India - Second POWERGRID System Development Project - environmental assessment (Vol. 1 of 4)

ENVIIRONMENTA L AND SOCIAL POLICY' & PROCEDURES (ESPP) 1,'~~~~~~~~~~~~~~7 ENVIRONMENT & SOCIAL MANAGEMENT POWER GRID CORPORATION OF INDIA LTD* iA G_V7 OF INDIA, ENTERPPRH = -Srf7>'E~~FIN'-D DE  EXECUTIVE SUMMARY BACKGROUND 1 Power Grid Corporation of India Limited (POWERGRID) was set up in October 1989 to transfer power from Central Generating Stations and the surplus from State Electricity Boards to regional Load Centres for eastablishment of Regional and National Power Grids. This has led to the establishment and operation of a reliable, economical and secure system comprising of EHV AC and HV DC transmission lines, substations, load despatch centres and communication facilities. At present, POWERGRID operates approximately 27,000 ckt. Kms of transmission lines comprising 400 KV, 220 KV, 132 KV AC transmission lines and HVDC transmission system with a total installed transformation capacity of 21,173 MVA distributed over 53 substations and maintained at a persistant level of over 98% of line availability. POWERGRID stands as one among the top six utilities in the world whose line availability has always been maintained at above 98% and it is today one of the largest power transmission organisation in the world. In order to fulfil its goal of establishing a National Power Grid, POWERGRID plans to augment regional grids, reinforce inter-regional links and set up modern co-ordination systems and control facilities. Majority of such projects are implemented with the assistance of various Multilateral Agencies. 2 POWERGRID realises that power transmission projects may have some unavoidable environmental and social implications. while implementing such a ambitious programme. Therefore, POWERGRID is integrating environmental and social management procedures into its corporate operations. POWERGRID has laid down guidelines for its approach towards these issues in its Corporate Environmental and Social Policy and Procedures (ESPP). The ESPPs outline POWERGRID's commitment to deal with environmental and social issues relating to its transmission projects lays out management procedures and protocol to address them. The ESPP provides POWERGRID with a framework for identification, assessment and management of environmental and social concerns at both organisational as well as project levels.  3 The ESPP has been prepared by POWERGRID with the assistance of Consultants - Development Alternatives - specialised in the field of environment and social issues. The process of preparing this document includes desk research on the legal and institutional framework, analysis of priority issues in the power transmission sector, consistency checks with operational directives of the World Bank and other Multilateral Agencies. There have also been discussions within and outside POWERGRID for preparation of the ESPP. 4 The ESPP document comprises of four sections. Section I elaborates the environmental and social policy of POWERGRID. Section 11 contains legal enactments, regulations, requirements of Multilateral Agencies and their implications on transmission projects. Section III outlines the environmental and social assessment and management framework guiding POWERGRID's projects. Section IV details the organisational support required to operationalise POWERGRID's ESPP. In each section the detailed description is followed by a matrix which summerises the issues/process described 5. Besides POWERGRID's growing commitment to addressing environmental and social issues, the document is evolved from experience gained in establishing 27,000 km of transmission lines across the country and drawing upon the essencial norms and guidelines laid down by national and international agencies. POWERGRID'S ENVIRONMENTAL AND SOCIAL POLICY STATEMENT 6. POWERGRID believes that its guiding principles of Reliability, Security and Economy now have to match with the rising expectations of a cleaner, safer, healthier environment of people, both affected and benefited by its activities. The key principles of POWERGRID's Environmental and Social Policy statement are: O Avoidance of environmentally and socially sensitive areas while planning project activities ..  