India - Environmental Management Capacity Building Technical Assistance Project

Document of THE WORLD BANK Report No. T-6910-IN TECHNICAL ANNEX ON A PROPOSED CREDIT TO INDIA FOR AN ENVIRONMENTAL MANAGEMENT CAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT DECEMBER 3,1996 Country Operations, Industry and Finance Division Country Department II South Asia Region  Currency Equivalents (as of December 3, 1996) Currency Unit = Rupee Rupee 34.70 = US$1.00 Rs. 1.00 = US$0.029 Fiscal Year of Government of India April 1 - March 31 Abbreviations and Acronyms CPCB Central Pollution Control Board DOD Department of Ocean Development EAP Environment Action Program - India EEIPPC Environmental Economics, Indicators and Project Planning Cell EIA Environment Impact Assessment ENVIS Environment Information System EMP Environment Management Plan GOI Government of India GDFE Gujarat Department of Forests and Environment GEC Gujarat Ecology Commission GPCB Gujarat Pollution Control Board ICMAMP Integrated Coastal and Marine Area Management Plan MOEF Ministry of Environment and Forests NEAC National Environment Awareness Campaign NGO Non-Governmental Organization NSC National Steering Committee RRA Regional Resource Agency SEAP State Environmental Action Plan SPCB State Pollution Control Board UNDP United National Development Program UNEP United Nations Environment Program Vice President D. Joseph Wood Directors Robert Drysdale Edwin Lim Division Chief Luiz Emesto Derbez Staff Member Richard Cambridge  (i) INDIA Environmental Management Capacity Building Technical Assistance Project TECHNICAL ANNEX Table of Contents Sections Page Number Creedit and Project Summary .................................................. (iii) 1. ENVIRONMENTAL MANAGEMENT ISSUES IN INDIA A. Environmental Policy Planning .....................................................2 B. Environmental Administration .....................................................5 C. Decentralization of Environmental Management ..................................................... 6 D. Implementation of Environmental Law ................... ..................................8 E. Monitoring and Compliance in Specific High Priority Problem Areas ............. ...........9 2. DETAILED PROJECT DESCRIPTION A. Strengthening Environmental Policy Planning .................................................... 14 B. Strengthening Environmental Administration ..................................................... 19 C. Strengthening the Decentralization of Environmental Management ............. ............ 20 D. Strengthening the Implementation of Environmental Law ......................................... 24 E. Strengthening Environmental Monitoring and Compliance in Specific High Priority Problem Areas ..................................................... 26 F. Gujarat ..................................................... 34 G. Project Costs and Financing ..................................................... 36 3. PROJECT ADMINISTRATION A. Project Implementation/Coordination Arrangements ................................................. 37 B. Procurement ..................................................... 41 C. Disbursements ..................................................... 43 D. Accounting and Auditing ..................................................... 45 E. Monitoring and Evaluation ..................................................... 46 F. Project Training Plan ..................................................... 47 G. Project Supervision Plan ..................................................... 49 H. Project Benefits Analysis .................................................... 52  (ii) Attachments: 1. Legal Framework .......................................................... 60 2. Environmental Management Institutions .......................................................... 73 Tables: 1. Summary of Proposed Procurement Arrangements ..................................................... 43 2. Allocation of Credit Proceeds .......................................................... 44 3. Estimated Credit Disbursements .......................................................... 44 4. Forecast of Expenditures and Disbursements .......................................................... 45 5. Training Plan .......................................................... 47 6. Detailed Supervision Plan - Staff Weeks Per Mission ................................................. 51 7. Summary of Supervision Plan by Fiscal Year .......................................................... 51 8. Project Readiness and Time-Frame of Project Impacts ................................. .............. 54 Figures 1. Chart of Project Implementation Process ......................................... ................. 40 2. Organization Structure for Environmental Management in India .............. ................. 73 3. Organizational Chart of the Ministry of Environment and Forests ............. ................ 75 Boxes 1. Institutions Involved in Collection of Ground/Sea-truth Data ..................................... 31 2. Institutions for Waste Load Allocation Programs ....................................................... 33 3. Institutions involved in Coastal and Marine Area Development Activities ......... ....... 34 4. India: Environmental Legislation (Acts, Rules, Notifications and Amendments) ..... 61 5. Location of Regional Offices of the Ministry of Environment and Forests ......... ....... 76 6. Ongoing Environmental Tasks of Ministries Other than MOEF .............................. ... 79 The project was prepared by Messrs/Mmes.: Richard Cambridge (TaskManager, SA2DR) Mohan Gopal (Principal Counsel, LEG); Carter Brandon, (Environmental Economist, ASTEN); Utpal Mukhopadhyay (Institutional Specialist, ASTEN), Panneer Selvan (Environmental Engineer, RSI) Sam Thangaraj (NGO/Participation Specialist, RSI); K.N. Venkataraman (Procurement Specialist, RSI), Laurence Boisson de Chazoumes (Counsel, LEGEN) Donald Foster (Training Specialist, Counsultant); Avyeris Andonyadis (Implemenation Specialist (Counsultant) and Savitri Ramaiah (Community Health Specialist, Consultant); and Jeanette Kestell-Cadogan and Beverles Jenkins-Kohi (Staff Assistants, SA2DR); The Peer Reviewers were Me. Maritta Koch-Weser, (Division Chief, ASTEN); Mr. John Redwood, (Environmental Specialist, ENVLW) and Mr. Gunnar Eskeland, (Environmental Economist PRDPE). This Report has been endorsed by Messrs: Robert Drysdale, Edwin Lim (Directors, SA2) and Luis-Ernesto Derbez (Division Chief, SA2CI)  (iii) INDIA ENVIRONMENTAL MANAGEMENT CAPACITY BUILDING TECHNICAL ASSISTANCE PROJECT CREDIT AND PROJECT SUMMARY Borrower: India, acting by its President Implementing Agencies: Ministry of Environment and Forests; Department of Ocean Development; and Gujarat Department of Forests and Environment Beneficiaries: India, the State of Gujarat, and other States for selected components. Poverty Category: Not Applicable Program Objective Category: Environmental Institutions Environmental Category: C Amount: SDR 34.7 million (US$50.0 million equivalent) Terms: Standard, with 35 years maturity Staff Appraisal Report: Not applicable, Technical Annex attached Project Identification No: 1N-PA-43728 Estimated Cost: Local Foreign Total Environmental Policy Planning: 6.66 7.25 13.91 Environmental Administration: 3.26 0.57 3.83 Decentralization of Env. Management: 4.68 0.73 5.41 Environmental Law: 2.27 1.88 4.15 Monitoring and Compliance: 15.14 11.79 26.93 Gujarat: 5.62 1.71 7.33 Total Base Costs: 37.63 23.93 61.56 Contingencies: (2.49) 2.41 (0.08) Total: 35.14 26.34 61.48 Financing Plan: GOI 11.48 - 11.48 IDA 23.66 26.34 50.00 Total: 35.14 26.34 61.48 Estimated Credit Disbursements: IDA Fiscal Year: 1997 1998 1999 2000 2001 2002 2003 Annual: 3.00 1.60 13.60 13.74 11.32 5.38 1.36 Cumulative: 3.00 4.60 18.20 31.94 43.26 48.64 50.00 Economic Rate of Return: Not Applicable   1 INDIA Environmental Management Capacity Building Technical Assistance Project TECHNICAL ANNEX 1. ENVIRONMENTAL MANAGEMENT ISSUES IN INDIA 1. Introduction. Each of the individual Bank-IDA assisted projects noted in Schedule A of the Memorandum of the President, includes institutional development/capacity building components, which are designed to enhance the capabilities of various State Departments of Environment and Forests and associated institutions, State Pollution Control Boards (SPCBs), parastatal organizations, and private institutions to better manage the environmental dimensions of specific investment programs. The Environmental Assessment processes of both the Bank (Operational Directive 4.01) and Govermnent of India (GOI) (Environmental Impact Assessment of Development Projects Notification 1994) have meant that Category A and B projects (water resources, forestry, infrastructure) have included the preparation and implementation of Environmental Management Plans (EMP). However, despite the impressive record of the Bank and GOI collaboration on the environment, gaps remain in the support strategy. The Enviromnent Action Program - India (EAP) Review (paras. 13-14 of the MOP) has also demonstrated that, while other bilateral and multilateral donors provide assistance to GOI over the range of its seven environmental priorities, there remains an unfinished agenda, particularly as regards strengthening the capacities of existing institutions to plan, monitor, and strengthen compliance with the environmental laws and standards of the country, i.e. environmental management. 2. Environmental management is a continuous process that consists of three interconnected steps: (a) the collection and analysis of relevant data; learning from worldwide "best practices"; and incorporating these in the planning and formulation of policy including the setting of standards; (b) the effectiveness and location of the administration of environmental institutions; and (c) program implementation and monitoring to ensure active compliance with established laws and standards. 3. An assessment of India's environmental management system suggests that weaknesses are evident at each of the three main steps and every administrative level i.e. center, state, and district (municipality and panchayat). Further, despite the support provided by the Bank and other donors under specific investment projects, more needs to be done in the areas of air pollution, coastal zone management, urban land use including industrial siting, and mitigating  2 environmental degradation in the mining sector. Outlined below is a discussion of the major generic issues of environmental management which are manifest at each administrative level. A. ENVIRONMENTAL POLICY PLANNING 4. Environmental management from central government institutions, particularly the Ministry of Environment and Forests (MOEF) and its Regional Offices, and the Central Pollution Control Board (CPCB), is plagued by several problems. These range from weak data management which affects policy planning and implementation, to overlapping functions and jurisdictions because of the wide range of environmental legislation. 5. Environmental Research has received special attention since 1974, when the National Committee on Environmental Planning and Coordination initiated a scheme for developing skilled individuals to confront India's environmental challenges. A further impetus to environmental research occurred with the establishment of a Research Division of the MOEF in 1985. A process evolved during this period for soliciting screening, and funding research from universities, industry, and other members of the scientific community. Research proposals are invited in two ways, i.e. either through the member institutions of the Council for Scientific and Industrial Research (CSIR) or by invitations from the Ministry in newspapers. The Environmental Research Committee (ERC) charged with screening and recommending proposals for funding was instituted by MOEF's predecessor National Committee on Environmental Planning and Coordination during the Fourth Five-Year Plan (1969-74). The ERC has 20 members, 14 of whom, including the chairman, are members of the scientific community and six represent the MOEF and other ministries. Requests for proposals have a generic format only, and do not specify guidelines for the research design, methodology, data treatment or applicability of the findings. Priorities have not been established among the physical, chemical, and biological features of environmental resources or the economic and social considerations associated with their use, conservation, protection, and management. Environmental research is supported under three broad categories: Man and Biosphere (MAB); the Environment Research Program (ERP); and Action-Oriented Research for the Eastern and Western Ghats. About 200 research projects are underway in any given year, with about 90 being newly funded. ERP principally covers the "Brown Agenda" and has received 60% of the annual Rs. 38.5 million budget over the past two years; 1994-95 included 31 ERP projects. 6. The MOEF Research Division is not equipped to manage a focused national environment research program. The process for inviting proposals, screening and recommending projects for support is non-thematic, institution driven rather than national priority driven, and unsystematic. Since its inception, it has not changed to accommodate new policies and priorities. The research community, or a large percentage of it, is not professionally prepared to propose and carry out scientific research, as evidenced by the fact that approximately 60% of the 1,000 research projects proposed for 1994-95 are inadequate in their research methodology (no testable hypothesis or professionally acceptable data treatment and analyses) or application to national environmental problems. The MOEF research effort operates in isolation from other environmental research undertaken both in other sectors and abroad. This results in the replication of non-India specific research, as well as the dilution of  3 India's available research funds by supporting proposals already underway or which have been completed elsewhere. 7. Environmental Information. There is a consensus that the lack of good quality environmental data is a major problem of environmental management in India. There are two aspects to this shortcoming: the existence of adequate data, which is essentially a problem of resources and strategic planning in primary data collection; and the availability of, or access to, adequate data, which is primarily related to database management, and the legal right of access by potential users. Underlying both problems are issues related to technology and resources, unclear institutional mandates, and unclear uses of the data which is collected. Given India's size and complexity, information collection and database management must be decentralized, both in terms of geographic coverage and thematic area. Although incomplete in its implementation, this approach has generally been adopted in India. The data collection and management system has three parts: a) Collectors of primary data, such as State Pollution Control Boards, universities/institutes, and NGOs. Common problems in the collection of primary data are reliability, adequate resources and insufficient exchange between collectors and end users results in low usage rates of existing data and widespread dissatisfaction by potential end users at the lack of data. b) Thematic data centers, such as the Environment Information System (ENVIS) centers of the MOEF that collect primary data from all available sources, and attempt to make it available to queries from both the government and the public. To date, however, the ENVIS centers have had inadequate resources, technology, and skills to maintain well managed and widely accessible environmental databases. An important first step towards addressing these shortcomings is a proposed UNDP/IDRC project entitled "Establishment of a Sustainable Development Networking Program," which is scheduled to begin in early 1996. c) Data end users, include government bodies such as the MOEF and CPCB, state environment departments, and the district-level planning committees, and outside users, such as academia, business, the media, and NGOs. In the case of government, current data-driven decision support systems are generally in rudimentary form, and as a result, do not provide accurate and timely data. To improve these systems, attention must be given to: (i) data needs for decision- making; and (ii) the technology required to meet those needs. The resolution of these questions must be tailored to each decision-making body. Furthermore, the data needs of these important end users should be communicated back up the data management system--to the primary collection and thematic data centers--in order to make the entire system more efficient. 