Public Disclosure Authorized SRI...

SRI 6

Safeguards Diagnostic Review

for

INDIA:

Piloting the Use of Country Systems to Address Environmental Safeguard Issues at the

Power Grid Corporation of India, Ltd

(POWERGRID)

February 2009

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TABLE OF CONTENTS

... ABBREVIATIONS AND ACRONYMS ...................................................................................... 111

EXECUTIVE SUMMARY ............................................................................................................. 1

A. Basis for Selection of POWERGRID as a UCS Pilot ......................................................... 2 B. Structure and Methodology of the Report .......................................................................... 3 C. Results of Equivalence Analysis ......................................................................................... 4 D. Results of Acceptability Assessment .................................................................................. 5 E. Proposed Action Plan for Gap-Filling Measures to Attain Full Equivalence and Acceptability ........................................................................................................................... 10

INTRODUCTION .......................................................................................................................... 1

A. Objective of Safeguard Diagnostic Review ........................................................................ 1 B. Use of Country Systems Pilot Program for Environmental and Social Safeguards ........... 1 C. Rationale for Selection of POWERGRID .......................................................................... 3 D. Structure and Methodology of the Report .......................................................................... 4

PART I. EQUIVALENCE ANALYSIS .......................................................................................... 7

A. Applicable World Bank EA Category and Applicable Safeguards .................................... 8 B. Key Equivalence Findings with respect to the ESPP ................................................... 9

PART. I I ACCEPTABILITY ASSESSNIENT .............................................................................. 17

A. Institutional Framework and Capacity of Implementing Agencies .................................. 17 B. Processes and Procedures ................................................................................................. 28 C. Outputs .............................................................................................................................. 35 D. Environmental and Social Outcomes of Other Donor and Non-donor Supported Projects

50 E. Findings of Acceptability Assessment ............................................................................ 53

PART 111. PROPOSED ACTION PLAN FOR GAP-FILLING MEASURES NECESSARY TO ATTAIN AND SUSTAIN EQUIVALENCE AND ACCEPTABILITY ...................................... 56

PUBLIC CONSULTATION AND COMMENTS OF OTHER DEVELOPMENT PARTNERS 60

Annexes

Annex 1 : World Bank Operational Policy and Bank Procedure 4.00 Annex 2: Equivalence Matrices Annex 3: Narrative Summary of Government of India Legal Framework Applicable to

POWERGRID Annex 4: Equivalence of Applicable Go1 Legal Framework to Objectives of Operational

Procedures of OP 4.00 Table A1 and Indicative Gap-Filling Measures to Attain Full Equivalence

Annex 5: POWERGRID's Organizational Structure of Environmental and Social Management

Annex 6: Comparison of POWERGRID's "Processes and Procedures For Community Engagement, Public Consultation and Disclosure" with the Requirements of lFC Performance Standard 1

Annex 7: Environmental Health and Safety (EHS) Matrix per World BanWIFC EHS Guideline for Electrical Power Transmission and Distribution, April 30, 2007

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank BDA Biological Diversity Act C A Compensatory Afforestation CAF Compensatory Afforestation Fund CAMPA Central Afforestation and

Management and Planning Authority

CDP Community Development Program CEA Country Environmental

Assessment CEC Central Empowered Committee CFC Chloro-fluorocarbon CPR Common Property Resources CRZ Coastal Resource Zone CSR Corporate Social Responsibility DCF Deputy Conservator of Forests DFO Division Forest Officer E A Environmental Assessment EAMP Environmental Assessment and

Management Plan EC Environmental Clearance EHS Guidelines Environmental, Health and

Safety Guidelines EMP Environmental Management Plan EPA Environmental Protection Act ESMD Environmental and Social

Management Division ESPP Environmental and Social Policy

and Procedure ESPP RC ESPP Review Committee F Forests FC Forest Clearance FC A Forest Conservation Act, 1980 FDA Forest Development Area FEAR Final Environmental Assessment

Report FRA Forest Rights Act FS I Forest Service of India GIs Geographic Information System GN Guidance Notes Go1 Government of India GPS Global Positioning System GRC Grievance Redress Committee GW Gigawatt HQ Headquarters ICR Investment Completion Report IEAR Initial Environmental Assessment

Report IEE Initial Environmental Examination I FC International Finance Corporation IP Indigenous Peoples I R Involuntary Resettlement

IS0

IS0

JBIC

LA Act LAA LEGEN

MoEF

MRD NBWL NGO NH NOC O&M OD ODs OHSAS

0 P OPCQC

0s PA PAD P AF PAP PCB PCR PESA

POWERGRI

PPAH

PPAs PS PSDP

R&R RAP RHQ RMoEF ROW S AMP

SDR SEF

International Standards Organization International Standards Organization Japan Bank for International Cooperation Land Acquisition Act Land Acquisition Application Environmental and International Law Unit Ministry of Environment and Forests Ministry of Rural Development National Board for Wildlife Nongovernmental organization Natural Habitats No Objection Certificate Operations and Maintenance Operational Directive Ozone Depleting Substances Occupational Health and Safety Series 18,001 Operational Policy Quality Assurance and Compliance Unit (Operations Policy and Country Services) Operation service Protected Area Project Appraisal Document Project Affected Family Project Affected Person Poly-chlorinated biphenyl Physical Cultural Resources Panchayats (Extension to the Scheduled Areas) Act, 1996

[D Power Grid Corporation of India, Ltd. Pollution Prevention and Abatement Handbook Parks and Protected Areas Performance Standards Power Systems Development Project Resettlement and Rehabilitation Resettlement Action Plan Regional Headquarters Regional Office of the MoEF Rights of way Social Assessment Management P Ian Safeguard Diagnostic Review Social Entitlements Framework

SElA

SPCB S S SWAps TL TT To R TPDP UCS UCSPP

WB WPA

Social and Environmental Impact Assessment State Pollution Control Board Substation Sector-wide Approaches Transmission Line Transmission Tower Terms of Reference Tribal People Development Plan Use of Country Systems Use of Country Systems Pilot Program World Bank Wildlife Protection Act

SAFEGUARD DIAGNOSTIC REVIEW USE OF COUNTRY SYSTEMS PILOT PROGRAM

INDIA: POUTER GRID CORPORATION OF INDIA, LTD (POWERGRID)

EXECUTIVE SUMMARY

1. This Safeguard Diagnostic Review (SDR)' is being conducted as part of the World Bank's Pilot Program for the Use of Country Borrower Systems (UCS) to Address Environmental and Social Safeguard Issues per World Bank (WB) Operational Policy 4.00.~ The pilot program was initially approved by the Executive Directors of the WE3 in March 2005 and extended for an additional three-year period in January 2008 with the objective of scaling up the SDR process from the project level to the country-level. The transitional approach taken in this SDR reflects the fact that the pilot project was initiated prior to the January 2008 Board decision while taking the Board decision into account in expanding the scope of the analysis from a single investment project to POWERGRTD Corporation, parastatal institution operating at the national level, and including a comprehensive review of the national legal framework for all environmental and social safeguard that are applicable to POWERGRID'S Bank-supported a~tivit ies.~

2. The objective of the Bank's Pilot P~ogram for UCS are to contribute to the goals of the March 2005 Paris Declaration on Aid Effectiveness, as reiterated at the September 2008 High Level Forum held in Accra, to place greater emphasis on the use of borrower systems for financial management and procurement as well as environmental and social safeguards. With respect to environmental and social safeguards, the particular benefits from greater reliance on UCS include:

Scaling up development impact through an emphasis on systems rather than projects;

Enhancing borrower ownership and empowerment of the borrower's own safeguard policies;

Improving borrowers' capacity to implement their own systems;

Increasing cost-effectiveness by reducing transaction costs to borrowers and donors; and

' SDR is the analytical tool approved by the Bank's Executive Directors for analyzing the "equivalence" and "acceptability" of borrowers' environmental and social safeguard systems in relation to the requirements of World Bank Operational Policy 4.00. '" Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects," March 2005.

POWERGRID's major activities involve electrical transmission, the sole focus of the Bank's support of POWERGRID. However, POWERGRID is also involved in telecommunications infrastructure, which is outside the scope of this SDR.

Facilitating harmonization of environmental and social safeguards among international donors (both multilateral and bilateral)

A. BASIS FOR SELECTION OF POWEXGRID AS A UCS PILOT

3. There are a number of reasons why the Bank decided to select POWERGRID as the first candidate for UCS in ~ n d i a . ~ Among them, the following were the most compelling:

POWERGRID7s Environmental and Social Policy and Procedure (ESPP), issued in 2005, was developed in consultation with the World Bank and other international development partners and was deemed to be generally consistent with the World Bank safeguard systems in effect at that time and therefore largely consistent with the requirements of 4.00.

In the interest of scaling up the SDR process and subsequent application of UCS, the Bank believes that the ESPP is a usefil vehicle in that in applies to all POWERGRID operations, regardless of source of finding.

POWERGRID7s implementation of Bank safeguards under the auspices of the ESPP has been found to be satisfactory in all of the Power Systems Development projects (PSDP 11-IV) that were approved since the first ESPP was adopted in 1998 and revised in 2005. Accordingly, POWERGRID was the receipt of the "Annual Green Award" for 2006 by the Environment Sector Board of the World Bank.

The legal requirements of Indian law that apply to POWERGRID7s operations are referenced and incorporated into the ESPP. This provides the Bank with an unprecedented opportunity to analyze the equivalence of current Indian law with the corresponding Objectives and Operations Principles of Bank safeguards as set forth in OP 4.00 for all six of the safeguard policies that the Bank applies to POWERGRID projects and six of the eight the safeguard policies that apply to the UCS pilot program.5

The Bank's long, and continuing relationship with POWERGRID beginning with its support of PSDP I in 1989 and continuing through the recent approval on March 18, 2008 of PSDP IV, provides the Bank with intimate knowledge of POWERGRID, its management, structure, operational procedures and outcomes, in particular with respect to environmental and social safeguards.

The preparation of this SDR was announced to the Board in the PAD for PSDP IV, para. 41. 5 The six safeguard policies that are included within the scope of this SDR include: Environmental Assessment (EA), Natural Habitats (NH), Forests (F), Physical Cultural Resources (PCR), Involuntary Resettlement (IR) and Indigenous Peoples (IP). The two remaining safeguards included within the scope of OP 4.00 (Pest Management, and Safety of Dams) are not relevant to POWERGRID's activities and are not included within the scope of this SDR.

4. This report conforms to the structure of previous reports prepared under OPBP 4.00 and was prepared by Bank safeguard specialists from HQ and the World Bank's India country office under the direct supervision of the Bank's Quality Assurance and Compliance Unit (OPCQC) and the Environmental and Social Unit of the Bank's Legal Department (LEGEN). OPCQC and LEGEN prepared the text of this report.

5. Part I is an Equivalence Report that compares the borrower's legal and regulatory systems applicable to the project to corresponding Bank safeguard systems as set forth in Table A1 of OP 4.00. Applicable borrower systems are identified based on the safeguards that have been triggered for the recent PSDP projects, and anticipated to be triggered for future interventions with POWERGRID. For purposes of this report, borrower systems focus on POWERGRID's ESPP as the governing policy of POWERGRID, subject to the legal system of the Government of India (GoI). This is because POWERGRID, as a parastatal entity, has sufficient autonomy to go beyond the requirements of the Go1 legal system in order to fulfill its obligations to lenders, and indeed, has already done so since the first ESPP was prepared in 1998, and again, when the ESPP was substantially revised in collaboration with lenders in 2005. Accordingly, the gap-filling measures identified and recommended to bring POWERGRID into full equivalence with the requirements of OP 4.00 focus on the ESPP rather the underlying legal framework of the GoI.

6. However, to the extent that the ESPP is subject to and therefore incorporates applicable provisions of the Indian legal system this report also compares such provisions of the Go1 legal framework to the Objectives and Operational Principles of OP 4.00. In addition, where relevant, gaps are identified between applicable provisions of the Go1 legal system and the ESPP, to the extent that the Indian legal system has been modified since the ESPP was issued in 2005 or, to a lesser extent, applicable and relevant provisions of the Indian legal system may have been overlooked in the ESPP itself.

7. Part I1 is the Acceptability Assessment in which POWERGRID7s institutional capacity, procedures, outputs and the outcomes of POWERGRID7s application of the ESPP on projects, supported by the Bank, other donors and non-donor funded projects are assessed in terms of strengths and weaknesses for the purpose of implementing the project. This Assessment is based on a review of all relevant documentation available from POWERGRID as well as lending institutions, academic experts and representatives of civil society supplemented by site visits to diverse projects implemented by POWERGRID under Bank and non-Bank auspices.

8. Based on the results of the Equivalence Analysis and Acceptability Assessment, and following public stakeholder consultations to be undertaken in two venues in India in mid-November, 2009, a number of Gap-Filling measures have been agreed between the Bank and POWERGRID to bring the ESPP into full Equivalence with the requirements of OP 4.00 and to remedy deficiencies in implementation such that Acceptability is attained in a sustainable manner. These agreed measures will form the basis for the management of triggered World Bank safeguard policies for all future Bank lending to POWERGRID for projects in India. Accordingly, for each safeguard policy for which Equivalence and Acceptability is determined (with Gap-Filling as required) future Bank lending to POWERGRID will rely, unless stated otherwise, exclusively on POWERGRID's ESPP in lieu of the corresponding Bank safeguard policy.

9. This SDR will be disclosed locally on POWERGRID'S website and through the Bank's Infoshop and Use of Country Systems website prior to Bank Appraisal of any future lending to POWERGRID for projects in the electrical transmission sector in India. The Project Approval Document submitted to the Bank's Executive Directors for any such future project will include an Executive Summary of the SDR as an Appendix to the PAD and the main text of the PAD will notify the Board that the project is being undertaken under country systems for specified environmental and social safeguards., Such lending will continue to be subject to all normal Bank quality assurance and compliance procedures including full and timely disclosure of this SDR, environmental and social documentation undertaken under the ESPP, as well as standard Bank supervision and accountability requirements (including the Inspection Panel).

10. The findings of the Equivalence Analysis of the 2005 ESPP are fully described in Part I of this report and the underlying analysis and references are found the matrices in Annex 2. The following is a summary of the major findings of the analysis.

I . Environmental Assessment

1 1. There is full equivalence of the 2005 ESPP with all principles of OP 4.00 Table A l , with a few exceptions including the absence of the following requirements: (i) assessment of trans-boundary and global concerns; (ii) reference to "no action" alternative; (iii) reference to several relevant international environmental agreements to which the Go1 is a party to.

2. Natural Habitats

12. Overall, the 2005 ESPP is equivalent to the principles of OP 4.00 Table A l , except in respect to the omission of explicit reference to several defined categories of critical natural habitats that are recognized as such by Indian law such as Critical Wildlife and Critical Tiger Habitat, Ecologically Sensitive Areas, Biodiversity Heritage Sites, Conservation Reserves and Community Reserves; and disclosure of project documentation related to these critical natural habitats. .

3. Forests

13. Regarding forests, the objective, as stated in Table A1 of OP 4.00, is: "To realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests." It should be noted that POWERGRID activities do not involve commercial logging and that the impact of POWERGRID operations on forests is limited in scope compared to the broader objectives of OP 4.00 Table A1 with the impacts of POWERGRID's activities limited to the issues focus on forest conservation and compensation in the form of offsets and excluding the issues of independent certification and community-based forestry. In this context, the 2005 ESPP is fully equivalent with the forest conservation objectives and operational principles of OP 4.00 with the exception of the requirement for public disclosure of any time-bound action plans to mitigate the impacts of projects on forests. This omission is an instance where the 2005 ESPP does not fully reflect POWERGRID's actual practices. POWERGRID routinely prepares reforestation plans, as part of it's application for Forest Clearance (FC) issued by

the Ministry of Environment and Forests (MoEF). However, there are no provisions in the 2005 ESPP for public disclosure of the FC application or the FC itself. POWERGRID does disclose Forest Clearances as part of its Final Environmental Assessment Report (FEAR) but the FEAR is not referenced in the ESPP.

4. Physical Cultural Resources

14. Of all the areas examined, Physical Cultural Resources (PCR) is the least explicit of the applicable safeguard with respect to its treatment in the 2005 ESPP. This may be attributed to the fact that the ESPP was developed before the Bank's policy on PCR was elevated to the status of an Operational Policy (OP 4.1 1) and integrated into OP.400, Table Al . Therefore, the majority of the measures on PCR prescribed in the ESPP can be classified as only "partial equivalent". In particular, the 2005 ESPP contains no provisions for "chance finds" which is a critical aspect of the operational principles for PCR per Table A1 of OP 4.00.

5. Involuntary Resettlement

15. With respect to Involuntary Resettlement the ESPP is generally consistent with the objectives and operational principles of OP 4.00, Table A1 . Specific gaps in the ESPP relate to monitoring and evaluation of impacts of socio-economic infrastructure indirectly related to projects (such as infrastructure created as part of rehabilitation plans); explicit reference to POWERGRID's ongoing practice of disclosing Rehabilitation Action Plans RAPS)^ in State languages of project affected peoples and other key stakeholders; and incorporation of baseline socio-economic conditions into RAP monitoring criteria; and appropriate references to the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act of 2006 with respect to restrictions on access to Protected Areas.

6. Indigenous Peoples

16. As is the case for PCR the ESPP was prepared prior to the Bank's adoption of the its current Operational Policy on Indigenous Peoples (OP 4.10) that was subsequently integrated into OP 4.00 Table Al . The ESPP was also adopted prior to India's adoption of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act of 2006. Therefore, certain omissions are evident with respect to the definition of Indigenous Peoples, addressing the concerns of Indigenous Peoples whether or not they are a proposed project is expected to have adverse impacts on them; ensuring that consultation with tribals takes place prior to project implementation and under conditions of "free, prior informed consultation" leading to "broad community support" for the project and in documenting such consultations with Indigenous Peoples. In addition, the ESPP does not reference the Provision of Panchayats (Extension to Scheduled Areas Act), 1996, which is applicable to specified regions where POWERGRID operates.

17. Per OP 4.00, the Acceptability of a POWERGRID's environmental and social safeguards system was assessed by using the following four criteria:

6 POWERGRID uses the term "Rehabilitation Action Plan" to reflect its policy avoiding physical displacement of people

POWERGRlD communication December 6,2007.

(1) Institutional Framework and Capacity; (2) Processes and Procedures; (3) Outputs: Environmental Assessments (EAs)/ Environmental Management

Plans (EMPs), Rehabilitation Action Plans, and where applicable, Tribal Peoples Development Plans; and

(4) Outcomes: Observed impacts of projects on the natural and social environment

1. Institutional Framework and Capacity

18. An organizational structure has been developed at the corporate, regional and site level to support effective implementation of the ESPP. As part of this structure, a responsibility allocation matrix has been developed to capture the project activities, environmental and social management processes, key indicators to monitor progress, roles, and responsibilities of various stakeholders at different levels and involvement of external agencies.

19. POWERGFUD is the first power company in India to be internationally certified as having an Integrated Management System comprising International Standards Organization (ISO) 9001 for Quality Management, and IS0 14001 for Environmental Management, OHSAS 18001 for Occupational Health and Safety.

20. An Advisory Committee of Eminent Experts on Environment and Rehabilitation was established in 2003 to review the 1998 ESPP and oversee implementation of the ESPP at the site level. Members of the Advisory Committee are drawn primarily fiom academia and non-governmental organizations.

21. There appears to be some reluctance on the part of POWERGFUD Management to fill designated positions at regional HQ and project sites with dedicated environmental and social employees with the capacity to identify ecologically sensitive areas located outside of designated Protected and Reserve Forests and other Protected Areas. Management has acknowledged this necessity and has recently renewed its efforts to recruit qualified ecologists and social specialists.

22. Training and development of employees is an integral part of ESPP implementation. Based on a training needs assessments, extensive technical and management training continues to be conducted at regional, corporate and site levels of all aspects of the ESPP including environmental and social assessment, environmental management, economic and social rehabilitation and monitoring.

2. Processes and Procedures for Assessment and Management of Environmental and Social Impacts:

23. POWERGRID'S processes and procedures for conducting the environmental and social assessment and management procedures prescribed in the ESPP (including Environmental Assessment, Environmental Management Plans, Socio-Economic Assessment and Rehabilitation) are clearly and thoroughly documented in the ESPP and appear to be consistently implemented in projects reviewed for this assessment.

24. POWERGFUD's operating processes and procedures are consistent with the requirements of the ESPP with respect to community engagement, public consultation,

disclosure, grievance procedures, monitoring and reporting (both internal and external). Two minor weaknesses are need to be addressed in this respect:

POWERGRID does not publicly disclose the content of periodic reports prepared by its Committee of External Experts on individual projects; and

POWERGRID does not systematically document specific actions taken in response to public consultations.

25. With respect to implementation of EMP and health and safety procedures, provisions are included in all contracts signed with construction contractors and contractor compliance is monitored regularly by the concerned site, regional and corporate HQ.

26. Monthly Environmental and Social Development Reports are produced by POWERGRID at the corporate level with input from each of the nine regions.

27. POWERGRID has provided the- Bank with detailed documentation of public consultations on other project components of PSDP 111. However, no information is provided on how any concerns of project-affected people might have been incorporated into project design.

3. outputs

28. The Acceptability Assessment included a quality review of a representative sample of documentation required by POWERGRID under the ESPP as key tools of environmental and social assessment, decision-making and monitoring. These consisted primarily of environmental impact assessment Reports and Rehabilitation Action Plans, and site-specific monitoring reports of the Advisory Committee of Independent Experts.

POWERGRID7s environmental assessment reports are most robust with respect to project description, policy, legal and regulatory framework (including references to the applicable policies of external funding agencies); analysis of routing alternatives; identification of potential impacts, avoidance and mitigation measures for the selected alternative. There is room for improvement with respect to level of detail provided for baseline information; trans-boundary impacts, site-specificity for environmental management and monitoring plans documentation of public consultation results.

POWERGRID'S EA process, although recently enhanced by the preparation of a more detailed Final Environmental Assessment Report to complement the Initial Environmental Assessment Report required by the ESPP, would benefit from the development of a Terms of Reference designed to address environmental impacts of high-risk ("Category A") projects impacting ecologically and or socially sensitive areas (e.g. National Parks, Wildlife Sanctuaries, etc.).

POWERGRID requires the preparation of a time-bound implementation schedule for compensation and rehabilitation activities coordinated with project construction activities. Although it requires that compensation and

rehabilitation activities commence well in advance of project construction, a more explicit indication that no construction activities can commence prior to the delivery of compensation packages would be useful.

To date, POWERGRID has not had the obligation to prepare a Tribal People's Development Plan under the terms of the ESPP. Therefore, there is no opportunity to review the quality of POWERGRIDys capacity to consult with Indigenous Peoples and, with their participation, develop culturally appropriate measures for response to projects affecting them.

The Monitoring reports prepared by POWERGRID.'s Advisory Committee of Independent Experts are detailed and candid with respect to the site-specific outcomes of POWERGRID projects. Such monitoring reports could be prepared on a more systematic and regular basis.

4. Outcomes of Application of ESPP to PO WERGRID Projects

29. POWERGRID'S strategy for attaining the environmental objectives of the ESPP can be described in terms of the three basic principles of avoidance, minimization and mitigation. The following observed outcomes from Bank and non-Bank supported projects refer to these objectives and are evident in both the aggregate portfolio and site -specific contexts:

POWERGRID seeks to avoid impacts on the natural, cultural and human and environment wherever feasible, by siting transmission lines and substations away from forests, wildlife reserves and biosphere reserves. Since implementation of the ESPP in 1998, use of forest for transmission lines has been was reduced to from six percent to two percent of land area.

Out of more than 124 separate transmission line components completed since 1989 only four have transected Protected Areas such as National Parks and Wildlife Sanctuaries, all with specific approval from the National Board of Wildlife and the Supreme Court.

To avoid indirect and induced impacts on natural habitat, POWERGRID does not, as a general matter, create any new access roads or paths during construction activity but utilizes existing paths and field bunds for movement of material. However, existing roads are often upgraded in consultation with and in cognizance of the needs of local communities.

To identify and avoid impacts to physical cultural resources, such as temples and shrines, sacred groves or orchards, POWERGRID employs GIs and GPS during preliminary route alignment and detailed surveys and consults the Archeological Survey of India when TL routes might pass near to any monuments of cultural importance.

Compensation has been necessary where it has proven infeasible to avoid or completely mitigate environmental impacts, in particular with respect to

removal of biomass. In this connection, POWERGRID has, consistent with a Directive of the Supreme Court, provided more than $25 million towards compensatory afforestation on more than 10,000 hectares of land, in addition to reforesting greenbelt areas directly adjacent to its own operations. However, in many states POWERGRID is unable to track the use of its financial contributions in terms of afforestation targets and results.

In selecting sites for transmission lines and substations, POWERGRID typically succeeds in avoiding populated areas and plantations by locating substations on Government owned land or waste land to obviate the need for acquisition of privately owned land. As a result of this policy, to date, only one homestead has been acquired and significant loss of livelihood has been successfully avoided. In addition, POWERGRID has sought to avoid adverse economic impacts by relocating substations or delaying their construction to accommodate crop harvesting.

For unavoidable economic and social impacts, POWERGRID provides compensation at replacement cost to the affected population for loss of land, structures, source of livelihood, access to common resources and facilities, and standing crops and trees.

Eligible populations include people without legal title, or customary or usufruct rights, squatters, as well other categories of vulnerable families and individuals, including women headed households and physically handicappedldisabled people.

POWERGRID undertakes extensive efforts to ensure that all stakeholders, including the public and local authorities are consulted on socio-economic issues that arise fiom project activities prior to the development of final Rehabilitation Action Plans. During project implementation, POWERGRID provides institutionalized arrangementslgrievance redressal mechanisms to ensure that project affected people (PAPs) can fully communicate their concerns to POWERGRID. Recourse to litigation is available to project affected peoples who are dissatisfied with compensation or rehabilitation measures and is utilized. Such litigation sometimes results fiom POWERGRID's use of the emergency "urgency provisions" provided in the Land Acquisition Act without providing explicit or transparent justification.

POWERGRID goes well beyond the need to "do no harm" in the economic and social rehabilitation measures it provides to PAPs and affected communities, POWERGRID's Social Entitlements Framework (SEF) includes funding measures to enhance village water supply, construction and improvement of roads, and income generation schemes such as agricultural development, food processing, livestock, pottery and small-scale manufacturing of fiber products, laundry soap, and carpentry. However, RAPS do not always provide site-specific information on selected income-generating schemes.

Although POWERGRlD requires the preparation of a time bound implementation schedule for compensation and rehabilitation activities coordinated with project construction activities and requires that compensation and rehabilitation activities commence well in advance of project construction, there are circumstances under which construction activities have commenced prior to the full delivery of compensation packages. POWERGRID needs to set realistic objectives for finalization of the RAP and complete community development works in accord with the RAP schedule.

E. PROPOSED ACTION PLAN FOR GAP-FILLING MEASURES TO ATTAIN FULL EQUIVALENCE AND ACCEPTABILITY

5. Equivalence

30. Based on the Equivalence Analysis of POWERGRID'S 205 ESPP the following gap-filling measures are proposed to attain and sustain full Equivalence with the Objectives and Operational Pnnciples of OP 4.00 Table Al:

Environmental Assessment

Include assessment of trans-boundary environmental and social impacts in EA as appropriate;

Cite all Go1 laws and regulations applicable to POWERGRID operations that are intended to implement international environmental agreements ratified by Go1 such as the Convention on Biodiversity,; Vienna Convention and Montreal Protocol on Protection of the Ozone Layer; World Heritage Convention; and when finalized, GO1 regulations designed to implement the (Ramsar) Convention on Wetlands of International Importance;

Expand alternatives assessment to reference "no action" alternative (using baseline data included in the EA) and the institutional, training and monitoring requirements associated with each alternative;

Cite use of independent expertise, such as academic and social science research institutions and individual experts in providing advice on complex projects; and

Ensure that consultations with project affected people are conducted in a format and state language accessible to key stakeholders.

Natural Habitats

Add reference to "critical" natural habitats such as "Critical Wildlife Habitat (under FRA)," "Critical Tiger Habitat (under WPA)," including core areas; Ecologically Sensitive Areas, Biodiversity Heritage Sites (BDA), as well as "conservzition reserves" and "community reserves" along with existing ESPP

references to National Parks and Wildlife Sanctuaries; and Coastal Management Zones (when pending Notification is finalized); and

Ensure that consultations with project affected people on NHs are conducted in a format and state language accessible to key stakeholders.

Forests

With respect to public disclosure of Forest Clearances reference the FCA clearance process as per Supreme Court orders

Involuntary Resettlement

Include socio-economic impacts of infrastructure related indirectly to projects, such as access roads, within the scope of Monitoring and Evaluation in of a Rehabilitation Action Plan:

Incorporate relevant provisions of the pending Resettlement and Rehabilitation Bill and Land Acquisition Act Amendments in the ESPP, when enacted;

Disclose critical aspects of RAPS in State languages of PAPS or other key stakeholders; and

Incorporate baseline socio-economic conditions into RAP monitoring criteria.

Indigenous Peoples:

Reference the objectives and specific provisions of the Provisions of Panchayats (Extension to Scheduled Areas) Act 1996 (PESA) as applicable to states; and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA);

Ensure that "prior, free and informed consultation" with tribals takes place prior to project implementation resulting in "broad community support" for the project; and

Document public consultation process with tribals in Tribal People Development Plan (TPDP).

6. Acceptability

31. Based on the Acceptability Assessment (and as informed by the Equivalence Analysis and proposed gap-filling measures for Equivalence), the following measures are proposed for consideration by POWERGRID to attain and sustain full Acceptability in the implementation of its EMPP:

Add the terms of reference for the Final Environmental Assessment Report (FEAR) to the ESPP that is explicitly designed to address potential

environmental impacts of "high-risk" ("Category A") projects impacting ecologically and/or socially sensitive areas (e.g. National Parks, Wildlife Sanctuaries, Conservation and Community Reserves and or Scheduled Areas);

Strengthen institutional structure for environmental and social management at site and regional levels to improve implementation of reporting of EMP measures through enhanced staffing, training and other capacity building. A process for recruiting dedicated human resources has been initiated and is expected to result in the posting of additional staff and regions and sites in the near future;

Undertake annual independent environmental audit of sample of transmission lines and include aggregated results and case studies in proposed annual Environment and Social Sustainability Report. POWERGRID has initiated steps in this direction and a tender has already been issued for selection of a consultant to provide assistance in the development of an Annual Sustainability Report;

RAPS should provide sufficient detail on the types of income-generating schemes beyond generic information provided in the Social Entitlements Framework;

RAPS should provide clear justification for use of Land Acquisition Act (LAA) Section 17 "emergency waiver" provision that permits land acquisition prior to payment of compensation, consistent with conditions stipulated in proposed LAA revision;

Improve coordination between, completion of final RAP, RAP implementation, land acquisition and initiation of civil works. POWERGRID has begun to initiate more timely execution of development works as per RAP provisions;

Complete community development works per the RAP implementation schedule; and

INTRODUCTION

1. This Safeguard Diagnostic Review (SDR) is the first SDR to be undertaken under the Use of Country Systems Pilot Program (USCPP) for Environmental and Social Safeguards following Board approval on January 3 1, 2008, of Management's proposal to scale-up the UCCPP to fiom the project to the country and sub-national levels for a three year period fiom January 2008-through December 2010. Among the options presented to the Board was the scaling up of the SDR process to the sub-national level, in large diverse countries, such as India, including national parastatal institutions such as POWERGRID.