Oi Minimisation of impacts when project activitiies occur in environmentally and socially sensitive areas. O Mitigation of any unavoidable negative impacts arising out of its projects 7. POWERGRID considers this mission to be of the highest priority and will create and alter organizational structures to absorb and deal with environmental and social concerns. POWERGRID recognises that most of its staff operate out in the field and thus staff development will focus clearly on their responsibilities. POWERGRID will impress its environmental and social concern upon contractors and others associated with its operations and activities and they have to maintain the same. POWERGRID's operations will be consistent with applicable national regulations and intemational norms. This policy and resultant procedures will be subject to constant review in tune with its guiding principles of prevention, minimum disturbance and innovative remedial measures. SECTION 11: POLICY, LEGAL AND RtEGULATORY FRAMEWORK 8 POWERGRID undertakes its activities within the purview of Indian laws keeping in mind appropriate international obligations and guidelines of Funding Agencies. POWERGRID sees its responsibilities under the present legal framework as twofold with regards to their projects. Firstly, mandatory requirements under the law and the guidelines of Funding agencies, and secondly, Prescriptive requirements that influence management procedures addressing environmental and social issues. 9. Mandatory environmental requirements for POWERGRID at a national level include: Techno-Economic Clearance by CEA under Electricity (Supply) Act, 1948; Forest clearance under the Forest (Conservation) Act, 1980: Environmental Clearance under Environment (Protection) Act, 1986, for the projects located in two districts in the Aravalis viz., Alwar in Rajasthan and iii  Gurgaon in Haryana only. Mandatory requirements vis-a-vis Funding Agencies is an Environmental Review/Assessment as required by World Bank OD 4.01. A transmission project is classified by OD 4.01 as a type B project, which would normally require only an environmental review. 10. Mandatory Social requirements for POWERGRID at a National level Include Notification under Section 29(2) the Electricity (Supply) Act 1948 ( public consultation component) , S.42 of the Electricity (Supply) Act 1948 read with S. 16 (1 ) and S.12 (3) of the EJectricity act for the calculation of compensation for any damages and provisions under Land Acquisition Act, 1894 for Substations. Mandatory requirements vis-a-vis funding agencies are World Bank Operational Directives 4.30 and 4.20 pertaning to involuntary resettlement and indigenous people. 11. The prescriptive framework includes Constitutional guarantees; Applicable legislations; Relevant policies. At an international level, the prescriptive framework covers international treaties and conventions signed and ratified by India. 12 POWERGRID's entitlement framework is based on progressive trends in Indian policies, with respect to the inclusion of project affected people (PAPs), and the nature and extent of compensation and rehabilitation. In order to provide a framework for the R&R process and to supplement existing procedures, an illustration of entitlements is shown in Table -I.. POWERGRID reiterates that displacement is not and will not be a major consequence of their projects. Irrespective of whether displacement occurs, the entitlement framework will be a base for all its management procedures. The objective of framework is to ensure that PAPs are rehabilitated and acquired assets are replaced. Public consultation will proceed at every stage from identification of PAPs to payment of compensation. The site group will be in close interaction with the State Authorities during the implementation of the RAP. Although, POWERGRID will implement the RAP, assistance of the State Authorities will be taken for administrative services. Implementation will be planned, monitored and corrective measures if required, will be incorporated in the Plan. Apart from the iv  State Government, the PAPs, the Village Leader including the Pradhans will also be consulted and associated during the implementation of the Plan. The corporate ESMD will evaluate the implementation of RAP on regular basis. 13. A committee will be set up comprising of POWERGRID, representatives of local authorities PAPs and Gram Panchayats or any well reputed person as mutually agreed with the local authorities and PAPs. This committee will adress the grievances of the PAPs. SECTION III: POWERGRID'S ENVIRONMENTAL AND SOCIAL ASSESSMENT AND MANAGEMENT FRAMEWORK 14. In keeping with its commitment to quality systems, POWERGRID has integrated its responsibility towards environmental and social issues into its project implementation through a carefully designed set of management procedures. 