8. Environmental Economics is relatively new throughout the world, but has its deepest roots in the resource economics traditions in developed countries. Much of the current literature in environmental economics builds on the mistakes and inefficiencies of 1960s and 1970s environmental policies adopted in the United States, Europe, and Japan. For example,  4 the magnitude of industrial investment diverted in these countries to large, rapid, end-of-pipe pollution control equipment in the early 1970s could not be done today in the developing countries without an unacceptable negative impact on growth. Therefore, alternative approaches to environmental management have evolved that reduce the financial cost to society of improved environmental management, while securing much higher economic, environmental, and social benefits. 9. The environmental community in India, particularly those concerned with pollution issues, is dominated by environmental engineers. Professionals trained in environmental economics are under-represented, and the economic dimension of policy decisions taken by government environment agencies often neglect viable and cost-effective policy options. As a result, the cost-effectiveness of measures being proposed and implemented is inadequately analyzed, needlessly expensive, and inefficient policies sometimes result. Two current examples are: (a) the heavy over-reliance on command and control approaches to industrial pollution control, in spite of widespread findings in other countries that a more "mixed policy" approach, utilizing industry compliance incentives through economic instruments, public disclosure, and voluntary programs, can achieve greater pollution abatement at a far lower cost; and (b) the recent introduction of catalytic converters on automobiles, which is one of the least cost-effective of many steps available to address urban air pollution in New Delhi and elsewhere. 10. Environmental Indicators and Indices. A former Minister of Population and Environment of an Asian country is reported to have remarked in 1986: "In my policy making I need an indicator in money terms for losses in environment and resources as a counterweight to the indicator for production, namely national income. If a theoretically sound indicator is not possible, then think up one that is rather less theoretically sound." Increasing global concerns about the environment in the 1970s has led many governments and international institutions such as the Bank to initiate efforts to develop standard and transparent methodologies to assess the impact of economic development on environmental quality. The economic liberalization in India in the 1 990s has stimulated rapid economic growth especially in coastal states like Gujarat and Maharashtra. This fast growth requires massive investments in energy (coal) production and in other infrastructure sectors. These investments tend to have profound environmental implications which must be properly assessed in order to maintain that the investments are at least environmentally neutral or, if possible, environmentally beneficial. Because India is a very large country with a diverse ecological and socioeconomic environment, and has not yet developed such indicators and mainstreamed them as part of their natural economic management, it makes the assessment of the environmental impacts of economic growth all the more necessary and complex. 11. Environmental Standards in any country must balance the costs and benefits of firm- level emissions standards, ambient concentration standards, and standards imposed on municipal facilities, such as waste-water treatment plants, off-shore out-takes, or land-fills. All of these pose difficult issues, and implicit economic, environmental, and social trade-offs. Standards are best assessed in light of good data on the average cost of compliance and of local ambient conditions.  5 municipalities trying to comply with such standards, it is appropriate that standards face periodic review and updating. For example, under the recently approved Bombay Sewage Disposal Project, the environmental assessment process concluded that GOI's bacterial standard for effluent discharge in coastal waters was unnecessarily stringent when compared to standards in the European Union and United States. GOI has agreed that by June 1997, it will establish revised water quality standards, applicable to the discharge of wastewater to marine coastal waters. This suggests that a more general review of the appropriateness of national standards and some of the existing legislation may be necessary to bring them in line with current acceptable standards and practice. B. ENVIRONMENTAL ADMINISTRATION 13. Regional Offices of MOEF. The Environment Impact Assessment (EIA) Bill, 1994, states that any new project or expansion of any existing project would require an evaluation and assessment by the MOEF (Impact Assessment Agency Cell) (Attachment A paras. 16-23). Currently, the MOEF reviews the applications and issues relevant orders. The Regional Offices are required to monitor the conditions under which clearances are given. It is evident that follow-up and monitoring of projects cleared under the EIA notification has to be undertaken jointly by the Regional Offices and the SPCBs. There are instances when the SPCBs and the MOEF adopt different standards under the Air and Water Pollution (Prevention) Control Acts in respect of the same projects, while giving clearances. The system of monitoring also needs improvement, as it is not based on automatic and on-line monitoring of critical equipment and processes, but based on periodic reports prepared by the units. MOEF is concerned about systematic follow-up of cases cleared under the EIA and the environmental audit processes, has made it an important function of its Regional Offices (Attachment B para. 4), and has created posts of scientists in all Regional Offices. It is also clear that the standard of the EIAs varies from region to region and from agency to agency. Even though the Notification lays down that all necessary information must be furnished by the industries and the project authorities, in many cases, the EIAs are of inferior quality and that makes quick and effective assessment difficult. NEERI has attempted to streamline the EIA process and has held some training programs in this regard. 14. Presently, the Regional Offices are ill-equipped in manpower and supportive infrastructure to carry out the mandate given to or expected of them. For example, out of 3,443 forestry projects cleared, the Regional Offices could monitor only 2,034 projects up to March 31, 1995. Out of 1,175 environmental clearances, only 851 could be monitored in the same period. In states like Maharashtra and Gujarat, out of 139 and 78 environmental clearances respectively, only 67 and 35 cases could actually be monitored in the same period. 15. The present location of the Regional Offices makes it difficult for them to discharge their functions effectively. For example, the Regional Office at Bhopal is incapable of giving adequate attention to the large-scale industrialization and consequent potential adverse impacts on the environment which is underway in Maharashtra and Gujarat. Similarly, the Regional Office at Bangalore cannot supervise ongoing activities in Andhra Pradesh, Tamil Nadu, Karnataka, Goa, Kerala and the territory of Pondicherry. While increased threats to the environment are being matched by the enactment of an increasing amount of legislation, the responsibilities of the various agencies, including the Regional Offices, have not been  6 Nadu, Karnataka, Goa, Kerala and the territory of Pondicherry. While increased threats to the environment are being matched by the enactment of an increasing amount of legislation, the responsibilities of the various agencies, including the Regional Offices, have not been properly defined. In many instances, there are overlapping rules, in terms of compliance with environmental regulations under different agencies by the same unit. Lastly, the Regional Offices are not equipped to deal with specific environmental problems in the regions. For example, while the Western Regional Office should have expertise in dealing with the environmental consequences arising out of coastal pollution and chemical industries, the Eastern Regional Office should have expertise in coal and other mining. C. DECENTRALIZATION OF ENVIRONMENTAL MANAGEMENT 16. The National Environment Awareness Campaign (NEAC) was created in 1986 to stimulate environmental awareness at all levels of society. The strategy is to fund a wide variety of activities within existing government and non-government organizations. During 1994-95 for example, over 2,200 organizations including NGOs, schools, colleges, universities, research institutions, women and youth organizations, army units and other government departments, were provided funds to undertake awareness activities. These activities were as varied as the organizations involved, and ranged from training courses, seminars, workshops and public meetings to rallies, exhibitions, essay competitions, debate and poster contests, folk dances and street theater. Activities also included the production and distribution of environmental education resource materials. 17. NEAC activities are organized through 20 selected organizations called Regional Resource Agencies (RRA), chosen in part by their geographic location. The RRAs identify NGOs and other organizations in their region, screen them, and consistent with the year's campaign theme advertise and invite proposals, i.e. the 1994-95 themes were "Joint Forest Management, Ecodevelopment and the Montreal Protocol"; the 1995-96 theme is "Women and the Environment". The RRAs forward their recommended proposals for funding to the MOEF, where an Empowered Committee further selects, recommends, and submits for final approval to higher MOEF authorities. Five MOEF Centers of Excellence support environmental awareness activities of NEAC and other programs such as the school-based Eco Clubs, as well as carry out research and training in environmental education. The activities of these Centers also include formal environmental education courses, publications, public service video spots, exhibitions, and task force reports on specific topics of environmental concern. 18. The NEAC has served as the primary general environmental awareness strategy and has evolved in parallel to other environmental awareness and education initiatives. The extent to which the Indian population has been made aware of environmental issues is unknown, but the number of community-based activities carried out during the past ten years is persuasive that the campaign has reached a wide segment of the population. However, ten years of mainly the same awareness activities to the same audiences by essentially the same entities should also indicate that the time has come for a review.  7 19. NEACs and parallel non-formal environmental education initiatives might be more effective if linked, if action-oriented elements were included, and if focused on specific populations and environmental issues. NEAC might be more effective if orchestrated with new organizations responsible for managing, monitoring, and compliance enforcement of environmental concerns at the district, town panchayat, and village levels. 20. The Paryavaran Vahini Program was launched in 1992-93 as an adjunct to the National Environment Awareness Campaign. The objective is to involve community members, not only in awareness, but also to empower them to identify and report environmental hazards and activities detrimental to their immediate living and working areas. One hundred eighty-three districts have been selected in 25 states and four union territories for the establishment of Paryavaran Vahinis or environmental brigades because of the high incidence of pollution, density of forest, and tribal populations. As of January 1996, one hundred and thirty have been constituted, and forty more have been authorized but not yet established. 21. The support system for the Paryavaran Vahinis includes a training program for District Collectors which is carried out by the Regional Offices of MOEF and instructional materials designed and produced by MOEF's Centers of Excellence. The 130 established Paryavaran Vahinis each have twenty members, selected from within the district by a Joint Committee from MOEF's Regional Office and district leaders. These 2,600 Paryavaran Vahini members receive a Rs. 200 stipend per month for honorarium and expenses. They have a violation reporting form which they submit to the District Collector at monthly meetings. The District Collector in turn, is expected to follow-up on the complaints and submit them for resolution to other authorities. The District Collector submits a quarterly report to MOEF's Regional Office which includes the number of complaints received and the action taken on each complaint. Although it is possible to increase membership of the Vahinis up to 100 members, lack of funding has not allowed an increase even in large geographic and populous districts with a high potential for violations. The Paryavaran Vahini scheme is a stand-alone activity and parallels another district-based grass-roots action scheme led by Forestry officials, the Van Mukhi. In addition, relationships have not been established between the Paryavaran Vahini district groups and NGOs working for environmental awareness in the same communities under the NEAC. Expansion and improvement would require review of selection and training practices, improvement of support budgets including Vahini incentives for member exemplary performance, and infrastructure and training support for State Departments of Environment to assume their proper leadership role. 22. The Paryavaran Vahini scheme has not been orchestrated with District-level planning and Panchayat structured environmental management initiatives. Paryavaran Vahinis have not been linked with other environmental awareness programs, despite some association by Vahini members' with local environmental NGOs. The success of the Paryavaran Vahini project is based on three fragile premises, that: (a) the District Collector or his appointee, has both the time to be trained as well as the ability to train twenty or more district-wide community members; (b) the trained (for two days) members can knowledgeably identify and report environmental hazards and violations; and (c) the District Collector or his appointee has  8 oversee, train, and follow-up with 27 district Vahinis spread over five states and two union territories. The process, results, strengths and shortcomings of the Paryavaran Vahini scheme are clear. D. IMPLEMENTATION OF ENVIRONMENTAL LAW 24. Environmental Law. India has an extensive framework of environmental law. Its legislative commitment to environmental policy objectives is highlighted by the inclusion of provisions in its Constitution. This represents an extent of legislative commitment rare in international experience. In addition, some decisions of Indian courts have provided recognition of environmental rights which is more extensive than in most countries (e.g., the recognition of the right to environment as an inherent part of the right to life under the Constitution). Although there are issues that remain to be addressed relating to the adequacy of the substantive coverage of laws and the coordination among existing laws and regulations, the main legal issue to be addressed at this time is strengthening implementation of existing laws. 25. Industrial pollution is among the main concerns, be it due to large-scale or small-scale industries. In this context, the main environmental laws that fail to be implemented in India relate to water and air pollution (the Water Prevention and Control of Pollution) Act, 1974 and related laws; The Air (Prevention and Control of Pollution) Act, 1987 and related laws; and the Environment (Protection) Act, 1986. Each law has an extensive body of regulations (Attachment 1 paras. 