2. The Bank's relationship with POWERGRID has been developed and implemented in support of the Country Assistance Strategy for India 2004-2008, which establishes as a priority the provision of adequate infrastructure to promote a private sector-led growth, including the underlying need to strengthen the national electrical transmission network and raise the inter-regional power transfer capacity. Go1 has established an ambitious mission of "Power for All by 2012," with the country's installed generation capacity expected to increase fiom 140 gigawatts (GW) to more than 200 GW by 2012. In order to deliver this power an expansion of the regional transmission networks and capacity is essential. The country's transmission plan focuses on the consolidation of the national grid by adding over 60,000 circuit km o f transmission network by 2012, which carry 60 percent of the power generated in the country. For creation o f such a grid, an investment o f about US$18 billion is envisaged. Out of this, about US$14 billion is planned to be mobilized by POWERGRID and remaining US$4 billion through private sector participation

3 . .The Bank's long and continuing7 relationship with POWERGRID beginning with its support of the First Power Systems Development Project (PSDP I) in 1993 and continuing through the recent approval on March 18, 2008 of PSDP IV, provides the Bank with intimate knowledge of POWERGRID, its management, structure, operational procedures and outcomes, in particular with respect to environmental and social safeguards

B. USE OF COUNTRY SYSTEMS PILOT PROGRAM FOR ENVIRONMENTAL AND SOCIAL SAFEGUARDS

4. Beginning in March 2005, the World Bank has been supporting a limited number of pilot projects in which lending operations are being prepared using the borrowing country's systemss for environmental assessment (EA) and other environmental and social safeguards, rather than the World Bank's operational policies and procedures on safeguards. The rationale for using country systems is to scale up development impact, increase country

7. The First Power Systems Development Project was approved in 1993 and completed in 2000. The Second POWERGRID System Development Project (PSDP 11) was approved in May 2001 and closed in June 2006. The Third Power System Development Project (PSDP 111) was approved in January 2006, became effective in December 2006 and is scheduled to close in July 201 1. The Fourth Power System Development Project (PSDP N) was approved in March 2008, became effective in May 2008 and is scheduled to close in July 2013. The Bank is currently considering a request for additional funding for PSDP IV. 8

Country systems is defined as the country's legal and institutional framework, consisting of its nation, sub-national or sectoral implementing institutions and relevant laws, regulations, rules and procedures that are applicable to the proposed pilot project.

ownership, build institutional capacity, facilitate harmonization and increase cost effectiveness. These pilot operations are governed by operational policy (OP/BP 4.00) on "Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects." (See Annex 1) OP/BP 4.00 elaborates on the approach, enumerates the criteria for assessing country systems, and specifies documentation and disclosure requirements and respective roles of the Borrower and the World Bank.

5. The World Bank considers a Borrower's environmental and social safeguard system to be "equivalent" to the World Bank's if the Borrower's system, as determined by the World Bank, is designed to achieve the objectives and adhere to the applicable operational principles set out in Table A1 of OP 4.00. Since equivalence is determined on a policy-by-policy basis in accordance with Table Al , the World Bank may conclude that the Borrower's system is equivalent to the World Bank's in specific environmental or social safeguard areas in particular pilot projects, and not in other areas.''

6 . Before deciding on the use of country systems (UCS), the World Bank also assesses the "acceptability" of the Borrower's implementation practices, track record, and institutional capacity. This is followed by a agreement with the borrower on necessary "gap-filling" measures to be undertaken prior to and/or during project implementation in order to attain and sustain equivalency and acceptability through the term of the project, with maximum benefit to the borrower's overall environmental and social safeguard systems." This approach and criteria for assessment were developed with inputs from external stakeholders such as representatives of governments, bilateral and multilateral development institutions, civil society organizations, and the private sector and is consistent with commitments made by the development community in the Paris Declaration on Aid Effectiveness of March 2005 as reiterated in the Accra Agenda for Action issued on September 4., 200812

7. As approved by the Board in March 2005 and implemented through December 2007, the UCSPP was applied, as intended, exclusively to individual investment projects and to a limited extent, sector-wide approaches ( S W A ~ S ) . ' ~ However, based on an

OPIBO 4.00 can be viewed at the World Bank's Use of Country systems website (UCS website): http://go.worldbank.org/RHRJVXDW6O.

The Bank's environmental and social safeguard policies will apply to the areas which the Bank has determined not to be equivalent to its applicable policy framework and will continue to apply to all projects that are not part of the pilot program. ' I A detailed description of the SDR methodology used in this report is described in Section D, below. l 2 The full text of the Paris Declaration can be viewed at: h~://www.oecd.or~/dataoecd~11/41/3442835 1.pdf. The objectives of the Paris Declaration were reiterated most recently at the Third High level Forum on Aid Effectiveness held at Accra in early September 2008. The Accra Agenda for Action can be viewed at http:Nwww.dgfoundation.org/fileadmin/templates/pdfs/accraseptagendafin.pdf l 3 To date, seven such projects have been approved by the Board and are in implementation. The projects include: Bhutan Second Rural Access Project (P100332); Egypt Second Pollution Abatement Project (P090073); Ghana Energy Development and Access Project (P070970); Jamaica Inner City Basic Services for the Poor Project (P091299); Romania Municipal Services Project(P088252); Romania Transport Sector Project (P093812); Tunisia Sustainable Municipal Solid Waste Management Project (PO9501 2). Additional pilot projects are in preparation in South

evaluation of the USCPP conducted following two years of implementation Management recommended and the Board approved a three-year extension of the UCSPP with a scaling up of the analytical work, the SDR to the country level, with application of the SDR results, including agreed gap-filling measures, to potentially all projects in the pilot country for a three year period. For large, diverse countries, such as India, it was envisaged that the SDR could be undertaken at a sub-national level, including states and municipalities as well as for parastatal corporations, and the results applied to all projects undertaken by the sub- national entity or parastatal. The Board agreed with Management's determination that OPIBP 4.00 would continue to be used as the governing instrument for this second phase of the UCSPP.I4

C. RATIONALE FOR SELECTION OF POWERGRID

8. There are several reasons why POWERGRID was selected as a prospective pilot under the Second Phase of the Pilot Program for Use of Country Systems for Addressing Environmental and Social Safeguard Issues in Bank-Supported Projects."

POWERGRID'S own Environmental and Social Policy and Procedure (ESPP), developed in consultation with the World Bank and other international development partners as well as extensive public stakeholder consultation in India provides a sound basis for a UCS approach to the extent that it is already generally consistent with the World Bank safeguard systems as well as domestic law. The ESPP, which was first developed in 1998 (and revised in 2005), provides a framework for identification, assessment and management of environmental and social concerns at both organizational as well as project levels, and is applied in all POWERGRID projects, regardless of funding ~ o u r c e . ' ~ In addition, POWERGRID has also appointed a committee of eminent Independent Experts to oversee environmental and social management policies and their implementation.

In recognition of POWERGRID'S initiatives to implemente social and environmental safeguards, they received the "Annual Green Award" for 2006 by the Environment Sector Board of the World Bank. In addition, POWERGRID has stated its willingness to continually improve its ESPP in response to evolving international best practices.

POWERGRID7s implementation of Bank safeguards under the auspices of the ESPP has been found to be satisfactory in the all of the PSDPs (11-N) supported by the Bank under implementation of the ESPP ..

UCS provides for a more streamlined approach to safeguards consistent with the rationale for additional financing, whereby the Bank would rely on POWERGRID7s

Africa, Tunisia, Bhutan, Laos, and Brazil. National and sub-national level assessments are underway in Croatia, Morocco, Mauritius, Bhutan and the Philippines. 14

Evaluation of the Initial Phase of the Pilot Program for Use of Country Systems for Environmental and Social Safeguards: Lessons Learned and Management Proposal for an Incremental Scale Up of the Program, January 3 1,2008, UCS website. IS The preparation of this SDR was announced to the Board in the PAD for PSDP IV, para. 41. l 6 One of the loan covenants of PSDP IV is that "POWERGRID shall maintain an appropriate organizational structure for implementing its Environmental and Social Policy and Procedures, and shall amend, repeal or not enforce these Procedures only with prior Bank approval." PSDP IV PAD, Section C. 6.

ESPP instead of Bank-centric safeguard preparation procedures and would supervise POWERGRID's implementation of its own safeguard systems.

As a parastatal corporationm POWERGRID provides the advantages of being fully accountable to the environmental and social safeguard systems applicable under Indian, law while at the same time having sufficient autonomy and flexibility to adapt its systems to international best practices.

The nation-wide geographic scope of POWERGRID's activities and the limited but measurable environmental and social footprint of horizontal infrastructure projects such as transmission lines and associated sub-stations provides opportunities to examine Indian government and corporate environmental and social safeguards in a broad range of safeguard policies and geographic settings.

POWERGRID's corporate structure provides an opportunity to use as diagnostic tools, the Performance Standards, Guidance Notes and Environmental, Health and Safety Guidelines developed and applied by the International Finance Corporation (as well as the Multilateral Investment Guarantee Agency) to the assessment of the acceptability of the country systems in t m s of their structure, process and performance.

To the extent that POWERGRID's expansion activities, including the proposed project, are financed by other development partners - specifically, the Asian Development Bank (ADB) and the Japan Bank for International Cooperation (JBIC) - application of UCS provides an opportunity to draw on the results of other partners' lending to assess the acceptability of POWERGRID'S safeguards and to work collaboratively with other partners to harmonize our respective safeguards around those of POWERGRID, to the extent that the latter are found to be equivalent and acceptable.I7

D. STRUCTURE AND METHODOLOGY OF THE REPORT

9. This report conforms to the structure of previous reports prepared under Operational Policy/Bank Procedure 4.00 Use of Borrower Systems to Address Environmental and Social Safeguards Issues in Bank-Supported Projects (OPBP 4.00). As was the case for other reports this report was prepared by Bank safeguard specialists from HQ and the country office under the direct supervision of OPCQC and LEGEN. OPCQC and LEGEN prepared the text of this report, with support from local counsel and Bank environmental and social specialists with considerable field based experience working with POWERGRID..

10. Part I is an Equivalence Report that compares the borrower's legal and regulatory systems applicable to the project to corresponding Bank safeguard systems as set forth in Table A1 of OP 4.00. Applicable borrower systems are identified based on the safeguards that have been triggered for the recent PSDP projects, and anticipated to be triggered for future interventions with POWERGRID

l7 The ADB has proposed UCS at the national level as part of their proposed new Environmental Safeguard Policy. See Asian Development Bank, "Safeguard Policy Statement, Working Paper," January 2009. The Bank has consulted with ADB in the preparation of this SDR.

11. For purposes of this report, borrower systems focus on POWERGRID's 2005 ESPP, which is in turn subject to and incorporates the pertinent legal requirements of the Government of India (GOT). Because POWERGRID is a government-owned entity and is the implementing entity for Bank-supported activities The Equivalence Analysis in the main body of this report focuses on the 2005 ESPP itself and how it compares with the corresponding Objectives and Operational Principles of OP 4.00 Table Al, rather than Go1 legal requirements per se,. Moreover, POWERGRID, as a parastatal entity, has sufficient autonomy to go beyond the requirements of the Go1 legal system in order to fulfill its obligations to lenders, and has already done so since the first ESPP was prepared in 1998, and again, when the ESPP was substantially revised in collaboration with lenders in 2005. The ESPP itself was approved by the Board of Directors of POWERGRID initially in 1998 and the revised ESPP was approved for implementation in POWERGRID on April 29, 2005.18 Any further revision of this ESPP resulting from this SDR will likewise be approved by POWERGRID's Board.

12. To round out the analysis and inform future UCS work in India, a separate Equivalence Analysis is conducted for all relevant Go1 legal requirements (including, as explained in the text and matrices) some requirements that are relevant but not necessarily applicable to POWERGRID. This analysis is presented in Annexes 3 and 4, which include, respectively, a summary of the Go1 legal framework relevant to POWERGRID's operations in the electrical transmission sector, and the results of the Equivalence Analysis of the Go1 legal framework as compared to the Objectives and Operational hnciples of OP 4.00 Table Al . In addition, to the extent that there have been changes in Go1 legal requirements since the issuance of the ESPP in March 2005, the analysis makes note of any resulting inconsistencies between the ESPP and corresponding Go1 legal requirements, to the extent that the Indian legal system has been modified since the ESPP was issued in 2005 or, to a lesser extent, applicable and relevant provisions of the Indian legal system may have been omitted from reference in the 2005 ESPP itself . To this end both the ESPP and the applicable laws of the Go1 are included in the Equivalence Matrices presented in Annex 2.19

13. Consistent with the focus on POWERGRID'S ESPP as the controlling document for analysis of Equivalence, this report does not include analysis of Indian legal requirements at the sub-national level. It is aclmowledged that this pertinent limitation, given that in some states POWERGRID is subject to state-specific legal requirements in addition to the applicable Go1 legal framework.20 However, due to the national-wide scope of POWERGRID's activities it would not be feasible to include an analysis of the legal requirements of each separate State in ascertaining the Equivalence of the Indian legal framework to the Objectives and Operational Principles of OP 4.00 Table Al. Moreover, it should be noted that the legal framework of the Central Government is intended to set minimal requirements for the States and that any State law is expected to be at least as stringent as the corresponding Central legal requirement.

'*POWERGRID, Board Agenda April 12,2005 and Minutes of the 166' Meeting of POWERGRID Board of Directors, April 29,. 2005. '51 The methodology used in this report included the identification and analysis of all mandatory applicable and relevant legal instruments of the Go1 corresponding to the requirements of OP 4.00 Table A l . This work was conducted by the Legal Department o the World Bank in cooperation with POWERGRID and local counsel engaged by the Bank for this purpose. 20 For example in its Initial Environmental Assessment Report for the Parabati I1 and 111 Transmission System, POWERGRID cited the Affected Persons Rehabilitation Acts of Himachal Pradesh and Punjab as applicable to the project components.

14. Based on the Equivalence Analysis, an Action Plan is proposed for consideration by (POWERGRID) with technical assistance fiom the Bank and other development partners as soon as reasonably possible, prior to project implementation if at all feasible. Any residual gap-filling measures that are deemed by the Bank to be significant to satisfactory project outcomes with respect to safeguards but that cannot reasonably be implemented within by the borrower within the scope of pending projects, are identified for inclusion as part of the loan agreement and may be implemented under the Bank's traditional safeguard system as an alternative to UCS. These proposed gap-filling measures are described in Part lII of the report.

15. Part II of this report is the Acceptability Assessment in which the institutional capacity, procedures outputs and outcomes of the borrower's own systems are assessed in terms of strengths and weaknesses for the purpose of implementing the project. This Assessment is based on a review of all relevant documentation regarding borrower institutions with responsibility for implementing the borrower's applicable safeguard systems as identified in the Equivalence Analysis. Institutional capacity is evaluated in terms of staffing, budget, incentives, sanctions and other resources, including institutional commitment to effective implementation of borrower safeguard systems. Institutional procedures are reviewed with respect to their efficiency and transparency in attaining the objectives of the borrowers systems. Outputs such as environmental and social assessments, environmental management plans, permit conditions, resettlement action plans and indigenous peoples7 development plans or their local equivalents are reviewed for previous projects supported by the Bank, other development partners as well as for projects undertaken by the borrower without external funding. This last category of projects is generally considered to be he most reliable indicator of the borrower's capacity and commitment to implement its own environmental and social safeguard systems.

16. In addition, outcomes of projects, undertaken by the borrower, under its own systems are reviewed through review of project supervision and completion reports prepared by the borrower or third parties. This review includes site visits undertaken by Bank staff, including members of the Quality Assurance and Compliance Unit (OPCQC) as part of OPCQC's responsibility for assuring the quality and consistency of the Acceptability Assessments conducted as part of the SDR process. As a result of the Acceptability Assessment, gap-filling measures are again identified and an Action Plan is developed with the borrower and other development partners to be implemented as soon as reasonably possible, prior to project implementation if at all feasible. Any residual gap-filling measures that are deemed by the Bank of be significant to satisfactory project outcomes with respect to safeguards but that cannot reasonably be implemented within by the borrower within the scope of the project, are identified for inclusion as part of the loan agreement and may be implemented under the Bank's traditional safeguard system as an alternative to UCS.

17. The methodology used in the Acceptability Assessment of this report includes a critical analysis of the relevant institutional organization and procedures used by POWERGRID in implementation of the ESPP, supplemented by interviews with POWERGRID Management at its corporate in Gurgaon and an extensive history of site visits by Bank environmental and social specialists to Bank-supported projects, fiom the 1990's through the present, supplemented by visits by Bank staff donors in October 2007 to

several project sites not supported by any international donors." To the extent that Go1 institutions have a role in implementing some of the requirements imposed on POWERGRID, in particular with respect to Compensatory Afforestation (CA) , land acquisition and the calculation and allocation of compensation of project-affected people, the Acceptability Assessment makes use of existing studies of the relevant capacity of those these Go1 institutions that are directly engaged in regulating and implementing POWERGRID's activities.

18. Consistent with the methodology for Acceptability Assessment that is outlined in the SDR, outputs of the ESPP were reviewed for a number of Bank projects undertaken under the Power Systems I11 and IV projects. These included Initial Environment Impact Assessment Reports (IEARs) Final Environmental Assessment Reports (FEARS) for transmission lines (TLs) and Rehabilitation Action Plans (RAPS) for substations (SS)

19. With respect the POWERGRID's past performance in implementing its ESPP, in particular since the adoption of the revised version in April 2005, project outcomes were reviewed for the Second and Third PSDPs in the form of Implementation Completion Reports (ICR). In addition, the ICR issued by the Asian Development Bank (ADB) for components of the Second PSDP were also reviewed.

20. Part 111 of this Report, Proposed Gap-Filling Measures to Attain and Sustain Equivalence and Acceptability, describes the measures agreed between the Bank and POWERGRID Management that are designed to fill the gaps between the requirements of the ESPP and the corresponding Objectives and Operational Pnnciples of OP 4.00 Table A 1, and thereby fulfill the Equivalence requirements of OP 4.00. Part I11 of the report also recommends specific operational measures designed to bring the implementation POWERGRID's ESPP the to fully acceptable level of performance with respect to outputs and outcomes and thereby fulfill the Acceptability requirements of OP 4.00.

21. An earlier draft of this report was subject to review and comment by POWERGRID. The draft was subsequently presented in hard copy of discussed with stakeholders at two well-attended workshops convened by POWERGRID in Delhi, November 18 and in Hyderabad on November 2 1, 2008 and attended by representatives of the World Bank who described the UCS pilot program, the methodology, findings and recommendation of the SDR.

22. T h s report will be submitted to the Executive Directors of the World Bank as part of the Project Approval Document for any future loan to POWERGRID that is proposed for implementation under OP 4.00 and the gap-filling measures agreed between the Bank and POWERGRID will be included in any future legal agreement between the Bank and POWERGRID with respect to Bank support of POWERGRID for a project to be undertaken under OP 4.00.

PART I. EQUIVALENCE ANALYSIS

21 The authors of this report visited three sub-stations and associated transmission lines that were constructed by POWERGRID under the PS 111 project without support or supervision from the World Bank, ADB or any other external development partners.

A. APPLICABLE WORLD BANK EA CATEGORY AND APPLICABLE SAFEGUARDS

23. Transmission schemes are generally environmentally clean and non-polluting in nature. Their impact on the environment is generally restricted to construction of transmission towers along designated rights of way (ROW) and limited land acquisition and conversion for sub-stations. However,. given the large geographical spread of the transmission system (voltages above 400 kV and relatively large substations), and given the assumption that some of the project transmission lines may pass through natural habitat or forest areas, the project has been assigned a safeguard category "A." This is consistent with the categorization given to PSDP 11-N. It should be noted, however, that to date, none of the individual components (TLs and SS) of the PSDP 11-N that have been submitted to the Bank by POWERGRID have been rated above Category B.

24. Based on the safeguards triggered by PSDPs to date and broad geographic scope of ongoing and proposed project components it would appear that the following World Bank environmental and social safeguards would be triggered in the Bank's ongoing and future support of POWRGRID : Environmental Assessment (EA), Forests (F) Physical Cultural Resources (PCR), Involuntary Resettlement (IR), particularly for sub-stations) and for occasional project components, Indigenous Peoples (IP) Based on the Bank's experience with POWERGRID to date, the safeguard policies on Pest ManagemenfZ and Safety of Damsz3 are highly unlikely to be triggered.

25. As noted above this Equivalence Analysis focuses primarily on POWERGRID'S ESPP and in a secondary sense of the applicable legal systems of the Government of India that are largely incorporated by reference in the ESPP. For that reason the narrative description of the GoI's applicable legal system as well as its equivalence with corresponding Objectives and Operational Principles of the six World Bank safeguard policies per OP 4.00 Table A1 is presented in summary form Annex I11 of this Report. The detailed analysis of Equivalence between the Go1 legal system and the Objectives and Operational Principles of OP 4.00 Table A1 is included for reference in the six Equivalence matrices included in Annex I1 of this Report.

26. The matrices in Annex I1 focus on a detailed comparison of POWERGlUD's ESPP with the Objectives and Operational hnciples of OP 4.00 Table Al. A separate matrix has been prepared for each of the six applicable safeguard policies: Environmental Assessment, Natural Habitats, Forests, Physical Cultural Resources, Involuntary Resettlement and Indigenous Peoples. For each Matrix the legal system (Acts, Rules, Notifications, court orders and other mandated requirements) of the Government of India and POWERGRID'S

2z POWERGRID does not use herbicides to remove or control vegetation along transmission line rights-of-way. All vegetation clearing is done manually). z3 Under OP 4.37 Safety of Darns is triggered for "projects that rely on the performance of an existing dam or a dam under construction.. ..where failure of the upstream dam could cause extensive damage to or failure of the new Bank-funded structure.. ." Although TLs are not included among the examples given of such projects, it is conceivable that a particular project component could be affected by the performance of an existing dam or dam under construction should such as dam be a major source of power for the TL. However, the major objective of the project and of POWERGRID as a corporation is to provide reliable electrical power through a highly interconnected national system of transmission such that power can be supplied to each region based on demand rather than the allocation of supply from any particular location. Therefore, Safety of Dams it is not included within the scope of this SDR.

ESPP respectively, have been cited in relation to the corresponding Objectives and Operational Principles ("elements") of each safeguard policy. For each element, there is a finding of "Full Equivalence;" "Partial Equivalent" or "No Equivalence."

27. A finding of "Full Equivalence" indicates that that the controlling Go1 or ESPP requirement, is fully equivalent to the corresponding Objective or Operational Principle of OP.400 Table Al . A finding of "No Equivalence" indicates that none of the key elements of the particular Objective or Operational Pnnciple of OP.400 Table A1 are evident in the Go1 legal system and/or ESPP,. A finding of "Partial Equivalence" indicates that the Go1 legal instrument and/or ESPP requirement, is equivalent in some respects but not in other respects to the corresponding safeguard element of OP 4.00 Table Al . With respect to the Go1 legal system this may indicate that particular safeguard element(s) are completely lacking in the legal system, or alternatively that such elements are present, but are not applicable to electrical transmission sector or otherwise applicable to POWERGRID'S activities.

28. Since the ESPP is the controlling document in this analysis, gap-filling measures are specified to reach Full Equivalence between the ESPP and the corresponding element of OP 4.00 Table Al.. Some of the recommended and agreed gap-filling measures make reference to draft policies and/or pending legislative or regulatory reforms under consideration in India,, in particular with respect to Natural Habitats? Involuntary ~esettlement," and Indigenous people^.'^

B. KEY EQUIVALENCE FINDINGS WITH RESPECT TO THE ESPP

29. For each of the six safeguard polices, the following key findings are made with respect to the Equivalence of the ESPP to the Objectives and Operational Principles of OP 4.00 Table Al . For each separate objective or Operational Pnnciple of OP 4.00,the analysis characterizes POWERGRTD's ESSP as either "fully equivalent," "partially equivalent" or "not equivalent." The complete analysis supporting these findings along with the corresponding direct references to the text or other data in the ESPP is included in the matrices (Annex 2 of this report).

1. Environmental Assessment

The ESPP is fully equivalent to the following objectives and operational principles of OP 4.00 Table A1 with respect to Environmental Assessment:

Objectives: To help ensure the environmental and social soundness and sustainabili~ of investment projects [and] to support integration of environmental and social aspects of projects into the decision making process

- Use a screening process for each proposed project, as early as possible, to determine the appropriate extent and type of environmental assessment (EA) so that appropriate studies are undertaken proportional to potential risks and to direct, and, as relevant, indirect, cumulative, and associated impacts. Use sectoral or regional environmental assessment when appropriate.

24 Draft amendments to the Wildlife Protection Act 25 Resettlement and Rehabilitation Bill of December 2007 26 Draft Tribal Development Policy of 2008

- Where applicable to the type of project being supported, normally apply the Pollution Prevention and Abatement Handbook (PPAH). Justify deviations when alternatives to measures set forth in the PPAH are selected.

- Prevent and, where not possible to prevent, at least minimize, or compensate for adverse project impacts and enhance positive impacts through environmental management and planning that includes the proposed mitigation measures, monitoring, institutional capacity development and training measures, an implementation schedule, and cost estimates.

- Involve stakeholders, including project-affected groups and local nongovernmental organizations, as early as possible, in the preparation process and ensure that their views and concerns are made known to decision makers and taken into account. Continue consultations throughout project implementation as necessary to address EA-related issues that affect them.

- Provide measures to link the environmental assessment process and findings with studies of economic, financial, institutional, social and technical analyses of a proposed project.

- Provide for application of the principles in this Table to sub-projects under investment and financial intermediary activities.

The ESPP is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Environmental Assessment:

- Assess potential impacts of the proposed project on physical, biological, socio- economic and physical cultural resources, including trans-boundary and global concerns, and potential impacts on human health and safety.

- Assess the adequacy of the applicable legal and institutional framework, including applicable international environmental agreements, and confirm that they provide that the cooperating government does not finance project activities that would contravene such international obligations.

- Provide for assessment of feasible investment, technical, and siting alternatives, including the "no action" alternative, potential impacts, feasibility of mitigating these impacts, their capital and recurrent costs, their suitability under local conditions, and their institutional, training and monitoring requirements associated with them.

- Use independent expertise in the preparation of EA where appropriate. Use independent advisory panels during preparation and implementation of projects that are highly risky or contentious or that involve serious and multi- dimensional.

- Disclose draft EA in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders.

2. Natural Habitats

The ESPP is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A1 with respect to Natural Habitats:

Objectives: To promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions;

- Where projects adversely affect non-critical natural habitats, proceed only if viable alternatives are not available, and if appropriate conservation and mitigation measures, including those required to maintain ecological services they provide, are in place. Include also mitigation measures that minimize habitat loss and establish and maintain an ecologically similar protected area;

- Whenever feasible, give preference to siting projects on lands already converted;

- Consult key stakeholders, including local nongovernmental organizations and local communities, and involve such people in design, implementation, monitoring, and evaluation of projects, including mitigation planning.;

- Provide for the use of appropriate expertise for the design and implementation of mitigation and monitoring plans;.

The ESPP is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Natural Habitats:

- Use a precautionary approach to natural resources management to ensure opportunities for environmentally sustainable development. Determine if project benefits substantially outweigh potential environmental costs;

- Avoid significant conversion or degradation of critical natural habitats, including those habitats that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value, or (d) recognized as protected by traditional local communities;

- Disclose draft mitigation plan in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders

The ESPP is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A1 with respect to Forests:

Objective: To realize the potential of forests to reduce poverty in a sustainable manner, integrate forests efectively into sustainable economic development, and protect the vital local and global environmental services and values of forests;

- Screen as early as possible for potential impacts on forest health and quality and on the rights and welfare of the people who depend on them. As appropriate, evaluate the prospects for new markets and marketing arrangements;

- Do not finance projects that would involve significant conversion or degradation of critical forest areas or related critical natural habitats, or that would contravene applicable international environmental agreements.

- Do not finance natural forest harvesting or plantation development that would involve any conversion or degradation of critical forest areas or related critical natural habitats;

- Support projects that adversely impact non-critical natural forests or related natural habitats only if viable alternatives to the project are not available and only if appropriate conservation and mitigation measures are in place;

- Ensure that forest restoration projects maintain or enhance biodiversity and ecosystem functionality and that all plantation projects are environmentally appropriate, socially beneficial and economically viable;

27 The following three operational principles of OP 4.00 Table Al with respect to Forests are not applicable to POWERGRID'S operations and hence are omitted from this analysis of the ESPP: (5) Support commercial, industrial-scale forest harvesting only when the operation is certified, under an independent forest certification system, as meeting, or having a time-bound action plan to meet, internationally recognized standards of responsible forest management and use; (8).Support commercial harvesting by small-scale landholders, local communities or entities under joint forest management where monitoring with the meaningful participation of local communities demonstrates that these operations achieve a standard of forest management consistent with internationally recognized standards of responsible forest use or that they are adhering to an approved time-bound plan to meet these standards; and (9) Use forest certification systems that require: (a) compliance with relevant laws; (b) recognition of, and respect for, legal or customary land tenure and use rights as well as the rights of Indigenous Peoples and workers; (c) measures to enhance sound community relations; (d) conservation of biological diversity and ecological functions; (e) measures to maintain or enhance environmentally sound multiple benefits from the forest; (0 prevention or minimization of environmental impacts; (g) effective forest management planning; (h) active monitoring and assessment of relevant forest management areas; and (i) independent, cost effective, third-party assessment of forest management performance against measurable performance standards defined at the national level and compatible with internationally accepted principles and criteria of sustainable forest management through decision making;

- Give preference to small-scale community-level management approaches where they best reduce poverty in a sustainable manner

The ESPP is partially equivalent to the following operational principle of OP 4.00 Table A1 with respect to Forests:

- Disclose any time-bound action plans in a timely manner, before appraisal formally begns, in an accessible place and in a form and language that are understandable to key stakeholders.

4. Physical Cultural Resources

The ESPP is partially equivalent to the following Objectives and operational principles of OP 4.00 Table A1 with respect to Physical Cultural Resources:

Objectives: To assist in preserving physical cultural resources and avoiding their destruction or damage. PCR includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural signijicance.