15. Over the years, POWERGRID has evolved a project cycle which systematically outlines activities to be undertaken at each stage of a project. POWERGRID's project cycle forms the operational framework through which Environmental and Social issues are addressed. Key milestones in POWERGRID's transmission projects; project conceptualisation; planning; approvals; design and tendering; implementation; operation and maintenance are shown in project cycle. It may be noted that environmental and social concerns are addressed from the project conceptualisation right through operation, maintenance and review. Transmission line routes are identified during project conceptualisation while sub station sites are identified during project planning. It is the experience of POWERGRID that environmental issues are predominant for transmission lines while social issues are predominant in the case of Sub stations. Key milestones in POWERGRID's transmission projects are: V  Project Conceptualisation 1 Project Identification 2. Environmental & Social Screening and Scoping 3. Feasibility Studies 4. Preliminary Approvals ( Internal Management, CEA and FA's Appraisal) Project Planning 1. Reconnaissance & Preliminary Survey 2. Environmental Assessment & Management Planning 3. Concurrence of Constituents Ill. Project Approvals 1. Preliminary Public Investment Board (Pre-PIB) Recommendation 2. Public Investment Board (PIB) Recommendation 3. Funding Agencies (FA) 4. Cabinet Committee on Economic Affairs (CCEA) Approval 5. Govemment of India (GOI) IV. Design & Tendering 1. Detailed Survey 2. Social Assessment & Management Planning 3. Design, Estimates & Finalisation of Specifications 4. Tendering & Award of Contract V. Project Implementation 1. Check Survey 2. Execution of EAMP and SAMP 3.. Tower Erection & Stringing 4. Sub-Station Construction 5. Testing & Commissioning VI. Operation & Maintenance 1. Grid Operation 2. Preventive Maintenance VII. Project Review 1. Monthly Review 2. Annual Review vi  Table - I PONVER(;RI'S SOK7L-L ENTITLEMENT FRANIENVORKI = NPE OlF ISSIUFJIIPAC T BENEFICIARY ENTITLENIENT OPTION'S 1. 1.|s ,.f lnd 1 I.lane,teadl ,utli slid ,title .lr ctl.toniarv or usutruct (i) Faniil% (i) equivalent area of land subject to availability (State t iovt ,-hias \'oluntarv sellers at existing rate) within a radius of '5 kn. or cash compensation - rehabilitatio n assistance eI u Xilttiural land (I sI nith .tid title. or cuistomarv or (i) Titleholders (i) ahernative land of equivalent production potential subject to tuistiru, rights agriculture based PAPs (rendered landless by project or left with landholdings that are not economically viable) iii itnanls. sharecroppers. lesceholder. (ii) Individual - availability (State Govt./Voluntarv sellers at existing rate) within a radius of 25 km - maximum limit is land ceiling limit or cash paymnent + rehabilitation assistance (iit local standard for min. economic land holding (if not claimed by owvner) or cash paymentand reimbursement fIir tLincxpired lease- rehabilitation assistance Sl.p Institutions i %% ith valid title. or customarv or (i) Titleholders (i) zash compensation + rehabilitation assistance temutruct rights (ii) reimbursement for unexpired lease. transition allowance (ii) tenants. leaseholder (ii) tinit eqtiivalent to I year average income as finalised by land purchase conunittee 2. L- orafstructure ,1. House lit) sith valid title. or customary or (I) Fanilv (i) cash compensation + rehabilitation assstace 11iilict rights (ii) lurnpsum payment equivalent to 6 month rent to re-establish *ii ti.mtat. leaseholder (ii) Family residence as finalised by land purchase committee I iii! -qi4laetic (iii) Famiih (iii) Cash compensation for structure- tiutpsum payment equivalent to 6 month income fmalised by land purchase committee to re- establish residetnce ; i.| lustitutiotVas ii itsl valil title. tr custotnary or (i) I Init (i) cash coitipensation - rehabilitatio,n assistance iisutrut.l rights (ii) transition allotwance equivalent to I year income as finalised hv itt killnts. leaseholder (ii) I "it land purchs.,e comntinee h: lit t; s (iii) l:nit (iii) Cash comtipensation for struc;ture- lumpsum payment equiv;alent to I year inconte as finalised bh land purchase conmtntc to- re- _stablisli strucIture I. mis r lii elihoood/trade. I *arcupatiin '. %.Xge Self employnient lit ,miritullure' commercial (i) Individual (i) package fir starting a income generating enterprise and transition allowance equivalent to I year income as finalised by LPC 4. L...Ss of waress to rmnuson resources atold faiilities Rural onimmnon property resources (i) Household (i) replacement CPRs aiunenities or provisions of functional 1 I ihani tic amenities Commnunity equivalence (ii) H-ousehold (ii) access to equivalent amenities!services Comnmunitv ;. Ls m,r standing criopsitrers . \\'ith valid title (i) Family for either category. only the cultivator will get compensation at \ 1'clialit lessee (ii) Family market rate fir crops and X years inco me for fruit bearing trees h. I L.sm's duiring tr.ntsititn of displaced pe irmsm*/ etstablishmuents . ,hittimq Transport (i) Fantilv unit (i) provision ot transport or equivale cLash (ii) cash payment to) he finalised hs the I .PC I.