4-27). There are four main legal factors contributing to poor implementation: (a) inadequate processes for environmental decision-making and dispute resolution: Legal literature recognizes that compliance is an integral part of the process of bargaining by which individuals and groups gain access to resources. Effective compliance is largely dependent on the extent to which decision-making processes take into account and reflect the interests of affected groups. An important function of environmental law should be the provision of a process by which decisions relating to use of environmental resources are taken in a manner that provides a full accounting of all interests and costs and benefits. It should also provide a process to prevent, mitigate or intermediate environmental conflicts in an orderly fashion. The Indian environmental law framework does not presently provide and effective process for bargaining/negotiations among affected groups, or resolution of conflicts. Consequently, disputes are often either resolved through intervention of the judiciary in constitutional litigation, or sometimes result in conflicts that could be avoided through a more inclusive and community-oriented system of decision-making and dispute resolution; (b) absence of non-litigation remedies for affected persons/communities, resulting in excessive reliance on litigation, including constitutional, public interest litigation. Reliance on litigation not only places a burden on the court system, but is also often not accessible by all segments of affected or interested groups.  9 judiciary in constitutional litigation, or sometimes result in conflicts that could be avoided through a more inclusive and community-oriented system of decision-making and dispute resolution; (b) absence of non-litigation remedies for affected persons/communities, resulting in excessive reliance on litigation, including constitutional, public interest litigation. Reliance on litigation not only places a burden on the court system, but is also often not accessible by all segments of affected or interested groups. (c) insufficient legal infrastructure in the MOEF and in the CPCB and SPCBs, for implementation; weak dissemination of law and the decisions made thereunder; insufficient monitoring of compliance because of lack of monitoring tools and technical and legal capacity to review compliance; inadequate capacity for effective inspection and for taking remedial actions including follow up in courts; and lack of required continuing legal training; and (d) inadequate use of community and non-govermnental resources, and customary law in implementation. Given the size and diversity of India and the scale of the problems, even a large expansion of bureaucratic capacity is unlikely to have a significant impact of results on the ground. A legal strategy has not yet been developed for employing India's vast and ancient social institutions and traditions, including its essentially "green" and "eco-friendly" customary law traditions, in the task of environmental protection. Such a strategy could be implemented within the existing legal framework, and with minimal additional resource needs. E. MONITORING AND COMPLIANCE IN SPECIFIC HIGH PRIORITY PROBLEM AREAS 26. Mining Sector. Mining projects, one of the 29 sectors listed in the Schedule-I of the Environmental Impact Assessment (EIA) Notification of 1994, require environmental and site clearances from the MOEF. An exclusive Environmental Appraisal Committee of experts, constituted by the MOEF, appraises a large number of mining projects every year. During 1994, MOEF received 510 projects for environmental and site appraisal, of which 366 (68%) were mining projects (46 for environmental and 320 for site clearances)' As per the EIA Notification, the Forest Conservation Act of 1980, and the Mining and Minerals Regulating and Development Act, iron, coal, zinc, copper, and aluminum, are declared as major minerals. Mining projects involving more than five hectares of land are required to obtain environmental and site clearances from the MOEF. Projects involving minor minerals, such as granite, and marble, and major mineral mining projects requiring leases of less than five hectares of land are given environmental clearances by the concerned state Mining and Geology Department and Department of Environment and Forests. IAnnual Report 1994-95; Ministry of Environment and Forests  10 27. The Regional Offices of MOEF monitor the compliance of the Environmental Management Plans (EMP) of projects cleared by the MOEF. Similarly, the respective state Departments of Environment are responsible for monitoring the compliance of EMPs of the mining projects which they cleared. State Pollution Control Boards monitor the compliance with the existing water and air pollution emission standards and issue the annual 'consent to operate' approval to the mines cleared by both the Central and State Governments. The Zonal Offices of the Central Pollution Control Board (CPCB) compile the ambient air and water quality data for the CPCB. State Pollution Control Boards, on specific request in a few cases, provide assistance to the Regional Offices of MOEF in monitoring the compliance of EMPs. Under the Major Mineral Conservation Rules of GOI, the Indian Bureau of Mines issues licenses for mining major minerals other than coal (coal mines are handled by the Coal Board) and approves five-year mining plans. State Governments have their own respective Minor Mineral Conservation Rules and their respective Mining and Geology Departments issue licenses for mining minor minerals and approve five-year mining plans. 28. Recognizing the adverse environmental impacts and the need for developing remedial measures that are specific to the mining sector, the MOEF established in 1987, a Center for Mining Environment at Dhanbad in Bihar. The main objective of this Center is to generate scientific data and build national capacity for sustainable mining in the country. The Center conducts post graduate and doctoral level courses, as well as training programs for in-service professionals. Research areas include land use management, noise and vibration problems in 2 mining areas, air pollution in fire areas and its effect on health. Coal India Ltd. produces over 90% of India's coal requirement. As part of a separate proposed FY96 World Bank- assisted Coal India Environrnental and Social Mitigation Project, the in-house capacity of Coal India and its Central Mine Planning and Design Institute (CMPDI) at Ranchi will be strengthened to develop environmentally benign designs for coal mining. 29. As described above, several agencies--Indian Bureau of Mines and MOEF at the center, Mining and Geology Departments and Departments of Environment in the states, and Panchayats at the local level, are involved in clearing mining projects. This situation often results in conflicting approaches and procedures in giving site and environmental clearances. Also, multiple agencies (state Departments of Environment, Mining and Geology Departments, and State Pollution Control Boards for minor mineral projects, and MOEF, and Indian Bureau of Mines for major mineral projects) are responsible for overseeing compliance of EMPs. The result is that compliance is poor because of the ambiguous roles of the various regulatory agencies in the mining sector, and each state government having its own procedures for regulating mining and its environmental impacts. Each State Pollution Control Board has its own rules and environmental standards for the mining sector. Some State Pollution Control Boards do not monitor mining projects at all, and some have even exempted these projects from applying for the "consent to operate". Even those State Pollution Control Boards which issue "consent to operate" and collect "water cess fees", monitor the compliance 2Environment and Development: Traditions, Concerns and Efforts in India--National Report to UNCED, June 1992.  I1 of air and water pollution standards only. They do not monitor compliance of other appropriate mitigation measures for environmental protection. 30. Inadequate capacity in State Pollution Control Boards and MOEF Regional Offices is common across the country. Lack of expertise in environmental planning and monitoring of mining projects as well as an inadequate number of professional staff are the major problems. In some Regional Offices each staff is assigned a large territory with several hundred mining projects. Staff are normally trained to deal only with industrial air and water pollution control, with the result that the major environmental concerns of mining, such as land degradation, hydrology, and so on, do not receive adequate attention. 31. Laxity in addressing the impacts of minor mineral mining projects is another common issue. The state Departments of Environment and Departments of Mining and Geology do not have in-house capacity to clear the minor minerals projects and to monitor compliance of agreed EMPs. Also, most State Pollution Control Boards have exempted these mining projects from applying for a "consent to operate" and do not monitor or enforce any environmental standards. At present, there is not much networking among the various institutions responsible for regulating mining and related environmental impacts. There is a little coordination and exchange of information/experiences among the mining institutions and the different Government agencies responsible for issuing clearances. Also, there is a hiatus in addressing the environmental impacts of (old) mines operating with leases which were issued before the 1994 EIA notification. Under the Forest Act, 1980, the renewal of a mining lease is considered the grant of a fresh lease and requires site and environmental clearances. Whereas, the EIA notification, is silent on this issue and as a result, old mines continue to operate without implementing appropriate environmental mitigation measures. 32. Industrial Siting. Unplanned and haphazard siting of industries increase the risks to the environment, the cost of degradation, and the future cost of mitigation. Also, the current industrial clearance process places more emphasis on the stated intent of an industry to comply with emission standards, but often does so with disregard for: (a) the cumulative pollution in the area, which may already exceed ambient standards; (b) the local environment carrying capacity, or its ability to absorb new pollution loads; or (c) local economies of scale in providing infrastructure or common effluent treatment plants for municipalities and local industry. 33. The process of integrating the concern for pollution control into a wide cross-sectoral environmental protection strategy has started in India. The data, skills, and techniques required to generate thematic maps that incorporate economic, physical, and enviromnental themes, are becoming available. Such map overlays are an essential tool to improved local environmental planning, and require both financial and human resources. 34. In India, the spatial dimension of environmental management requires attention. Inappropriate siting of industry, industrial estates, and other land uses leads to unacceptably high but avoidable environmental damages, infrastructure costs, concentrations of pollution, and social costs, all of which can be lowered through improved planning and industrial siting.  12 Various technical approaches and tools for environmental planning exist, and most involve mapping and zoning of permissible land uses. 35. The CPCB has undertaken a pilot project to demonstrate the use of environmental data for planning purposes in 17 districts in 14 states. The pilot program is expected to be completed in 1996, and the CPCB has acquired much in terms of methodology, technique, staffing requirements, and data sources. For each district, the project created a Zoning Atlas which contains maps that show the spatial suitability for siting of industries which are liable to cause adverse environmental impacts given the environmental features at the site. Now that these pilot maps exist, the challenge is to use them as daily tools in siting new industry (Department of Industry), the issuing of industrial "no objection certificates" (SPCBs), the granting of environmental clearances (State Department of Environment and Forests), physical planning (Town and Country Planning Departments), and economic development (Metropolitan Development Authorities). The linkages between the Zoning Atlas project and implementing agencies remain to be made and pose a challenge which must be addressed as a central feature of environmental management. 