- Use an environmental assessment (EA) or equivalent process to identify PCR and prevent or minimize or compensate for adverse impacts and enhance positive impacts on PCR through site selection and design;

- As part of the EA, as appropriate, conduct field based surveys, using qualified specialists;

- Consult concerned government authorities, relevant non-governmental organizations, relevant experts and local people in documenting the presence and significance of PCR, assessing the nature and extent of potential impacts on these resources, and designing and implementing mitigation plans; and

- Disclose draft mitigation plans as part of the EA or equivalent process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

The ESPP is not equivalent to the following operational principle of OP 4.00 Table A1 with respect to Physical Cultural Resources:

- For materials that may be discovered during project implementation, provide for the use of "chance find" procedures in the context of the PCR management plan or PCR component of the environmental management plan.

5. Involuntary Resettlement

The ESPP is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table Al:

- Assess all viable alternative project designs to avoid, where feasible, or minimize involuntary resettlement;

- Consult project-affected persons, host communities and local nongovernmental organizations, as appropriate. Provide them opportunities to participate in the planning, implementation, and monitoring of the resettlement program, especially in the process of developing and implementing the procedures for determining elipbility for compensation benefits and development assistance (as documented in a resettlement plan), and for establishing appropriate and accessible gnevance mechanisms. Pay particular attention to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, Indigenous Peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation;

- Give preference to Land-based resettlement strategies for displaced persons whose livelihoods are land-based;

- For those without formal legal rights to lands or claims to such land that could be recognized under the laws of the country, provide resettlement assistance in lieu of compensation for land to help 'improve or at least restore their livelihoods;

- Disclose draft resettlement plans, including documentation of the consultation process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders;

- Apply the principles described in the involuntary resettlement section of this Table, as applicable and relevant, to subprojects requiring land acquisition;

- Implement all relevant resettlement plans before project completion and provide resettlement entitlements before displacement or restriction of access. For projects involving restrictions of access, impose the restrictions in accordance with the timetable in the plan of actions.

The ESPP is partially equivalent to the following operational principles of OP 4.00 Table Al with respect to Involuntary Resettlement:

Objectives: To avoid or minimize involuntary resettlement and, where this is not feasible, to assist displaced persons in improving or at least restoring their livelihoods and standards of living in real terms relative to pre-displacement levels or to levels prevailing prior to the beginning ofproject implementation, whichever is higher.

- Through census and socio-economic surveys of the affected population, identify, assess, and address the potential economic and social impacts of the project that are caused by involuntary taking of land (e.g., relocation or loss of shelter, loss of assets or access to assets, loss of income sources or means of livelihood, whether or not the affected person must move to another location) or involuntary restriction of access to legally designated parks and protected areas (PPAs)

- Identify and address impacts also if they result fiom other activities that are (a) directly and significantly related to the proposed project, (b) necessary to achieve

its objectives, and (c) carried out or planned to be carried out contemporaneously with the project;

- Inform displaced persons of their rights, consult them on options, and provide them with technically and economically feasible resettlement alternatives and needed assistance, including:

Prompt compensation at full replacement cost for loss of assets attributable to the project

If there is relocation, assistance during relocation, and residential housing, or housing sites, or agricultural sites of equivalent productive potential, as required;

Transitional support and development assistance, such as land preparation, credit facilities, training or job opportunities as required, in addition to compensation measures;

Cash compensation for land when the impact of land acquisition on livelihoods is minor; and

Provision of civic infrastructure and community services as required

- Design, document, and disclose before appraisal of projects involving involuntary restriction of access to legally designated parks and protected areas, a participatory process for:

Preparing and implementing project components;

Establishing eligibility criteria;

Agreeing on mitigation measures that help improve or restore livelihoods in a manner that maintains the sustainability of the park or protected area;

Resolving conflicts; and

Monitoring implementation.

- Assess whether the objectives of the resettlement instrument have been achieved, upon completion of the project, taking account of the baseline conditions and the results of resettlement monitoring

6. Indigenous Peoples

The ESPP is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A1 with respect to Indigenous Peoples:

Objectives: To design and implement projects in a way that fosters full respect for Indigenous Peoples' dignity, human rights, and cultural uniqueness and so that they:

(a) receive culturally compatible social and economic benefits; and (b) do not sufler adverse eflects during the development process.

- Undertake social assessment or use similar methods to assess potential project impacts, both positive and adverse, on Indigenous Peoples. Give fill consideration to options preferred by the affected Indigenous Peoples in the provision of benefits and design of mitigation measures. Identify social and economic benefits for Indigenous Peoples that are culturally appropriate, and gender and inter-generationally inclusive and develop measures to avoid, minimize andlor mitigate adverse impacts on Indigenous Peoples;

- Where restriction of access of Indigenous Peoples to parks and protected areas is not avoidable, ensure that the affected Indigenous Peoples' communities participate in the design, implementation, monitoring and evaluation of management plans for such parks and protected areas and share equitably in benefits from the parks and protected areas;

- Put in place an action plan for the legal recognition of customary rights to lands and territories, when the project involves: (a) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples traditionally owned, or customarily used or occupied; or @) the acquisition of such lands;

- Prepare an Indigenous Peoples Plan that is based on the social assessment and draws on indigenous knowledge, in consultation with the affected Indigenous Peoples' communities and using qualified professionals Normally, this plan would include a framework for continued consultation with the affected communities during project implementation; specify measures to ensure that Indigenous Peoples receive culturally appropriate benefits, and identify measures to avoid, minimize, mitigate or compensate any adverse effects; and include grievance procedures, monitoring and evaluation arrangements, and the budget for implementing the planned measures;

The ESPP is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Indigenous Peoples:

- Undertake free, prior and informed consultation with affected Indigenous Peoples to ascertain their broad community support for projects affecting them and to solicit their participation:

In designing, implementing, and monitoring measures to avoid adverse impacts, or, when avoidance is not feasible, to minimize, mitigate, or compensate for such effects; and

In tailoring benefits in a culturally appropriate manner;

- Disclose the draft Indigenous Peoples Plan, including documentation of the consultation process, in a timely manner before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

PART. I1 ACCEPTABILITY ASSESSMENT

30. Per OP 4.00 the Acceptability of a borrower's environmental and social safeguards system can be assessed by using the following four criteria:

(1) Institutional Framework and Capacity of Implementing Agencies (2) Processes and Procedures (3) Outputs: Environmental Assessments, Environmental Management Plans, Social

Assessments, Rehabilitation Action Indigenous Peoples Development Plans, etc.

(4) Impacts: Observed impacts of projects on the natural and social environment

A. INSTITUTIONAL FRAMEWORK AND CAPACITY OF IMPLEMENTING AGENCIES

31. As the ESPP of POWERGRID is the focus on this SDR, it is appropriate that the institutional framework and capacity of POWERGRID is the also focus of this Acceptability Assessment. The regulatory and policy implementing institutions and procedures of the Government of India, on both the central and state level, do play a role in regulating certain activities of POWERGRID with respect to environmental and social safeguards and these will be considered to the extent that these governmental institutions and procedures influence the quality of outputs and outcomes from POWERGRID'S implementation of its ESPP. However, the limited scope of the applicable Go1 legislation, as described in the Equivalence Analysis, provides POWERGRID with considerable autonomy in how well it implements the ESPP. Therefore, this analysis will focus more on POWERGRID'S institutional framework and capacity to implement the ESPP than on the capacity of Go1 institutions to implement the limited set of legal requirements that apply to POWERGRID. Accordingly the observations made regarding the institutional capacity of Go1 regulatory and implementing agencies are limited to those areas that bear directly on POWERGRID'S ability to fulfill its institutional commitments under the ESPP and are drawn primarily from secondary sources, such as the World Bank's 2006 Country Environmental Assessment, rather than observations taken directly from POWERGRID projects. As this part of the analysis is intended to serve descriptive rather than evaluative purposes, observations on capacity are limited to general observations drawn from secondary sources.

32. The general view, based on the World Bank's December 2006 Country Environmental Analysis of India is that the regulatory capacity of MoEF, and the Central and State Pollution Control Boards have improved over time and there are documented successes in addressing certain issues, but are having difficulty keeping up with the challenges of rapid growth. This has left a vacuum of authority that has been partially filled by a pro-active judiciary. In large part this appears to be the result of a misdirection of regulatory efforts on large point sources, which fails to match the scale of diversity of India's economy, with its multiple point sources, dominated by small-scale industrial units outside the industrial sector. Enforcement efforts are undermined by lack of credible

28 POWERGRID prefers the term "Rehabilitation Action Plan" to "Resettlement Action Plan" to reflect its policy avoiding physical displacement of people. POWERGRID communication December 6. 2007.

deterrents: the two key sanctions currently available to a regulator - filing a criminal case against a violating company or issuing an order to shut it down - are either too time- consuming to pursue or too extreme to be routinely used.29 In general, regulatory agencies (the Central and State Pollution Control Boards) are under-staffed and under-funded relative to meeting existing obligations to implement regulatory mandates emanating from national and state laws and court directives." Compliance shows a high variability from one state to another?'

8. Role of Government Agencies with Environmental and Social Mandates in the Electrical Transmission Sector

33. Governmental authorities play a dual role in implementing the environmental and social requirements applicable to POWERGRID's activities. On the one hand, as a Government of India enterprise, POWERGRID is subject to various laws and regulations of the Government of India and the States in which it operates that pertain to its operations. In addition, some government agencies are charged with implementing, specified legal and regulatory requirements that apply to POWERGRID's operations on behalf of POWERGRTD. This function is particularly important with respect to the requirements for Compensatory Afforestation and compensation of project-affected peoples with respect to loss of land and other assets.

34. Regulatory Agencies. As noted in the Equivalence Analysis, above, electrical transmission projects do not require Environmental Clearance (EC) unless significant forest land is affected. In such cases Forest Clearance (FC) is required from the Ministry of Environment and Forests (MoEF), through a procedure described below. In addition, explicit prior authorization is required from the National Board for Wildlife (NBWL), the Central Empowered Committee (CEC) and the Supreme Court for electrical transmission facilities that pass through Protected Areas (such as National Parks and Wildlife ~anctuaries).~~

35. Electrical transmission activities are, subject in a very limited sense to the requirements of Environmental (Protection) Act of 1986 (EPA).33 In addition, specified Rules issued under the EPA do apply to all of POWERGRID's operations. These include the Batteries (Management and Handling) Rules, 2001 (Batteries Rules); the Hazardous Wastes (Management and Handling) Rules, 2003 (Hazardous Wastes Rules); and the Ozone Depleting Substances (Regulation and Control) Rules, 2000 (ODs Rules).

36. Implementation of the Batteries and Hazardous Wastes Rules is vested in each State Pollution Control Board (SPCB) where POWERGRlD's operations are located. The requirements that apply to POWERGRID are limited to regular reporting requirements regarding the number destination of used batteries disposed of, primarily through recycling to registered contractors and the specifications of used and waste oil suitable for recycling

29 CEA pp ii., 7 30 Ibid., p. 47-49 3 1 Ibid. p. 53 32 Communication fiom POWERGRID, [dated] 33 ~ c c o r d h g to POWERGRID, under a 1992 Amendment to the EPA, electrical transmission projects are subject to the EPA in only two Districts (Alwar in Rajasthan and Gurgaon in Haryana) affected by the Aravalli mountah range. Further clarification is required with respect to the application to POWERGRID of EPA Notifications regarding other "Eco-sensitive Zones. See Annex 2A.

and disposal.34 Implementation of the Batteries and Hazardous Wastes Rules is vested in each SPCB where POWERGRID'S operations are located.

37. The SPCBs are the main implementing agencies for environmental pollution control on the State level in India. As noted by the World Bank's Country Environmental Assessment (CEA) the SPCBs face challenges with respect to the monitoring and enforcement procedures that are applicable to linear projects, such as highways, roads and transmission lines3' However, these weaknesses apply primarily to monitoring impacts of projects involving excavation, such as highways, roads and pipelines that have more significant potential impacts on soil and water resources as well as biodiversity, wildlife, cultural heritage and landscape features rather than the more limited impacts of electrical transmission projects.

38. Under the Notification dated July 17,2000s for the regulation and control of Ozone Depleting Substance under the Montreal Protocol, POWERGRID is required to abide by the registration., labeling and phase out requirements set forth in the Schedules to the Notification. These Rules are administered directly by the Pollution Abatement Division of MoEF.

39. Central Government Agencies with regulatory authority over the environmental impacts of POWERGRID projects include the MoEF, specifically the Forest Conservation Division in with respect to Forest clearances, the Conservation Division with respect to Protected Areas; the Wildlife Division with respect to wildlife conservation and the Pollution Abatement Division with respect to the phase out and regulation ozone-depleting substances (ODs).

40. Forest Clearance (FC) is required for TLs passing through all forest areas not limited to the two categories of forest - Reserved Forests (RF) and Protected Forests (PFs) - that are recognized under the Indian Forest MoEF exercises its FC authority primarily through its six Regional Offices. The level of authority required for a FC depends on the size of the affected area. 37 The coordinates and conditions of forest areas are delineated through biannual surveys of the Forest Service of India (FSI) with its HQ at Dehra Dun and zonal offices at Shimla, Kolkota, Nagpur and Bangalore. FSI is also charged with the

34 ESPP Appendices IX and X. '' CEA 3.17. 36 In an Order dated December 12, 1996 the Supreme Court stated that [Tlhe word forest must be understood according to the dictionary meaning. This description covers all statutorily recognized forests, whether designated as reserved, protected or otherwise for the purpose of Section 2(i) of the Forest (Conservation) Act. The term' forests' as understood in the dictionary sense but also any area recorded as forest in the Government record irrespective of the ownership." ESPP Appendix VII. An Order issued by the Supreme Court of India in a case brought under the National Forest Policy of 1988 and Forest Conservation Act of 1990 extended the definition of "forestland" for regulatory purposes to include "any area recorded as forest in the Government record irrespective of its ownership.. .or classification thereof.. .." Cited in the Report of the National Forest Commission, MoEF, 2006, p. 44 37 For an area of less than five hectares processing and approval is the responsibility of the MoEF regional office; between five and 40 hectares the MoEF regional office is joined by its state advisory groups or other empowered committees; deforestation of areas between 40 and 100 hectares requires approval by the Forest Advisory Committee of MoEF and the Minister of Environment and Forests. For clearances of more than 100 hectares, there is an additional requirement for inspection by the MoEF regional office (ESPP)

detection and reporting of forest fires on a real time basis using satellite data. Forest fires are a significant threat to TLs in forested areas.

41. Projects located in PAS, require explicit approval from the NBWL, CEC and the Supreme Court.3s MoEF authorization is also required for construction of TLs through Conservation Reserves and Community reserves.39

42. In addition to issuing FCs, the Forest Conservation Division is responsible for implementing the Compensatory Afforestation Fund (CAF) under the authority of the National Afforestation and Eco-Development B~ard.~' . To date, 715 Forest Development Areas (FDAs) have been operationalized focusing on the rehabilitation of areas affected by shifting cultivation. In the year ending October 3 1, 2006, Rs. 109.46 crores was released to FDAs for implementation of the National Afforestation Pr~gram.~ ' Under applicable provisions of this program POWERGRID is obliged deposit an assessed compensatory Afforestation payment based on the Net Present Value of diverted land with the Department of Forest as a condition for obtaining FC.

43. For proposed TLs passing through forest areas POWERGRID regional HQ and site offices consult State Forest Departments to confirm the legal status, baseline condition and ecological importance and sensitivity of the affected forest lands. Therefore, it is important that State and regional Forest Departments have accurate Geographic Information System (GIs) data on forest conditions. Recent independent studies indicate that such data is routinely collected at the District but is not fully geared to address the information needs of integrated development planning. The desired information about the potential, capability and effectiveness of GIs technology in the analysis, mapping and management of natural resources is not readily available to the user agencies mainly owing to lack of coordination among the government departments at various levels which is not yet considered user friendly. These obstacles could be removed only interlinking school and college education with the requirements of development planning of the country and evolving low cost and more user friendly GIs technology.42

44. The National Forest Policy of 1988 envisaged a massive need-based and time bound program of afforestation with a particular emphasis on fuel wood and fodder development, on all degraded and denuded lands, whether forest or non forest. Without commenting directly on the effectiveness of the afforestation program, the fact that the Forest Survey of India indicates a modest net increase in forest net cover suggests that compensatory afforestation is making contribution to controlling the rate of deforestation in the country.

-- -

38 Communication from POWERGRID, [dated]. 39 Conservation reserves are government owned and designed lands adjoining existing PAS, which are of ecological value and can act as migration corridors, or buffer zones. Community Conservation reserves are designated areas from which communities may earn a subsistence which are located on mixed governmentlpnvate lands 40 A Supreme Court Order dated October 30,2002 requires that the government establish "an independent system of concurrent monitoring and evaluation.. ..implemented through the [CAF] to ensure effective and proper utilization of funds." Report of the National Commission, p. 45. 41 Annual Report of the Ministry of Environment and Forests, 2005-07, p. 34. 42 P. C. Tiwari, Capacity Building of Government Line Departments for Making Use of Geospatial Database in Natural Resource Management in India, 2004

45. Whenever a line passes through a forest area which has reported robust wildlife population the assessment process includes separate assessment by the Wildlife officials and specific recommendation of Chief Wildlife Warden (Highest authority in respect of wildlife in the state) and this recommendation is put before the concerned State Government for recommendatiodrejection of forest clearance by the MoEF. MoEF has also issued guidelines in this regard that also stipulates that no proposal of forest clearance shall be entertained if specific recommendation of Chief Wildlife Warden is not annexed with the proposal for an area that is designated to be rich in wildlife population.

46. The Wildlife Wing (WW) of MoEF is headed by the Director, Wildlife Preservation (also designated as the Additional Director General of Forests (Wildlife). The WW has three Divisions, of which the Wildlife Division, headed by an officer designated as an Inspector General of Forests, is authorized to advise the Forest Conservation Division on wildlife issues in connection with applications for FC. The Director, Wildlife Preservation (WP) is assisted by four regional subordinate offices each headed by a Regional Deputy D i r e ~ t o r . ~ ~ The WW of MoEF is also responsible for issuing clearances for projects located in forest and non-forest Protected Areas. PAS account for approximately five percent the total land area and include 95 national parks and more than 500 Wildlife Sanctuaries corresponding (including 28 Tiger Reserves) as well as 14 Biosphere Reserves of which four have international status under UNESCO.~~ With a few exceptions, PAS in India are not intact ecosystems; almost all have human habitations in or around them and more than 45 percent are fragmented by various forms of public access roads. An estimated 40 percent are subject to effects of traditional livestock grazing, and the extraction of timber, and fodder and other non-timber forest products.

47. Support for an "ecodevelopment" approach to the conservation of protected areas emerged in India in the 1990's as a response to the failures of the traditional "protectiodexclusion" system of wildlife management, with the aim of accommodating the welfare and behavior of local people and integrating these concerns into the management of PAS. Under the auspices of the National Wildlife Action Plan (1983), the Environmental Action Plan (1993) and the GoI's support for the 1993 Convention on Biodiversity, the Go1 increasingly broadened efforts to enhance community participation. The Eighth Five-year Plan (1992-97) incorporated the ecodevelopment approach and it has since become central to promoting wildlife management throughout India. Bank support of the Ecodevelopment Project approved in 1996 and implemented through 2002 was accompanied by a marked improvement in the capacity of central and state PA management authorities. 45

48. Despite the internationally recognized capacity of the Wildlife Institute of India (WII) established in 1982, which trains wildlife managers from throughout the South Asia region, the majority of PPAs in the country are managed by personnel laclung basic training in wildlife management. As part of the Tenth Five Year Plan a number of initiatives are underway to strengthen the capacity of the Wildlife Division. These include ten ongoing research projects dealing with applied wildlife conservation undertaken primarily by academic and civil society organization^.^^

43 Report of the National Forest Commission, p. 1 13. 44 Report of the National Forest Commission, and MoEF website. 45 Independent Evaluation Group, Project Performance Assessment Report, India, Ecodevelopment Project, June 26,2007. 46 Report of the National Forest Commission, p. 1 18-1 20.

49. On the State level concerned agencies include the Forest Department of each State with respect to the processing of Forest Clearances and the State Pollution Control Boards with respect to the Management of Hazardous Wastes, specifically used mineral oil, and used batteries. The institutional capacity of these state authorities is highly variable fiom state to state.

50. Social Regulatory Authorities. With respect to social impacts, in particular land acquisition, resettlement and rehabilitation (R&R) for project-affected families, authority resides primarily at the State and local levels.

5 1. With respect to land acquisition for the construction of sub-stations, four state-level agencies participate in the basic structure of land administration: 47

(1) The Land Revenue Department maintains the textual database for land records as well as tax registers;

(2) The Survey and Settlement Department is responsible for maintaining spatial data, mapping and .demarcating boundaries, and executing surveys on demand;

(3) The Department of Stamps and Registration is responsible for registering deeds and for collecting stamp duty due on transactions; and

(4) Municipal corporations or Panchayats maintain a property tax register and in some cases also maps, layout plans or city surveys outside of apcultural areas

52. Of the four agencies, the Land Revenue Department is the key institution, with considerable field presence dating back to pre-independence. At the District level its functions are overseen by the District Collector who is the key counterpart for POWERGRID in all land transactions as well as R&R. However, due to the gradual decline in the importance of land revenue as a source of government income (fiom 30% in the late 1950s to less than 2% in the late 1980s, the state Revenue Departments have been burdened with other mandates unrelated to land administration.

53. The Minishy of Rural Development (MRD) is the responsible authority for all development projects involving displacement of 500 or more families in plain areas or 250 or more families in hilly areas. MRD is responsible, through the offices of the R&R Commissioner and Administrator for R&R Planning and Implementation for implementing the National Policy on Resettlement and Rehabilitation of Project Affect Families, issued in 2004. In addition, there are state agencies responsible for the implementation of state laws and policies on R&R, specifically for the States of Maharashtra, Madhya Pradesh, and Orissa. With respect to land acquisition, which is required in the case of sub-stations, though not transmission lines (TLs), POWERGRID is obliged to apply for authorization to the state District Collector under the Terms of the Land Acquisition Act of 1894 and the DC plays a significant role in allocating and disbursing compensation to project affected families.

54. Of the four agencies, responsible for land acquisition the Land Revenue Department is the key institution, with considerable field presence dating back to pre- independence. At the District level its functions are overseen by the District Collector who is the key counterpart for POWERGRID in all land transactions as well as R&R. However, due to the gradual decline in the importance of land revenue as a source of government

47 World Bank, India: Land Policies for Growth and Poverty Reduction, Agriculture and Rural Development Sector Unit, South Asia Region, July 9, 2007.

income (from 30% in the late 1950s to less than 2% in the late 1980s, the state Revenue Departments have been burdened with other mandates welated to land administration. The expanded mandate of the Revenue Department, noted above, has resulted in a growing gap between demand for public services and'the Department's ability to meet the demand in a timely manner. This has had the effect of increasing the costs for routine transactions such as copies of Records of Rights which is equivalent to a land title in India and to discretionary and sometimes corrupt behavior on the part of local revenue officials.48 The Bank's report recommends that in addition to promoting the adoption of modem digitized technological tools for use by the Revenue Department that expanding the number of trained surveyors is necessary for the Survey and Settlement Department. Based on pilot projects, it appears that this objective can be accomplished at little cost through technical training of village youth with the collaboration of self-help groups.

55. With respect to projects affecting Indigenous Peoples, per the requirements of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of the Rights) Act of 2006 the responsible governmental authority resides at the State level in State Level Monitoring Committees and at the District and Sub-divisional level Committees to be established under the Act under the ultimate authority of the central Ministry of Tribal Affairs. The committees are to include representatives of the Departments of Revenue, Forest and Tribal Affairs of the State governments. In addition, where applicable, the Ministry of Panchayats, the authority for implementation of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA) have authority for specified impacts of projects on Indigenous Peoples to the extent that PESA is applicable.

9. Assessment of PO WERGRID's Institutional Capacity to Implement Its Safeguard Systems

56. Power Grid Corporation of India Limited was incorporated in October 1989 to transmit power generated from the Central Power Stations and surplus electricity from the State Electricity Boards to region Load Centers, thus establishing regional and national power gnds. As of 2005, POWERGRID provides approximately 48,000 circuit kilometers of alternating current (AC) transmission lines and a high voltage direct current transmission system, with a total installed capacity of 46,500 MVA distributed over 82 substations, making it one of the largest power transmission corporations in the world.49

57. POWERGRID has developed its corporate Environmental and Social Policy and Procedures (ESPP) to address the environmental and socio-economic issues arising from its activities, based on the principles of avoidance, minimization and mitigation." Initially developed in 1998, the ESPP was benchmarked to then-prevailing Indian regulatory standards supplemented by an analysis of the priority issue in the power transmission sector consistent with the operational directives of multilateral fbnding agencies that provide financial and technical support to POWERGRID'S physical and institutional infrastructure development. The ESPP was revised beginning in 2004 and reissued in March 2005 based on extensive consultations with a broad range of stakeholders including project affected persons and local communities engaged through national and regional level consultations as

48 Land Policies for Growth and Poverty Reduction, op cit., pp. 8-9 49 POWERGRID, Environmental and Social Policy and Procedures, March 2005Executive Surnrnary,E- 1

Ibid.

well as the World Bank, the Asian Development Bank and the Japan Bank for International Cooperation.

58 . The substance of the ESPP as a mandated policy of POWERGRID, in terms of its relationshp with Indian policy, law and regulations that apply to POWERGRID7s activities under the PSDP N project as well as World Bank Operational Policy 4.00, Table Al, is fully analyzed in the Equivalence Analysis (Part I) of this SDR. This section of the SDR will assess POWERGRID'S institutional capacity to implement the ESPP, including the provisions of Indian law that are referenced in the ESPP or that otherwise apply to POWERGRID.

59. Although it is a corporation of the Government of India, and hence a parastatal entity the corporate and structure of POWERGRID, is conducive the use of benchmarks that are used to assess the capacity and performance of private sector corporations in assessing and managing the environmental and social impacts of their activities. Such benchmarks have been developed by the International Finance Corporation (IFC) of the World Bank Group with support from other agencies within the World Bank Group including IBRD. These include the IFC Performance Standards (PS), corresponding Guidance Notes (GN) and related Environmental, Health and Safety Guidelines (EHS ~uidelines)," In addition to the IFC and the World Bank's Multilateral Investment Guaranty Agency, the PS, GN and EHS Guidelines are used by the 62 financial institutions, mostly commercial banks, which have adhered to the Equator ~ r i n c i ~ l e s . ~ ~

60. The premier tool developed by IFC for this purpose is the PSI on Social and Environmental Assessment and Management Systems (PS 1). PS 1 is designed to incorporate the major elements of World Bank OP 4.01 on Environmental Assessment with a more integrated approach to incorporating social impacts into the EA process and a targeted focus on corporate rather than government clients. Each of the PS is supplemented by a detailed GN. While the PS are designed to be applied to projects in mandatory fashion, the GNs serve as guide to best practices for the clients' implementation of each corresponding PS .

61. Annexes 6 and 7 of this report provide a comparison of POWERGRID's ESPP with the requirements of PS 1 with respect to POWERGRID'S social and environmental management systems (Annex 6), and its processes and procedure for community engagement, public consultation and disclosure (Annex 7) as set forth in the ESPP. Annex 8 of this report provides a comparison of POWERGRID'S environmental, health and safety practices (including occupational health and safety) as described in the ESPP and in its standard operating procedures with the standards set forth in the EHS Guideline on Electric Transmission and ~istribution.'~ In all cases, there is substantial consistency between POWERGRID's practices and the requirements and guidance contained in PS 1 and the EHS Guideline.

51 The IFC PS, GNs and the WBG EHS Guidelines can be accessed at http://www.ifc.org/ifcext/sustainability.nsf/Content/EnvSocStandards 52 http://www.equator-principles.com/index.shtml 53

10. PO WERGRID 's Social and Environmental Management System

62. International Certifications. GN 1 notes that while certified systems are likely to meet FC ' s requirements, such certification is not required by Performance Standard 1, nor do they eliminate the need for IFC7s due diligence of the elements of the system required by Performance Standard 1.

63. In this connection, it is to be noted that POWERGRID has the distinction of being the first power company in India to be certified as having an Integrated Management System comprising International Standards Organization (ISO) 9001 for Quality Management, and IS0 14001 for Environmental Management, OHSAS 1800 1 for Occupational Health and Safety. These certifications were provided by an independent IS0 accredited audit company, the British Standards Institute (BSI) which audits POWERGRID on a regular basis. In its most recent audit, conducted in March 2007, BSI found no nonconfomities with the standards required for certification but made several recommendations to POWERGRID on ways to improve data analysis with respect to environmental impacts and occupational health and safety; risk analysis for projects in the implementation phase; compliance with energy saving procedures; and training effectiveness e~a lua t ion .~~

64. In addition, POWERGRID has also been certified for SA 8000:2001 for Social Accountability by Social Accountability Internati~nal;~ based, among other things on POWERGRID'S respect to fundamental labor rights, including freedom of association, the right to bargain collectively, freedom from discrimination, forced and child labor and acceptable worlung conditions. POWERGRID is progressively extending the IMS to its regional offices for which three have already been included.

65. Organizational Structure. POWERGRID Operations are divided into nine regions, each of which consists of several site offices to oversee construction of transmission projects and maintenance of TLs and substations. Each site office reports to a regional HQ (RHQ). RHQs have overall responsibility for construction, operation and maintenance of transmission systems.

66. POWERGRID recognizes that ESPP implementation requires an organization support structure in the form of organizational requirements, training needs and plan and information management systems. Accordingly, a detailed organizational structure has been developed at the corporate, regional and site level to support effective implementation of the ESPP? The organizational structure at the corporate, RHQ and site levels are illustrated in Annex 5.

67. A responsibility allocation matrix has been developed to capture the project activities, environmental and social management processes, key indicators to monitor progress, roles, and responsibilities of various stakeholders at different levels and involvement of external agencies. (See Figure 1, p. 34) POWERGRID recognizes the need for enhancing current capacity of environmental and social management and has agreed to

54 BSI report, Power Grid Corporation of India, Ltd. March 26,2007, provided by POWERGRID 55 PAD, PSDP IV para.43. 56 ESPP, Section 6.0 Institutional Framework

strengthen this arrangement by ensuring timely replacement of outgoing staff and recruitment of new staff, as needed.57

68. ESPP Review Committee. An Advisory Committee of Eminent Experts on Environment and Rehabilitation was established in 2003 to review the 1998 ESPP and oversee implementation of the ESPP at the site level. As part of the 2005 ESPP the ESPP RC was institutionalized as the ESPP Review Committee (ESPP RC) with the mandate of provide policy advice to the Managing Director for Corporate Policy and ESMD and for conducting independent monitoring of projects.58 Members of the ESPP RC are drawn primarily from academia and non-governmental organizations. 59

11. Human Resource Capacity, Training and Development

69. POWERGRID is committed to "maintaining high standards of human resource development of staff, contractors and others associated with POWERGRID meeting . . .national requirements and conform to . . .international n o r r n ~ . " ~

70. Human Resources Capacity. At the corporate level, the ESMD structure has been implemented generally as anticipated with individuals having extensive training and experience in critical aspects of environmental and social management, including environmental engineering, community and occupational health and safety forest and natural habitat preservation, land acquisition, resettlement and rehabilitation.