* \la:ntc:tan::c;m-c .................. ii) 1-antily unit (iii) cash foir transport of materials . X nstril.ti.-nl ...................(iii) Faumiiiv uniit L .. Islonst ( 7unonmunities kiiawifi. SServices (i) Cowmmunity (i? augmentation of resources of host cont,unitY i, sustain pressure _______________________________ ________________ of PAPs 'I'lie proposed entittlement framneworkwl w be applicable only in the case or land acquisition for substatiotn Y,i  16 POWERGRID's experience from managing 27,000 Ckm lines criss-crossing the length and the breadth of the country have identified typical issues that could arise in transmission projects. When compared with generation and distribution projects, issues arising in transmission line projects are relatively insignificant. The inherent flexibility of route selection of transmission lines enables POWERGRID to avoid environmentally and socially sensitive areas 17. POWERGRID's experience in managing and dealing with environmental issues is reflected in Table 3.2. POWERGRID try to avoid orchards, plantations and forests in the course of line routing through studies of alternative routes. If inevitable, care is taken to route the line through a path of minimum disturbance. Most of the towers are located, by default, in agricultural land in an attempt to avoid environmentally pristine areas and human habitation. POWERGRID takes into consideration the following points while routing its transmission lines: - the route does not involve any human rehabilitation - the route does not affect any monument of cultural or historical importance - the proposed route does not threaten the survival of any community, especially tribal communities - the proposed route does nqt affect any public utility services like play- grounds, school and other establishments, etc. - the line route does not pass through any sanctuaries, National park, etc. 18. POWERGRID uses manual stringing in thick forests and on slopes whenever possible to minimise damage to the environment. However some lopping of canopy and clearing of ground vegetation is inevitable while stringing. POWERGRID mitigates damage by allowing regeneration along the ROW, except in one strip of 3 meter width, which is kept clear for maintenance. POWERGRID's experience of 27000 Ckm has shown that a characteristic transmission line project is about 1000 Ckm in length. Out of this, 6% (about 60 Ckm) would be forest areas (involvment of forest may varies depending upon the location of the project) and 1% (about 10 Ckm) would be plantations. 19. POWERGRID has incorporated the best technology practices in an attempt to deal with environmental issues. In landslide prone areas, POWERGRID designs tower bases and rivetments that prevent soil erosion near the tower. viii  tower bases and rivetments that prevent soil erosion near the tower. POWERGRID has also designed special towers for wetlands, coasts and riverbeds. Unavoidable environmental issues that could occur in a power transmission project, and to minimise, POWERGRID takes mitigative measures which are shown in Table II. 20. Social issues associated with transmission projects are chiefly related to land acquisition carried out for substation sites. Again, POWERGRID will exercise flexibility in siting substations. POWERGRID has demonstrated, its trustworthiness and capacity to build safe towers at railway, highway and other crossings. As far as possible, POWERGRID plans and conducts its construction activity after the harvests to avoid damage to crops. In case damage to standing crop is unavoidable, POWERGRID provides compensation at market rate for the same. POWERGRID ensures that hazards due to fires are non-existent by adopting high standards of safety. 21 POWERGRID try to avoid Resettlemnt and Rehabilitation (R&R) in all its projects by siting substations on govemment land as far as possible. In case rehabilitation is totally inevitable, POWERGRID addresses R&R issues arising due to land acquisition through its R&R Policy. POWERGRID ensures proper valuation of land, assets, compensation for each category of PAPs and minimisation of lengthy cumbersome procedures. Again, POWERGRID will exercise flexibility within a transmission project for siting substations. POWERGRID's experience from its past fifty five substations indicates that a typical substation requires an area of 100 to 150 acres of land. Of this about 50% is usually private land and 50% government land. The landuse of this area would usually be 