36. Ambient Air Monitoring. Total Suspended Particulates (TSP), S02 and N02 levels are regularly monitored (about seven times per month) at stations operated by the National Environmental Engineering Research Institute (NEERI) under the jurisdiction of the CPCB in ten of India's largest cities, and by the CPCB in about 18 additional cities. NEERI operates three stations (residential, commercial and industrial) in each of the cities it monitors. While NEERI also analyzes the amount of lead (and other metals) in particulates, CO and ozone are monitored only occasionally. PMIO3 is not monitored at all, although NEERI monitors respirable particles, which are particles less than 13-14 microns in diameter. The regular monitoring of PM1O, lead, CO, and ozone should be instituted at all CPCB stations. Knowledge of PM10 levels is crucial to measuring human health effects. Carbon monoxide and ozone may indeed become serious problems in Indian cities as vehicle fleets grow. 37. In addition, in order to set priorities for controlling urban air pollution in India, it is important that emissions inventories be established for each major city. The emissions inventory locates on a map (in a GIS database), all major industrial, domestic and mobile sources for the common air pollutants and estimates (usually on the basis of quantity of fuel burned times appropriate emissions factors) the emissions from each source. When linked with source-receptor (dispersion) models, the effect of emitting a ton of particulates (or other pollutant) in a given location on ambient air quality can be predicted. Since it is ambient air quality that affects human welfare, understanding this linkage is fundamental to doing cost- effective analysis of air pollution abatement strategies. Without determining the contribution of different sources to ambient pollution at population centers, policy-makers may wind up trying to control sources that really do not contribute much to the air pollution-related health problem. Previous World Bank documents have mentioned two issues concerning reporting of air pollution data in India. One is the long lag between data collection and publication. For 3PMIO = particles less than ten microns in diameter, which more easily penetrate the lung and are therefore more relevant for human health.  13 example, in early 1995, the CPCB had not yet released statistics for 1992. Second, the data reported on S02 and N02 do not correspond to India's ambient standards for these pollutants, making it difficult to assess compliance. 38. Coastal and Marine Area Management. The Coastal Regulation Zone notification was issued by the Ministry of Environment and Forests (MOEF) on February 20th, 1991. By this notification, the Government declared "the coastal stretches of seas, bays, estuaries, creeks, rivers and backwaters, which are influenced by tidal activities (on the landward side) up to 500 meters from the high tide line, and the land between the low tide line and the high tide line as the coastal regulation zone" and imposed restrictions on the setting up and expansion of industries, operations or processes, etc. on the said zone. The notification listed a range of prohibited activities (e.g. setting up of new industries and expansion of existing industries, except those directly related to the waterfront or directly needing foreshore facilities). Details of the regulations for permissible activities and procedures for monitoring and enforcement are discussed in paragraph 27 of Attachment 1. 39. Demographic pressure and rapid industrialization generate enormous amounts of waste materials which are discharged into the marine environment along India's 7,500 km coastline which supports a variety of marine ecosystems, including fragile mangroves and coral reefs. Coastal zone management has become extremely complex because of the lack of clarity of the roles of various organizations, including the ministries of the Government of India. While the Department of Ocean Development is responsible for monitoring marine pollution, they have little authority in initiating corrective action to control pollution which comes from land-based sources. Under the CRZ notification, coastal states are required to prepare Coastal Zonal Management Plans for the approval of MOEF. The approved Coastal Zonal Management Plans would form a part of local statutes for enforcing the norms and provisions of the CRZ notification. To date, no such plans have been approved; meanwhile, pollution-generating activities continue in many coastal areas. 4 India has 8-hour and 24-hour standards for TSP, N02 and S02 that are not to be violated more than five percent of the time. To see whether these standards have been violated requires the frequency distribution of 24-hour average and 9-hour average values. NEERI reported the distribution of 4-hour average values, and the averaging time used by the CPCB was unclear.  14 2. DETAILED PROJECT DESCRIPTION A. Strengthening Environmental Policy Planning (Proposed Outlay US$ 13.91 million)5. This component of the project includes five sub-components, as follows: 40. Environmental Research subcomponent I.. (US$2.97 million) would address environmental Cn4as research issues (paras. 5-6) and consist of three a :e . .. .. i.. .. parts, Loat10s,armx. (a) a review of research program orseas 160 staff no l priorities and procedures for d inviting, reviewing and funding research proposals; (b) training in research management and methodology, and (c) the provision of hardware and software to facilitate interaction with international environmental research sources. This sub-component would focus on the Environmental Research Program (ERP). The first activity would consist of MOEF's Research Division staff and selected members of the environmental research scientific community participating in a multi-element, interdisciplinary, international environmental research policy and management forum. A major outcome of this interaction would be a revised Environmental Research Program, including an implementable action research management plan of policies, practices, and procedures. The second activity would consist of local workshops and short courses in environmental research methodology and on revised proposal procedures for members of the scientific research community. Curriculum development, instructional materials design and production, and training of trainers for the workshops would also be undertaken during this period. The final activity would include provision of computer hardware and software to MOEF's Research Division to facilitate internet access to international environmental research data resources. It is expected that India's original environmental research findings would be shared and compared with similar topical research findings from abroad and these data would become an integral part of ERP policies and practices. The sub-component would be implemented by the Research Division of the Ministry of Environment and Forests (para. 93). 5This and other references to proposed outlays are base cost estimates.  15 41. Environmental Information (US$1.46 million). This sub-component will focus TecknialAssstance primarily on data management, i.e., the thematic Consultnts data centers of the Environmental Information Local 120 staff months System (ENVIS), and only secondarily on data Training end users. The objective is to help establish an Local 105saffmots .. . . ~~~~Eqguipment and materiats-- on-line and geographically decentralized system E an ar of information on environmental issues in India, and to support through training, ENVIS information users, carriers, and providers in government, academia, business, and NGOs. Achievement of this objective will be measurable in terms of scope, access, quality, reliability, and completeness of environmental data available to end users. The environmental information (ENVIS) sub-component will consist of: (a) expansion of the ENVIS system, from 23 ENVIS centers to approximately 32 centers; (b) support to ENVIS centers to upgrade on-line databases, primarily through: on- site technical assistance in database management and identification of database needs and structure appropriate to their ENVIS role, and support for the digitization of data currently only available in printed media; and (c) training to ENVIS users, in the form of short courses offered on a low or no- cost basis to ENVIS information users, carriers, and providers, in government, academia, business, and NGOs. 42. As needed (based on the progress of the proposed UNDP/IDRC project) "Establishment of a sustainable Development Networking Program", data standardization, coding, and management issues related to data compatibility across ENVIS centers, would be studied. In addition, additional activities for governmental decision makers, in the form of strategic studies for the implementation of data-driven environmental decision support systems would be considered. The possibilities include: better tracking of ambient environmental conditions and trends; the creation of environmental indicators linked with measuring the localized impact of current policies; better forecasting including scenarios based on alternative courses of' action; and better tracking of firm-level pollution abatement and project-level implementation of agreed-upon environmental management plans. The Environment Information Division in the MOEF would be the focal point for this sub- component (para. 94). It will be assisted primarily by local consultants, using locally procured and serviced equipment. One possibility is to use the same project implementation team (advisory group and consultants) as the UNDP/IDRC Sustainable Development Network Project.  16 43. Environmental Economics (US$6.80 million). This sub-component will provide CoFechnc support for curriculum development, expanded Expatriate 96 staffmontis teaching, faculty upgrading fellowships, and Local 670 staff mon6ths ongoing research in the area of environmental Training economics. Its objective is to increase the Overseas 72 staffmonts application of economic tools to the general Local 440asnd mmontha debate on environmental management in India across the full range of issues such as priority-setting and policy approaches for pollution control, resource management, and biodiversity conservation. Achievement of this objective will be measurable in terms of the number of college and post-graduates trained in environmental economics; the scope and quality of research in the field of environmental economics; and the integration of the research recommendations into environmental decision- making at the various levels of government. 44. The environmental economics sub-component will consist of: (a) establishing an Environmental Economics, Indicators, and Project Planning Cell in the Ministry of Environment and Forests; (b) support to develop an environmental economics curriculum, teaching materials, case studies, and perhaps a textbook combining India-specific case studies with examples of "best practice" from other countries for diploma and degree programs; (c) a faculty-upgrading program, designed to train economics faculty members from across India in basic environmental economics, in order to better equip them to introduce the above curriculum in their respective colleges and universities. This will consist primarily of short (1-2 months) courses offered in India, but will be supplemented by a few (up to four per year) post-doctoral fellowships for 3-12 months at prominent environmental economics faculties in other countries. (d) a program to invite environmental economics faculty from other countries to spend 1-9 months teaching and conducting research on an India-specific topic. (e) training programs for non-economists on applications of environmental economics, especially on such topics as pollution control policy, environmental costs and benefits, environrnental assessments, cost-effectiveness, and environmental-growth tradeoffs. These programs would consist primarily of short (one week) courses, offered to (a) government officials in the MOEF, state-level Environment Departments, Pollution Control Board officials, members of the Indian Economic Service, non-environment government agencies such as Departments of Industry, Coal, Power, Petroleum, Fertilizer, Fisheries, Bureau of Industrial Costs and Pricing, Town and Country Planning  17 Organization and Directorates, etc., and (b) representatives of industry, banking, NGOs, the media, and other interested outside parties. (f) support to university and institute libraries to expand their collections in environmental economics in the form of: (i) a one-time stocking of important books and journals, and (ii) support for future acquisitions on a declining scale over the life of the project; and (g) support to applied research, case studies, and best practices in the area of environmental economics. In order to ensure the maximum linkage between researchers and students, only universities or institutes offering degree courses would compete for research funds. In addition, in order to assist in professional skills transfer, research collaborations between institutes in India and in other countries would be encouraged, and limited travel will be supported. The general themes of the research program will be developed in consultation with the MOEF, the core institutes, and others. Against these themes, proposals could be invited. A tentative list of themes would include: (i) lessons from experience, especially case studies on how other countries have addressed environmental issues; (ii) the costs and benefits of investing in the environment; (iii) approaches to regulation enforcement; (iv) approaches to decentralization; (v) public participation and public disclosure; and (vi) fiscal and financing issues; and (vii) public and private sector roles. 45. Environmental Standards (US$1.50 TecknieatAssi*ance million). In India, standards have been Consultants challenged for being too lax, too stringent, or Expatriate 12 staff months simply, on occasion, irrelevant. Given the Lrcail 36 staff monhsg enormous investment capital that is affected by Trainl 100 staff months firms and municipalities trying to comply with Eq caipmentandmaterials such standards, it is appropriate that standards face periodic review and updating. This process is ongoing in India. In this regard, the MOEF and CPCB have sought technical assistance in selected areas of this standard-setting and review process, in order that the standards adopted incorporate the latest understanding of relevant technologies, costs, and options. The objective of this sub-component is to improve the economic and environmental efficiency of air, water, and toxic emissions standards being set by GOI. Several priority areas have been identified for the development of new standards. These relate to: hospital wastes; ozone; pesticides, chemical industries including petrochemicals; and man-made fibers. To achieve this, the project will finance expert assistance to the CPCB's ongoing review and modification of standards procedures.  18 46. Environmental Indicators and Indices I T incaAs an - ...... (US$1.21 million). Reliable environmental Conutatsh& indicators expressed in both physical and EXpatriate 48staff monts monetary terms provide policy and decision- . .....Local 269amonth makers with an effective tool with which to make Overseas 48 stffmonths national environmental and economic decisions. - Locals 2(X) st months Much of the environmental and economic data Wumen materias-d generated in India can be effectively utilized for decision/policy making when analyzed and aggregated to form environmental indices. This sub-component would provide assistance to the Ministry of Environment and Forests and to the State of Gujarat to develop the following indicators and indices based on current information and policy needs. 