71. POWERGRID ESMD HQ staff have Doctorates in Botany and Social Science (Resettlement and Rehabilitation); an M.Sc. in Geology, and an MA in Sociology and Law, an unusual collective commitment for an engineering company. These and other senior management officials also have specialized training in remote sensing applications in forestry and ecology, water resource management, resettlement and rehabilitation, industry and environmental protection, internal auditing, environmental and social management 6' However, between October 2007 and July 2008, two retirements from ESMD reduced the number of experienced environmental and social specialists from peak levels.

72. Additional expertise is contracted at the corporate level from universities and research institutes as required when specialized issues arise such as impacts on scheduled tribes and other Indigenous Peoples

57 PAD, PSDP IV. Para 39. 58 TOR for RC [clarify citation]. Two field reports of the ESPP RC were made available to the SDR team and are included in the review of project outcomes, below. 59 Mr. Sarnar Singh,(IAS) Former Secretary General, WWF & Chairman, ESPP; Mr. S. K. Pande,(IFS) Former DG & Spl. Secretary/MoEF/GoI; Dr. Ramesh Subramanian Kodamudi (former professor ASCI) specialist in RIR; Prof. P. Modak (former professor IIT, Bombay) nominated by WB; a representative of ADB; Mr. Bharat Bhusan, Associate Professor (Env. Planning) & Director, Centre for Environment and Development, YASHADA, Govt. Of Maharashtra, Pune; Dr. P. K. Shetty, Non-official Part-time Director of POWERGRID Board of Directors'. 60 ESPP Executive Summary p. 2 61 According to information provided by POWERGRID, all IEARs and FEARS prepared to date have been completed by POWERGRID staff. Some specialized activities such as route alignment surveys using GISIGPS are being outsourced under ESMD supervision. Specialized agencies such as the Xavier Institute for Social Study (Jaipur) and CMSR (Hyderabad) have participated in the preparation of Baseline Socio-economic surveys and RAPS. POWERGRID Communications, January 7, and July 25, 2008.

73. By mid-2000 POWERGRID had appointed senior officers at the rank of deputy general manager or chief manager at each of its regional headquarters to monitor the assessment of environmental and social impacts and implementation of mitigation measure^.^' Although these mangers have been trained in ESPP requirements and implementation procedures, their education and primary training are entirely in civil and electrical engneering as are their responsibilities 63

74. There appears to be some reluctance on the part of POWERGRID Management to fill environmental and social positions at regonal HQ and project sites with permanent employees. The prevailing view is that since the vast majority of environmental and social impacts from electrical transmission that these issues should be handled by short-term consultants engaged by POWERGRID for specific projects, as remains the current practice. Also, POWERGRID has expressed difficulty in identifying qualified environmental and social specialists who would fit into POWERGRID'S corporate culture, which is filled primarily with engineers and other operationally-oriented personnel.

75. Given the large and growing portfolio of POWERGRID projects, and the Government's intention to bring electrification to remote rural areas throughout India in the coming decades, there is an increased likelihood that POWERGRID will be less able to avoid ecologically sensitive areas, physical resettlement of population and intervention in tribally dominant areas in the years ahead. In addition, POWERGRID has recently been approached for technical assistance, including for environmental and social management, by several state electrical transmission companies For these reasons POWERGRID will need to recruit additional dedicated staff to manage the implementation of the ESPP at both HQ and regional levels. POWERGRID recognizes the need for enhancing current capacity of environmental and social management and has agreed to strengthen this arrangement by ensuring timely replacement of outgoing staff and recruitment of new staff, as needed."

76. Training and Development. PS 1 requires that the client will train employees and contractors with direct responsibility for activities relevant to the project's social and environmental performance so that they have the knowledge and skills necessary to perform their work, including current knowledge of the host country's regulatory requirements and the applicable requirements the applicable PS. Training will also address the specific measures and actions required under the management program, including the Action Plan, and the methods required to perform the action items in a competent and efficient manner.

77. POWERGRID'S Training and Development Program. According to the ESPP, training and development of employees is an integral part of ESPP implementation. Based on a training needs assessment, conducted at regional, corporate and site levels, focused training modules have been developed for:

Strengthening in house corporate level capacity to implement ESPP provisions;

Creating awareness, providing the tools for implementation of the ESPP and associated management procedures in all departments; and

62 ADB, Completion Report, India: Power Transmission (Sector) Project (Project Number: 24273, Loan Number: 1405,) September 2005. 63 POWERGRID Communication, January 7, 2008. " PAD, PSDP IV. Para 39.

Developing competence within key employees to provide training in their respective departments.

78. As of the close of the PSDP I1 project, POWERGRID had trained more than 400 officials in ESPP implementation during the five years following adoption of the first ESPP in 1998. In addition 85 Executive trainees were selected every year, over there years for ESPP orientation. Trainee shlls and effectiveness are assessed at the end of each program. Selected officials are nominated to attend World Bank sponsored training in R&R and four POWERGRID officials have been deputed to the Association for Overseas Technical Scholarship in Japan for training in i environmental management.

79. Following the adoption the revised ESPP in 2005 POWERGRID accelerated its training schedule and conducted training in each of the then six regions. Accordingly, a training program was developed based on the ESPP and related requirements to be implemented by POWERGRID'S Human Resource Department in 2005-2007. The program was to be conducted with the help of local and national training institutions and experts in various aspects of environmental and social management. In addition, employees have been sent for training at premier institutions in India.65

B. PROCESSES AND PROCEDURES

80. The performance standards, in particular PS 1, set forth a number of key procedural elements of an effective SEMS. For purposes of project development and implementation, PS 1 requires that clients conduct a Social and Environmental Impact Assessment (SEIA) for each proposed project.66 While the scale and scope of SEIA can vary depending on the nature, scale and location of the PS requires in all case that the client engage project affected communities in public consultation and disclosure for all project^.^'

65 Institutions involved in providing this training include the Engineering Staff College of India and he Administrative Staff College of India (Hyderabad); the Indian Institute of Remote Sensing (Dehradrun); Indian Institute of Management (Bangalore); Utkal University (Orissa); Kuruskhetra University (Haryana); Forest Research Institute (Bhopa1);iDehradun); and the Wildlife Institute (Dehradrun). POWERGRID Communication, January 7,2008. 66 PS 1, Para. "The client will conduct a process of Social and Environmental Assessment that will consider in an integrated manner the potential social and environmental (including labor, health, and safety) risks and impacts of the project. The Assessment process will be based on current information, including an accurate project description, and appropriate social and environmental baseline data.. .." 67 Depending on the type of project and the nature and magnitude of its risks and impacts, the Assessment may comprise a hll-scale social and environmental impact assessment, a limited or focused environmental or social assessment, or straightforward application of environmental siting, pollution standards, design criteria, or construction standards.. .. The types of issues, risks and impacts to be assessed, and the scope of the community engagement ... can also vary considerably, depending on the nature of the project, and its size, location, and stage of development. 68 IFC, GN 1, para. G7: "Community engagement is an important process element in managing social and environmental impacts and risks, and is specifically included in paragraphs 19 through 23 of Perfonnance Standard 1 .Community engagement normally involves the disclosure of information, consultation with affected communities (see guidance under paragraph G15 on Stakeholder Identification), and the establishment of a grievance mechanism. Community engagement should occur as an integral part of the Assessment and, in the case of projects that have significant impacts on communities, will normally continue on an ongoing basis during the life of a project."

1. Assessment of PO WERGRID's Processes and Procedures for Social and Environmental Assessment

81. The critical elements of an acceptable social and environmental impact assessment (SEIA), are set forth in Table A1 of OP 4.00 with respect to the applicable safeguards of Environmental Assessments (EA), Involuntary Resettlement and Indigenous Peoples. The applicable requirements of Indian law and POWERGRID's ESPP are analyzed and compared to the corresponding requirements of OP 4.00 Table A1 in the Equivalence Section of this report, along with the extent that such requirements are relevant to the PSDP IV project.

82. These critical elements are referenced in the corresponding IFC performance standards. PS 1 recognizes that the processes and procedures followed by corporate clients in conducting SEIA will vary based on the clients' corporate structure and resources. Therefore, PS 1 is not highly prescriptive in outlining an acceptable process for conducting SEIA. POWERGRID'S processes and procedures for conducting environmental and social assessment and management are thoroughly documented in the ESPP including site selection using environmental and social impact alternatives analysis, ROW and substation design criteria, social impact assessment, the land acquisition process, social entitlement framework development, 69 and the integration of these activities into the project cycle and government approvals proce~s. '~

83. POWERGRID'S environmental assessment process for TLs involves one to two stages, depending on whether the TL transects designated forest reserves or sensitive habitats. During the first stage, POWERGRID prepares an Initial Environmental Assessment Report (IEAR) based on available GIs surveys, complemented with public consultation and ground survey to identify reserved forests, wildlife sanctuaries, national parks, and other protected areas and sensitive receptors, including physical cultural resources. These are itemized in the EAR, and generate an Environmental Management Plan (EMP), including budget provisions for implementation.

84. If the proposed route is found to transect any of the above-cited ecologically or culturally sensitive areas or receptors, POWERGRID submits a detailed proposal in a prescribed format to the representative of the State Forest Department, who when forwards the details to the concerned Division Forest Officer (DFO) of MoEF for formulation of the proposal for Forest Clearance (FC) under the Forest Conservation Act. The proposal is required to include a map showing the required forest land and boundary of adjoining forest on a 1:50,000 scale map; and the justification for locating the project in a forest area The DFO surveys each of the selected alternative route proposed for construction of the TL. Forest authorities also conduct a cost-benefit analysis to assess the loss of forest product and other environmental impacts.

85. The more detailed proposal prepared by the Deputy Conservator of Forests is based on a site inspection and identifies the forest division; the areas of forest land proposed for diversion (in ha.); the legal status of the forest (i.e., protected or reserved); the density of vegetation; the species-wise and diameter class-wise enumeration of trees; the vulnerability

69 ESPP, Section 5.0 describes POWERGRID's Environmental and Social Management Procedures in a detailed narrative and schematic format. 'O ESPP Section 3.0 describes the POWERGRID Project Cycle in a detailed narrative and schematic format

of the forest areas to erosion; the approximate distance of the proposed site from the forest boundary; whether the diverted areas form s part of a National Park, Wildlife Sanctuary; Biosphere Reserve, Tiger Reserve, or elephant corridor; whether any rare, endangered, unique species of flora or fauna are found in the areas (and if so, details thereof) and whether any protected archeologicaVheritage~ siteldefense establishment or any other important monument is located in the area. The proposal also requires the DFO to ascertain whether the requirement of forest land as proposed by the applicant is unavoidable and is the "barest minimum" required for the project based on details of the alternatives e~amined.~'.

86. The Forest Proposal also includes the details of any required CA scheme including:

Details of non forest arealdegraded forest area identified for compensatory afforestation, its distance from adjoining forest, number of patches, size of each patch;

Map showing non-forestldegraded forest area identified for compensatory afforestation and adjoining forest boundaries;

Detailed compensatory afforestation scheme including species to be planted;

Implementing agency, time schedule, cost structure, etc;

Total financial outlay for compensatory afforestation scheme; and

Certificates from competent authority regarding suitability of area identified for compensatory afforestation and from management point of view (To be signed by the concerned Deputy Conservator of Forests).

87. The Proposal is required to be reviewed and approved with comments from the Conservator of Forests, the Head of the Forest Department and the Secretary or Under- Secretary in charge of the State Forest Department.

88. If the survey indicates that the forest is rich in wildlife, the Chief Forest Warden also prepares a detailed assessment of each proposed alternative including measures to protect wildlife. The proposal for FC is submitted to the State Forest Department and then forwarded to the Principal Chief Conservator of Forests in each State and then to the State Secretariat. The State Secretariat recommends the proposal for further processing and approval to: (1) the Concerned Regional Office of the MoEF (RMoEF) if the area involved is 40 hectares or less or (2) to MoEF HQ if the area is more than 40 hectares.

89. The MoEF approves the proposal in two stages. First stage approval is accorded with certain conditions depending on the case. Second stage, or final approval, is accorded by MoEF after receiving the compliance report from the State G~vernment .~~ Under MoEF Notification of.3.2.04, specific time limits have been set for processing of FC applications. A total of 210 days is allocated for the State government to process and forward its recommendations to the Regional Office of the MoEF. For forest areas up to 40 hectares,

71 ESPP Appendix IV. 72 ESPP, Section 2.1.2.C

RMoEF has 45 days for approval and 90 days for areas of more than 40 If MoEF fails to meet these time limits the application is presumed to be approved by default.

90. Theses processes and procedures are presented in a clear, logical and transparent manner and appear to be thoroughly implemented in projects reviewed for this assessment, including projects undertaken by POWERGRID without World Bank or other donor funding. (See Section C, below) In practice, the FC process appears to function in an effective and efficient manner; with respect to the PSDP 11 POWERGRID report that of 250 FCs obtained from MoEF, not a single TL was delayed.74

91. The results of the government clearances, including details of all applicable permit conditions are incorporated into a second stage of environmental documentation along with additional implementation requirements in the form of a Final Environmental Assessment Report (FEAR). Although the FEAR is not formally part of the ESPP, it is referenced as an outstanding deliverable in Bank supervision documents for PSDP III. The FEAR is described in the PAD for PSDP IV as incorporating "site specific minor changes before commencing actual scheme implementation and requirements for compliance with conditions of clearances, including forestry clearances accorded by [MoEF]. Under PSDP IV, FEARS that provide evidence of compliance with the implementation of EMPs developed in the EARS, regulatory clearances and other environmental management initiatives are expected to be available for all TLs by December 2008."~~ Elsewhere, the FEAR is described as "evidence of compliance with Environmental Management Plan (EMP, statutory clearances and other detailed of environmental management."76

92. Section C of this Acceptability Assessment includes a critical assessment of the content of format of EARS and FEARS produced by POWERGRID under PSDP III and IV.

2. Assessment of PO WERGRID's Processes and Procedures for Land Acquisition, Rehabilitation and Compensation.

93. Although the construction of TLs and SS do not involve the displacement of sufficient numbers of families to trigger the 2004 National Policy on Resettlement and Rehabilitation (R&R),~~ POWERGRID has adopted the entitlement benefits specified in the national R&R policy in its "Social Entitlement Framework," (SEF) that is implemented wherever land acquisition for sub-stations is undertaken. In addition, POWERGRID strictly follows the procedures set forth in the Land Acquisition Act (LAA) which specifies that in all cases of land acquisition, no award of land can be made by the govern authorities until compensation has been paid. The specific procedures followed by POWERGRID for land acquisition, and R&R are designed to support this requirement along with POWERGRID'S own SEF and public consultation process.

73 ESPP Appendix I1 74 POWERGRID, ICR Data Sheet on Environmental and Social Aspects of PSDP 11. 75 PAD, PSDP IV, paras. 44 (a) and 46. 76 Draft Aide-Memoire, "INDIA - Power System Development Project- 111 (PSDP 1II)l Ln. 4813-IN Implementation Supervision Mission and TNDIA- Fourth Power System Development Project (PSDP IV) Appraisal Mission," January 2008, para. 10 77 The National Policy on R&R applies to all development projects involving displacement of 500 or more families in lowlands and 250 or more families in upland areas. ESPP Section 2.5.1.

94. Where construction of SS and TLs involves limited land acquisition, the SEF provides guidance on procedures to be followed in minimize IR where feasible, explore all viable alternative project designs; and assist displaced persons in improving their former living standards, income earning capacity and production levels, or at least in restoring them; encourage community participation in planning and implementing rehabilitation; and provide assistance to affected people regardless of the legal status of their land titles.

3. Assessment of PO WERGRID's Processes and Procedures for Community Engagement, Public Consultation and Disclosure

95. POWERGRID'S operating processes and procedures are consistent with the requirements of PS 1 with respect to community engagement, public consultation, disclosure, grievance procedures, monitoring and reporting (both internal and external). This is detailed in Annex 6. This has required considerable Management attention following adoption of the initial ESPP in 1998 and again following the revision of the ESPP in 2005. On both occasions, POWERGRID acknowledged. Initial reluctance on the part of field staff to engage in public consultation on a continuing basis through project implementation. The only continuing inconsistencies withPS 1 are the following:

POWERGRID does not publicly disclose the content of periodic reports prepared by its Committee of External Experts on individual projects; and

POWERGRID does not systematically document specific actions taken in response to public consultations.

96. POWERGRID is currently undertahng to develop an annual Environmental and Social Sustainability Report to be prepared by an independent professional agency to create a platform for greater transparency in pursuing its environmental and social development agenda.78

4. Integration of Environmental and Social Impact Assessment and Man agemen t with Project Implementation

97. During project design, ESMD obtains the approval of the Engineering Department for its proposed environmental and social requirements as these apply to tower and TL design and associated civil works. During project implementation, execution of the EMP and RAPITPDP are closely integrated with other project activities through mechanisms designed to ensure, for example that construction activities are not initiated until affected people are hlly compensated for their losses.79

78 PAD, PSDP IV, para. 44 79 PAD, PSDP IV,

The integration of the ESPP into the Project Cycle is illustrated in the following diagram?'

FIG- 1: ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURE

PROJECT CONCEP~VAUAIION U I----------------

: Env. & Social ! Screening Ucport : ,as part of Feasihilily

I - --------------:

- - - - - - - - - - - - - - - - - - - - - - - Detailed Survey for Baseline \ r ~ N v I n o N M m r a \

Infornation SOCIAL SCWEJ~INCAND A- - Finalise optimal route SCOPMC FOR - Select Optional Sub Station Site SUBSTAllONS

.L I I

. . . . . . . . . . . . . . . . . . . . . . . 'If rcqured

ESPP

5. Assessment of PO WERGRID's Processes and Procedures for Project Monitoring

98. According to the ESPP Regional HQ undertakes monitoring of the EAMP through regular patrolling of the ROW. Substations are monitored on a daily basis through construction and operations

99. A critical component of effective environmental management and monitoring is the delegation of responsibility for implementation of environmental requirements to contractors who cany out construction of physical infrastructure, including TLs and SS. To this end, environmental and social impact requirements must be clearly communicated to contractors (and subcontractors) and included in terms of reference to which they are held accountable. Mechanisms are required to permit POWERGRID to monitor the actions of contractors in the field and to exercise recourse where necessary to correct mistakes

100. All contracts are awarded to contractors through a competitive bidding process. Project execution is always supervised by the concerned region and site. As far as implementation of EMP and health and safety procedures, provisions are included in the contract document and are monitored regularly by the concerned site & RHQ and periodically by the OS (Operation service at CC) & ESMD. The EMP implementation is monitored by the designated Nodal Officer Environment & Social management as well as site people. Health and safety are monitored by a designated Safety Officer who is posted at each regional HQ. As a deterrent or to minimize accidents during construction a provision in the contract has been added that stipulates a finelpenalty of Rs.10 lakhs for each accidental death and Rsl.0 lakhteach for any injury and is deducted from the contractor's payment and paid to the deceasedlaffected family, in case of occurrence.

101. In addition, the TOR for the ESPP RC includes discussing and analyzing case studies of Environmental and Social Assessment practice and review cases where :implementation has gone well/less successfulldelayed or otherwise and advise on measures to be undertaken to attain better outcome^."^' Accordingly the ESPP RC undertook site visits to three SS in the states of Andhra Pradesh, Karnataka and Tamil Nadu in 2006. However, it appears that the RC has not been active in the field since that time.

102. Monthly Environmental and Social Development Reports are produced by POWERGRID at the corporate level with input from each of the nine regions. The report provides details on clearances granted and pending from the MoEF in connection with Forest Clearance including details of the affected forest area, survey, compensatory afforestation payments, land acquisition, RAP implementation and other development and social welfare measures for discrete TL segments and SS. The report also includes data on the disposition of used batteries and insulation oils.82 POWERGRID also prepares an annual internal environmental and social report as part of its Integrated Management System

POWERGRID TOR for ESPP RC, April 2004 82 See for example, POWERGRID, Environmental and Social Development Report, November 2007.

103. POWERGRID'S environmental and social management system refers to several outputs that correspond to documents required to meet the Operational Principles of OP 4.00 Table A1 and for submission to government permitting authorities.

a Initial and Final Environmental Impact Assessment Report (IEAR)

Final Environmental Assessment Report (FEAR)

a Environmental Assessment and Management Plan (EAMP)

a Additional Environmental Documentation

a Rehabilitation Action Plan (RAP

a Tribal Peoples Development Plan (TPDP)

a Monthly and Annual Environmental and Social Monitoring Reports

104. The Equivalence Analysis concluded that POWERGRID's documentation is strongly equivalent to the documentation requirements of OP. 4.00 Table Al:

105. The following section of this assessment is based on a review of a sample of reports prepared under the 2005 ESPP as part of the PSDP 111 project and seeks to assess the extent to which actual documentation conform with POWERGRID's own requirements as set forth in the ESPP. The sample of projects reviewed includes projects hnded by the World Bank, other development partners (ADB and JBIC) as well as projects supported by POWERGRID without the involvement of development partners.

I . IEAR

106. In practice, the IEAR incorporates the requirements of both the IEAR and portions of the EAMPU3, as it related to environmental mitigation and monitoring. POWERGRID undertakes environmental and social assessment as a two-stage process during the project development cycle. At project conceptualization as environmental and social issues are identified through a formal screening and scoping process. Based on the Feasibility Report, POWERGRID begins project planning including a detailed desk ("Bee-Line") survey using Survey of India topographic sheets and the Forest Atlas. Based on this data ESMD identifies environmentally sensitive areas including forests, wetlands, mountains, critical wildlife habitat and geologically sensitive areas and examines alternative route options. Field units then conduct spot verifications to confirm Bee-Line survey data and investigates the possibilities of circumventing environmentally sensitive areas. For route alternatives transecting forest areas RHQ and site offices consult state forest departments for their input. On the basis of this information, ESMD prepares the IEAR. The IEAR is normally prepared entirely in-house.

- - - - - --

83 Other aspects of the EAMP, as described in the ESPP appear to be addressed through the documentation submitted to State and MoEF in support of the required Proposal for Forest Clearance.

107. Quality Review of IEARs and Environmental Management Plans. Five EARs for new TLs or upgrades to existing TLs produced for the Third PSDP project under the ESPP were reviewed to ascertain the consistency of the actual EARS with the contents as prescribed in the ESPP and to assess the quality of the data and analytical work produced by POWERGRJD. To obtain a broader and more objective perspective on the robustness of POWERGIRD IEAR process, three of the EARs reviewed were for World Bank-funded components of the Third PSDP project.84 The fourth was for a component funded by ADB" and the third for a component funded by POWERGRID without the involvement of an external development partner.86

108. The ESPP specifies that the EAR include seven components, which are described in an annotated outline The required components include project description; base line data; policy, legal and regulatory framework; route selection; screening of potential environmental impact, evaluation of mitigation measures; and ,monitoring and organization support structure. (See Annex XXX for the complete annotated outline). Required annexes to the EAR include a topographic map designating routing alternatives, public consultation details and other supporting documents.

109. This format was followed rigorously and consistently in the three World Bank- supported components with the exception of maps and other image-based documents that were not included in the documentation, but rather posted separately on POWERGRID7s website. The format used for the ADB-supported component differed somewhat in that the description of the policy, legal and regulatory framework was very concise and placed in an Appendix rather than in the main text. As this project component did not involve the development of any new ROW, there was no alternatives analysis. The environmental management plan was presented largely in matrix rather than narrative format. No image- based attachments were included. For the self-funded project component the format was similar to the IEAR format but more concise, contained no information on public consultation and included no image-based documents.

110. In terms of content, the EARS are most robust in relation to the requirements of the ESPP with respect to project description, policy, legal and regulatory framework (including references to the applicable policies of external funding agencies); analysis of routing alternatives; identification of potential impacts, avoidance and mitigation measures for the selected alternative. The treatment of baseline information; management and monitoring and public consultation show room for improvement relative the requirements of the ESPP. The section on baseline information in the text tends to be encyclopedic in scope but is overly generic, referencing information on the ecology and social conditions of the general region (often at the state level) rather than the specific area or areas being considered for routing the TL. Additional, more site specific baseline information is provided in the discussion of each potential route alternative (typically three are compared) but in this instance the information tends to be very selective and focused on those baseline conditions

84 IEARs were reviewed for the Balia-Bhiwadi TL (Uttar Pradesh, Haryana and Rajasthan); the Seoni-Bina TL (Madhya Pradesh) and the Seoni-Wardha-Akola-Aurangabad TL (Madhya Pradesh and Maharashtra) 85 First component of the transmission system investment program for the North Region submitted by POWERGRID to the ADB in involves an upgrade of a high-voltage transmission systems in the Uttarakhand-Uttar Pradesh comdor., Summary Initial Environmental Examination for India: National Power Grid Development Investment Program, Prepared by POWERGRID Corporation for the Asian Development Bank, July 2007 86 IEAR of Tala transmission line from Indo-Bhutan border to Binaguri (West Bengal).

that require project mitigation rather than the full range of natural and human receptors described at the regional level.

11 1. Alternatives assessment with respect the siting of RoWs for TLs and specific sites for SS are critical aspect of EA for electricity transmission projects. POWERGRID incorporated a robust methodology for alternatives assessment in the ESPP in 1998 and a prescribed matrix for alternatives assessment for both TLs and SS are included as Appendix XXV in the 2005 revision of the ESPP. Environmental factors taken in to account in the selection of TL RoWs include terrain, extent, type and density of forest; species of flora and fauna; and known historical and cultural monuments. Social factors considered in TL routing include proximity to towns and other densely populated areas; houses; crop and forest compensation costs; existing infrastructure such as railway crossings; and related logistical issues such as construction, operational and maintenance issues. For SS the issues considered are almost entirely social and economic consisting of the attributes of the land and near land-dependent village(s) including the amount of land required; category of land (government, private, other; agricultural economy (types of crops, cropping pattern; sources of irrigation); tree plantations type of land ownership and use (owner, tenant, lease-holder, squatter) socio-economic survey of area; number of families affected by LA; impacts on such families (land andlor home), castes of PAPS and PAFs; any loss of structure; common property resources (schools, ponds, grazing ground, religious sites, drainage facilities; and the total cost of acquiring the land.

112. This analysis if also applied to any additional infrastructure or services that might be required for construction and O&M, such as temporary or permanent access roads, and drinhng water supplies for SS. In all cases an explanation is required to justify the alternative selected. 87

113. Case studies of POWERGRID'S alternatives assessment for projects conducted prior to the 2005 revision of the ESPP indicate that this methodology was rigorously applied to IEARs undertaken for the Southern Region Transmission system financed by Asian Development Bank in 2006 In these case studies, involving seven TL segments alternative TL alignments were consistently selected based on minimum impact on forest, avoidance of densely populated areas; limited need for construction of access roads (and related crop damage). In some cases the selected alternative involved a greater length of TL and higher costs.

114. A further example is provided by the 1020 krn TL conveying power from the Tala hydropower project in Bhutan to several Indian states including West Bengal, Orissa, Bihar, Jharkhand and Sikkrm. This project component was entirely financed by the Go1 as a loan to POWERGRID and grant on behalf of the Royal Government of Bhutan and did not involve assessment, financing or supervision on the part of any international development partner such as the World Bank, ADB or JBIC. The TL consisted of six segments including a double 400 kV line from the dam site in Tala, Bhutan across the Indian border to Siliguri with onward connections to the Indian towns of Purnea, Muzaffarpur, Gorakhpur, Lucknow, Barielly, and Mandola.. For the Tala-Siliguri segment four alternatives were compared, of which two transected the Jaldapara Wildlife Sanctuary. The two other alternatives were determined to be infeasible in the first instance due to unstable terrain which was deemed unsuitable for technical and environmental reasons and in the second instance due to proximity to a tiger reserve, a reserved forest and a defense installation.

87 ESPP Appendixes XXV-XXVI.

From among the two alternatives transaction the wildlife sanctuary, POWERGRID selected an alternative involving only approved and existing1 right of way, no fresh diversion of forest, or tree felling within the wildlife sanctuary or and utilizing a special tower design, with a reduced span.

11 5. However, as noted in the Equivalence section of this report, the design alternatives considered for the Tala power evacuation project illustrated the limitations of POWERGRID's EA approach with respect to the issue of trans-boundary impacts. Each of the alternatives had different implications for connectivity on the Bhutan side of the border; however POWERGRID's analysis of alternative route alignments considered the impacts exclusively on the Indian side of the border.88

2. Environmental Action and Management Plans (EAMP) and Final Environmental Impact Assessment (FEAR)

116. The ESPP describes the EAMP as a product of the assessment and management planning process that is initiated in the early stages of project planning, following project conceptualization and prior to the application for approvals and clearances. Specifically, after the finalization of the route, and the preparation of the EA, POWERGRID formulates an EAMP which includes the forest proposal. Following certification by local authorities that the final route selected involves the minimum of forest clearance, the EAMP is submitted to MoEF as an application for FC and with an undertaking to bear the cost of compensatory afforestation on degraded forest land at double the affected land area.

1 17. In practice, preparation of the EAMP has incorporated into the FEAR. To date three FEARs has been prepared by POWERGRID, under the PSDP III project. The FEARs consists of copies of MoEF clearances for proposed interventions in forest areas and include detailed, site-specific plans and budgets for compensatory afforestation and specifies POWERGRID's financial commitments for these compensatory measures. As such, the FEARs may be considered an elaboration of the preliminary IEAR including the EMP.

118. The FEAR for the TL connecting the Seoni-Wardha-Akola-Aurangabad was reviewed. In addition to a summary of the general baseline information and alternatives assessment contained in the IEAR, the FEAR contains details:

Baseline conditions and environmental impacts for each segment of the final route.

The TOR for the detailed survey of the final route including parameters for avoidance (protected and reserved forest, major rivers, railway lines, nationallstate highways overhead electrical power and communication lines; marshy and low line areas, rivers beds, earthslip areas, productive agricultural areas; and densely populated areas).

Impacts to forests including areas, number of and condition of trees and species affected are quantitatively calculated for each segment of the line, as are river crossings, rare and endangered fauna, migratory and breeding habitat for wildlife; national parkslsanctuaries; wetland; soil erodibility; historical and cultural monuments; physical relocation of population and hindrances to public utilities.

