a full RAP needs to be commissioned, or whether a limited RAP with rehabditation measures will suffice. The R&R Framework incorporates compensation to all PAPs for loss of property, loss of dwelling, or loss of livelihood, when land or other resources are acquired by a project for public purposes. Adverse impact may include cases where people have to be assisted in their physical relocation, resettlement and rehabilitation, in which case a full RAP is neededL Adverse impact also includes people who are not physically displaced but special actions are needed to restore loss of income; in such cases the RAP may cover rehabilitation measures alone. 38  Resettlement Plan Objectives Preparation of the Resettlement Action Plan (RAP) is being comnmissioned as an integral part, and one of the major components of the Social Assessment Process described in the ESR (pp. 75-86). The need for the RAP has been identified by the preliminary findings of the Land Acquisition Assessment and the analysis of expected social impacts which require appropriate mitigation measures for all PAPs who, on the basis of an established cut-off date, will be losing land, or other assets, or livelihood, as a result of project implementation. The RAP will incorporate all R&R measures necessary to ensure compensation for assets acquired at replacemnent value, and mitigation of loss of livelihood for all PAPs. RAPs are intended to be action-oriented documents. As such, they should be as precise and affirmative as possible, to facilitate approval by IL&FS and the Bank. Clarifying the parameters of the RAP during the early stages will ensure that the R-AP is a document focused on practical steps for implementation of R&R measures. Practical Steps for RAP Prepartion In undertaking this exercise, the consultants will be expected to follow a series of steps leading to the preparation of an acceptable RAP: () Review the ESR as the guiding document for the RAP 0) Review the detailed project design and the results and recommendations of the LAA C) Undertake a census of all PAPs (with 100 percent coverage), and a sample socio- economic surveys of the project area and the proposed resettlement site(s) to establish a baseline of PAPs and the host popLtAAon; present summarized data relevant to R&R design and implementation to the R&R Committee. For smaller projects, with less than 500 PAPs the census and socio-economic survey may be combined into one field study ) hold consultations with R&R Comm .tee to obtain their recommendations for RAP design I The census should provide details of land and assets owned or held, and the precise amounts of assets to be acquired on a temporary or pernent basis fomm every affected household for the project, as well as data on the social and economic smtus and occupation of all PAPs. 2 The socio-economic survey should provide data on the existing social structure, tenurial arrangements and resource use, access to social services and infirstuctre facilities by differcnt social groups in the project area, and for the host population at the proposed resettlement site, clealy identifying all special interest groups, p- iicularly those who are poor and vulnerable (e g., tenants, landless laboes, women, indigenous peoples), and descriing their special characteristics in relation to the project, the survey should also descnbe the expected impact of the project - access to benefits, ifrastucture and social services, and advase impact - on different social groups. 39  O hoid consultations with stakeholders (inclu. led PAPs) to obtain their inr its for RAP design; consultations with stakeholders will enhance ownership, facilitate the approval process, and ensure ease of implementation O prepare RAP in accordance with the outline provided. 40  Outline of the RAP: 1. Project Description * Physical, social and economic characteristics of the project area; * Major features of the proposed project; * Relevant maps of the project site(s), and the project area; * Sununary description of the extent of land acquisition needed for the project, and its expected adverse social impact - results of the LAA; * Analysis of major social groups likely to be adversely affected, and their special characteristics in relation to the project; * Impact on archaeological sites and cultural property; * Identification of the principal stakeholders in the project; * Overview of the R&R steps envisaged within the project. 2. The Social Assessment Process * Preceding stages of the Social Assessment Process leading to the preparation of the RAP; * Principal agencies, and personnel responsible for the preparation and appraisal of the components of Social Assessment Process; D Consultation process with different stakeholders used during the Social Assessment Process: if different forms of consultation have been used for different stakeholders e.g. govenmment agencies, potential user groups, PAPs and NGOs, the consultative processes should be described separately. 3. Census Data and Social Impact Assessment Socio-economic data of project area and expected social impact of the proposed project based on the census and socio-economnic survey: * Details of land and other assets to be acquired on a temporary or permanent basis for the project; - Data on occupation and income levels of PAPs; * Access to benefits, and negative consequences on different social groups - landowners vs tenants/landless laborers, large farmers vs small owner- operators, owners vs squatters, males vs females, local vs regional/national beneficiaries - equity issues; * Changes in the tenurial status and patterns of resource use by different social groups as a result of the project; * Extent of relocation of PAPs required for the project; * Data on the proposed resettlement site(s) and host population(s), including existing pattern of land use, existing infastructure and services, and economic opportunities for the additional population at the resettlement site(s). * Access to social services prior to the project, and after completion of the project; * Impact on poverty in the project area. 41  4. Policy of Entitlements * National, state, and local Laws and Rules on land acquisition and resettlement applicable and relevant to this project; * Eligibility policy for PAPs, criteria for different categories of PAPs, cut-off dates for eligibility; * Reproduction of R&R Matrix (see Attachment 15) retaining the different types of loss/impacts applicable to the project 5. Participation * Identification of project stakeholders; * Previous experience of the local population (particularly negative experiences) with development projects and resettlement; * Role of stakeholders at different stages of project cycle - consultations, R&R implementation, and R&R monitoring; * Institutional mechanisms to facilitate participation; * Expected outputs of participation by stage of project cycle. 6. Consultation and Grievance Procedures * Major R&R issues to be discussed with PAPs and other stakeholders; * Process and time table proposed for consultation with stakeholders, particularly project affectees; * Public information, and information dissemination program to ensure that project affectees and other stakeholders are informed about the process of project implementation and R&R issues, on a continuing basis; * Mechanisms established, such as Grievance Committee, for redressal of grievances. 7. Implementation Mechanisms and Due Process Implementation procedures proposed for delivery of key entitlements and the process for establishment of adequate replacement value: summarize information in the form of a complete Entitlement Matrix (see Table 1 for format), and add explanatory notes to clarify the following points, as relevant to the project * Land-for-land provisions. including the location, quality, and present economic use of the land being provided in replacement of acquired land; * Additional incentives provided to supplement land-for-land provisions, including cost of relocation, subsidy for inputs to develop the land, compensation for need to create new network of services and inputs; etc. * Detemination of replacement value, form of compensation and modality of payment; * Provisions made to compensate tenants/share-croppers, squatters and others with temporary tenure or lien on property being acquired; * Process of relocation, including development of resettlement sites, transitional arrangements, housing, etc. * Acquisition of resources managed as common property (CPRs): = Replacement Value of CPRs 42  => compensation for CPRs among its multiple owners/users = access to CPRs after project completion or alternative arrangements to avoid depriving PAPs of the benefit stream from CPRs; * Measures proposed to provide additional services to PAPs (e.g. special measures to ensure that they are included among the beneficiaries of the project through access to project related services, employment opportunities, or public social services) in lieu of the personal loss they are incurring for a public good. 8. Analysis of Alternatives and Assessment of Resettlement Sites * Alternatives to project design identified during RAP preparation, particularly those alternatives where minor modification to the project may reduce adverse effects, resulting in significant R&R benefits; * Assessment of proposed rural resettlement sites or urban housing schemes in terms of existing services, capacity to absorb additional population, prospects for assimilation within, or conflicts with the host population; * Assessment of measures proposed to improve infras and services at the resettlement sites to ensure that the quality of life of the resettled population is at least as good at the resettlement location as in their original habitat;