47. The first activity will be to support the design of a framework of environmental indicators appropriate to India's needs. Several approaches exist, such as a recently concluded Asian Development Bank-financed study in China, Indonesia, Philippines, Nepal, Pakistan, Marshall Islands on environmental indicators that recommended use of the following indicators and indices: (a) The Cost-of-Remediation Index. This index measures environmental deterioration directly in economic terns. It is based on the economic theory that constraints on economic development can be related to benefits foregone via the use of shadow prices of the constraints. If the standards for the quality of the environment can be identified, then the costs of meeting this standard can be estimated. Four major environmental sectors are considered for the estimation: air quality, water quality, land quality, and ecosystem quality. Alternatively, the cost-of-remediation approach can also be used to determine the economic feasibility of meeting existing environmental standards. (b) Environmental Elasticity. This index expresses the variability of environmental quality in relation to economic growth. By measuring changes in environmental quality relative to changes in the economy, it is possible to assess the sustainability of states, regions in a country, and the country as a whole. Environmental elasticity is defined as the ratio between change of environmental aggregate (weighted average of selected environmental indicators) and change of economic aggregate (weighted average of selected economic indicators) over a certain time period. Conceptually, when a country is achieving improvements in both economy and environmental quality, the country is on a sustainable path. However, when a country (state) is experiencing environmental degradation, but economic improvement, if the rate of environmental degradation is slower than the rate of economic improvement, the country is classified as "weakly sustainable" and "unsustainable". The concept of environmental elasticity is particularly useful for monitoring environmental trends, which are essential for policy making at the macro level.  19 (c) Environmental Diamonds. The diamonds are developed to show, in an accurate and quickly absorbable way, the relationship among the four principal dimensions of enviromnental quality: air, water, land, and ecosystem. If environmental elasticity is developed mainly for monitoring environmental trends, environmental diamonds are best used for characterizing the state of the environment by the four sectors. For each sector, a normalized index is chosen to represent the quality of the enviromnent, and the four indices chosen are used to draw a diamond graph. The great strength of the environmental diamonds is their flexibility in use. One can base them on conventional indices or cost-of-remediation indices. They are very good for visual comparison among sectors or among countries. 48. Other approaches to the development of environmental indicators include (a) sectoral indicators that link environmental progress to the broader objective of sustainable development; and (b) a formal pressure-state-response framework that helps to identify critical issues and actions required across a wide range of environmental issues. This indicator design activity will be undertaken in close collaboration with both government and NGO users of environmental indicators. The second activity to be supported under this subcomponent will be to implement (and fine-tune) the proposed indicators, and to test their usefulness at both the center and in the State of Gujarat. The environmental indicators subcomponent will be closely associated with the environmental economics and environmental information subcomponents, since the information and analytical aspects of all these are mutually reinforcing. B. Strengthening Environmental Administration (Proposed Outlay US$3.83 million). This component of the project includes four subcomponents as follows: 49. The Regional Offices of the Ministry Technkal Assitane of Environment and Forests (US$1.46 Consultants million) would be supported in two ways under Expatriate 12 staffmonths Local I100 staff monfth this sub-component. The first is a detailed TLamoing review of the functions, staffing, workload, and Overseas 20 staff months location of the Regional Offices. It would also Local 140 staff months cover the systems and procedures employed by Equipmnent and materials the Regional Offices as called for under existing regulations, and examine the problems of overlapping jurisdictions which constrain the effective collaboration of the Regional Offices with state agencies, particularly the State Pollution Control Boards. A special focus of the review will be the role currently being played by the Regional Offices in the monitoring and implementation of the Environment Impact Assessment (EIA) mechanism which is a major instrument of the environmental management system (paras.13-15). The outcome of this review is likely to be an action plan to expand the number of Regional Offices and to upgrade their staffing to better respond to regional differences in industrial development. The second part of this sub-component would be to implement a program of training for existing and  20 newly appointed staff of the Regional Offices. This program would include a training needs assessment, curriculum and training materials development, and the training of staff. Training would cover topics related to environmental impact assessment and monitoring, coastal and marine area management (para. 82), mining (paras. 70 - 71), air pollution monitoring (Para. 76) as well as environmental law (para. 64). It is expected that at the conclusion of the technical assistance program, the Regional Offices would be staffed, equipped, located and trained to be able to effectively monitor industry compliance with the Environmental Management Plans which are a requirement of the Environmental Impact Assessment Notification. 50. Ministry of Environment and Forests (US$ 0.76 million) would establish a Project Cell to service the National Steering Committee of the project (para. 91). Funds would be provided to cover the costs of the Procurement Agency which would assist the MOEF and other implementing agencies with the procurement of equipment, goods, contractual staff, and consultant services; and local consultants to assist with the development and implementation of the project monitoring and evaluation system. The capacity within the MOEF would also be strengthened with the establishment of the Environmental Economics, Indicators, and Project Planning Cell (paras. 44(a); 95) and expert assistance from specialized institutions for the environmental law and mining sector subcomponents (paras. 99 and 101). 51. The Department of Ocean Development (US$0.87 million) would establish a Project Implementation Cell to coordinate and manage the implementation of the coastal and marine area management subcomponents of the project (Paras. 77-82; 102). 52. The Gujarat Department of Forests and Environment (US$0.74 million) would establish a Project Implementation Cell to coordinate all project activities in the State. It would work closely with the Project Implementation Cell in the MOEF, the Project Implementation Cell of the DOD; and in Gujarat, with the Gujarat Pollution Control Board and the Gujarat Ecology Commission. C. Strengthening the Decentralization of Environmental Management (Proposed Outlay US$5.41 million). This component of the project includes three subcomponents: 53. The National Environmental Awareness Campaign (US$2.03 million) subcomponent would ....s.. include support for management, procedures, and E... xpatriate.2 sa . mos target audience impact studies focusing on option Lo XXl 144 staff months for the program's evolution to a National Train,ing Environmental Action Campaign (paras. 16-19). ....a. 2. month;- Based on these studies, a revised program would be $quipnentand materki designed and piloted in two states. The plan also ... would include decentralization of the campaign from the Center to the State Departments of  21 Environment and include appropriate staff training and support. In addition, two existing support Centers would be strengthened by electronic networking and training in order to design, produce, and train for a new generation of environmental action instruction materials designed to incorporate environmental action elements as well as awareness information. 54. A new media campaign would enhance present MOEF efforts by linking productions with other community-based environmental action campaigns. The subcomponent would include training for MOEF headquarters and Regional Office Staff, State Department of Environment and Forests staff, and NGOs, in target audience stratification and focus group interview techniques, and fund the production of public service radio and television announcements combined with target group impact measurement. The second part of the subcomponent would support a series of workshops for print and visual media journalists on environmental problems, programs, and mitigation efforts. 55. The Paryavaran Vahini (PV) TechnialAssistance (Environmental Brigade) (US$ 0.98 million) Consultants subcomponent would include a review of the Local 85 staffmonths existing 130 established Paryavaran Vahinis, Training l identify exemplary practices and procedures, Local 200 staff months train MOEF Regional Office staff responsible for l uipment admaterials existing and projected Paryavaran Vahinis in community-based training of trainers techniques and evaluation, train State Department of Environment and Forests staff to coordinate the district based Paryavaran Vahinis in their state, provide recently developed water and soil testing kits to Paryavaran Vahini members (both for community awareness activities and soil and water monitoring), and support an accelerated five year program of Paryavaran Vahini establishment and member training for an additional 284 districts for an end of project total of 424. Refresher training for existing Paryavaran Vahini members (6000) would be combined with induction training for the 284 additional Paryavaran Vahinis to be established. 56. NGO Environmental Action Fund | TechnicalAswistance (US$ 2.40 million). NGO community-based Conasultants environmental action is part of the overall MOEF Local 800 staff months strategy for implementing the Environmental I Action Program. Implementation of the strategy includes funding NGOs for environmental awareness and action activities. Several international donors including the UNDP, Canada, Norway, Sweden, the UK, and the USA provide funds for small NGO education and awareness programs. The project will support the establishment of a NGO Environmental Action Fund (NEAF) for discrete environmental mitigation action projects to be carried out by larger NGOs or consortia of smaller NGOs to carry out community-based projects. 57. The objectives of the project would be achieved through the participation of different stakeholders, i.e "borrowing stakeholders" consisting of central, state and local governments, "primary stakeholders" the community, their groups and organizations; and "secondary stakeholders" such as NGOs and other organizations which have a stake in sustainable  22 development. The NEAF is designed to facilitate such a participative process for environmental management capacity building for sustainable development in Gujarat. 58. The use of NEAF would be piloted in Gujarat which is experiencing rapid industrialization, infrastructure development, and urbanization. All of this leads to certain adverse environmental impacts, particularly by chemical industries, mining, hazardous waste disposal, and industrial air and water pollution. Gujarat also has ecologically fragile areas such as Gulf of Kachch, including its Rann, Gulf of Khambat and some Protected Areas. In order to anticipate, prevent and mitigate such adverse environmental impacts, the Government of Gujarat (GOG) is also planning to prepare a State Environment Action Program (SEAP) in line with the Environment Action Program (EAP) which the Government of India issued in December 1993. The preparation of SEAP would be coordinated by GOG's Department of Forests and Environment and Gujarat Ecology Commission. The NEAF would facilitate the participatory process of the preparation of the SEAP. As part of the SEAP process, NGOs would be involved in (a) review of Gujarat's Environmental Status Report through a series of consultations, public hearings, workshops and seminars; (b) implementation of priority selected studies or surveys identified by the SEAP Steering Committee; (c) review of hot spot mitigation plans; and (d) review of long-term strategies being endorsed in the draft SEAP. The NEAF in particular will be used by NGOs to concentrate on environmental actions that would anticipate, prevent, and mitigate adverse environmental impacts. The NEAF will be administered by a Committee for NGO Environmental Action Fund. 59. The Committee for NGO Environmental Action Fund (COMNEAF) which will administer the NEAF will have full administrative and financial authority to manage and administer it in a transparent and participatory manner that would involve only the members of COMNEAF. The COMNEAF will consist of the Additional Chief Secretary, Department of Forests and Environment as Chairman; the Chairman and Member Secretary of the Gujarat Ecology Comnmission; the Secretary of the Gujarat Pollution Control Board; one representative of MOEF; the Secretary, Industry and Mines Department, (GOG), the Secretary of Water Supply in the Departement of Health and Family Welfare (GOG); and representatives from industries and NGOs as members. The Member-Secretary, Gujarat Ecology Commission will be the Secretary of COMNEAF which will meet at least once every three months, will maintain the Minutes of the meetings and records of the Committee. COMNEAF will have the authority to receive, consider, and approve proposals for funding under NEAF, and also to regularly monitor and evaluate the programs funded by it directly and indirectly through consultants and other organizations that are approved by the Committee. The Committee will formulate its own process of decision-making through a participatory process after it has been constituted. 60. NGOs which have an interest in sustainable development and are actively involved in environmental management of different eco-system and at different levels - Gram Panchayat, town, block, district and state would be eligible for funding from the NEAF. The following criteria would be used to select and involve appropriate NGOs. They should have: (a) been a Registered Society, Trust, Educational or an Industrial institution which has been registered under a relevant act in Gujarat that authorizes it to undertake actions that could be funded  23 from NEAF; (b) completed a minimum of three years since registration and fulfilled the mandatory requirements of the relevant Act under which it is registered such as the Annual Audit of Account. Some relaxation of this criteria may be considered on a case-by-case basis by COMNEAF; (c) demonstrated experience and presence in environment management, including action-research, education, training, consumer rights, rural development; urban development, and ecodevelopment; (d) appropriate professional skills and experience which are necessary to successful research, planning, implementing, and monitoring a program through a process of participation involving the community, comnmunity based organizations (CBOs) and Gram Panchayats; and (e) have a clearer understanding of the relations between people and their environment and also their environmental, social, economic and cultural impacts on communities including tribals and women. In order to facilitate direct participation of the people, elected Gram Panchyats will also be considered to be stakeholders, who are eligible to receive funds from NEAF on the basis of Special Action Plans that are in accordance with the criteria for funding. 