- - -

88 Presentation made to National Board of Wild LifeMoEF for Tal-Binaguri (Siliguri) line per. POWERGRID communication.

Detailed narrative descriptions of impacts on forest areas and, encroachment into other valuable lands (in particular agricultural land).

Indirect and secondary impacts both during construction and operational are also considered including the creation of potential new access routes into previous inaccessible or poorly accessible areas, thereby accelerating forest and wildlife loss;89 interference with drainage patterns; explosion and fire hazards related to nearby oiVgas pipelines; environmental aesthetics; noise and vibration; blockage of wildlife passages.

Copies of completed application forms for the FC: Part I (submitted by POWERGRID) including a map showing the forest areas on a 1:50,000 scale; route alternatives; cost-benefit analysis;; Part II containing the observations and recommendations of the Deputy Conservator of Forests on the areas of forest land proposed for diversion and the justification thereoc the legal status of the forest; whether it forms part of a National Park, wildlife sanctuary; biosphere reserve elephant comdor, etc.; density of vegetation; vulnerability of soils to erosion; distance from the boundary of any protected or reserve forest; presence of rarelendangered unique species of flora and fauna; presence of any protected archeologicalheritage sites or any other important monument in the area.

Details of the required Compensatory Afforestation scheme (details, including map of non forest areddegraded forest area identified for CA; species to the planted, implementing agency, process, time schedule, budget and cost structure).

Specific Recommendations of the Principal Chief Conservator of Forests of the State.

Wild Life Certificate certifying that the project area is not in a national park or wild life sanctuary.

Archeological Importance Certificate, certifying that the project is not likely to affect any monument site of cultural, historical, religious, archeological or recreation importance (the latter two certificates also signed by the Deputy Conservator of Forests) along with the No Objection Certificate (NOC) signed by the Assistant Direct Department of Archeology of the District of Nagpur.

Certifications from the Deputy Conservators of Forest for the Districts of Wardha, and Nagpur that "all other alternatives have been explored and the demand for required area is the minimum demand for the forestland;" and that "No suitable alternative non-forestland is available".

Certification from the Deputy Conservators of Forest (DCF) of both Districts that construction of the project has not started in violation of the FCA, 1980.

89 In such cases, POWERGRID notes that "POWERGRID staff will report to the Forest Department any noticeable encroachment induced by the Project.. .POWERGRID cannot take action itself, but local Forest Department personnel will normally assess the dangers and take appropriate action, such as establishing guard stations, etc [the] cost of which is borne by POWERGRID and is included in the Compensatory Afforestation scheme." FEAR Seoni-Wardha-Akola-Aurangabad

Certification from the DCFs that the project is located more than 10 kms, from the boundary of a protected area (National Park or Sanctuary).

Certification from the DCFs that any land to be acquired does not contain any temple, "masgue," burial land or other religious place.

Joint Inspection Report of the District Forest Officer and the Range Forest Officer including details of the forest type and flora of existing crops with botanical names of species; fauna including population and distribution; gene sanctuary; National Park or reserve; other aspects of importance (historical/archeological; anthropological; religious; and geological); and any other remarks regarding the sensitivity of the area.

Forest Clearance Letter from MoEF containing conditions for approval including:

- Legal Status of Forest - Hectares of CA by Forest Department at the cost of user agency

(POWERGRID) within two years of FC - Net Present Value to de deposited by user agency; - Scheme of plantation of dwarf species (preferably medicinal plants) on the

ROW by user agency (POWERGRID) as soon as possible following completion of stringng work, in consultation with the State Forest Department; and payment for same.

The organization, participation of the issues raised in the public consultation meetings held in connection with the selected route alternative. (See discussion of public consultation, below).

Contract conditions regarding environmental and social issues to be applied to each construction contract (See section below).

' Compliance Details of Safety Checklist.

Updated Environmental Management Plan divided into pre-construction; construction phases specifying for each project activity: potential impacts; proposed mitigation measures; parameters to be monitored; measurement and frequency; institutional responsibility (POWERGRID or contractor through contract provisions); implementation schedule; and compliance reporting mechanism.

3. EMP Implementation

119. During construction, EMPs are implemented primarily by contractors; it is, therefore incumbent upon POWERGRID to provide adequate guidance to contractors with respect to their responsibilities for implementation of EMP requirements and to supervise and monitor contractor compliance. POWERGRID has provided the Bank with copies of its standard tender documents that include a summary of the major objectives of the ESPP and corresponding responsibilities of contractors. According to POWERGRID these tender

documents are included as part of the actual contracts. The following standard conditions attached to the tender documents and contracts: 90

The Contractor shall take all reasonable steps to protect the environment on and off the Site and to avoid damage or nuisance to persons or to property of the public or others resulting fiom pollution, noise or other causes arising as consequence of his methods of operation.

During continuance of the Contract, the Contractor and his Sub-contractors shall abide at all times by all existing enactments on environmental protection and rules made thereunder, regulations, notifications and bye-laws of the State or Central Government, or local authorities and any other law, bye-law, regulations that may be passed or notification that may be issued in this respect in future by the State or Central Government or the local authority.9 1

Avoid socially sensitive areas with regard to human habitations and areas of cultural significance

Secure the interest of people affected by *Owner/*Employer/ *Purchaser's projects

Involve local people affected by transmission line projects as per requirement and suitability

Consult affected people in decisions having implication to them if considered necessary

Apply efficient and safe technology/practices

Keep abreast of all potential dangers to people's health,

Occupational safety and safety of environment and the respective mitigatory measures

Establish preventive mechanisms to guarantee safety

Mitigation measures in case of accidents

Avoid unwarranted cutting of trees in forest area

While constructing the lines through forest stretches the contractor will provide alternate fuel to its employee e.g., working laborers/supe~isors etc in order to avoid cutting of forest woods

Contractor will ensure safety to the wildlife, during workingtcamping near to the National park

90 Communication fiom POWRGRID, January 10,2008 9 1 Laws cited in the tender documents and contracts include: Water (Prevention and Control of Pollution) Act, 1974; Air (Prevention and Control of Pollution) Act, 198 1 ; Environment (Protection) Act 1986 and; the Public Liability Insurance Act, 199 1.

Contractor during construction of lines in agricultural fields will ensure minimum damages to the crops, trees, bunds, imgation, etc. If the same is un-avoidable, the decision of Engineer- in-charge shall be final

The wastefexcess materiaydebris should be removed from the construction site including agricultural field, forest stretches, river etc. immediately after construction work

The Contractor will ensure least disturbance to the hill slope and natural drainage so as to avoid soil erosion. Natural drainage in plain area if disturbed is to be trained to the satisfaction of Engineer- in-charge

As far as possible existing pathtroadapproach shall be used for the construction

The Contractor will ensure supply of stone chipsfsand from authorizedapproved quarry areas

Proper documentation of above, if any.

120. The detailed requirements included in these tender documents are filly binding on the contractor responsible for construction of TLs, TTs and SS and is a critical component of the effectiveness of POWERGRID'S ESPP at the operational level. Contractor compliance with EMP and health and safety procedures is monitored regularly by the concerned site and regional HQ and periodically by the Operational Services unit at corporate HQ as well as by ESMD. A POWERGRID Safety Officer is posted at each regional HQ. As a deterrent to accidents during construction, a contractual provision stipulates a penalty, deducted from the contractor's payment and paid to the affected family of Rs. 10 lakhs for each accidental death and Rs. 1 .O lakh per injury."

4. Social Impact Documentation

121. The RAP is a direct output of the Social Assessment Management Plan (SAMP) and the Land Acquisition Application (LAA) that is prepared for all projects with direct and indirect impacts on people and their livelihoods, situation that, in practice, has been limited to the acquisition of land for construction of sub-stations. The scope of the SAMP is developed during the project concept stage when alternative TL route alignments are under consideration. Census records are used to identify potentially sensitive areas such as urban and rural settlements, as well as areas of cultural or historical significance. RHQ and site staff conducts spot verifications and explore available options to avoid socially sensitive areas. Similar screening is undertaken for substations and is used to outline the scope of the LAA. ESMD, the Engineering Department, RHQ and site staff assess alternative substation sites based on revenue records and other secondary information and field visits. The composition of PAPS (if any) their needs the type and scale of compensation and other R&R measures will also be assessed. The views of PAPS and the Revenue Department are solicited at this stage. The baseline socio-economic survey is normally conducted various

92 POWERGRID Communication, December 6,2007.

independent organizations such as the Indian Institute of Management, Bangaloreg3 or the Xavier Institute for Social Study in ~aba lpur .~~ .

122. The full SAMP is prepared during the detailed design and tendering stage of the proposed sub-station. Depending on the complexity of the anticipated social impacts, POWERGRID normally appoints a suitable agency, such as the Xavier Institute, to prepare the SAMF', a process that includes negotiation of compensation packages with revenue agencies and PAPs. A document is prepared setting out the final terms of compensation and other rehabilitation measures and following final negotiations. POWERGRID implements the SAMP through payment of compensation to land acquisition authorities and executes the R&R measures agreed in the RAP. POWERGRID monitors all R&R measures and prepares periodic monitoring reports on the execution of the SAMP.

123. A RAP is prepared if there are more than 40 affected families. Scope of the RAP and the TOR to be used by consultants in preparing the RAP is based on the SAMP. Consultants are provided with copies of the ESPP, the SAMF', and the project design with detailed maps of the project for which the RAP is being commissioned. RAP is prepared in consultation with the PAPS (as described above and in Annex XXX), and local revenue officials. Technical assistance is provided by an NGO, CMSR with HQ in Hyderabad. These consultations determine the nature and amount of compensation to be paid to PAPs.

124. Environmental Monitoring Plans. Environmental Monitoring Plans are included within the scope of the EAR. For those IEARs that were reviewed the environmental monitoring provisions and proposed organization support structure tend toward the generic, repeating the formula set forth in the ESPP rather than describing the management and monitoring program at the site specific level, which can vary depending on the sensitivity of the site and the resources required.

125. Documentation of Public Consultation. According to POWERGRID, all PAPS are "well informed about their rights" and the applicable provisions of the LAA are conveyed through a well defined process as specified in the Act. In addition, POWERGFUD7s SEF is explained to each individual family as well as to the District Administration during the SES consultation process. R&R plans are discussed with PAPS during preparation and are disclosed to the general public as well as to PAPS.'~

126. Information on public consultation, contained within the IEARs, where present, consist of a brief narrative summary of the number of consultations held and the locations, but limited information on the participants, their concerns and how the concerns were taken into account. More detailed documentation on particular consultation meetings is provided by in the FEAR. Fore example, the FEAR for the Seoni-Wardha-Akola-Aurangabad TL POWERGRID reported that a public meeting was organized in the Nandanwadi (Pandurana) of the Chindwara district of Madhya Pradesh. Notice was served well in advance to encourage maximum participation. The details of the project were explained to the villagers and pamphlets were circulated in the local language. POWERGRID reported

93 Report on Visits to Sub Stations [Andhra Pradesh, Karnataka and Tamil Nadu] Managed by POWERGRID CORPORATION of India, Ltd. (undated), 94 The Xavier Institute was inaugurated on 3rd December 1995. It is a venture of the Madhya Pradesh Jesuit Society. It forms a network with other well established social science research and management institutes in India with campuses in New Delhi, Jamshedpur, Ranchi, Bhubaneswar Anand, (Gujarat), Ahrnadabad, and Bhopal. 95 POWERGRID Communication, December 6,2007.

that most of the participants were small farmers and wonied about impacts on agricultural land. POWERGRID informed the participants that no land would be acquired for the TLs and that they would be able to continue farming in the fields where TTs are to be located. Additional details on the consultation are provided in an Annex to the FEAR. POWERGRID has provided the Bank with detailed documentation of public consultations on other project components of PSDP 111. However, no information is provided on how any concerns of project-affected people might have been incorporated into project designg6.

127. Quality Review of RAPS. POWERGRID7s RAP protocol is explicitly patterned after World Bank OP 4.12, Involuntary Resettlement and includes the following components presented in both a narrative and matrix format: 97

Statement of RAP objectives

Social Assessment Process

Census Data and Social Impact Assessment

Entitlement Policy

PAP Participation

Consultation and Grievance Process

Implementation Mechanisms and Due Process

Analysis of Alternatives and Assessment of Resettlement Sites

Income Generation Programs

Institutional Capacity and Responsibility

Budget for R&R Operations

Monitoring and Evaluation

Action Plan for Implementation

128. Apart from paying compensation and rehabilitation assistance to PAPS, POWERGRID also undertakes Community Development Programs (CDPs), which include development of civic infrastructure (including roads, schools, drinking water facilities, street lights, community halls, etc.), economic infrastructure (irrigation schemes, milk chilling plants, etc.), community activities (e.g., health camps) and skills development programs to improve earning potential. POWERGRID is in the process of enlarging the scope of its CDP as part of its Corporate Social Responsibility policy which is in preparation.

96 FEAR for Seoni-Wardha-Akola-Aurangabad TL; POWERGRID Communications, November 7 and December 5,2007. 97 Detailed descriptions of each component are given in Appendix XXXII of the ESPP.

129. Monitoring Reports. Third party evaluation and assessment is conducted at all SS where RAPs are required due to land acquisition. The major objective of the evaluation and assessment is to asset the effectiveness of RAP implementation and the extent to which the project has been successful in compensating and rehabilitating PAPS. To date such studies have been conducted for three substations under PSDP I1 and is in process as RAPs are completed for PSDP I11 and IV. Monitoring of the SAMPs is conducted quarterly by Regional HQ and external agencies98.

130. A review of several recent monthly monitoring reports prepared by POWERGRID indicates a high level of diligence in monitoring project performance with respect to Forest Clearance including details of the affected forest area, survey, compensatory afforestation payments, land acquisition, RAP implementation and other development and social welfare measures for discrete TL segments and SS as well as data on the disposition of used batteries and insulation oils.99 An Annual report for 2007 listed the status of Environmental Clearances obtained under the EPA, Forest Clearances granted by MoEF, IEARs finalized, Social Assessments and RAPs approved by Management during the calendar year.'*

5. Outcomes of P O WERGRID Projects

13 1. The World Bank has partnered with POWERGRID since its inception a corporate entity, beginning with the First Power Sector Development Project loan of $350 million issued in 1993 and closed in 2000. PSDP I1 (2001-2006), which brought to Bank's total commitment to POWERGRID to about $1.5 billion, was accompanied by the implementation of POWERGRID's first corporate environment and social safeguards policy developed in 1998, malung POWERGRID is the first public sector entity in India to adopt a comprehensive Environmental Social Policy and Procedures (1998 ESPP) which was developed with support from the World Bank and following extensive consultation with a variety of stakeholders - including the government, power utilities and NGOs. POWERGRID committed to apply its ESPP to all projects, irrespective of the source of funding. lo ' As noted above, the ESPP was substantially revised in 2005, with broad stakeholder participation, to incorporate changes in Indian law as well as the then-current environmental and social safeguard systems of international development partners, including the World Bank.

132. Environmental and Social Objectives of ESPP. Consistent with the Objectives and Operational Principles of OP 4.00 Table Al , POWERGRID's ESPP seeks as fundamental environmental outcomes the basic principles of "Avoidance, Minimization and Mitigation." These outcomes are equally applicable to the safeguards involving Environmental Assessment, Natural Habitats, Forests and Physical Cultural Resources, all of which are triggered by the PSDP IV project.

133. With respect to social outcomes, POWERGRID seeks to avoid acquisition of land wherever possible and when land has to be acquired, to provide adequate compensation and rehabilitation in all cases, as well as community development programs to help people living in the vicinity of a project. These programs, planned an executed with active

98 POWERGRID Communication, December 7,2007. 99 See for example, POWERGRID, Environmental and Social Development Report, November 2007. '0° POWERGRID, ESMD, Highlights of the Year 2007. lo ' "Highways of Power: Story of the Second POWERGRID System Development Project," World Bank, Delhi, 2006

involvement of local communities, include: civic infrastructure development (roads, drinlng water supplies, drains, street lighting, and schools); economic infrastructure development (irrigation schemes, milk chilling plants); community activities (such as health camps) and skills development initiatives.

134. Many of the technological and management initiatives developed by POWERGRID to attain these objectives were included in the 1998 ESPP and implemented during the course of the Second PSDP project. Along with the ESPP itself, these measures were further developed and refined in the 2005 revision of the ESPP and the implementation of the Third PSDP which became effective in 2006.

6. Environmental Mitigation Measures

135. POWERGRID7s strategy for attaining the environmental objectives of the ESPP can be described in terms of the three basic principles of avoidance, minimization and mitigation:

136. Avoidance. In the first instance, POWERGRID seeks to avoid impacts on the natural, cultural and human and environment wherever feasible, by siting TLs and SS away from forests, wildlife reserves and biosphere reserves. It does this through detailed and thorough alternatives analysis of potential routes and sites of TL and SS, conducted as an integral part of environmental assessment.

137. Route selection is undertaken in close consultation with representatives of the State Forest Department. These analyses make use of sophisticated technological tools including Geographical Information Systems and satellite imagery. As noted above, in the discussion of EA procedures, the quality of the alternatives analysis is consistent robust, taking into account the full set of landscape features and considering secondary as well as primary impacts. When necessary, taking into account technical and economic feasibility, POWERGRID increases the length of TLs in order to by-pass environmentally sensitive areas such as nesting sites and critical bird habitats,lo2 as well as sites having cultural or historical significance or posing community health and safety issues, such as oil pipelines, highway and rail crossings, telephone lines and other transmission and distribution lines.

138. POWERGRID seeks to avoid forested areas wherever feasible. Prior to implementing the first ESPP in 1998 approximately six percent of TL ROW transected forested areas; since implementation of the ESPP in 1998, use of forest was reduced to approximately two percent of total TL RoW.'03

139. To minimize the use of environmentally sensitive areas and human habitation, the majority of TL towers are located on agricultural lands.

140. POWERGRID seeks to avoid siting TLs and SS in Protected Areas (PAS). However, prior to the development of the 1998 ESPP) three TLs crossed PAS including the Rajaji National park in Uttarakhand) and the Ascot Wildlife Sanctuary in Uttarakhand. During the PSDP I1 project one TL transected the Jaldapara Wildlife Sanctuary in West Bengal. All of these TLs required clearance from the National Board for Wildlife, (NBWL), the Central Empowered Committee (CEC) and the Supreme Court. Currently, as part of

'02 Towers are provided with bird guards to prevent avian hazards. ESPP Table 4.3 '03 ESPP Box. 4.1

PSDP I11 the Agra-Gwalior line passes through the Chambal Crocodile Wildlife. In all cases clearance was required and obtained from the National Board for Wildlife (NBWL), Central Empowered Committee (CEC) and the Supreme Court. POWERGRID also sought and obtained approval from the Wild Life Institute of India for this TL."'~

141. To avoid indirect and induced impacts on natural habitat, POWERGRID does not, as a general matter, create any new access roads or paths during construction activity but utilizes existing paths and field bunds for movement of material. However, existing roads are often upgraded in consultation with and in cognizance of the needs of local co~nmunities.l~~ Sites are cleared of all leftover material and debris.

142. To identify and avoid to physical cultural resources, such as temples and shrines, sacred groves or orchards, POWERGRID employs GIs and GPS during preliminary route alignment and detailed surveys and consults the Archeologrcal Survey of India when TL routes might pass near to any monuments of cultural importance. POWERGRID is of the opinion that all such areas have been successfully avoided to date.Io6

143. POWERGRID does not use chemicals for forest clearance and ROW maintenance, thereby avoiding the potential adverse health impacts associated with excessive application of herbicides in agricultural areas.Io7

144. With respect to Ozone-Depleting Substances, POWERGRID use has been limited to chloro-fluorocarbons (CFCs) in refrigeration and air-conditioning units. Following Go1 Notification of 2000 POWERGRID has refrained from procurement of any CFC-containing equipment and is replacing CFC-containing units with alternative refngerants that are approved under the Montreal Protoc01.'~~

145. POWERGRID does not use PCBs in its electrical equipment. It has arranged for studies with the National Grid Company (UK) for sampling of existing equipment and creation of a PCB management plan if necessary. To date, studies have found no incidence of PCB contamination at any POWERGRID siteslog Another form of avoidance has been adopted by POWERGRID with respect to the use of CFC-free equipment as required by the Go1 in furtherance of the Montreal Protocol on Ozone Depleting Substances.

146. Mitigation. Where it is impossible to avoid environmentally sensitive areas in siting TLs (and to a lesser degree, substations) POWERGRID has adopted a number of innovative mitigation techniques. These include upgrading existing 220 kV lines with multi-circuit towers, enabling them to carry additional 400 kV lines thereby reducing the need to clear forested areas. In other instances, tower height has been increased substantially (up to 140

104 POWERGRID Communication, December 6, 2007. Io5 ESPP Table 4.3 106 POWERGRID Communication, December 6,2007.

Ibid. and communication from POWERGRID: "No herbicides or other chemicals are used for restricting the growth of ground vegetation and where ever required only manual loppingtclearing is camed out to maintain required electrical clearance for both (transmission line and S/S equipments/conductors or bus-bars. Insecticides such as repellant for mosquitoes/poisonous insects are used in localized manner (pocket wise) for the protection of employees/workers in case it becomes unavoidable." 108 POWERGRID Communication, December 6, 2007. '09 Ibid.

meters) to reduce impacts on forest canopy. In the installation of TLs POWERGRID uses manual stringing to minimize impacts on forests and steep slopes whenever possible.

147. To reduce the direct impacts of Rows on the natural landscape and to minimize habitat fragmentation, cleared vegetation in two of the three 3-5 meter strips required as minimal safety clearance for TLs are permitted to regenerate to specified heights that are determined to provide a margin of safety from fire. (One cleared strip is left free of vegetation to allow for maintenance of the TL). Since forest management is with the forest authorities selection of species is always carried out by the forest department and due care is taken for avoiding invasive species during construction and natural regeneration stage. Of late MoEF is requiring for plantation of small herbs having medicinal values or other dwarf trees plantation below the conductorAine which has been cleared of vegetation during c~nstruction."~

148. Heavy machinery is required for installation of TLs and towers and may require clearing of ground vegetation. Whenever possible, POWERGRID uses existing cleared path such as access roads and tracks for the movement of personnel an machinery. Existing roads that cannot support heavy machinery loads are upgraded.

149. Blasting is used on rare occasions only where very hard rock is encountered in the foundation of the TT or SS. In such cases, extra precautionary measures are taken and any such activity requires an explosives license, and stocks of safety equipment.'"

150. In landslide prone areas POWERGRID has designed and uses tower bases with leg extension and revetments that prevent soil erosion near the tower."' POWERGRID has designed special towers for having a maximum span of about 1.2 Kms for crossing the river, stream and other water bodies. In 95% cases such towers help in crossing the river without putting any structure in the river bed or any water bodies. But, in some cases like in Brahmaputra river in Assam which could not be crossed through such towers one tower has been placed in the river bed using pile foundation

15 1. Finally, POWERGRID uses the most sophisticated tower designs to minimize un- aesthetic intrusions on the landscape. One such example id evident with respect to PCR, where a TL hne in Kerala passes two lulometers away from a local temple where an annual fair is organized and temporary 20 meter high structures are assembled. To accommodate this event, (which POWERGRID characterizes as a mitigative measure to respond to "chance finds") it provided extension towers of 18 meters in addition to the 42 meter normal TL height in consultation with the district administration and local Panchayat.'I3

152. Compensation. Compensation has been necessary where it has proven infeasible to avoid or completely mitigate environmental impacts, in particular with respect to removal of biomass. In this connection, POWERGRID has provided financial support to MoEF for its mandatory policy of Compensatory Afforestation (CA). Under this policy, CA involves

'I0 POWERGRID Communication dated.. . ' ' I POWERGRID Communication, December 6,2007. "' POWERGRID has designed special towers for having a maximum span of about 1.2 Kms for crossing the river, stream and other water bodies. In 95% cases such towers help in crossing the river without putting any structure in the river bed or any water bodies. But, in some cases like in Brahmaputra river in Assam which could not be crossed through such towers one tower has been placed in the river bed using pile foundation. POWERGRID Communication.. .. ' I 3 POWERGRID Communication, December 6,2007.

plantation of twice the area cleared. From 1995 through 2005 [need update] POWERGRID contributed about $25 million towards CA on more than 10,000 hectares of land,Ii4 in addition to reforesting greenbelt areas directly adjacent to its own operations.

7. Social Mitigation Measures

153. POWERGRID'S objectives with respect to social impacts can also be viewed in terms of avoidance, mitigation and compensation. However, in its relationships with local communities POWERGRID seeks to go beyond "do no harm" to fully engage local communities in proactive relationships to improve their quality of life.

154. Avoidance. POWERGRID does not acquire land for TLs or transmission towers, but only for SS. A typical SS requires an area of 20-40 hectares of land. In acquiring land and for construction of SS, POWERGRID is committed to the principle of avoiding all physical displacement in the siting or TLs and SS. In selecting sites for TLs and SS, it makes every effort to avoid populated areas and plantations. It also attempts whenever possible to locate a SS on Government owned land or waste land to avoid the acquisition of privately owned land. According to POWERGRID, due to the flexibility exercised by POWERGRID only one homestead has been acquired to date physical displacement of project affected peoples has taken place in projects undertaken, and significant loss of livelihood has been successfully a~oided ."~ In addition, POWERGRID has sought to avoid adverse social and economic impacts by relocating SS or delaying the construction of SS to accommodate crop harvesting.

155. Mitigation. Acquired land typically consists of agricultural land or unutilized land. Agricultural activities are permitted to continue during the construction of TLs.'16 If bunds or other on farm works are disturbed during construction or maintenance, they are restored to the owners' satisfaction following cessation of construction or maintenance activities."'

156. Compensation. POWERGRID provides compensation to the affected population through its Social Entitlement Framework (SEF). The SEF aims to ensure replacement and rehabilitation of the assets of PAPS including loss of land, structures, source of livelihood, access to common resources and facilities, and standing crops and trees. It presents the methodology to be used in valuing assets to determine their replacement costs and a description of the types and levels of compensation under Indian law as well as other supplementary measures as necessary to achieve replacement cost for lost assets. It also identifies criteria for determining the eligibility of affected people for compensation and assistance and defines the entitlement options that will assist each category of affected people to maintain if not improve their standard of living. In addition to providing assistance to people without legal title, or customary or usufruct rights, squatters, additional needs based assistance is provided for populations identified as the most vulnerable, including women headed households and physically handicappedldisabled people. All stakeholders including the public and local authorities are consulted on socio-economic

'I4 Rid. "' ESPP 4 Section 4.2.2. However, elsewhere in the ESPP it is stated that 'No physical displacement of project affected peoples has taken place in projects undertaken to date, ESPP Section 2.5.3., 2.6 ' I 6 AS of 2005 [update] POWERGRID had established 82 SS with 64 % of the land acquired from private owners and 26% from government. Of the total land acquired the designated land use was 70% agricultural land and 30% unutilized land ("wasteland"). Acquisition of the 20-40 hectares necessary to establish a SS typically affects 20-50 landowners. ESPP Box 4.2 117 ESPP Section 4.1.1

issues that arise fiom project activities prior to the development of the SAMP (as described above). The development and disbursement of compensation packages is in consultation with affected people during project preparation and implementation. During project implementation, the SEF provides institutionalized arrangementslgnevance redressal mechanisms to ensure that PAPs can communicate their concerns to POWERGRID.

157. Although responsibility for R&R implementation lies primarily with POWERGRID, State Authorities are involved in land acquisition and in determining and implementing the distribution of rehabilitation assistance. POWERGRID also engages NGOs for this p~rpose."~

158. POWERGRID requires the preparation of a time bound implementation schedule for compensation and rehabilitation activities coordinated with project construction activities. Although it requires that compensation and rehabilitation activities commence well in advance of project construction, a more explicit indication that no construction activities can commence prior to the delivery of compensation packages would be useful.

159. Community Development. As part of its SEF, and particularly through the RAP process, POWERGRID plans to provide needs based community development activities such as water supply, construction of roads and income generation schemes to enhance the broader social and economic uplift of the project affected area and provide employment opportunities for marginalized groups. POWERGRID'S substations often contribute to upgrading the infrastructure facilities of nearby village^."^

160. Litigation. Some litigation has been initiated and remains pending on the part of PAPs contesting compensation amounts, directed primarily against District Administrations to which POWERGRID is a party as a user agency. These instances have been reduced since POWERGRID adopted the policy of providing market rates of compensation in accordance with the ESPP '~~ .

D. ENVIRONMENTAL AND SOCIAL OUTCOMES OF OTHER DONOR AND

NON-DONOR SUPPORTED PROJECTS

1. Asian Development Bank (ADB) Projects

161. ADB has supported several loans to POWERGRID for transmission schemes undertaken in a parallel fashion to those supported by the World Bank under PSDP I1 and 111. During the period under review during which POWERGRID adopted its initial (1998) ESPP in coordination with ADB as well as the World Bank, ADB supported the Power Transmission Sector Project ($275 million) which was signed in July 1996 and closed in July 2005.

162. With respect to environmental impacts, ADB's Project Completion Report, issued in. September 2005 concluded that "the project outputs have exceeded the intended environmental benefits." In ADB's opinion, POWERGRID had taken adequate safety measures as agreed at project appraisal to minimize the project impacts on the environment.

' I 8 POWERGRID Communication, December 6 2007. ' I 9 ESPP Box 4.2 Iz0 POWERGRID Communication, December 6,2007.

163. These measures included (i) special care in route selection of transmission lines, (ii) avoiding damage to forests as far as possible, and (iii) creating robust institutional arrangements for monitoring of environmental mitigation measures.

164. POWERGRID prepared initial environmental examination (IEE) reports for the subprojects and submitted them for ADB's approval along with the subproject appraisal reports. The IEE reports of all the subprojects were reviewed and approved by ADB.

165. Forests were avoided as far as possible while selecting the transmission line route. As per the Forest Conservation Act, all the transmission lines infringing upon the ecologically sensitive areas were approved by the MoEF well in advance for all the subprojects that infringed on forest lands. Where it was not possible to avoid forests, the routing of the lines in the forest area was conducted in consultation with respective forest authorities to minimize damage to the forests"' and to ensure that the impact of the transmission lines on wildlife would be nil. Over the total 3,200 circuit km of transmission lines built under the Project, a total of 362.64 hectares (ha) of forest area was affected, for which Rs17.25 million (about $0.40 million equivalent) was paid as per the Government rules to the state forest departments for compensatory afforestation.

166. None of the subprojects posed any threat to endangered species. Engineering and biological measures were taken to prevent soil erosion on the transmission line route. In particular, the following outcomes were recorded in ADB's Completion Report: (i) monuments of cultural and historical importance were avoided; (ii) TL RoWs did not encroach upon national parks and wildlife sanctuaries; (iii) TL RoWs selected did not infnnge upon areas of natural resources; (iv) TL RoWs avoided wetlands and unstable areas; and (v) Routing of TLs was selected so as to minimize the impact of transmission lines on wildlife.'"