70% agriculture and 30% wastelands. The land acquired would be owned by 30 -50 persons. Approximately 20-30 lessees would be involved, often with informal and unrecorded lease agreements. Hence. projected affected persons (PAPs) could lose agricultural land and their livelihoods. Till date, POWERGRID has acquired only one homestead for its past fifty five substations. POWERGRID enhances opportunities for marginalised groups through the RAP and IPDP. il  Table 11: POWERGRID's Environmental and Social Mitigation Measures Potential Impacts Mitigatory Measures A I Opening up of canopy in Natural * POWERGRID aviods environmentally sensitive areas such as wild lands as Fotests far as practicable while selecting its ROW. 2 Lopping of trees * To minimise damage to vegetation and habitat fragmentation. POWERGRID 3 Habitat Loss utilises hand cleanng and transportabon of tower material by headloads into 4 Vegetation damage forests 5 Habiat fragmentation * POWERGRID maintains only a 3m wide strip for O&M and allows for 6 Edge effect propagating generalist regeneration of vegetation in the other two strips and also beneath the species transmission lines to avoid habitat fragmentation and edge effect. 7 Increased access to wvild lands * POWERGRID does not create any access roads or paths during construction 8 Paths/Access roads activity but utilises existing paths and field bunds for movement of material. 9 Run off and sedimentation from grading of access roads B. 1. Chemical contamination from * POWERGRID does not use chemicals for forest clearence/ROW maintenance chemical maintenance techniques * POWERGRID does not use PCB's in its electrical equipment. As a cautionary 2 PCBs in electrical equipment measure, POWERGRID has arranged for studies with National Grid Company, U.K for sampling of existing equipment and creation of a PCB management plan if necessary C. 1. Change in landuse and populaton * POWERGRID does not acquire land for its transmission towers, relocation due to towers POWERGRID pays compensation for crop loss and damage caused during its 2. Change in landuse and population activites. POWERGRID allows regeneration and cuitivation beneath the towers relocation for substations and lines. 3. Induced secondary development * POWERGRID avoids populated Urban/Rural areas, trees/ plantations for is duiing construction substation as far as possible. If unavoidable POWERGRID pays compensation on the prnciple of replacement. Issues of R&R are addressed through its SAMP * POWERGRID operations are shortlived and do not induce secondary developments during construction. D. 1 Avian hazards from transmission lines * POWERGRID avoids nesting sites and crucial bird habitats by careful route andI towers selection. The suspension towers are provided with bird gaurds to prevent any 2 Air craft hazards from transmission avian hazards lines and towers * POWERGRID provides aviation markers, night lights for easy identification of 3 Impaired cultural and aesthetic towers resources * POWERGRID selects best possible designs and support structures for 4 Health and safety transmission towers. * POWERGRID lines do not cause any hazards to health and safety. 5 Fire Hazards POWERGRID uses the best International Standards in technology. 6 0ollitfon * POWERGRID uses equipment of latest technology in its transmission lines to prevent fire hazards. . Not Applicable 22. POWERGRID will consult the public and the local authorities on all socio- economic issues that arise from its project activities. POWERGRID uses the best possible tower designs to avoid unaesthetic intrusions on the landscape. POWERGRID's substations often provide feasible infrastructure facilities to nearby villages. Unavoidable social issues that could occur in a power transmission project, and wherein POWERGRID shall emphasise careful management are: Transmission Lines * Temporary disturbance during construction and erection of transmission towers. * Loss to crop. * Change in land prices. * Aesthetic appeal of an area * Temporary loss of access to Common Property Resources. * Temporary change in land use intensity.  Substation * Loss of livelihood due to acquisition of private agricultural land. * Loss of common property resources due to acquisition of revenue land. * Loss of homestead. 23 POWERGRID places great emphasis on efficient management and quality service by addressing Environmental and Social issues as an integral part of its project cycle(Table-ll1). POWERGRID is also committed to undertake appropriate environmental and social assessment for its projects so that negative impacts are effectively minimised and mitigatory measures are developed and put into place. Table-Ill: Environmental & Social Assessment & Management of a typical POWERGRID Transmission Project Milestones i7Process - Product/Decision 1. Proiect Conceptualisation 1. E & S. Scr. & Scop.