61. The Fund would support programs that would help to anticipate, avoid, and mitigate adverse environrmental impacts centering around emergency and specific environmental problems emanating from chemical industries, mining, waste disposal, and protection of ecologically fragile areas. The program would be multi-level based and participatory oriented. Priorities for funding would be for: (a) preparation of State of Gujarat's Environment; State of District Environment (for each District); and State of Eco-system (for each eco-system and Protected Area); (b) action plans for mitigating specific environmental problems at different levels; (c) actions plans for participative management of village common properties, ecologically fragile areas such as forest lands, coastal areas and desert areas; (d) ensuring compliance of environmental acts by organizing participatory public hearings and "social audit" by Citizens Groups, CBOs, and NGOs; (e) organizing training of staff of NGOs, members of Gram Panchayats, community leaders, teachers, consultants and their staff to enhance environmental capacity and protection; (f) curriculum for environmental education to be used at primary and high schools as an integral part of study; (g) materials for environmental education, training and campaigns; (h) formulation and demonstration of environmentally non-degrading, technically appropriate and socially acceptable technologies for sustainable development; and (i) environmental upgrading of private sector that is participative and socially acceptable, through a transparent and participative process.  24 D. Strengthening the Implementation of Environmental Law (Proposed Outlay US$ 4.15 million). The component of the project includes one subcomponent with three parts. 62. Environmental Law (US$4.15 million). ! Tecli- IIa-Assiance India has a comprehensive framework of co*Et- environmental legislation and regulations. p Mgatiate - 70sff imonth Although there are some areas of substantive law Local 155 stafftmonthl that need to be further clarified, there is .Contactual Staff .65staff.mo.... consensus in the Indian legal community that the Trainig priority in the area of environmental law is the 0 Vtseas 60 stafnomths. development of legal capacity to assist effective 4Loca 400dstaff months91 implementation of existing laws. From a legal - We d materials perspective, the main challenge to improve implementation of laws is to strengthen voluntary compliance with laws as well as capacity to monitor and enforce laws. There is wide recognition that both these objectives involve very complex issues relating not only to legal rules and institutions, but also to the broader processes by which communities and individuals define their relationship with the natural environment. It is a continuing process, rather than a finite objective. 63. With this perspective, the project will assist in strengthening voluntary compliance, as well as capacity for enforcement. The approach of the legal component rests on the assumption that, in the long-term communities will play a central role in this effort. Through a bottom-up, participatory approach based on traditional approaches to compliance with law and norms governing environmental resource use, the Project will support the development of specific actionable strategies to reduce the gap between law and practice. 64. The Project will support strengthening of legal infrastructure for implementation of environmental law by: (a) the provision of training in environmental law (including international aspects) to legal staff of the MOEF, CPCB, and SPCBs, as well as industrial managers and non-governmental organizations; (b) ensuring that suitably qualified environmental lawyers are available as follow: (i) at least two lawyers for each SPCB; (ii) at least four lawyers at the CPCB; (iii) at least three lawyers at MOEF; and (c) establishing a computerized environmental law network which will provide current information on environmental law and regulations at the national and state levels. 65. The Project will also support the development of community-based environmental decision-making and dispute resolution. This component will seek to assist the enhancement of decentralization and devolution of environmental law administration, while maintaining the  25 appropriate role of central and state authorities for policy setting and enforcement. In empowering communities in this regard, traditional panchayats and other instruments of local government established in India under its recent Panchayat Raj legislation would have a central role. The Project will identify ways through which communities and affected groups, as well as individuals (particularly in the local context) may be better informed about laws and regulation, participate in key decisions under the environmental statutes, and have responsibility for monitoring compliance. To this end, the Project will support studies that will develop strategies such as for: (a) the delegation and devolution of selected responsibilities under environmental laws to villages, panchayats and municipalities including the provision of technical and advisory services to them from non-governmental sources; information access and dissemination to affected communities and the public at large, including the establishment of information centers at the state and district levels; (b) instituting public hearings related to key environmental decisions such as siting of new industries, as well as implementation of remediation measures; and (c) establishment of capacity in communities for monitoring compliance with laws including for the collection and provision of data as evidence of compliance under environmental laws; and (d) building legal capacity of non-governmental organizations for monitoring compliance with environmental laws, regulations and decisions, with emphasis on highly polluted areas. The Project will support piloting and the initial implementation of these strategies once they are discussed and agreed with the Government. The Project will support specific proposals on a grant basis. The outputs of the research program supported under the Project will provide valuable inputs for the development of these strategies. 66. Effective non-litigatory remedies for affected persons/communities. This will involve establishment of decentralized administrative review procedures accessible to local communities and affected members of the public, which will not require the use of formal legal procedures. These review procedures, which would be modeled along the successful experience of India with "Lok Adalat" forums (community-based mediation), would provide easily accessible and local forums for public hearings and initial resolution of environmental grievances. In addition, the strategy will propose ways to use mediation and conciliation as well as traditional approaches to dispute settlement. Support would be provided for the implementation of the strategy in selected highly polluted areas through supporting development of institutional capacity in this regard.  26 67. Strengthening of legal research and legal education in environmental law would be achieved by: (a) establishment of a Center for Law and the Environment a selected Law School in India as a center for excellence in environmental law, consisting of the provision of a full-time faculty position; the Center will be responsible of establishing relationships with the Law Schools in India providing teaching in environmental law; development of a core syllabus and curriculum to train teachers of environmental law; development of syllabus and teaching materials (including a case book) for teaching environmental law in Indian Law Schools; and the provision of resources for the establishment of a library of environmental law at the Center with a core international collection; as well as provision of books and materials to selected law school libraries; (b) assessment of the scope and coverage of existing laws to effectively achieve policy objectives, including effective coordination between various environ- mental laws and regulations; (c) a program of empirical research into the role of law in environmental matters in India that would establish a body of scholarly information on (i) traditional and customary laws governing access to and use of natural resources and the resolution of disputes related thereto; (ii) use of law and legal remedies by individuals and communities in India in relation to environmental matters, including environmental disputes in courts; and (iii) use of law to achieve priority policy objectives. The research program will produce a report in each of the above areas, with specific recommendations for consideration by the Government; and (d) environmental law publication: the Project will support the establishment of a high quality publication on environmental law, to be published by a selected Law School in India. E. Strengthening Environmental Monitoring and Compliance in Specific High-Priority Problem Areas (Proposed Outlay US$ 26.93 million). This component includes four sub-components as follows: 68. Mining Sector (US$6.31 million). The TecniclAsistanc main objective of this sub-component is to 0ConsutAnts strengthen the national capacity for environmental raExpatriate 116 staxt the mining Local 530 staffnmonths_. monitoring and implementation in the mining raining sector (paras. 26-31). More specifically, this sub- Overseas 50 staff months component aims to enhance the capabilities of the Local 400 staff months concerned central (CPCB, Regional Offices of Equipment and materials  27 MOEF) and State agencies (Departments of Enviromnent, Mining and Geology Departments, and State Pollution Control boards) in developing and monitoring the compliance of local policies, EMPs, and appropriate environmental standards for all mining projects. The existing mining institutions such as the Center for Mining Environment, Dhanbad; Indian Bureau of Mines, and others will be strengthened in the planning and design of environmentally benignl mining projects, and become a resource group for MOEF, state Departments of Environment, CPCB and State Pollution Control Boards. 69. The following four major activities are envisaged: (a) review of existing policies/standards and their compliance mechanisms; (b) institutional strengthening; (c) training; and (d) demonstration projects. All four activities are inter-related and will be carefully phased and coordinated to achieve the objective. For example, the review will help identify institutional needs, the demonstration projects will provide specialized training opportunities and generate information that will strengthen the institution. 70. Review of policies/standards and their compliance mechanisms is expected to produce four main outcomes: (a) an inventory analysis of existing environmental and mine leasing policies, with respect to environmental and social concerns, and the roles and responsibilities of various agencies at central, state and local levels in implementing these policies; (b) identification of institutional and technical barriers to compliance with existing policies and in promoting environmentally benign mining designs and mitigation practices; (c) generation or policy options and standards for major and minor minerals mining projects; and (d) unambiguous definition of roles and responsibilities of multiple agencies which will be complementary to each other. This review will also provide feedback to the other sub- component--strengthening of Regional Offices of MOEF, in the context of monitoring the compliance of EMPs for mining projects. While the local consultants would carry out the review, foreign consultants would bring in international experiences in formulating policies and standards. 71. Institutional strengthening activity is expected to cover two sets of institutions. One set consists of government agencies at central (Indian Bureau of Mines, the MOEF and CPCB) and state (Department of Forests and Environment, Regional Offices of MOEF, and State Pollution Control Boards) level who are responsible for policy making, standard setting and enforcement. These agencies will be strengthened to: (a) enhance their capacity to monitor the compliance of EMPs and the prescribed environmental standards by mine operators; and (b) establish an effective data management system and a computer network among these agencies to assist the sharing of information and decision making processes. The other set of institutions are the Centers of Excellence and research agencies working in the field of mining. These will be strengthened to: (a) develop their expertise in planning, design, and implementation of environmentally benign mine designs; (b) become a resource  28 group for the government agencies described above, in discharging their responsibilities and for the miners in implementation of environmentally benign designs; and (c) carry out specific research/studies to equip the Indian mine sector with latest developments. Equipment and instruments for field research and surveys required for achieving these outputs will be provided. In order to bring in international experience and state of the art technological developments in mining, twinning arrangements with reputed mining institutions in developed countries, where mining is a major economic activity will be provided. 72. Best practice demonstration projects for specific mitigation measures, such as land reclamation, closure of old abandoned mines, regeneration of regional ecology, etc. offer many advantages. One is to develop feasible mitigation measures and techniques for major mineral mining projects. Another is to train mine operators in instilling the principles of planning, design, implementation, and monitoring the mitigation measures. Also, these projects generate information that can be used for policy and decision making. The procedures and criteria for selection, funding, and implementation of demonstration projects/mitigation measures have to be developed. Three major outcomes are expected from the demonstration projects i.e.: a limited number of successful demonstrations of EMPs; an analysis of the project outcomes and feedback for policy making and standards setting processes; and technical and management guidelines for different minerals mining projects. 73. Training of key staff members of the above-described institutions would be an essential input for realizing the objective of this sub-project. Depending on the target groups and their specific needs, specialized training programs will be organized within and outside India. The broad areas would be: planning, design and implementation of environmentally benign designs, development and monitoring compliance of policies, standards, EMPs, etc., 74. Industry Siting (Zoning Atlas) (US$8.44 million). The CPCB has proposed a Cns ultants' five-year program to map all of the rapidly Eptatemts industrializing districts across India, using the Lcal. 680 staff mos. same technology and methodology used in the Training pilot mapping program (para. 35). In addition, Overseas 120 Gstaf mnhs. Local. 980 staff months. the plan includes components for state.-WideEq,enadmaeal mapping of ecologically sensitive areas, proposed sites for new industrial estates, and the drafting of national guidelines for industrial siting and land use planning. The work program would be managed by the Environmental Planning Studio in the CPCB, with institutional linkages via the SPCBs to the state and district level planning authorities in each state. The objective of this sub-component is to involve district, state, and central level environmental and planning agencies in the shared task of creating environmental thematic district-level maps, following the methodology already developed by the CPCB. This sub-component will focus on training many of the map end- users who are currently unfamiliar with the use of environmental maps in planning and industrial siting.  