167. The transformers and other equipment used in the Project are free from poly- chlorinated biphenyl (PCB). Batteries and transformer oil are being disposed of through lead waste reprocessors in accordance with the provisions of MoEF and compliance with these provisions is reported to MoEF through biannual reports.

168. With respect to social impacts, the routing of the transmission lines was selected so as to avoid relocation of people and threats to common property resources. The project involved seven new substations (four 400 kV substations, one 220 kV substation, and two 132 kV substations) for which land was acquired 53. Impact on agncultural land on the route of the transmission line was restricted to the construction phase, and adequate compensation as determined by the district authorities was paid to the affected persons. At appraisal, POWERGRID had agreed to make compensation for land lost at transmission line tower footings.Iz3

I21 Of the eights separate project components four had impacts infringing on forests for a total of 363 hectares impacted. ADB, Completion Report, India: Power Transmission Sector Project, 2005. 122 ADB, Completion Report, India: Power Transmission Sector Project, 2005. 123 However, this had not been done as the transmission lines were constructed in states where no such special land laws exists and, hence, a utility can build transmission lines under the protection of Indian Telegraph Act and Indian Electricity (Supply) Act without paying compensation for land. POWERGRID paid compensation for loss of crops during construction and loss due to damage of trees

169. During project implementation, POWERGRID followed Government rules and regulations on land acquisition and rehabilitation. According to ADB satisfactory measures have been taken by POWERGRID to address the concerns of PAPs and to provide rehabilitation assistance to them. These include: (i) special care in route selection of transmission lines to avoid human rehabilitation, threats to survival of vulnerable communities, and common property resources; (ii) adequate compensation for damages to crops, trees, and buildings/structures; (iii) adequate compensation and rehabilitation for PAPs; (iv) robust institutional arrangements for monitoring of rehabilitation measures; (vi) permanent employment to most vulnerable PAPs; (vii) employment for PAPs through contractors during construction; (viii) employment for PAPs through contractors during operation and maintenance; and (ix) industrial training for the children of PAP families.

170. The Project involved seven new substations (four 400 kV substations, one 220 Kv substation, and two 132 kV substations) for which land was acquired. Land for all the seven substations were acquired in accordance with Land Acquisition Act, 1894 (amended in 1984). The provisions of the act, which involved prior notification and consultations with PAPs, were complied with. In the case of two SS land acquisition did not entail any human resettlement as 2.43 ha of land was acquired from a single private owner at one site and government land was acquired at the second site. A total of 159.20 ha of land were acquired for the remaining five substations involving 20.5 ha of government land and 138.71 ha of private land. Total compensation of Rs41.80 million (about $0.95 million equivalent) was paid to 435 PAPs in accordance with the compensation amount fixed by the respective district administration a~thorit ies. '~~ Compensation for private land was paid to individual landowners, including compensation for trees, crops, and structures as fixed by the respective district administration in a time-bound manner as per the provisions of the Land Acquisition Act. POWERGRID indicated that the structures involved were mainly temporary cattle sheds and other temporary storage sheds. The compensation paid by POWERGRID normally exceeded the present commercial market value. Apart from adequate compensation for land and crops, additional measures were taken for the rehabilitation of the PAPs. The ADB was satisfied with the efforts being undertaken by POWERGRID to resettle PAPs, and found arrangements to be adequate for transmission line projects.

171. In particular, ADB noted the following successful outcomes with respect to social impacts as evidence of compliance with loan conditions and the ESPP:

TL RoWs did not entail human rehabilitation.

TL RoWs selected will not threaten the survival of any communities, and did not threaten the survival of common property resources (CPR) such as playgrounds, parks, schools and markets, and monuments etc.

Proper measures were taken to ensure that impact on agricultural land was restricted to construction phase only.

Satisfactory steps were taken to adequately compensate the damage to crops and trees during construction by determining the amount of compensation in consultation with district authorities and its timely disbursement; and.

' 2 4 POWERGRID informed ADB that the acquisition of government land did not displace any non- titled users.

The environment management department in the corporate office laid down a policy framework rehabilitation measures; and environmental officers were appointed at regional headquarters to monitor the implementation.

172. With respect to compensation in particular:

Several persons were given temporary employment (during construction) and are still being engaged in the project-related works through contractors.

Proper procedures were adopted for satisfactory determination of compensation for land acquired and the amount was disbursed on time.

Loss of CPR was adequately compensated wherever applicable.

Social and community development schemes are being undertaken (schools, roads, clinics, etc.) where contracted.

Social assessment and rehabilitation plans were prepared and approved for all subprojects with project-affected persons (PAPS).

Grievance redress committees (GRC) have been formed at some of the subprojects.

2. Environmental and Social Outcomes of Non-Donor Supporied Projects

173. To further assess the implementation outcomes of POWERGRID's environmental and social safeguard systems - consisting of the laws and regulations of India (including State and District authorities) and POWERGRJD's own ESPP, this review examined several project components undertaken by POWERGRID through equity or loans or grants from the Government of India without any assessment, financing or supervision on the part of international development partners such as the World Bank, ADB, and JBIC. For these projects components, POWERGRID was accountable entirely to its own stakeholders, i.e. the Government of India, its own corporate management; local communities and other project-affected people.

174. To assess the primarily environmental outcomes of TLs for this category of project components, this review examined monitored data prepared by POWERGRID by POWERGRID for the Tala TL described above in Section XXX. . . . .

1. Environmental Safeguards

175. The ESPP is a sufficiently robust mechanism for undertaking EA and implementing EMP for Category B projects components with respect to both environmental and social impacts with respect to the EA process as well as all of the safeguards triggered by Bank supported POWERGRID project components to date, including natural habitats, forests, physical cultural resources, involuntary resettlement and indigenous peoples.

176. POWERGRID has demonstrated the institutional capacity to implement the ESPP successfully for Category B projects. However, given POWERGRID's ambitious mandate

to provide electric power throughout the country, as well as interconnections with neighboring countries, it may not always have the option to select alternative TL routes and SS sites that effectively avoid heavily forested areas, critical natural habitat, culturally significant sites, tribal areas or for that matter to avoid indefinitely the necessity for large- scale resettlement, while continuing of necessity to decentralize s regional structure. Therefore, POWERGRID it needs to continue to augment its capacity to assess and manage environmental and social impacts at the regional and site-specific levels.

177. Accordingly, although PSDP III and IV were screened by the Bank as Category A projects, none of the individual project components supported to date by the Bank or other international donors under the ESPP (i.e. PSDP 111 or IV), have been screened as Category A. Rather, to date, POWERGRID has relied successfully on the selection of TL routing and SS siting alternatives to avoid potential impacts that would result in the designation as Category A of any of these project components. Consequently, the Bank has not had the opportunity to examine POWERGRID's institutional capacity to mitigate and monitor impacts associated with Category A project components. Therefore, in addition to enhancing the ESPP itself, POWERGRID needs to develop and demonstrate the capacity to assess, manage and monitor the environmental and social impacts of a Category A project components before the Bank can rely on its institutional capacity to undertake Bank- supported Category A project components

2. Social Safeguards

178. In general, POWERGRID has demonstrated acceptable performance in implementing the social safeguards addressed by its ESPP, in particular with respect to land acquisition, compensation and rehabilitation of project-affected peoples, including the provision of significant community services that go well beyond the legal requirements of Indian law and in some cases, the Operational Principles of OP 4.00 with respect to Involuntary Resettlement.

179. The valuation of and compensation for losses is detailed in the SEF as is the eligibility criteria for entitlement to compensation. Therefore the incremental value of the SAMP, which is normally prepared by an independent agency, is not clear, with respect to the negotiation of compensation packages with revenue agencies and PAPS.

180. Although the SEF indicates that an implementation schedule for compensation/assistance activities will be coordinated with the proposed time table for project activities, the timing of when compensation payments will be made needs remains unclear. In particular, it is not self-evident that PAPS must be compensated before project construction can commence in their communities.

181. According to the RAPS section 17 of the Land Act: "possession in case of emergency" allows the Government to acquire land before payment of compensation, if the acquisition of that land is considered to be in the "national interest or an emergency". It is not clear how frequently or under what circumstances POWERGRID (or the Government on POWERGRID's behalf) invokes Section 117. There are substantial instances in India of this provision being invoked in an arbitrary manner.

182. The SEF lists a number of income generating schemes and rehabilitation measures as indicative of the rehabilitation options that could be considered by PAPS. The RAPS

however, do not provide enough specificity on the types of income generating schemes beyond what is presented in the SEF.

183. POWERGRID has not prepared or implemented a Tribal Peoples Development Plan as outlined in the ESPP for any project affecting tribal populations. POWERGRID attributes this outcome to its policy of avoiding physical intervention in tribal areas in the siting of TLs and SS to date. At one particular SS (Ranchi in the State of Orissa) where a substantial tribal population was present, POWERGRID employed a social scientist who advised POWERGRID that the population was highly assimilated into the non-tribal community and did not exhibit the defining characteristics of tribal populations such that they would be affected by the project in any manner distinct from the rest of the population. Accordingly, this assessment did not provide an opportunity to evaluate POWERGRID'S capacity or performance in managing the impacts of its projects on Indigenous Peoples. Therefore, until such time as the Bank has the opportunity to assess POWERGRID'S capacity and performance in implementing the aspects of its ESPP (revised as necessary to reach full equivalence with the requirements of OP 4.00 Table A1 with respect to Indigenous Peoples) it is recommended that the Bank continue to use its Operational Policy 4.10 on Indigenous Peoples in support of POWERGRID projects having the potential to trigger this safeguard.

PART 111. AGREE ACTION PLAN FOR GAP-FILLING MEASURES NECESSARY TO ATTAIN AND SUSTAIN EQUIVALENCE AND

ACCEPTABILITY

184. The Bank and POWERGRID Management have agreed on the following that the following gap-filling measures to be completed or undertaken prior to the application of POWERGRID'S system in lieu of the corresponding traditional Bank safeguard policy to any Bank-supported POWERGRID project in India.

Environmental Assessment

Include assessment of trans-boundary environmental and social impacts as required;

Cite international environmental agreements ratified by Go1 that apply to POWERGRID operations: Convention on Biodiversity, Convention on Wetlands of International Importance (Ramsar); Vienna Convention and Montreal Protocol on Protection of the Ozone Layer; World Heritage Convention;

Expand alternatives assessment to reference "no action" alternative and the institutional, training and monitoring requirements associated with each alternative;

Cite ongoing role of Independent Committee in providing advice on complex projects; and

Ensure that consultations with project affected people are conducted in a format and state language accessible to key stakeholders

Natural Habitats

Acknowledge Go1 authority under the Biological Diversity Act (BDA) to intervene in areas it deems important for biodiversity (per Sections 37 and 63);

Apply full EA tools (e.g., GISIGPS) to all natural habitats (e.g. wetlands, deserts), in addition to forests;

Add reference to "critical" natural habitats such as "Critical Wildlife Habitat (under FRA)," "Critical Tiger Habitat (under WPA)," including core areas; Ecologically Sensitive Areas and CRZs I (under EPA), Biodiversity Heritage Sites (BDA), as well as "conservation reserves" and "community reserves" along with existing ESPP references to National Parks and Wildlife Sanctuaries; and

Ensure that consultations with project affected people on NHs are conducted in a format and state language accessible to key stakeholders.

Forests

With respect to public disclosure of Forest Clearances, reference the FCA clearance process as per Supreme Court orders

Involuntary Resettlement

For purposes of identifying project affected peoples (PAPS) include those affected by potential restrictions on access to legally designated Protected Areas (PAS) as part of Socio-Economic Survey;

Consider full socio-economic impacts of infrastructure related indirectly to project, such as access roads;

Inform displaced people of their rights under Go1 law (e.g., LAA and FRA) and, when enacted, relevant provisions of pending Resettlement and Rehabilitation bill);

Disclose critical aspects of Resettlement Action Plan (RAP) in (State) languages of PAPS or other key stakeholders;

Reference provisions of Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 and Rules, 2008 (FRA) relative to restrictions on access to Protected Areas; and

Incorporate baseline socio-economic conditions into RAP monitoring criteria.

Indigenous Peoples

Reference the objectives and specific provisions of the Provisions of Panchayats (Extension to Scheduled Areas) Act 1996 (PESA) as applicable to states; and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (FRA);

Ensure that consultation with tribals takes place through a process of free, prior, informed consultation, leading to "broad community support" for the project;

Document public consultation process with tribals in Tribal People Development Plan (TPDP)

Use experienced social scientists to monitor TPDP implementation.

I . Environmental Safeguards (Environmental Assessment, Natural Habitats, Forests, and Physical Cultural Resources)

185. To date, the Bank has not been asked to support any particular POWERGRID project component that has been classified as Category A. The ESPP is not explicitly designed to address the full range and depth of issues raised by Category A projects.'25 In order for the Bank to rely exclusively on the ESPP for Category A project components, POWERGRID needs to use the FEAR as the basis for the development of a more a more

125 This is evident in the fact that the ESPP limits the scope of environmental assessment to the IEAR. Although subsequent to the issuance of the ESPP, POWERGRID has begun to produce a more detailed FEAR, the FEAR is not fully equivalent to an Environmental Impact Assessment for a Category A project.

detailed TOR to conduct any necessary EIAs in for project components that could result in significant, unprecedented, diverse or irreversible (Category A) impacts. Specific gaps in the ESPP exist with respect to:

Baseline data: in particular with respect to natural habitat outside of protected areas, physical cultural resources, including the potential for "chance finds;"

Site-specific impacts in relation to international environmental, health and safety standards in relation to the World Bank Group's 2007 Environment, Health and Safety Guidelines for Electrical Transmission and Distribution;

Detailed Environmental Management Plans that identify site-specific (rather than generic) potential impacts and mitigation measures;

Improve capacity to identify ecologically and culturally sensitive areas outside of designated forests and Protected Areas through application of GISIGPS technologies and expertise to transmission line route surveys.

186. POWERGFUD needs to augment its human resources to conduct EIA for Category A project components and well as to undertake E A R for numerous Category B projects simultaneously. This can be accomplished by recruiting several EA specialists at corporate HQ supplemented by the identification of suitable domestic or international consultants with expertise in conducting EA for Category A projects in the electrical transmission sector. POWERGFUD also needs to strengthen its institutional structure for environmental and social management at site and regional levels to improve implementation of reporting of EMP measures through enhanced staffing, training and other capacity building

187. POWERGFUD needs to undertake an annual independent environmental audit of sample of TLs and include aggregated results and case studies in proposed annual Environment and Social Sustainability ~ e ~ o r t .

188. POWERGFUD recognizes the need to improve its effectiveness in monitoring the results of compensatory afforestation (CA) that is undertaken by State Forest authorities as a result of its projects. The recent establishment of a new Central Afforestation and Management and Planning Authority (CAMPA) has opened up a new avenue to monitor utilization of CA funds for forest plantation at the state level. As soon as CAMPA becomes fully functional, POWERGFUD would include in its monthly environmental and social monitoring report the detailed use of funds deposited by it under the Forest (Compensation) Act of 1980 to track CA activities.127

2. Social Safeguards (Involuntary Resettlement and Indigenous Peoples)

189. RAPS should provide sufficient detail on the types of income-generating schemes beyond generic information provided in the Social Entitlements Framework.

126 The preparation of these aggregated and case study results should be included in the Terms of Reference for the Preparation of the Environment and Social Sustainability Report. 127 PAD, PSDP N, Annex 10, para. 6.

190. RAPS should provide clear justification for use of Land Acquisition Act Section 17 "emergency waiver" provision that permits land acquisition prior to payment of compensation and provide whatever justification is required for any waivers that may be sought under the pending revision of the LAA..

191. The role of the S A W , and the independent agency that is normally engaged to prepare the SAMP needs to be clarified with respect to the negotiation of compensation packages with revenue agencies and PAPS.

192. The SEF should clarify that PAPS must be compensated before project construction can commence in their communities. Such compensation should be clearly documented in monitoring reports.

193. POWERGRID should improve coordination between, completion of final RAP, RAP implementation, land acquisition and initiation of civil works.

194. POWERGRID should agree to complete community development works per the RAP implementation schedule.

195. The RAPS should provide additional site specific details on the proposed income generating schemes to be adopted for PAPS.

196. POWERGRID should prepare and implement a full Tribal Peoples Development Plan under the ESPP, with revisions to the TPDP, as recommended in the Equivalence Portion of this Section of the report, before the Bank can determine that POWERGRID has the requisite capacity to prepare and implement a TPDP consistent with the requirements of OP 4.00.

PUBLIC CONSULTATION

PUBLIC CONSULTATION ON DRAFT SAFEGUARD DIAGNOSTIC REVIEW

SUMMARY OF STAKEHOLDERS /PUBLIC CONSULATION ON SAFEGUARD DIGNOSTIC REVIEW(SDR) ON NOV. 18 & 21,2008 AT

DELHI & HYDERABAD

NEW DELHI: Nov.l8,2008

Venue: Conference Hall, POWERGRID Northern Region Headquarter, New Delhi

The Stakeholders Consultation among Professionals, Experts, Sectoral Leaders and PAPS began with a brief introduction by Mr. Mikul Bhatia of World Bank on the long association of POWERGRID & World Bank and how POWERGRID has taken many initiatives in associatibn with theworld Bank in the field of environmental and social safeguard management. Mr. Harvey Himberg, Senior Environmental Specialist, Quality Assurance and Compliance Unit of the World Bank and Mr. Alberto Ninio, Lead Counsel, Environment and International Law Legal Vice Presidency of the World Bank, then explained the objectives of Use of Country System (UCS) and selection of POWERGID'S ESPP as a first candidate from India for such exercise.

Mr Jaiswal, ED(CP & ESMD) from POWERGRID spoke about the process of development of the ESPP and evaluation of other initiatives by POWERGRID on environment and social issues. This was followed by presentation of World Bank on the SDR, presenting the analysis, findings and recommendations carried out during the last year. Presentation by the Bank also outlined out the existing gaps between the ESPP and applicable Bank safeguard policies as set forth in World Bank Operational Policy 4.00, Piloting the Use of Borrower Systems for Environmental and Social Safeguard Issues in Bank-Supported Projects. After the presentation, Mr. Sanjay Srivastava, Senior Environmental Specialist in the World Bank's South Asia Region, requested participants' observations on the SDR and invited them to provide their structured and written observations via email to World Bank for consideration and incorporation in the SDR.

The discussion started with Mr. Aqueel Khan, representing a leading NGO, Association for Stimulating Know-How (ASK), who questioned the nomenclature of the SDR, i.e., whether it is an analysis of the "country" (India) system or rather, the borrower's (POWERGRID'S) policies. He made the categorical observation that a borrower or a corporate entity can not frame any law, which is a prerogative of the country. Therefore he suggested instead of UCS, the SDR should be focus on the borrower system. He also raised a question on the compensation of PAPS and the

proactive approach in meeting the expectations of affected people in a dynamic and ever changing project scenario. He also wanted to know whether or not POWERGRID is covered under the Right to Information Act (RTI). He raised another important aspect regarding inclusion of non-titled holder/encroachers as beneficiaries.

Mr. Himberg explained the position of Bank regarding UCS and borrower system, noting that while the pilot program uses the term country systems" OP 4.00 itself uses the term "borrower systems" in the recognition of the expectation that some of the applicable systems would be at the sub-national or institutional level. and that the term LLborrower system" would be more appropriate for POWERGRID. POWERGRID then explained that RTI is applicable to POWERGRID and that non- titled holders,including squatters, encroachers etc. have already been included as a beneficiaries in the POWERGRID Social Entitlement Framework. Mr. Khan then raised the issue of compensation for depreciation of land below transmission towers, on behalf of PAPS present there. POWERGRID explained the present legal position regarding the payment of compensation as well as the outcome of many judicial judgments on that issue. POWERGRID also emphasized that although they are open to such issues, being a Government entity, they require support of law/act/guidelines/judicial orders for implementing such provisions.

Mr. Samar Singh Chairman of ESPP Review Committee inquired about the process of SDR analysis from the Bank and discussed the complexities of the Forest Rights Act 2006. He also clarified requested clarification about one of the findings of SDR regarding relevance of Environment (Protection) Act 1986 and its applicability to POWERGRID operations.

The Bank officials raised the issue of Compensatory Afforestation (CA) related to Forest Clearance and its implementation and periodic compliance report to the officials of Ministry of Environment & Forests (MoEF) present there. MoEF officials replied that forest clearance is a transparent process. As regards CA, they informed that as per the Hon'ble Supreme Court (SC) directive "Compensatory Afforestation Fund Management and Planning Authority" (CAMPA) has been constituted and is being monitored constantly by the SC. MoEF officials informed that it is a fact that due to on going litigation CA has not been undertaken in the last 4-5 years. However, they observed that the Government of India (GOI) has already initiated certain measures under the Green India campaign and that the GO1 is considering allowing user agencies to develop their own plantations for transfer to the Forest Department. In this regard, a CAMPA bill has also been introduced in the parliament.

Sh. S.K. Pande, Member ESPP Review Committee also raised certain HR issues regarding the progress of POWERGRID'S plan for people working in the field of environment and social Management and whether this is considered as a "punishment" posting, in comparison to working in Corporate or regional HQ. Mr. Jaiswal explained the initiative taken by POWERGRID for proper training for such

employees as well as such initiatives as quarterly coordination meetings, external and internal audits. He explained that executives working in Environment & Social Management are part of the main stream and he also observed that POWERGRlD is in the process of recruiting specialists in the field of environment and social Science to further strengthen the Department.

PAPS present informed the Bank about the various initiatives taken by the POWERGRID in the field of R&R and community development work.

The programme concluded with the sum up by Mr. Sanjay Srivastava of World Bank on the issue raised during discussion and thanked all participants for their contribution.

HYDERABAD: November 21,2008

Venue: Hotel Kakatiya Grand,

The Public Consultation started with brief introduction by Mr. Sanjay. Upadhyay, Legal Advisor to World Bank on UCS in India. Mr. Himberg and Mr. Ninioto then explained the objectives of Use of Country System (UCS) and selection of POWERGIDys ESPP as a first candidate from India for such exercise.

Mr Jaiswal, ED(CP & ESMD) from POWERGRID spoke about the process of development of ESPP and evaluation of other initiative by the POWERGRID on environment and social issues. This was followed by presentation of World Bank on the SDR, presenting the findings and analysis carried out during the last year and the subsequent recommendations.

Mr. Upadhyay than posed certain questions for discussion covering the issues that came out in the SDR and POWERGRID ESPP. He specifically asked about the proposed R&R Bill and Land Acquisition (Amendment) Bill. He enquired from PAPs whether POWERGRID follows its commitment as regards to compensation, R&R and other development work, etc.

The discussion started with the PAPs who spoke about very good community work taken uplcarried out by the POWERGRID in and around substations and affected villages. They demanded that POWERGRID should "adopt" affected villages for overall development. POWERGRID explained its position and informed the PAPS that once such provisions are incorporated in the Corporate Social Responsibility (CSR) Policy that is under development, it may adopt such measures for betterment of affected villages.

Mr. S. C. Rao, from CMSR associated with the POWERGRID for the last 4-5 years and carried out Socio-economic Survey and preparation of Rehabilitation Action Plan(RAP) for many sub stations described various features of POWERGRIDys R&R policy which are compatible and in some places even better than the provisions of National Policy on R&R (NPRR). He also congratulated POWERGRID for considering the family of each adult married son as a separate entity for Rehabilitation Assistance. However, he requested POWERGRID to look into the clause of capping of Rehabilitation Assistance to the compensation amount.

Mr. P. Ramamohan Rao, Social Expert, STEC also applauded the provision of POWERGRID R&R entitlement and has explained that how it has helped affected villagers in restoring their income level in the Gwalior sub station.

Dr. K. S. Ramesh, member ESPP Review Committee, raised certain queries regarding initiatives taken by the POWERGRID to enhance awareness towards environment & social issues particularly at RHQ and site level. He also explained that during the last 3-4 years he has observed that awareness and concern for

affected population has increased tremendously at the site level and applauded POWERGRID for such initiatives. He also cited POWERGRID proposed adoption of a Corporate Social Responsibility (CSR) policy as a means to widen the scope of R&R.

The media representatives present in the consultation interacted with the POWERGRID and Bank officials on the usefulness of UCS as well as on the future funding by the bank to POWERGRID and POWERGRID's plan.

Dr. Shalini Sharma of ESCI asked about POWERGRID's public consultation and its disclosure process and suggested that since POWERGRID has carried out Socio Economic Surveys at many locatation and generated substantial primary data, that such data can be compiled and presented for better use in future.

The programme ended with a sum up by the Bank and POWERGRID officials who thanked all participants for their valuable suggestions.

POST-CONSULTATION COMMENTS

The consultation process generated a number of articles in the local media and resulted in additional written comments from various stakeholders. Such comments highlighted additional details concerning the 2007 revisions in the Government of India's 2003 R & R Policy which was incorporated in the 2005 ESPP; differences between compensation rates offered in different states; and distinctions between different categories of tribal peoples who might be affected by POWERGRID's Tribal Peoples' Development Plan. These comments have been taken into account in this final version of the SDR.

Annex 1: World Bank Operational Policy 4.00 & Table A1

OP 4.00 - Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects

These policies were prepared for use by World Bank staff and are not OP 4.00

Click here to mint OP 4.00 and Table A1

Section E of Table A1 was revised in July 2005 to ensure consistency with the requirements of WlE3 4.10, Indigenous Peoples, issued in July 2005. Section G of Table A1 was revised in July 2006 following issuance of ElEJ 4.1 1. Physical Cultural Resources.

7-- --

Note: OP and 4.00Kbased on proposals in Expanding the Use of COU& Systems in ~ a n k G ~ o r t e d Operations: Issues and Proposals (R2005-001812) that were approved by Executive Directors on March 18,2005. OP and BP 4.00 apply to Bank-supported projects that pilot the use of borrower systems to address environmental and social safeguard issues and that are approved by the Board as part of the pilot program on or after March 21,2005. General questions on using country systems in World Bank-supported projects should be addressed to the Adviser, Investment Lending Unit, Operations Policy and Country Services. Questions on environmental and social safeguards aspects of pilot operations should be directed to the Senior Adviser, Quality Assurance and Compliance Unit in the Environmentallv and Sociallv Sustainable Development Network.

1. The ~ a n k ' s ' environmental and social ("safeguard") policies2 are designed to avoid, mitigate, or minimize adverse environmental and social impacts of projects supported by the Bank. The Bank encourages its borrowing member countries to adopt and implement systems3 that meet these objectives while ensuring that development resources are used transparently and efficiently to achieve desired outcomes. To encourage the development and effective application of such systems and thereby focus on building borrower capacity beyond individual project settings, the Bank is piloting the use of borrower systems in Bank-supported projects. The key objective of the pilot program is to improve overall understanding of implementation issues related to greater use of country systems.

2. Equivalence and Acceptability. The Bank considers a borrower's environmental and social safeguard system to be equivalent to the Bank's if the borrower's system is designed to achieve the objectives and adhere to the applicable operational principles set out in Table A l . Since equivalence is determined on a policy-by-policy basis, the Bank may conclude that the borrower's system is equivalent to the Bank's in specific environmental or social safeguard areas in particular pilot projects, and not in other such areas. Before deciding on the use of borrower systems, the Bank also assesses the acceptability of the borrower's implementation practices, track record, and capacity.4

3. Addressing Gaps. If the borrower has to fill gaps in its system to meet the objectives and applicable principles in Table A1 and is committed to doing so, the Bank may, when determining equivalence take account of measures to improve the borrower's system. Similarly if the borrower has to fill gaps in implementation practices and capacity to achieve acceptability and is committed to doing so, the Bank may, when determining acceptability, take account of measures to

strengthen borrower implementation practices and capacity. Such measures are to be carried out before the borrower undertakes implementation of the relevant project activities, and may include Bank-supported efforts to strengthen relevant capacity, incentives and methods for implementation.

4. Borrower Role and Obligations. The borrower is responsible for achieving and maintaining equivalence as well as acceptable implementation practices, track record, and capacity, in accordance with the Bank's assessment. For each project, the borrower identifies those provisions of the country system that are necessary to ensure that the requirements of Table A1 are met. These provisions may vary from project to project, depending on such factors as the - structure of the country's system and the type of operation. In all cases, the specific provisions of the country system and any additional actions that the borrower needs to undertake to achieve and maintain equivalence and acceptable implementation become part of the borrower's contractual obligations to the Bank, subject to the Bank's normal contractual remedies (e.g., suspension of disbursements).

5. Bank Responsibility. The Bank is responsible for determining the equivalence and acceptability of borrower systems, and for appraising and supervising pilot projects that use these systems. The Bank carries out its responsibility, including supervision50f borrower implementation practices, track record, and capacity, in a manner proportional to potential impacts and risks. The Bank may explore with the borrower (and, as appropriate, third-parties) the feasibility of arrangements to strengthen ownership and country capacity to implement specific operational principles in Table A l . Wlhout limitation to its responsibility under this paragraph, the Bank may also explore with the borrower (and, as appropriate, third-parties) the feasibility of establishing alternative monitoring arrangements for overseeing the implementation of the project.

6. Changes in Borrower Systems and Bank Remedies. If, during project implementation, there are changes in applicable legislation, regulations, rules or procedures, the Bank assesses the effect of those changes and discusses them with the borrower. If, in the judgment of the Bank, the changes reflect a further improvement in the country systems, and if the borrower so requests, the Bank may agree to revise the legal framework applicable to the operation to reflect these improvements, and to amend the legal agreement as necessary. Management documents, explains, and justifies any changes to such framework, and submits them for Board approval (normally on an absence of objection basis). If the country system is changed in a manner inconsistent with the legal framework agreed with the Bank, the Bank's contractual remedies apply.

7. Disclosure. To promote transparency and facilitate accountability, the Bank makes public through the PID early in the project cycle its intent to use country systems in a proposed pilot operation. It updates this information as project development proceeds. At a later stage, but prior to beginning appraisal, the Bank makes publicly available its analysis of equivalence of borrower systems and Bank requirements and its assessment of the acceptability of borrower implementation practices, track record, and capacity (including a description of the applicable borrower systems and of actions that would achieve and sustain equivalence and acceptability). In addition, the Bank ensures that relevant project-related environmental and social safeguard documents (see Table A1 ), including the procedures prepared for projects involving subprojects, are disclosed in a timely manner before project appraisal formally begins, in an accessible place and understandable form and language to key stakeholders.

1 . "Bank" includes IBRD and IDA; "loan" includes IDA credit and IDA grant; and "borrower includes grant recipient. 2. The Bank's environmental and social safeguards policies and procedures are: mle 4.01, Environmental

Assessment; =I= 4.04, Natural Habitats; OP 4.09, Pest Management; WIElJ 4.10, Indigenous Peoples; w1BJ 4.1 1 , Physical Cultural Resources; WlE 4.1 2, Involuntary Resettlement; OP 4.36. Forests; and OPIBP 4.37, Safety of Dams. --

3. When used in this policy statement "country systems" means a country's legal and institutional framework, consisting of its national, subnational, or sectoral implementing institutions and applicable laws, regulations, rules, and procedures.