(TLs) * -Screening and Scoping of Transmission Lines from E&S * E & S scr. & scop. documents perspective as part of FR 2 E & S approval * Submit FR (wRth E&S screening & scoping) to Internal Mgmt. * Internal Mgmt. Approval * Submit FR (with E&S scr. & scop. details) with Intemal Mgmt. * Conditional TEC Clearance by approval to CEA CEA * Submit FR (with E&S scr. & scop. details) with intemal Mgmt. * Concurrence of Funding I approval for pre-appraisal by FA Agencies It. Project Planning 1 E & S Scr. & Scop.(SS) * Screen and scope Sub-Station sites from an E&S * E&S. Scr. & Scop. docs. (SS) _- perspective 2 Env.Assessment & Mgmt. * Transmission Lines - Forest Areas;Other Areas * Env.Assessment Mgmt. plan Planning * Sub-Stations 3 Forest Clearance * Submit Forest Proposal to State Govemment * Final Forest Clearance by * Forest Proposal to MoEF for conditional approval MoEF * Forward Compliance report by State Govt. to MoEF Ill. Project Approvals 1 GOI Authorities * Submt FR (with EAMP and soc. scr. & scop. details) to Pre- * EAMP and Soc. Scr. & Scop. Approvals PIB, PIB and CCEA for approvals approved by GOI 2 FA Concurrence Submit FR (with EAMPand soc. scr. & scop. details) to FA. * Concurrence by FA IV. Detailed Design & Award 1 Soc Assessment & * Select and appoint suitable agency for soc. assessment * Agency appointed for SAMP Mgmt. planning mgmt. planning, If required * SAMP _ SAMP for Tis and SS 2 Concurrence of FA for e Submit Soc. assessment & Mgmt. plan (with Internal Mgmt. * Concurrence of FA for SAMP SAMP approval) to FA for concurrence 3 Consultation for * Consult Authorised Agencies for env.Mgmt. work * Authorised Agencies Env Mgmt. & Award of * Select and award Soc. Mgmt. work to appropriate agencies Consulted to execute EM Soc Mgmt. work through competitive bidding, if necessary * Agencies appointed to execute SM works V. Project Implemnentation 1 Execution of EM works _ Execute Env.Mgmt. works * Env.Mgmt. measures executed 2 Execution of SM works * Execute Social Mgmt. works * Soc. Mgmt. measures executed VI. Operation & Maintenance 1 Env & Soc. Monitoring * Monitor EAMP rneasures * Periodic monitoring reports Monitor SAMP measures VII. Project Review L Annual E8S Review i * Review and report on E&S performance of project I * Annual env. & soc. review I report 24. Environmental and Social Risk Assessment will be a vital part of POWERGRID's environmental and social management strategies. POWERGRID's risk  assessment process will identify existing risks and forecast potential risks in its power transmission projects. POWERGRID will evaluate these risks both qualitatively and quantitatively and will also compare and prioritise these risks. The risk assessment process will provide an informal, scientific basis for Cost Benefit Analysis. In this way. POWERGRID will strengthen the selected management options, and will provide development without unduly harming humans or the environment. Table IV: POWERGRID'S Environmental and Social Risk Management Framework Milestone Objective Process 1. ProjectConceptualisation - to identify E&S risks - through E&S screening and scooping Risk Identifcation 2. Project Planning - to charactense risk - Analysis of identified hazards using worst case analysis Risk Charactensation - If unacceptable risk identified, evaluation if sufficient info. available - Analysis of info. to characterise risk and make management decisions 3. Project - to be prepared for Set in place a set of procedures to share and handle liabilitis via intemal Implenentation occurrence of risk in management and via insurance Risk preparedness areas of uncertainty 4. Project Operation - to mitigate risks - Undertake environmental and social analysis and Maintenance - to minimise - Prepare a risk management strategies Risk Management occurrence of risk ORGANISATIONAL SUPPORT STRUCTURE 25 To ensure quality POWERGRID sets out procedures and provides a work culture that encourages total involvement of all its personnel. POWERGRID -will further strengthen organisational systems to enable effective implementation of the ESPP. POWERGRID has consciously adopted a strategic environment within its organisational structure that is marked by: * A synchronised system of functioning coordinated by a Corporate Planning and Corporate monitoring group which monitors all activities in the organisation. * An emphasis on an intradepartmental approach to all projects, delineation of departmental responsibilities and the delegation and decentralisation of authority resulting in a fast response and quick adjustment to change.