29 75. This sub-component will include: (a) updating the draft guidelines for preparing zoning atlases, to be made available to all map users. (b) including of up to 65 more districts in the mapping program, which will require the installation of environmental planning studies in each of the participating SPCBs, with the requisite hardware, software, and training to be supervised by the core CPCB team. (c) identifying, in those districts with completed maps, both unsuitable and suitable sites for industry and industrial estates. Then, provisional guidelines for industrial estate siting will be developed and tested, finalized and implemented in all districts with completed maps. (d) drafting, starting with a case study in Gujarat, guidelines for industrial development and land-use planning on the state level, taking into account a broad range of industry, urban, agricultural, forest, and ecologically sensitive (and perhaps protected) areas. 76. Ambient Air Pollution Monitoring (US$ 6.47 million). The objective of this sub-component is to assist the Central Eptt1a h Pollution Control Board in upgrading India's LoWal 240 staff months air pollution monitoring system. The Training upgrading is needed to bring India's air Local 200 staff --onts pollution reporting up to a sufficient qi ad materials standard to allow: (a) emissions inventories of critical air pollutants to be completed for India's major cities, including ambient monitoring of some key pollutants that impact o n human health that are not currently sampled (such as fine particulates); (b) cost-effectiveness analysis of air pollution control strategies that link source reduction strategies with down-wind ambient impacts; and (c) reliable analysis of trends over time. Although India has a base network in place of over 200 fixed air monitoring stations nation-wide, the technology employed has been shown to contain some inaccuracies. Also, the proposed upgrading will increase somewhat the geographic coverage of the air monitoring system. The subcomponent would build on the recommendations for improving air pollution monitoring from the State  30 Pollution Control Boards, National Environmental Engineering Research Institute (NEERI), and the current GTZ technical assistance project with the SPCBs. It would help finance the purchase of more accurate air pollution monitoring equipment, provide training to staff of the CPCB and SPCBs on equipment use, and provide training on the preliminary analysis and reporting of results. 77. Coastal and Marine Area Management TechniculAssce (US$5.71 million). To assist in the development u4ows of comprehensive coastal and marine area Expatiiate 6 staff monts. management the project would support the: (a) Local 405 staffionths..'. development of a GIS-based information system Tr Contat Staff 172 staff monhs for critical habitats in the coastal marine areas of aining Overseas 15 staff monthfs India; (b) preparation of model Integrated Coastal Local 342 staff months and Marine Area Management Plans; (c) Equipen an h4hmaterials conducting waste assimilation capacity and ecological modeling of selected coastal areas; and (d) development of Environmental Impact Assessment guidelines for major marine and coastal area developmental activities. 78. Development of GIS-based Critical Habitats Information System for Coastal Marine Areas in India To develop and maintain GIS-based databases for assessing and managing critical habitats and their resources, the project will support: (a) a review of the availability of existing data and collecting data on relevant parameters for critical habitats; (b) preparation of Critical Habitats Area Maps on 1:25,000 scale using IRS LISS-II satellite data; (c) integration of satellite and field data using the ARC/INFO GIS software and development of a GIS-based Critical Habitat Information System (CHIS); (d) interpretation and analysis of data to provide plans for efficient monitoring and management of critical habitats; and (e) organizing end-user training-cum-workshops for selected coastal state governments and other end-users to promote the adoption of CHIS in the management of critical habitats. The expected outcome of the above activities would be a CHIS for the coastal and marine areas of India including the Lakshwadeep and Andaman and Nicobar Islands in the form of computer package with a user-interactive menu; output maps to delineate where critical habitats have to be conserved; end-user utilization programs; and a Final Report with plans for sustainable development of critical habitats in coastal and marine areas. The institutions which would be responsible for collection of ground/sea-truth data for the critical habitats are shown in Box 1.  31 Box: 1. Proposed Institutions to be Involved in Collection of Ground/Sea-Truth Data In%fitute Trask Project Directorate, ENVIS Centers for MOEF, National Development of CHIS for selected critical habitats. Institute of Oceanography, Anna University, Zoological and Botanical Survey of India, Central Salt & Marine Chemicals Res. Institute, Orissa Remote Sensing Center Institute for Ocean Management, Anna University, Madras Collection of satellite based data and preparation of and Space Application Center, Ahmedabad and State Remote maps required Sensing Application Centers in Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and West Bengal National Institute of Oceanography, Goa and its regional Physical, chemical and biological aspects of critical centers at Bombay, Cochin & Visakhapatnam habitats in Gujarat, Maharashtra, Goa, parts of Kamataka, Kerala & Andhra except on mangroves, seaweeds and sea grasses Botanical Survey of India Mangroves & seaweeds all over India Zoological Survey of India Bio-diversity of marine animnals in all critical habitats particularly on Invertebrates M.S. Swaminathan Research Foundation Central Marine Fisheries Research Institute, Cochin Seasonal occurrence and distribution of commercially important shell and fm fishes along coastal marine Central Inland Fisheries Research Institute, Barrackpore areas Central Salt and Marine Chemicals Research Institute, Seasonal occurrence and distribution of commercially Bhavnagar important seaweeds along coastal marine areas Fisheries College, Mangalore Cochin University, Cochin Data on Marine organisms of the critical habitats Kerala University, Trivandrum Madurai Kamraj University, located in the respective States (locations of the Madurai Annamalai University, Parangipettai Bharathidasan Institute/University) and all other infornation like University, Trichy Andhra University, Visakhapatnam Primary and secondary production. Berhampur University, Berhampur University of Calcutta, Calcutta Genetic Resource Center, Lucknow Center for Earth Science Studies, Trivandrum; Central Water Data on coastal erosion, accretion in all critical & Power Research Station, Pune; Regional Engineering habitats. College, Suratkal; Central Beach Erosion Control Board 79. Preparation of Model Integrated Coastal and Marine Area Management Plans. The major objective of this activity is to develop capabilities in the development of Integrated Coastal and Marine Area Management Plans (ICMAMPs) in India; and establish training programs to build capacity in the coastal states to prepare ICMAMPs. To achieve these objectives, the project would support: overseas training of scientists on the methodologies  32 involved in the development of ICMAMPs; developing model ICMAMPs; establishing training programs in India for planners, scientists, NGOs, environmental consultants, educators, and university students in coastal states; and assisting coastal States (Gujarat in particular) in the development of ICMAMPs and assisting DOD in the evaluation of these plans. 80. Several developed countries have adopted integrated coastal area management. In order to quickly acquire the knowledge and facilitate immediate development of ICMAMPs in India, it is necessary to expose scientists and planners to this concept through fellowship training overseas. After the completion of the overseas training program, trainees will become the full or part-time trainers in the courses proposed to be organized under the project. The development of model plans is also critical. Therefore, using the knowledge acquired through experts services and overseas training, model ICMAMPs along with requisite GIS-based information system will be prepared for two or three selected areas among Madras, Cochin, Goa and Mumbai. The establishment of a training center as a part of the Project Directorate at Madras to provide training in the preparation of ICMAMPs, will help the sectoral governments in developing expertise in the development of ICMAMPs and facilitate quick development of the plans. Courses to be provided include: (a) theoretical courses on coastal marine activities and their impact on environment; (b) requirements for preparation of ICMAMPs and relevance of GIS- based infornation system techniques as a technical aid and pre-requisite in the development of ICMAMP; (c) adoption of use-classification and zoning concepts in the preparation of ICMAMPs; and (d) development of ICMAMPs with examples of model plans. Institutions like the National Institute of Oceanography will be involved in the preparation of ICMAMPs. 81. Waste Assimilation Capacity and Ecological Modeling of Selected Coastal Areas. The project would support Waste Load Allocation (WLAs) studies for three estuarine environments which face water quality problems because of urban and industrial development. These systems are the Tapi estuary, Cochin backwaters, and Ennore estuary. The project would help develop indigenous expertise in this area and generate further WLA programs for the remaining riverine and coastal waterways. The output of the project over five years would be: a report on water quantity and quality uses for the three surface water bodies; calibrated and validated models for dissolved oxygen and eco-toxicity; a management plan or waste load allocation for the three sites; recommendations to the State Pollution Control Boards (SPCBs) accompanied by a preliminary cost-benefit analysis, and social implications; and guidelines to DOD/CPCB on how to conduct WLAs in remaining coastal waters. The institutions which would be involved are shown on Box 2.  33 X E 5pwed Institutions for Waste Loand Allocation Programs Institution Task Project Directorate Overall coordination of the program and participation in modeling studies in Ennore estuary/Cochin backwaters Lead Institutions Central & State Pollution Control Boards Determination of use classification of three areas and determination of water quality criteria Center for Earth Sciences Studies (CESS), RITES Collection of data on tides, currents and bathymetry CESS, Central Electro-chemical Research Insti- Collection of data on chemical and microbiological tute, Central Marine Fisheries Research Inst., parameters Regional Center NIO, Cochin, Cochin University Central and State Pollution Control Boards Information on existing and proposed discharges, monitoring of discharges and participation in modeling studies 82. Environmental Impact Assessment Guidelines for Marine and Coastal Area Developmental Activities. The objectives of the activity are to review existing literature and similar EIA statements and develop an understanding of the impacts of developmental projects; and develop guidelines for EIAs of key development projects. The deliverables would be: (a) guidelines for conducting EIA for marine developmental projects. The guidelines would be available for individual projects and also as a reference volume; (b) a Resource Center with a compilation of data for easy implementation of marine ElAs. This resource center will be established as an INTERNET Web Site; (c) a minimum of four training programs for planners and government officials; NGOs; industrial and environmental consultants; and educators and university students; (d) a Final Report including the guidelines, case studies, summary of available data and facilities, and feedback from end-users and course participants; (e) recommendations to the Ministry of Environment and Forests and Department of Ocean Development for inclusion in EIA notifications and guidelines, and implementation in regulatory activities; and (f) guidelines for accrediting environmental consultants and institutions. The institutes involved in this task are shown in Box 3.  34 Box: 3. Proposed Institutions To Be Involved in Coastal and Marine Area Developmental Activities ...... . . ...... ... ..... ... . .. ...... . .. ...... . ... ........ .. ......_..... . ...... . ... ._..... _.. _..__ Institute of Ocean Management, Anna University, Compile digitized coastal and coastal data relevant Madras for conducting EIA studies Space Application Center, Ahmedabad State Remote Sensing Centers of Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and West Bengal DOD's National Ocean Information Centers (NOIS) National Institute of Ocean Technology Project Directorate, Madras and National Institute of Compilation of digitized data, technical reports, EIA Ocean Technology reports, data, journal and text books. Access data from INTERNET and other international institutions. Formulate project outlines and organize case studies. Establish INTERNET Web Site, final guidelines, final report, training program National Institute of Oceanography, National Collecting ground/sea truths to validate remote Environmental Engineering Research Institute, Center for sensing data. Conducting case studies and Earth Science Studies, Center for Taxonomic Studies, St. preliminary guidelines. Joseph's College, Annamalai University, Cochin University, Andhra University, IIT, Madras, Bombay and Kharagpur State and Central Pollution Control Boards Compilation of current Indian EIA reports. Guidelines to accredit institutions and consultants to conduct ElAs. F. Gujarat (Proposed Outlay US$7.33 million) This component of the project includes 2 subcomponents. 83. Gujarat is the fastest industrializing state in India. Investments in the state are expected to reach about Rs. 730 billion over the next few years. Of this, Rs. 430 billion would be in highly polluting bulk drugs, chemical and dye industries, and port development projects. Ten sites have already been identified for port development. Therefore, in addition to the assistance to be provided for the development of Integrated Coastal and Marine Area Management Plans (ICMAMP) (para. 79-80); the development of State-wide environmental indicators and indices (para. 46-48); and the NGO Environmental Action Fund (Para. 56-61), Gujarat will also be supported in two additional specific activities.  35 84. Institutional Strengthening (US$6.28 TeclnkalAssstnce - million). Support would be provided to Consultants strengthen the Department of Forests and Expatriate 36 staff monfts Environment and the Gujarat Ecology Local 740 staff months Contractual Staff 320 staff mnthis Commission. These, and the Gujarat Pollution Training Control Board which is being strengthened Overseas i70 staffmonths under ongoing Bank-assisted Industrial Local 240 staff montths Pollution Control and Industrial Pollution Equipment and materials Prevention projects, are the principal environmental management institutions in the State, and the assistance would be designed to enhance data and information collection, analysis, policy formulation, implementation and monitoring of compliance with laws and standards in high priority areas. The environmental management institutions in the State would be further strengthened through the preparation of environmental indicators, industrial siting, coastal and marine area management planning, and the environmental economics, information and research components. 