4. As the applicable statement for the pilots, this OP and BP will apply only to those areas where the Bank has determined equivalence. The Bank's environmental and social safeguard policies will apply to the areas which the Bank has determined not to be equivalent to its applicable policy framework and will continue to apply to all projects that are not part of the pilot program. Pilot projects will be subject to all other applicable policies and procedures.

5. OPIBJ 13.05. Project Supervision. applies to pilot projects

Table A1 of OP 4.00, Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects

Objectives Operational Principles .. - - - - - - - --- -- - - -- - A. Environmental Assessment -- -. - To help ensure the environmental and social soundnessand sustainability of investment projects. To support integration of environmental and social aspects of projects into the decision making process.

-- -- - - - . -- I. Use a screening process for each proposed project, as early as possible, to determine the appropriate extent and type of environmental assessment (EA) so that appropriate studies are undertaken proportional to potential risks and to direct, and, as relevant, indirect, cumulative, and associated impacts. Use sectoral or regional environmental assessment when appropriate.

2. Assess potential impacts of the proposed project on physical, biological, socio-economic and physical cultural resources, including trans-boundary and global concerns, and potential impacts on human health and safety.

3. Assess the adequacy of the applicable legal and institutional framework, including applicable international environmental agreements, and confirm that they provide that the cooperating government does not finance project activities that would contravene such international obligations.

4. Provide for assessment of feasible investment, technical, and siting alternatives, including the "no action" alternative, potential impacts, feasibility of mitigating these impacts, their capital and recurrent costs, their suitability under local conditions, and their institutional, training and monitoring requirements associated with them.

5. Where applicable to the type of project being supported, normally apply the Pollution Prevention and Abatement Handbook (PPAH). Justify deviations when alternatives to measures set forth in the PPAH are selected.

6. Prevent and, where not possible to prevent, at least minimize, or compensate for adverse project impacts and enhance positive impacts through environmental management and planning that

includes the proposed mitigation measures, monitoring, institutional capacity development and training measures, an implementation schedule, and cost estimates.

7. Involve stakeholders, including project-affected groups and local nongovernmental organizations, as early as possible, in the preparation process and ensure that their views and concerns are made known to decision makers and taken into account. Continue consultations throughout project implementation as necessary to address EA-related issues that affect them.

8. Use independent expertise in the preparation of EA where appropriate. Use independent advisory panels during preparation and implementation of projects that are highly risky or contentious or that involve serious and multi-dimensional environmental and/or social concerns.

9. Provide measures to link the environmental assessment process and findings with studies of economic, financial, institutional, social and technical analyses of a proposed project.

10. Provide for application of the principles in this Table to subprojects under investment and financial intermediary activities.

11. Disclose draft EA in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders.

- --

Objectives Operational Principles

B. Natural Habitats ~... -~ ..~ .- ~ ~,. ~ ..

To promote environmentally 1. Use a precautionary approach to natural resources management sustainable development by to ensure opportunities for environmentally sustainable supporting the protection, development. Determine if project benefits substantially outweigh conservation, maintenance, potential environmental costs. and rehabilitation of natural habitats and their functions. 2. Avoid significant conversion or degradation of critical natural

habitats, including those habitats that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value, or (d) recognized as protected by traditional local communities.

3. Where projects adversely affect non-critical natural habitats, proceed only if viable alternatives are not available, and if appropriate conservation and mitigation measures, including those required to maintain ecological services they provide, are in place. Include also mitigation measures that minimize habitat loss and establish and maintain an ecologically similar protected area.

4. Whenever feasible, give preference to siting projects on lands already converted.

5. Consult key stakeholders, including local nongovernmental organizations and local communities, and involve such people in

design, implementation, monitoring, and evaluation of projects, including mitigation planning.

6. Provide for the use of appropriate expertise for the design and implementation of mitigation and monitoring plans.

7. Disclose draft mitigation plan in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders.

Objectives Operational Principles ~ - >.-...---....---...--.-.---..-p.

C. Pest Management [This text refers to lntegrated Pest Management (IPM) as defined in OP 4.091.

,~ ~ -..---.--..---..---..-.--..--..------.p,----.-.

To minimize and manage 1. Promote use of demand driven, ecologically based biological or the environmental and environmental pest management practices (Integrated Pest health risks associated with Management [IPM] in agricultural projects and lntegrated Vector pesticide use and promote Management [IVM] in public health projects) and reduce reliance on and support safe, effective, synthetic chemical pesticides. Include assessment of pest and environmentally sound management issues, impacts and risks in the EA process. pest management.

2. Procure pesticides contingent on an assessment of the nature and degree of associated risks, taking into account the proposed use and intended users. Do not procure formulated products that are in WHO Classes IA and IB, or formulations of products in Class II unless there are restrictions that are likely to deny use or access to lay personnel and others without training or proper equipment Reference: WHO'S "Recommended Classification of Pesticides by Hazard and Guidelines to Classification" (IOMC, 2000-2002).

3. Follow the recommendations and minimum standards as described in the United Nations Food and Agriculture Organization (FAO) International Code of Conduct on the Distribution and Use of Pesticides (Rome, 2003) and procure only pesticides that are manufactured, labeled, handled, stored, applied and disposed of according to acceptable standards as described in FA0 Pesticide Guidelines on Storage, Labeling, and Disposal (Rome, 1985).

4. Support policy reform and institutional capacity development to (a) enhance implementation of IPM- and IVM-based pest management, and (b) regulate and monitor the distribution and use of pesticides.

5. Disclose draft mitigation plan in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

- .

Objectives Operational Principles - - - - - - -

D. lnv&.mtary Resettlement

--

To avoid or minimize 1. Assess all viable alternative project designs to avoid, where involuntary resettlement feas~ble, or minimize involuntary resettlement.

and, where this is not feasible, to assist displaced 2. Through census and socio-economic surveys of the affected persons in improving or at population, identify, assess, and address the potential economic least restoring their and social impacts of the project that are caused by involuntary . livelihoods and standards of taking of land (e.g.. relocation or loss of shelter, loss of assets or living in real terms relative to access to assets, loss of income sources or means of livelihood, pre-displacement levels or whether or not the affected person must move to another location) to levels prevailing prior to or involuntary restriction of access to legally designated parks and the beginning of project protected areas. implementation, whichever is higher. 3. Identify and address impacts also if they result from other

activities that are (a) directly and significantly related to the proposed project, (b) necessary to achieve its objectives, and (c) carried out or planned to be carried out contemporaneously with the project.

4. Consult project-affected persons, host communities and local nongovernmental organizations, as appropriate. Provide them opportunities to participate in the planning, implementation, and monitoring of the resettlement program, especially in the process of developing and implementing the procedures for determining eligibility for compensation benefits and development assistance (as documented in a resettlement plan), and for establishing appropriate and accessible grievance mechanisms. Pay particular attention to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, Indigenous Peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation.

5. Inform displaced persons of their rights, consult them on options, and provide them with technically and economically feasible resettlement alternatives and needed assistance, including (a) prompt compensation at full replacement cost for loss of assets attributable to the project; (b) if there is relocation, assistance during relocation, and residential housing, or housing sites, or agricultural sites of equivalent productive potential, as required; (c) transitional support and development assistance, such as land preparation, credit facilities, training or job opportunities as required, in addition to compensation measures; (d) cash compensation for land when the impact of land acquisition on livelihoods is minor; and (e) provision of civic infrastructure and community services as required.

6. Give preference to land-based resettlement strategies for displaced persons whose livelihoods are land-based.

7. For those without formal legal rights to lands or claims to such land that could be recognized under the laws of the country, provide resettlement assistance in lieu of compensation for land to help improve or at least restore their livelihoods.

8. Disclose draft resettlement plans, including documentation of the consultation process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

9. Apply the principles described in the involuntary resettlement

section of this Table, as applicable and relevant, to subprojects requiring land acquisition.

10. Design, document, and disclose before appraisal of projects involving involuntary restriction of access to legally designated parks and protected areas, a participatory process for: (a) preparing and implementing project components; (b) establishing eligibility criteria; (c) agreeing on mitigation measures that help improve or restore livelihoods in a manner that maintains the sustainability of the park or protected area; (d) resolving conflicts; and (e) monitoring implementation.

1 1. Implement all relevant resettlement plans before project completion and provide resettlement entitlements before displacement or restriction of access. For projects involving restrictions of access, impose the restrictions in accordance with the timetable in the plan of actions.

12. Assess whether the objectives of the resettlement instrument have been achieved, upon completion of the project, taking account of the baseline conditions and the results of resettlement monitoring.

Objectives Operational Principles .. .- . ." .--- ~ ~ .--- -.. . ~ .~. - . .

E. lndigenous Peoples

To design and implement projects in a way that fosters full respect for lndigenous Peoples' dignity, human rights, and cultural uniqueness and so that they: (a) receive culturally compatible social and economic benefits; and (b) do not suffer adverse effects during the development process.

1. Screen early to determine whether lndigenous Peoples are present in, or have collective attachment to, the project area. lndigenous Peoples are identified as possessing the following characteristics in varying degrees: self-identification and recognition of this identity by others; collective attachment to geographically distinct habitats or ancestral territories and to the natural resources in these habitats and territories; presence of distinct customary cultural, economic, social or political institutions; and indigenous language.

2. Undertake free, prior and informed consultation with affected lndigenous Peoples to ascertain their broad community support for projects affecting them and to solicit their participation: (a) in designing, implementing, and monitoring measures to avoid adverse impacts, or, when avoidance is not feasible, to minimize, mitigate, or compensate for such effects; and (b) in tailoring benefits in a culturally appropriate manner .

3. Undertake social assessment or use similar methods to assess potential project impacts, both positive and adverse, on lndigenous Peoples. Give full consideration to options preferred by the affected lndigenous Peoples in the provision of benefits and design of mitigation measures. Identify social and economic benefits for lndigenous Peoples that are culturally appropriate, and gender and inter-generationally inclusive and develop measures to avoid, minimize andlor mitigate adverse impacts on lndigenous Peoples .

4. Where restriction of access of lndigenous Peoples to parks and protected areas is not avoidable, ensure that the affected lndigenous Peoples' communities participate in the design, implementation, monitoring and evaluation of management plans for such parks and protected areas and share equitably in benefits from the parks and protected areas.

5. Put in place an action plan for the legal recognition of customary rights to lands and territories, when the project involves: (a) activities that are contingent on establishing legally recognized rights to lands and territories that lndigenous Peoples traditionally owned, or customarily used or occupied; or (b) the acquisition of such lands.

6. Do not undertake commercial development of cultural resources or knowledge of lndigenous Peoples without obtaining their prior agreement to such development.

7. Prepare an lndigenous Peoples Plan that is based on the social assessment and draws on indigenous knowledge, in consultation with the affected lndigenous Peoples' communities and using qualified professionals. Normally, this plan would include a framework for continued consultation with the affected communities during project implementation; specify measures to ensure that lndigenous Peoples receive culturally appropriate benefits, and identify measures to avoid, minimize, mitigate or compensate for any adverse effects; and include grievance procedures, monitoring and evaluation arrangements, and the budget for implementing the planned measures.

8. Disclose the draft lndigenous Peoples Plan, including documentation of the consultation process, in a timely manner before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

9. Monitor implementation of the lndigenous Peoples Plan, using experienced social scientists. .~-. .- -. . ~-

Objectives Operational Principles

F. Forests -- - - -. -- - - - -..- -

To realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests.

.------p...---------.---.-.-----.---...--.--.-..---.

1. Screen as early as possible for potential impacts on forest health and quality and on the rights and welfare of the people who depend on them. As appropriate, evaluate the prospects for new markets and marketing arrangements.

2. Do not finance projects that would involve significant conversion or degradation of critical forest areas or related critical natural habitats, or that would contravene applicable international environmental agreements.

3. Do not finance natural forest harvesting or plantation development that would involve any conversion or degradation of critical forest areas or related critical natural habitats.

4. Support projects that adversely impact non-critical natural forests or related natural habitats only if viable alternatives to the project are not available and only if appropriate conservation and mitigation measures are in place.

5. Support commercial, industrial-scale forest harvesting only when the operation is certified, under an independent forest certification system, as meeting, or having a time-bound action plan to meet, internationally recognized standards of responsible forest

management and use.

6. Ensure that forest restoration projects maintain or enhance biodiversity and ecosystem functionality and that all plantation projects are environmentally appropriate, socially beneficial and economically viable.

7. Give preference to small-scale community-level management approaches where they best reduce poverty in a sustainable manner.

8. Support commercial harvesting by small-scale landholders, local communities or entities under joint forest management where monitoring with the meaningful participation of local communities demonstrates that these operations achieve a standard of forest management consistent with internationally recognized standards of responsible forest use or that they are adhering to an approved time-bound plan to meet these standards.

9. Use forest certification systems that require: (a) compliance with relevant laws; (b) recognition of, and respect for, legal or customary land tenure and use rights as well as the rights of Indigenous Peoples and workers; (c) measures to enhance sound community relations; (d) conservation of biological diversity and ecological functions; (e) measures to maintain or enhance environmentally sound multiple benefits from the forest; (f) prevention or minimization of environmental impacts; (g) effective forest management planning; (h) active monitoring and assessment of relevant forest management areas; and (i) independent, cost effective, third-party assessment of forest management performance against measurable performance standards defined at the national level and compatible with internationally accepted principles and criteria of sustainable forest management through decision making procedures that are fair, transparent, independent, designed to avoid conflict of interest and involve the meaningful participation of key stakeholders, including the private sector, Indigenous Peoples, and local communities.

10. Disclose any time-bound action plans in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

Objectives Operational Principles .~ - ..~...

G. Physical C . . . . .. . . . ~ ~ ~ . -- ~ . . . . . .. .. . .... . . ~ . ~ ~ ~. .... -.- -

To assist in preserving 1. Use an environmental assessment (EA) or equivalent process to physical cultural resources identify PCR and prevent or minimize or compensate for adverse and avoiding their impacts and enhance positive impacts on PCR through site destruction or damage. selection and design. PCR includes resources of archaeological, 2. As part of the EA, as appropriate, conduct field based surveys, paleontological, historical, using qualified specialists. architectural, religious (including graveyards and 3. Consult concerned government authorities, relevant non-

governmental organizations, relevant experts and local people in

burial sites), aesthetic, or documenting the presence and significance of PCR, assessing the other cultural significance. nature and extent of potential impacts on these resources, and

designing and implementing mitigation plans.

4. For materials that may be discovered during project implementation, provide for the use of "chance find" procedures in the context of the PCR management plan or PCR component of the environmental management plan.

5. Disclose draft mitigation plans as part of the EA or equivalent process, in a timely manner, before appraisal formally begins, in an accessible place and in a form 'and language that are understandable to key stakeholders.

Objectives Operational Principles ~

--- --- -- -

H . Safety of Dams

To assure quality and safety 1. Identify existing dams and dams under construction that can in the design and influence the performance of the project and implement necessary construction of new dams safety measureslremedial works. and the rehabilitation of existing dams, and in 2. Use experienced and competent professionals to design and carrying out activities that supervise the construction, operation, and maintenance of dams may be affected by an and associated works. . existing dam.

3. Develop detailed plans, including for construction supervision, instrumentation, operation and maintenance and emergency preparedness.

4. Use independent advice on the verification of design, construction, and operational procedures and appoint independent panels of experts for large or high hazard dams.

5. Use contractors that are qualified and experienced to undertake planned construction activities.

6. Carry out periodic safety inspections of newlrehabilitated dams after completion of constructionlrehabilitation, reviewlmonitor implementation of detailed plans and take appropriate action as needed.

- - - - - - -- - - - - .

Objectives and Operational Principles on Environment Assessment per OP 4.00 Table A1

Policy Objective To help ensure the environmental and social soundness and sustainability of investment projects.

To support integration of environmental and social aspects of projects into the decision making process.

Annex 2A

Equivalence Matrix: Environmental Assessment

Go1 Legal Framework

The objectives of the OP 4.00 are supported by the Constitution of India which enjoins that the State shall endeavor to protect and improve the environment,' The Constitution makes it the fundamental duty of every citizen to "improve the natural

POWERGRID Environmental and Social Policy and Procedures (ESPP) The ESPP (Preface) is intended "to provide a framework for identification, assessment and management of environmental and social concerns at both organizational and project levels within the adopted principles of avoidance,

Gap Analysis POWERGRID ESPP 1 Full Equivalence. The objectives of the ESPP are fully consistent with the Objectives of OP 4.00 with respect to EA and the integration of EA into the decision-malung processes.

Filling Measures POWERGRID ESPP

None.

' The Constitution of India states that "the State shall endeavor to protect and improve the environment and to safeguard the forests and wildlife of the country" (Article 48-A)


including forests, lakes, rivers, and wildlife and to have a compassion for living creatures." 2

Go1 Legal Framework

The Environmental (Protection) Act, 1986 @PA) authorizes the

and Social Policy and Procedures

POWERGRID Environmental

minimization and - Gap Analysis POWERGRID ESPP

Recommended Gap- Filling Measures POWERGRTD ESPP

Article 5 1 -A (g) 3 See The Statement of objects and reasons of EPA

EC is explicitly required for all POWERGFUD activities (located in the environmentally sensitive Aravalli mountain range in the states of Rajasthan and Haryana pursuant to a MoEF Notification issued under the authority of EPA on November 29, 1999

Preamble to the Act. Among the activities subject to EIA Notification that may appear to include electrical transmission is "aerial ropeways" whlch are classified as Category B and

to be treated as Category A if located in whole or in part within 10 km from the boundary of: (1) Protected Areas notified under the Wild Life (Protection) Act of 1972; (ii) Critically Polluted areas a Notified by the Central Pollution Control Board form time to time(iii) Notified Eco-sensitive areas; [and] (lv) inter-State ... and international boundaries;" (Note to EIA Notification Schedule). However under various Indian State laws "aerial ropeways" are not defmed in a manner that would appear to include electrical transmission lines, although the environmental impacts would appear to be similar. For example the Bombay Aerial Ropeways Act, 1956 states that aerial ropeway " means a system of overhead ropes on which carriers are used for the purpose of carriage of passengers, animals or goods and includes posts, ropes, carriers, stations, offices, warehouses, workshops, machinery and other works used for the purposes of, or in connection with, and all land appurtenant to, such aerial ropeway." Therefore electrical transmission lines, towers and substations do not fall within the definition of "aerial ropeways" as this term is used in the Environmental Notification.

principles on ~nhronment Assessment per OP 4.00 Table A1

Framework Go1 Legal

Central Government "to take all measures as it deems necessary or expedient for the purpose of protecting and improving the quality of the environment and preventing, controlling and abating environmental pollution." (Section 3(1). The EPA~ authorizes the activities of regulatory agencies, creates authorities and regulates pollutants, hazardous substances and ,ncludes deterrent

PO WERGRID Environmental and Social Policy and Procedures (ESPP)

Gap Analysis POWERGRID ESPP

Recommended Gap- Filling Measures POWERGRID ESPP


Go1 Legal Framework

penalties for those who endanger human environment, safety and health. However with exception of certain specialized Rules issued under the EPA (dealing with ozone- depleting substances and used batteries) the provisions of the Act have limited applicability to the electrical transmission sector. 45

The EIA Notification of 2006 requires prior environmental

POWERGRID Environmental and Social Policy and Procedures (ESPP)




Operational Principles

Go1 Legal Framework

clearance by Central or State Government authorities, respectively for specified categories of projects. However, the electrical transmission sector is not included specifically in the Schedule of activities subject to EIA ~ot i f ica t ion.~


Recommended Gap- ESPP Filling Measures

POWERGRID ESPP

Objectives and operational Principles on Environment Assessment per OP 4.00 Table A1

1. Use a screening process for each proposed project, as early as possible, to determine the appropriate extent and type of environmental assessment (EA) so that appropriate studies are undertaken proportional to potential risks and to direct, and, as relevant, indirect, cumulative, and associated impacts. Use sectoral or regional environmental assessment when appropriate.

Go1 Legal Framework

The EL4 Notification provides for a screening process to determine whether proposed projects require Environmental Impact Assessment (Em) and which require Environmental Clearance (EC) by the Ministry of Environment and Forests (MOEF) in addition to state- level authorities. Screening criteria referenced in the Schedule annexed to the EL4 Notification establish thresholds based on the nature,

POWERGRID Environmental and Social Policy and Procedures (ESPP) The ESPP requires POWERGRID to undertake EA for all projects as a standard management procedure. Under the ESPP Screening and Scoping are carried out during Project Conceptualizatio n, the earliest stage in the project cycle, following Project Identification, Concurrence of Constituents, and Feasibility Studies and prior to seeking Preliminary Approvals from POWERGRID'S Board of .


Full Equivalence. The ESPP is equivalent to the requirements of the operational principle for EA, i.e. that screening be undertaken for each proposed project early in the project cycle to determine the appropriate extent and type of EA proportionate to potential risks. The matrix of potential environmental and social risks identified by POWERGRID in the ESPP (Table 4.1 and Table 4.2) includes direct, indirect and associated risks (although these are not identified as such). However, the ESPP does not include any references to cumulative risks or for the need for sectoral or regional EA. However, it is not self-evident that cumulative impacts, or sectoral or regional EA are relevant to POWERGRID's activities.


None, unless it can be demonstrated that (1) POWERGRID's activities are subject to EC and EL4 Notification in designed "eco-sensitive zones" in addition to those referenced in the ESPP. (See footnote lo); (2) POWERGRID's activities have cumulative impacts; or that (d) EA of POWERGRID projects would benefit from regional or sectoral EA. None of these potential gaps are self-evident.

Assessment per OP 4.00 Table A1

Framework

scale and location of the proposed activities. (EIA Notification Schedule). Projects falling under "Category A" in the Schedule are referred to MoEF and to the State Environmental Impact Assessment Authority (SEIAA) for matters falling under "Category B" in the Schedule.

Objectives and Operational Principles on Environment

The application form for EC references various forms of direct, indirect, associated and cumulative

Go1 Legal POWERGRID Environmental and Social Policy and Procedures (ESPP) Directors and potential funding agencies. (ESPP, 3.2) Separate screening and scoping activities are undertaken for environmental and social impacts for both TLs and SS. (ESPP 5.1). The ESPP also includes an Environmental and Social Risk Framework that prioritizes risks for the purpose of selecting environmental and social management options (ESPP 5.8)

~ a p Analysis POWERGRID ESPP



2. Assess potential impacts of the proposed project on physical, biological, socio-economic and physical cultural resources, including trans-boundary and global concerns, and potential

Go1 Legal Framework

impacts. (Appendix I) The National Environment Appellate Authority (NEAA) Act, 1997 establishes the NEAA to deal with grievances

of affected parties who have been denied clearances, including as a result of the screening process.

The EPA, together with laws, rules and regulations issued under its authority,


The ESPP identifies biological, socio- economic and physical cultural resource issues

Gap Analysis POWERGlUD ESPP

Partial Equivalence. The ESPP contains no specific provisions on the assessment of trans-boundary impacts. Trans-boundary impacts could be relevant in


The ESPP should provide fo the assessment of trans- boundary environmental ant social impacts in the context of applicable international environmental agreements.

Objectives and Operational 1 Principles on Environment Assessment per OP 4.00 Table A1

impacts on human health and safety.

Go1 Legal Framework

provides a framework for addressing potential impacts of proposed projects on physical, biological, socio- economic and physical cultural resources (PCR), including trans- boundary and global concerns, as well as potential impacts on human health and safety.

Although the EPA has limited application to POWERGRID'S activities sector, other environmental

POWERGRID Environmental and Social Policy and Procedures (ESPP) among the environmental and social impacts to be included in EA (ESPP 4.0-4.2. and Table 4.1 .- 4.3). PCR is cited with respect to meeting the previous World Bank Operational Policy Note on Cultural property.' (ESPP 2.2. ). Global impacts are addressed through policies designed to reduce the use of ozone depleting substances (ODs) ..(ESPP 2.1.3).)


the case of a trans-border TL, as for example in the case of the Tala TL from Bhutan to West Bengal. With respect to ODs the ESPP needs to be updated per the EIA notification 2006 as well as more recent amendments in the EPA itself.


The ESPP should cite all Go laws and regulations applicable to POWERGRID operations that are intended to implement international environmental agreements ratified by the Go1 such as the: Convention on Biodiversity; Vienna Convention and Montreal Protocol on Protection of the Ozone Layer; World Heritag Convention; and when finalized, regulations designed to implement the Convention on Wetlands of International Importance

7 OPN 11.03 has since been revised and reissued as OP 4.11; the key elements of are incorporated as Objectives and Operational Principles for PCR in OP 4.00 Table Al .

Principles on Environment Assessment per OP 4.00 Table A1

Go1 Legal Framework

and social impact laws and rules do provide a legal basis to assess the potential impacts of POWERGRID'S activities on physical, biological, socio- economic and physical cultural resources. With respect to impacts on physical, biological and physical cultural resources these include the Batteries (Management and Handling) Rules, 2001; the Hazardous Wastes (Management and Handling)

POWERGRID Environmental and Social Policy and Procedures (ESPPI




Go1 Legal Framework

Amendment Rules, 2003; Ozone-Depleting Substances (Regulation and Control) Rules, 2000; the Indian Forest Act of 1927; the Forest (Conservation) Act of 1980; the Wildlife (Protection) Act of 1972, as amended; the Biological Diversity Act of 2002 (BDA) the BDA Rules (2003); the Antiquities and National Treasures Law of 1972 (ANTL); and the Ancient Monuments and Archaeological Sites and Remains

Environmental and Social Policy and Procedures (ESPP)



POWERGRID I

Objectives andoperational Principles on Environment Assessment per OP 4.00 Table A1

Go1 Legal Framework

Act of 1958 (AMASRA) and accompanying Rules of 1959.

With respect to socio-economic impacts, the Land Acquisition Act (LAA) includes some measures to calculate economic impacts of land acquisition on affected persons.



~ecommended Gap- Filling Measures POWERGRID ESPP


Go1 Legal Framework

protected under any treaty, agreement or convention with any other country or countries or in pursuance of any decision made in any international conference, association or other body."

Form 1 of the EIA Notification requires the applicant for Environmental Clearance to "identify any.. .areas protected under international conventions, national or local legislation for their ecological, landscape.. .or

POWERGRID Environmental and Social Policy and Procedures (ESPP) that are not applicable to POWERGRID for technical reasons, but that POWERGRID voluntarily observes as part of its corporate environmental and social policy, such as EA requirements, ambient air and noise quality laws and regulations.



agreements ratified by the GOI.


Go1 Legal Framework

and siting alternatives, including the "no action" alternative, potential impacts, feasibility of mitigating these impacts, their capital and recurrent costs, their suitability under local conditions, and their institutional, training and monitoring requirements associated with them.

r

includes a section on "Analysis of Alternatives (Technology and Site) as part of the "Generic Structure of [the] Environmental Impact Assessment Document." It includes a description of each alternative; a summary of the adverse impacts of each alternative; mitigation measures proposed for each alternative and the selection of the alternative. (EIA Notification, Appendix 111)

Environmental and Social Policy and Procedures (ESPP) options for TLs and SS are reviewed during screening and scoping in consultation with relevant environmental and social impact authorities (ESPP 5.1.1-5.1.2) The criteria used to compare alternative TL routes and SS sites are described in the ESPP (Appendices =v> and =VI> The criteria include impacts and the feasibility of mitigating them, capital and recurrent costs as well as their

POWERGRID ESPP Filling Measures

POWERGRID ESPP

Gap Analysis POWERGRID

equivalent to the requirements of this OP. However the ESPP does not require consideration of institutional, training and monitoring requirements associated with each alternative. The ESPP makes no reference to the "no action" alternative.

Recommended Gap-

should be revised to include consideration of institutional, training and monitoring requirements associated with each alternative as well as the "no action" alternative.

9 The Industry Guidelines of the 1998 PPAH were replaced in 2007-08 with General and sector-specific Environmental Health and Safety Guidelines (EHS Guidelines). .


None.


Full Equivalence The ESPP, taken together with the POWERGRID'S SOP, is generally equivalent to the recommendations contained in the EHS Guidelines with respect electrical transmission.


5. Where applicable to the type of project being supported, normally apply the Pollution Prevention and Abatement Handbook (PPAH)~. Justify deviations when alternatives to measures set forth in the PPAH are selected.

Go1 Legal Framework

However, as noted above the electrical transmission sector is not subject to the provisions of the EIA Notification.

There is no GO1 legal requirement that EA apply PPAH or other internationally recognized standards to the assessment of acceptable project environmental impacts. There is no specific GO1 legislation regulating to the

POWERGRID Environmental and Social Policy and Procedures (ESPP) suitability under local conditions.

Although the ESPP does not make reference to the PPAH or the ESH Guideline for Electrical Transmission and Distribution, the ESPP, together with other Standard Operational Procedures of POWERGRID, contains

lo The EHS Guidelines include a specific guideline on Electrical Transmission and Distribution " See Annex 8 of the main Report for a comparison of POWERGRID'S environmental, health and safety procedures with the recommendations of the EHS Guideline for Electrical Transmission and Distribution


6. Prevent and, where not possible to prevent, at least minimize, or compensate for adverse project impacts and enhance positive impacts through environmental management and planning that includes the proposed mitigation measures, monitoring, institutional capacity development and training measures, an implementation schedule, and cost estimates.

POWERGRID Environmental and Social Policy and Procedures (ESPP) numerous detailed provisions that are comparable to the recommendations contained in the EHS Guideline on Electrical Transmission and Distribution." .

Environmental mitigation training and monitoring requirements are described in considerable detail in the ESPP through the design, project implementation, operation and

Go1 Legal Framework

environmental impacts of electrical transmission projects that is comparable to the EHS Guideline for Electrical Transmission and Distribution."

The EIA Notification includes a requirement for detailed investigation of anticipated environmental impacts and mitigation measures including


Full Equivalence


None.


Go1 Legal Framework

measures for minimizing andlor offsetting adverse impacts identified. It also includes requirements for an Environmental Monitoring Program (EMP), specifying the technical aspects of monitoring the effectiveness of mitigation measures including measurement methodologies, frequency, location, data analysis, reporting schedules, emergency procedures and detailed budget and procurement

POWERGRID Environmental and Social Policy and Procedures (ESPP) maintenance and project review stages. (ESPP Chapters 4, 5 and 6 and accompanying tables and figures.




7. Involve stakeholders, including project-affected groups and local nongovernmental organizations, as early as possible, in the preparation process and ensure that their views and concerns are made known to decision makers and taken into account. Continue consultations throughout project implementation as necessary to address EA-related issues that affect them.