85. State Environmental Action Program. (US$ 1.05 million). A major output of the institutional strengthening program in Gujarat is the preparation of a State Environment Action Program (SEAP) with the active cooperation and coordination of all relevant government departments, industry, NGOs, and others through a series of workshops, seminars, and consultations. The SEAP would be coordinated by the Department of Forests and Environment Given the background of rapid economic development, the agenda for environmental action in Gujarat is enormous. The government needs to prioritize the areas for action so that maximum benefits can be available with the available resources in the shortest possible time. In accordance with the extensive international experience accumulated in the preparation of National Environmental Action Plans, a three-stage process will be followed during the preparation of the State's Environmental Action Program. The First Stage would have a duration of about 6 months and would consist of the following activities: (a) identification of known coordination and participatory consultative mechanisms; (b) naming a high-level advisory committee responsible for overall supervision of the SEAP in the three stages, obtaining official approval of the SEAP, and for the allocation of necessary resources; (c) establishing technical working groups to deal with each priority environmental problem, made up of representatives of the relevant agencies and the NGOs, and other experts; and (d) identifying appropriate public participation mechanisms to stimulate a wide debate on priority environmental problems and their respective solutions, and to obtain public consensus on these. 86. Preparation of a rapid environmental status report based on secondary sources of information in order to develop a reliable database would be undertaken. This activity will also utilize appropriate public participation mechanisms such as interviews, round tables, and discussions with groups affected by a given environmental problem. The preparation of specific TORs for preliminary studies in which alternative solutions to the priority problems identified at this stage will also be determined. Three types of studies are envisaged: (a) priority studies relating to environmental problems needing immediate resolution; (b) a study defining the long-term strategy with regard to current environmental problems, to ensure that  36 the existing conditions do not deteriorate further; and (c) a study defining the medium- and long-term strategies to resolve emerging environmental problems. In this case, preventive measures, legal reform and institutional priorities would be suggested, which may lead to further studies, for example, on new institutional arrangements or the design of economic instruments. 87. The Second Stage in preparing the SEAP should last about 12 months and would consist of: (a) the execution of studies identified during the first stage. These studies will be carried out by the appropriate technical working groups, with the support of the specialized consultants; and (b) the review and approval of the completed studies by the government. Political support and confirmation of respective political decisions will have to be sought to ensure that the recommended action to resolve an environmental problem is actually taken. 88. The Third Stage would have a duration of 3-6 months and would involve: (a) the preparation of a report on the SEAP based on the conclusions of the studies and the agreements obtained through the consultative process. The SEAP will serve to orient environmental management, assign specific responsibilities to agencies, and propose environmental projects, together with their respective budgets. It will also assist to orient the environmental activities and responsibility of the private sector and the NGOs; and (b) the elaboration of the priority investment projects in order to present them to possible financing sources. This development of SEAP will be managed by the Department of Forests and Environment and the Gujarat Ecology Commission under direct supervision of the high level Advisory Committee. The project would support the overall institutional development effort in Gujarat by financing about 40 staff months of expatriate consultant services; over 1800 staff months of local consultants; about 70 staff months of overseas training; and over 400 staff months of in-country training; equipment and materials. G. Project Costs and Financing 89. The total cost of the project, including duties and taxes is estimated at Rs. 2,619.0 million or US$61.48 million equivalent. The breakdown of costs of the proposed project by component and categories of expenditure is summarized in Schedule B of the Memorandum of the President. 90. The estimated total project cost of US$61.48 million would be financed by an IDA Credit of SDR 34.7 million (US$50.0 million equivalent) which would cover about 82 % of costs net of taxes. Duties and taxes are estimated to be equivalent to US$0.84 million. The GOI would finance the remaining net costs of and all taxes. The financing plan by project component and by categories of expenditure is outlined in Schedule B of the Memorandum of the President.  37 3. PROJECT ADMINISTRATION A. PROJECT IMPLEMENTATION/COORDINATION ARRANGEMENTS 91. The Ministry of Environment and Forests would be responsible for ensuring overall coordination among the various ministries and institutions involved in the implementation of the project. A National Steering Committee, chaired by the Secretary, MOEF and including the Secretary of the Department of Ocean Development, the Chairman of the Central Pollution Control Board; the Chief Secretary, Gujarat or his representative, and a representative from the Department of Economic Affairs, Ministry of Finance, has been established to ensure the timely flow of funds, orderly reporting on project implementation, and the resolution of implementation issues as soon as they arise. The National Steering Committee would be serviced by a Project Cell which has been established in the MOEF with responsibilities for coordinating procurement, disbursements, accounting, and monitoring of project progress and impact. During negotiations, the government provided an assurances that it would: (a) carry out the project in accordance with an implementation plan satisfactory to the Association; and (b) maintain the NSC and Expert Committees (paras. 95, 100, 101) each with membership and terms of reference satisfactory to the Association. 92. The organization chart of the MOEF (Attachment 2 Figure 3) shows that it is structured around a number of specialized Divisions. The government has confirmed that specific sub-components (Paras. 40-50; 53-55; and 62-76) will be directly managed by the MOEF or under the coordination of MOEF. 93. The Environmental Research Division would ensure that the technical assistance program (para. 40) covers the local universities and research institutions involved in the Environmnent Research Program. Institutional linkages would be established with international environmental research institutions. 94. The Environment Information Division would be the focal point for the environmental information subcomponent (paras. 41-42). Only local consultants would be required to work closely with the existing ENVIS Centers which include among others, the CPCB; the Industrial Toxicology Research Center, Development Alternatives (an NGO); Center for Environment studies, Anna University; Tata Energy Research Institute; Center for Ecological Sciences; the World Wide Fund for Nature -India; Environmental Planning and Coordination Organization; National Institute of Occupational Health; Central Arid Zone Research Institute; Center for Advanced Studies in Marine Biology; NEERI; G. B. Pant Institute of Himalayan Environment and Development; and the School of Planning and Architecture. 95. Since under the project an Environmental Economics Indicators, and Project Planning Cell is to be established in the MOEF, the environmental economics subcomponent (paras. 43-44) would be initially managed by an Expert Committee which has been established by the  38 MOEF and includes representatives from the core group of environmental economic institutes in India. These include the Madras School of Economics which will be the coordinating institution; the Indira Gandhi Institute of Development Research; the Institute of Economic Growth; and the National Institute of Public Finance and Policy. A second group of interested universities and institutes, such as the Delhi School of Economics, the Gokale Institute of Politics and Economics, the India Institute of Technology, Bombay; the Jawaharlal Nehru University Center for Environmental Sciences,; the Administrative Staff College, Hyderabad; the School for Social and Economic Change in Bangalore will also be involved. During negotiations, the government provided an assurance that by August 31, 1997 it would establish and thereafter maintain an Environmental Economics, Indicators, and Project Planning Cell (EEIPPC) with terms of reference satisfactory to the Association. 96. The Environmental Indicators and Indices subcomponent (paras. 46-48) would be centered in the EEIPPC and International Cooperation Division of the MOEF, and the Departments of Finance, and Forests and Environment in Gujarat. Expatriate and local consultants would work with these Divisions/Departments and other Indian Universities to develop the Indicators and Indices similar to indicators developed for China, Indonesia, Pakistan, Nepal, Philippines, and the Marshall Islands by the Asian Development Bank and the Government of Norway. During negotiations, the government provided assurances that it would: (a) cause the MOEF and Gujarat to prepare environmental indicators and indices by December 31, 1998, (b) cause MOEF and Gujarat to employ the indicators and indices in the evaluation of investment projects by April 30, 1999; and (c) ensure that MOEF and Gujarat would publish annual environment status reports employing the indicators and indices developed by April 30, 1999. 97. The MOEF's Regional Office Division at the center would manage the technical assistance program which is targeted at strengthening the six Regional Offices in the monitoring of EIA compliance. (para. 49). For strengthening the regional offices it is expected that most of the technical assistance would be local consultants. During negotiations, the government provided assurances that it would by December 31, 1997, complete the review (of the functions, staffing, workload, and location); and commence the implementation of a plan (including the appointment of additional staff, training of new and existing staff, and the opening of additional Regional Offices if necessary) satisfactory to the Association to strengthen the Regional Offices of the MOEF. 98. The MOEF would also coordinate the implementation of the National Environmental Awareness Campaign (paras 53-54), and Paryavaran Vahini program (para. 55). The Environmental Education and Information Division in conjunction with the Center for Environmental Education, Ahmedabad, C. P. Rama Aiyar Environmental Education Center, and a wide range of NGOs would implement the NEAC and Paryavaran Vahini sub- components. 99. The MOEF has informed IDA of its intention to establish and maintain an Implementation Cell headed by a full-time legal academic to be responsible for the coordination and implementation of the environmental law subcomponent (paras. 62-67).  39 During negotiations, the government provided an assurance that it would take the necesssary steps to strengthen the legal capacity of MOEF, CPCB, and SPCBs in accordance with a plan satisfactory to the Association. 100. The Central Pollution Control Board is another focal point for the receipt of, and managing the implementation of technical assistance. It will be directly responsible for the sub-components i.e. environmental standards (para. 45); industry siting/zonal atlas (paras. 74- 75); and expanding ambient air pollution monitoring (para. 76). Since the CPCB is a recipient of technical assistance under the on-going Industrial Pollution Control and Industrial Pollution Prevention projects, it is familiar with IDA procedures and requirements. It is expected that the German Agency for Technical Cooperation (GTZ) which has had a long-standing relationship with the CPCB and has placed a number of long-term expatriate experts in CPCB will be retained to assist in the implementation of the zonal atlas and ambient air monitoring subcomponents. 101. For the monitoring of compliance in the mining sector (paras. 68-73), the Division on Mining in the MOEF would be responsible for the review of policies, standards and enforcement mechanisms, and the Center for Mining and Environment would be responsible for the design and implementation of demonstration projects. The government has established an Expert Committee for the Mining Sector with representatives from the various institutes involved in mining planning. These include the Central Mine Planning and Design Institute, Central Mining Research Institute, the Indian School of Mines (Deemed University); Center for Mining Environment; the Environmental Planning and Coordination Organization; the Mineral Exploration Corporation; the Indian Bureau of Mines; and the Neyveli Lignite Corporation. 102. During negotiations, the government confirmed that the Department of Ocean Development would implement the technical assistance program for the development of integrated coastal and marine area management (paras. 77-82). It would establish a Project Implementation Cell. It is expected that this program will require a significant amount of expatriate specialist services and training. A "twining' relationship with one of the internationally renowned oceanographic research and training institutions will be undertaken. 103. During negotiations, the government confirmed that the Department of Forests and Environment, Gujarat, with assistance from the Gujarat Ecology Commission; and the Gujarat Pollution Control Board would be responsible for the implementation of the Gujarat components of the project (paras. 83-88). Project funds would flow directly from the MOEF to these Gujarat institutions. During negotiations, Gujarat agreed that it would establish by August 31, 1997 and maintain a Project Implementation Cell in the Department of Forests and Environment with responsibility to supervise the implementation of the project, with membership and terms of reference satisfactory to the Association. Institutional linkages with Environmental Protection Agencies to implement exchange, training, and expert assistance programs is being considered. The NGO Environmental Action Fund will be managed by COMNEAF (para. 59) as determined by the Gujarat Department of Forests and Environment. Criteria have been developed for the management of the Funds as well as for  40 Figure 1. Chart of Project Implementation Process Centre State District (Indicators and Indices und ~ Cmunt _ i~~~~~~~~~~~~~roJect Directorate l ICMA1IPS _ i i ~~~~~~~~~~~EIA Guidelines -Critical Habitats GIS _ i ~~~~~~~~~~~Water Assimil Uon Studies _EnvIronmental, CoGm