Go1 Legal Framework

schedules. (EM Notification Annex III, Generic Structure of Environmental Impact Document). Under the E M Notification, all Category A and Category B 1 projects or activities are required to under take Public Consultation with certain narrowly specified exceptions. Consultation includes two components: "(a) a public hearing at.. . or in close proximity to the site and b) written comments


The ESPP itself was developed through a process of stakeholder consultation , including project affected persons ( P H s ) , local communities This process, which included consultations in all major regions of the country as well as on the national level, is described in Appendix XXXXVIII of the ESPP


Full Equivalence.


None.


Framework

from concerned persons having a plausible take in the environmental aspects of the project." (EM Notification Section 7. I11 (i) and (ii)

I Objectives and Operational

Detailed provisions for thc "Procedure for Conduct of the Public Hearing" are include in the EIA Notification for the purpose o :nsuring that the nearing "shall be xrranged in a jystematic, time ~ound and ransparent nanner ensuring widest possible ~ublic


Under the ESPP, "[P]ublic consultation [is] an integral part of the process throughout the planning and execution of a project. (ESPP 2.6) ... The ESPP commits POWERGRID to "ensure total transparency in dealing with all.. .stakeholders

i.e., . . .concerned government agencies, local communities, individual landowners and employees and their involvement through a well- defined public

Go1 Legal Gap Analysis POWERGRID ESPP

POWERGRID Recommended Gap- Filling Measures POWERGRID ESPP




Go1 Legal Framework

participation.. ." (EM Notification, Appendix IV 1 .O) Towards these ends, the responsible State (or Union Territory) Pollution Control Board shall advertise the date, time and venue for the public hearing, [as well as the locations] where the public can access the draft EL4 report and summary EL4 report prior to the public hearing.. . in one major national daily and one regional vernacular daily."(EIA

POWERGRID Environmental and Social Policy and Procedures (ESPP) consultation process as well as dissemination of relevant information about the project at every stage of implementation." (ESPP, Preface). . . ."Duri ng the EA process [the] public is kept informed at every stage of project execution and their views are respected in decision- making." (ESPP2.2). In undertaking the Environmental Assessment and Management Plan (EAMP) POWERGRID consults with the


Go1 Legal Framework

Notification, Appendix IV 3.1 - 3.2). The EIA Notification provides that "every person present at the venue shall be granted an opportunity to seek information or clarifications on the project from the applicant. A summary of the hearing proceedings accurately reflecting all of the views and concerns expressed is to be recorded by a representative of the SPCBNTPCC

POWERGRID Environmental and Social Policy and Procedures (ESPP) public as well as with government agencies such as the Forest Department and revenue authorities (ESPP 5.4.3) Extensive details concerning POWERGRID'S public consultation process are provided in Appendix XVIII of the ESPP and it the Social Entitlement Framework as described in the sections on Involuntary Resettlement and Indigenous Peoples (below)

ESPP Filling Measures POWERGRID ESPP

Gap Analysis POWERGRID Recommended Gap-

Objectives and Operational Principles on Environment Assessment ( per OP 4.00 Table A1

Go1 Legal Framework

and read over to the audience at the end of the proceeding explaining the contents in the vernacular language and the greed minutes are to be singed by the District Magistrate or representative on the same day and forwarded to the responsible SPCB/UTPCC. ." A Statement of the issues raised by the public and comments of the applicant are to be prepared in the local language and in English and annexed to the proceedings. The full







Go1 Legal Framework

proceedings of the public hearing are to "conspicuously displayed" at the office of the Panchayats within whose jurisdiction the project is located, the office of the Concerned Zila Parashad, District Magistrate and the SPCBAJTCC. (EIA Notification, Appendix IV 3.1 - 3.2, 5.0 and 6.0).

The SPCBAJTPCC shall also display the proceedings on its website for general information and



8. Use independent expertise in the preparation of EA where appropriate. Use independent advisory panels during preparation and implementation of projects that are highly risky or contentious or that involve serious and multi-dimensional environmental andlor social concerns.

Go1 Legal Framework

any comments on the proceedings which may be sent directly to the concerned.

Under the EIA Notification, all Category A projects require prior EC from the MoEF on the recommendations of an Expert Appraisal Committee (EAC) to be constituted by the Central Government for this purpose. (EIA Notification 4. (ii))

Likewise, Category B projects require prior EC from the


The ESPP itself was reviewed by an independent committee (IC) constituted by POWERGRID, consisting of eminent environmentalists , social scientists and representatives of multilateral funding agencies. The role of the IC in developing the ESPP is highlighted in the Preface and Public Consultation Section of the ESPP.


Partial Equivalence An IC was established to participate in the development of the ESPP but the ESPP does not state that the IC has continuing authority to provide expert opinion on individual projects and is not made clear in the IC's TOR.


The ESPP should clarify the role of the Independent Expert Committee in advising POWERGRTD on project implementation, particularly for complex projects.


Go1 Legal Framework

Statemnion Territory Environmental Impact Assessment Authority based on the recommendation of a State or Union territory level EAC (SEAC) constituted for this purpose. (EIA Notification 4.(iii))

The EACs and SEACs are also responsible for determining the Terms of Reference (TOR) for each EIA based on the information provided in the prescribed


The TOR for POWERGRID's IC provides for on site visits to complex projects and specifies the membership of the IC. However, neither the TOR for the IC nor the continuing role of the IC in providing advice to POWERGRID on projects is not cited in the ESPP.

ESPP Filling Measures POWERGRID ESPP


Go1 Legal Framework

9. Provide measures to link the environmental assessment process and findings with studies of economic, financial, institutional, social and technical analyses of a proposed project.

application form, the TOR proposed by the applicant and, and, if necessary. (EIA Notification 7(i)(II)(i),

The E M , SEIAAs, EACs and SEACs are statutory and independent authorities. This ensures the independent nature of the assessments and advice they provide . The EIA Notification provides several linkages between EA and socio- economic


The ESPP goes to considerable effort to link the EA process with the project cycle and integrate its

POWERGRID Gap Analysis POWERGRID m

Full Equivalence. The ESPP provides complete equivalence with this Operational Principle.

Filling Measures POWERGRID ESPP

Recommended Gap- 1

None.


Go1 Legal Framework

impacts that are built into the EA process

For example, the requirement for "Additional Studies" as part of the Generic Structure of Environmental Impact Assessment Document includes the "Social Impact Assessment and the R & R Action Plans\"- Economic . (EM Notification, Appendix 111: 7)''

POWERGRID Environmental and Social Policy and Procedures (ESPP) findings into concurrent feasibility studies, route and site . surveys, social assessments and related government approval mechanisms. (ESPP Chapters 3, 4 and 5, Appendices V, and XXN



"See also (EIA Notification, Form 1: 1.28 and 3. and Checklist of Environmental Impacts includes "Socio-Economic Aspects" including demographic changes, and any adverse effect on local communities and safeguards proposed." (EM Notification, Appendix 11, paras. 7.1-7.3.

10. Provide for application of the principles in this Table to subprojects under investment and financial intermediary activities.


manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders.

Go1 Legal Framework


Neither the EPA nor the EIA Notification distinguish projects and sub projects.


Under the Environmental Notification, the regulatory authority and the State or Union Territory Pollution Control Board (SPCB or UTPCC) is


The ESPP does not distinguish between projects and subprojects (i.e. project components).

As noted above with respect to public consultation, the ESPP commits POWERGRID to "ensure total transparency in dealing with all.. .stakeholders

Full ~ ~ u i v a 1 e n c e . l ~

Partial Equivalence. Although the ESPP provides for extensive disclosure of project information during public consultation it does not specify any procedures for disclosure of EA documents per se.

None.

The ESPP should outline specific provisions for timely disclosure of the Initial Environmental Impact Repor prepared by POWERGRID ir a form and language understandable to key stakeholders. This is generally consistent with POWERGRID'S current

l 3 Ibid.


Go1 Legal Framework

I

required to make the Draft EL4 report available for inspection and a notified place during normal business hours prior to and up to the date of

public hearing and prior the to ~ ~ ~ r a i s a 1 . l ~ The summary EL4 report in a given format is also required to be placed on the website of the SPCB or UTPCC as the case may be. (EM Notification 7(i)III(vi.)


i.e., . . .concerned government agencies, local communities, individual landowners and employees and their involvement through a well- defined public consultation process as well as dissemination of relevant information about the project at every stage of implementation." (ESPP, Preface)

The public disclosure aspects



practice of disclosing its Initial and Final Environmental Assessment Reports on its website and making them available at public information offices located at its substations. POWERGRID's ongoing practice of using local language and dialects should be noted as part of Appendix XVIII on POWERGRID's Public Consultation Process.

14 Under the ETA Notification, Appraisal is defmed as "the detailed scrutiny by the EACISEAC of the application and other documents, including the Final ETA report, outcome of public consultations, including public hearing proceedings submitted by the applicant to the regulatory authority concerned for grant of environmental clearance."

objectives and Operational Principles on Environment Assessment per OP 4.00 Table A1

Go1 Legal Framework

POWERGRID Environmental and Social Policy and Procedures (ESPP) POWERGRID'S public consultation process are described in detail in a dedicated Appendix to the ESPP

Disclosure includes is information on locations of substations, use of local media (including at least one in the local language), physical displays, field offices and local officials, as well as public meetings, informal small group meetings; information brochures and




(ESPP) pamphlets; and

Go1 Legal Framework

local site visits by POWERGRID staff to disclose details of proposed projects to PAPS. (ESPP Appendix XVIII)

POWERGRID Environmental and Social Policy and Procedures



Annex 2B

Equivalence Matrix: Natural Habitats

POWERGRID'S

and improvement of the rehabilitation of natural habitats and their functions.

environment and safeguarding of forest and wildlife)

Further under the Fundamental Duties provision it states that it is the duty of every citizen "To protect and improve the natural environment

The ESPP cites the "Wildlife Protection Act" among "relevant laws having bearing on . . . .POWERGRID." (2.3.1.B).

The ESPP states that "The Biodiversity Act . . .is not directly applicable to

it would require that the SIAS be carried out simultaneously with any required the Environmental Impact Study; that the public hearing

I The BDA defines "in situ conservation" to mean "the conservation of ecosystems and natural habitats and the maintenance and recovery of viable populations of species in their natural surroundings and, in the case of domesticated or cultivated species, in the surroundings where they have developed their distinctive properties." (Art. 36(5)(b)

Recommended Gap Filling Measures for ,

POWERGRID ESPP

Objectives and Operational Principles on Natural Habitats per OP 4.00 Table A1

Government of India (GOr) Legal Framework

including forests , lakes, rivers, and wildlife and to have a compassion for living creatures"( 5 1-A

The Wildlife Protection ~ c t of, 1972 (NO. 53 of 1972 as amended (WpA") is "[aln Act to provide for the protection of wild animals, birds and plants and for matters connected therewith or ancillary or incidental thereto with a view of ensuring the ecological and environmental security of the country" (Preamble). It provides for the designation and management of Protected Areas (PAS) including National Parks, Sanctuaries, Conservation

POWERGRID Environmental and Social Policy and Procedures . (Espp)

transmission projects" (Table 2.4)

The ESPP also cites the National Conservation Strategy and Policy Statement on Environment and Development, 1992 and the Wildlife Conservation Strategy 2002-15.


undertaken for the EIA shall also cover issues relating the SIA and that a copy of the SIA report be made available to the Impact Assessment Agency of the MoEF; and that a copy of the EIA report be shared with the independent multi- disciplinary expert group that is authorized to review the SIA report. The ESPP is fully equivalent

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Government of India (GO11 Legal Framework

Further order dated 1 3 -1 1 - 2000 effectively bans dereservation of forest1 sanctuary1 national park till further orders.

Order dated 26.09.2005 on ecologically sensitive areas states that user agencies, especially the large public sector undertakings "such as Power Grid Corporation.. ." etc., which frequently require forest land for their projects should also be involved in undertalung compensatory afforestation by establishing Special Purpose Vehicles. Pnvate sector user-agencies are held responsible for monitoring of compensatory afforestation. Necessary procedures for this purpose are to be established by the MOEF with the

POWERGRID


POWERGRID Environmental and Social Policy and Procedures (Espp)

Government of India (Go11 Legal Framework

concurrence of the Central Empowered Committee.

Order dated 04-1 2-2006 in the case of Goa Foundation versus Union of India W.P.(C) NO. 9 1 of 2005 describes a decision that was taken on 21 st January, 2002, involving notification of the areas within 10 krn. of the boundaries of the sanctuaries and national parks as :"Eco-sensitive areas" with a view to conserving the forest, wildlife and environment, and having regard to the precautionary principles

The Wildlife Protection Act amendments in 2006 (Section 38 V) also provide for the creation of Critical Tiger Habitats as inviolate areas. The Tiger and Other Species Crime


Recommended Gap Filling

*Measures for ~ POWERGRID ESPP

Recommended Gap Filling Measures for POWERGRID ESPP




Control Bureau is another significant step towards protecting species as well as habitat. (Ref. Chapter IV C of the WLPA)

The Biological Diversity Act, 2002 (BDA) provides for the "conservation of biological diversity, sustainable use of its components and fair and equitable sharing of the benefits. . ." [I]t provides that "[tlhe Central Government shall develop national strategies, plans, programmes for the conservation and promotion and sustainable use of biological diversity including measures for identification and monitoring of areas rich in biological resources, promote of in situ. . .conservation1. . . ." with reference to the United Nations

POWERGRID Environmental and Social Policy and Procedures W p P )

ironmental and Social

The, BDA defines "biodiversity heritage sites" as areas of biodiversity importance. The determination of such sites, their management and conservations rest with the State government (Section 37 in conjunction with Section 63). From an institutional perspective, the Act provides for the establishment of the National Biodiversity Authority at the national level and the State Biodiversity Boards at the state level, as bodies with advisory competencies in the management of such sites (Sections 18 and 32). Most importantly it also establishes the



Biodiversity Managing Committees. (Chapter X)

Further the Central Government, in consultation with the concerned State Government, may from time to time notify any species which is on the verge of extinction or likely to become extinct in the near future as a threatened species and prohibit or regulate collection thereof for any purpose and take appropriate steps to rehabilitate and preserve those species. ( See Section 38)

The Scheduled Tribes and Other Traditional Dwellers (Recognition of Forest Rights) Act, 2006 (FRA) is also applicable as it recognizes forest rights




,Recymmended , :-Gap Fwng , '

, . ? 3 , '"(

:@easvref !,. for.,". 6

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POWERGRID . *3h;bxi4

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8

of tribal communities and traditional dwellers over wildlife habitats of National Parks and Sanctuaries. (Art. 4(2))

Specifically the notification of critical wildlife habitat (which is very similar to the critical tiger habitat) through the MOEF and provision of making them inviolate after a due process. (Section 2(b) read with Section 4(2) of the FRA). The legal distinction between the two categories is that while critical wildlife habitat under the FRA is created strictly out of national parks and sanctuaries, Critical Tiger Habitat is created as Tiger Reserves which may be outside the protected area network.

In this light, the two other

Objectives and Operational Principles on Natural Habitats

Government of India (GOO Legal Framework

categories of protected areas under the WLPA area equally significant: 1) conservation reserves which seek to protect corridors between two national parks or sanctuaries or tiger reserves: (2) the provision of Community Reserves which seeks to elicit community participation in protecting significant wild life habitats. (Section 36-A and 36-C of the WLPA)

Of potential significance is the recent move to declare Coastal Management Zone under a new revised draft amendment to the Coastal Regulation I category ~nder the Coastal Xesources Zone (CRZ) lotification of 199 1 which las been issued under the 3PA (Although ~ansmission lines are

POWERGRID

The precautionary approach originated in environmental risk management to provide regulatory authority to stop specific environmental contaminations without waiting for conclusive evidence of harm to the environment (i.e., while there was still "uncertainty" about the evidence). htt~://www.a~bioforum.org/v3n4/v3n4al3-hathcock.htm


Operational Principles 1. Use a precautionary approach2 to natural resources management

Government of India (Go11 Legal Framework

exempted fiom this notification as well). amendment (Draft CMZ notification of 2008)

Impacts of forest-based activities on PAS located in or adjacent to forests have been addressed by various Supreme Court decisions cited by the Ministry of Environment and Forests in "Guidance and Clarifications" regarding application of the Forest (Conservation) Act (FCA, 1980 and the Forest (Conservation Rules), 2003 as amended through June 2004. (GC)

The WPA constitutes National and State Wild Life Boards (NWLB and SWLB respectively) with the authority, among other


"POWERGRID undertakes environmental assessment for all projects as a standard management procedure, as laid down in the ESPP."


Partial Equivalence

POWERGRID'S use of EA and

Recommended Gap Filling @easures for POWERGRID ESPP '

None.

Objectives and Operational Principles on Natural Habitats per OP 4.00 Table A1 to ensure opportunities for environmentally sustainable development. Determine if project benefits substantially outweigh potential environmental costs.


things, to "advise the State Government. . .in the selection and management of areas to be declared as protected areas [PA]."

Under the WPA, one of the functions of the National Board for Wild Life (NBWL), constituted under the WPA (Section 5A) is to [clarry.. .out or causing to be carried out impact assessment of various projects and activities on wild life or its habit [and] to "prepare a status report at least once in two years on wild life in the country." (Sections 5 C(c) and (e).

The BDA provides that "The Central Government shall undertake measures. . . wherever necessary, for assessment of environmental impact of that project which is


(2.1.3) During project planning "[a] detailed survey is canied out for the forest area and preliminary survey for the rest of the areas." (3.2)

"For non-forest areas, an environmental review is undertaken and appropriate management measures are formulated." (5.2.3.i)

The standard format for POWERGRID'S Initial Environmental Assessment Report (IEAR) includes among base-line data: "description of natural resource base [including] any ... environmental[ally] sensitive areas [such as] National Park(s). . .sanctuary, etc. .( the etc needs to be expanded to include other sensitive areas such as ESA, CRZI areas, No development Zones,


cost-benefit analysis as a standard management procedures, and its policy of avoiding or minimizing impacts on natural parks, wildlife and biosphere reserves and other eco- sensitive areas, bring the ESPP into partial equivalence with this Operational Principle.

Recommended Gap Filling Measures for, POWERGRID ESPP

effects and where

public participation in description of the route such assessment. (Art. 36(4)(i)

Amendments to the Forest Conservation Rules require use of cost-benefit analysis for projects . involving transmission lines (Appendix to FCR, Section 6, Form A, part 1.1 .(v) and GC Annexures vI(a )(b(c).

Any intervention on wild life in sanctuaries and national parks because of development activities is subject to prior permit (see WPA Sections 29 and 35(6). These provisions are both anticipatory and precautionary in nature.

selection including reference to "particular environmental parameters.. ..[including] protected areas. . . ." (Appendix XXXI)

During environmental screening and scoping for transmission lines and substation, "the Environmental and Social Management Department (ESMD) through its 'Bee' line survey (a desk review) . . ..will identify any environmentally sensitive areas such as . . .deciduous and scrub'forests, riparian areas wetlands, mountains, critical wildlife habitats and geologically sensitive areas.

Environmental

State Government to take immediate ameliorative measures, offering such State Government any technical and other assistance that is possible.. ." (Art. 36(2))

Under the EIA Notification an Application for Prior Environmental Clearance (EC) requires the use of prescribed Form 1 and, in specified cases, Supplementary Form 1 A. These forms require information on the anticipated impacts of the proposed project and the

identified during desk review" (5.1.1 .)



,

Recommended Gap Filling .' Measures for POWERGRID' ESPP


environmental sensitivity of potential receptors, provides and the Terms of Reference for EIA Studies (Section 6)

The prior CRZ Clearance under EPA is also required to scrutinize the projects from a precautionary approach

In the famous Vellore Citizen's Welfare Forum vs. Union of India and others [JT1996 (7) SC 375; It has been observed that " Precautionary Principle" and the " Polluter Pays Principle" are essential features of "Sustainable Development"

The "onus of proof' is on the actor or the developer / industrialist to show that his action is environmentally benign. It

POWERGRID Environmental and Social Policy and Procedures W p P )


2. Avoid significant

Government, of India (GO11 Legal Framework

was further held that in view of the above mentioned constitutional and statutory provisions the precautionary principle and the polluter pays principle are part of the environmental law of this country."

See also order dated 04- 12-2006 in the case of Goa Foundation versus Union of India W.P. (C) NO. 91 of 2005-constitution of ESA is primarily with a view to conserve the forest, wildlife and environment, and having regard to the precautionary principles.

The State Government conversion or may declare an intention

any area as a


The ESPP should


"Avoid operations in be amended to include reference to other critical


Partial environmentally sensitive areas such as.. ..wildlife reserves and biosphere

Equivalence.

The ESPP cites

Objectives and Government of India POWERGRID Gap Analysis Recommended Operational (GO11 Environmental and$Social POWERGR~) Gap ~i l l ing ' a

Principles on Natural Legal Framework Policy and Procedures ESPP ~ e a s u r e s for Habitats (ESPP) , SOWERGW per OP 4.00 Table A1 ESPP including those habitats Sanctuary or a reserves." (1.0); national parks, natural habitats that are (a) legally Conservation Reserve or a "During route sanctuaries, that are protected, (b) officially community reserve or tiger alignment, all possible biosphere recognized by the proposed for protection, reserve "for purpose of efforts are made to avoid reserves and WPA such as (c) identified by protecting, propagating or the forest area (including "other eco- conservation authoritative sources developing Wild Life national park or sensitive" areas reserves and for their high therein or its sanctuary) or to keep it to but omits community conservation value, or environment." The the barest minimum." reference to reserves that are (d) recognized as notification shall define (2.1.2) critical natural protected by protected by traditional the [boundaries] of the a "For selection of habitats that are traditional local local communities. area.. .[to which] no optimum route, the recognized by communities. As

alteration shall be made following critiera are the WPA such regard Coastal except on recommendation taken into consideration as conservation Area Regulation of the [competent [inter alia]: (v) the line reserves and Zone (CRZ) draft authority, i.e., the NBWL route does not pass community notification of in the case of a National through any sanctuary, reserves that are 2008. Park or Sanctuary. national park, biosphere protected by (Section (WPA, Sections reserve or eco-sensitive traditional local 35,26A and 36A). ) zone." (2.1.2.A) communities.

a "To rninimise the Similarly critical Infact the Supreme Court use of environmentally tiger habitat or also has mandated vide pristine areas[the] critical wildlife order dated 1311 112000 majority of towers are habitat under the that no dereservation of located on agricultural FRA has been forests , sanctuary or lands." (Box 4.1) missing. national park or reserve During forest would require not



only the statutory permissions under the WLPA but also the permission of the Supreme Court.

In addition, the BDA provides that "the State Government may.. ..in consultation with local bodies, notify in the Official Gazette, areas of biodiversity importance as biodiversity heritage sites.. .." (Art. 37(1)

Draft Guidelines have been issued to declare BHS, and are in the process of being formalised.

The BDA provides that "[wlhere the Central Government has reason to believe that any area rich


environmental screening and scoping for transmission lines, the Environmental and Social Management Department (ESMD) thorough its "Bee" line survey (a desk review) . . ..will identify any.. ., critical wildlife habitats ..." (5.1.1.)

"POWERGRID tries to avoid [natural habitats such as National Park(s), Sanctuaries and Biosphere Reserves] altogether. However, in some cases due to [the] location of generation projects/substations particularly in hydro projects, it becomes very difficult to totally avoid these areas. Then, special measures are undertaken such as placing tall towers and multi-circuit tower[s] to minimize impact. Besides, financial assistance for planning and implementing

POWERGRID POWERGRID ESPP

Gap Analysis I Recommended Gap Filling Measures for POWERGRID ESPP

State Government to take immediate ameliorative measures, offering such State Government any technical and other assistance that is possible.. ." (Art. 36(2)

The WPA prohibits any person for acts that "shall . . .destroy,. . damage or divert the habitat of any wild animal . . .[in the absence of] a permit from the Chief Wild Life warden3 and in consultation with the SBWL. (Section 33)

"[Tlhrough a notification dated May 7, 1992, under the Environment (Protection) Act 1996 power transmission

cated in the two

environmental clearance from MoEF." (ESPP

The Forest Conservation Rules provide that in reviewing applications for FC Deputy Conservator of Forests must identify (Appendix to FCR, Section 6 , Form A, Part I1 7. (x)and (xi)

Whether the proposed project is located in a "National Park, wildlife sanctuary, biosphere reserve, tiger reserve, elephant corridor, etc. If so, the details of the areas and the comments of the Chief Forest Warden [are] to be annexed."

ue species of flora and found [are found in the area- [and] if so, details thereof.

Form 1 of the EIA Notification requires the applicant for Environmental Clearance to "identify any.. .areas protected under international conventions, national or local legislation for their ecological, landscape.. .or other related value." (EM Notification, Form 1)

"The Supreme Court has passed several orders regarding taking up of non-forestry activities in the National ParksISanctuaries.. .[in] view of this.. .State Governments should not




-



submit any proposal for diversion of forest land in National Parks and Sanctuaries without seeking permission of the.. .National Board of Wildlife and [the] Supreme Court." ("Application of the Forest (Conservation) Act, 1980, 1.3.ii (GC)

"In view of the . . .orders of the Supreme Court . . .[November 13,2000, WP No. 337195 and February 14,2000, WP 2021951 9992, ] "the State Governments are advised not to submit any proposal for diversity of forest land in National Parks and Sanctuaries under the Forest (Conservation) Act, 1980, without seeking prior permission of the Supreme Court." (Letter from the Deputy

Recommended Gap Filling ,' Measures for ; POWERGRID : ESPP

Gap Analysis POWERGW ESPP

POWERGRID Environmental and Social Policy and Procedures @spp)



Inspector General of Forests, MoEF to Secretar[ies] (Forests) All States and Union Temtories, Sub: "Guidelines for diversion of forest land for non- forest purposes under the Forest (conservation) Act, 1980, that are part of National Parks and Wildlife Sanctuaries" (May 4,200 1) (GC, Appendix I)

FRA requires the Central Government to recognize and vest forest rights in the forest dwelling Scheduled Tribes (STs)in States or areas in States where they are declared as Scheduled Tribes (STs) and the other traditional forest dwellers These rights relate to land tenure and resources use Also, the holders of forest rights according to the Act have the duty to "ensure that the habitat of forest

and other traditional forest dwellers is preserved form any form of destructive practices affecting their cultural and natural heritage (Section 3(1),

3. Where projects adversely affect non- critical natural habitats, proceed only if viable alternatives are not available, and if appropriate conservation and mitigation measures, including those required to maintain ecological services they provide, are in place. Include also mitigation measures that minimize habitat loss and establish and maintain an ecologically similar protected area.

The BDA provides that "[wlhere the Central Government has reason to believe that any area rich in biological diversity, biological resources and their habitats is being threatened . . ..it shall issue directives to the concerned State Government to take immediate ameliorative measures, offering such State Government any technical and other assistance that is possible.. ." (Art. 36(2)

Form 1 of the EIA Notification requires the

"Whenever [intrusion into a forest area (including national park or sanctuary)] becomes unavoidable due to the geography of terrain or heavy cost involved in avoiding it, different alternative options are considered to minimize the requirement of forest area. Modem tools like GIPIGPS are used for finalization of route." (2.2.1A)

POWERGRID'S Proforma for analysis of alternative transmission line routes and sub-station sites includes, among other criteria (ESPP

Full equivalence. The ESPP considers alternative transmission line and substation sites based on ecological criteria including the need to avoid or minimize its environmental footprint of various natural habitats including

None.



applicant for Environmental Clearance to "identify any permanent or temporary change in land use.. .clearance of existing land, vegetation.. . . stream crossings, abstraction or transfers of water from ground or surface waters changes in water bodies.. . . . .introduction of alien species, loss of native species or genetic diversity" as well as "areas which are important or sensitive for ecological reasons -[w]etlands, watercourses, or other water bodies, coastal zone[s], biospheres, mountains [or forests.. . [arleas used by protected important or sensitive species of flora or fauna for breeding, nesting, foraging, resting, over wintering [or] migration." (EIA

Gap Analysis PQVERGRII) ESPP -

, "

forests, protected areas, erosion-prone areas, wetlands, and riverbeds.


Appendix WI):

- type of flora and fauna - endangered species if

any

"If the forest is rich in wildlife.. .the Chief Wildlife Warden.. ..gets a detailed assessment report prepared including measures to protect the wildlife, which is submitted with the [forest clearance] proposal." (2.1.2.C)

With respect to mitigation measures "POWERGRID aims to "minimize adverse impacts on the natural environment by consciously economizing on the requirement for land for civil structures reducing the width of the Right of Way (ROW) etc.. ..through.. . [c]onsider[ing] environmental implications

Recommended Gap Filling Measures for POWERGRID ESPP ' '


(GO11 Legal Framework

Notification, Form 1)

Government of India

Form 1A of the EL4 Notification applies to construction projects and requires project proponents to provide "full information.. .and whenever necessary.. .explanatory notes." Among other issues the proponent is required to address is "any threat of the project to biodiversity " along with a description of [any] unique features of the local ecosystem.. . [or] .displace ment of fauna-". (EIA Notification, Form lA]

POWERGRID

The EL4 Notification provides that "[alny project or activity specified in Category B [.......]will be treated as Category A, if located in whole or in part within 10 krn from the boundary o f :


of location, terrain and sensitive areas in impact identification and mitigate these with innovative/practical engineering solutions." e.g. "construction of tall towers, (80 meters and in extreme situations even up to 140 meters)." (Preface, 1 .O)

"POWERGRID has incorporated the best technical practices to deal with environmental issues. In landslide prone areas, POWERGRID designs tower bases with leg extension and revetments that prevent soil erosion near the tower. POWERGRID has also designed special towers.. ..for reducing impact on . . .wildlife . . .wetlands [and] riverbeds." (Box 4.1)




POWERGRID . Environmental and Social Policy and Procedures @spp)

"To minimize.. . habitat fragmentation and edge effect propagating [invasive] species.. . . . . POWERGRID utilizes hand clearing and transportation of tower material by head loads into forests.. .[and] maintains only a 3 m wide strip for 0 & M and allows for regeneration of vegetation in the two other strips." (Table 4.3)

To control "access to wild animals POWERGRID does not create any access roads or paths during construction but uses only existing paths and field bunds for movement of material." (Table 4.3)

"To avoid . . .avian hazards from transmission lines and towers POWERGRID avoids nesting sites and crucial bird habitats by careful route selection. The


(i) Protected Areas notified under the [WPA],. . . (iii) Notified Eco-sensitive areas." (EIA Notification, Schedule, Note: General Condition)

The guidelines to FCA also lays down the mitigation measures and principles on which transmission lines are laid in forest areas.(See Guidelines to laying of transmission lines - Annex V of Hand Book of FCA, Guidelines and Clarifications, 2004) .

Gap Analysis POWERGRID ESPP ..

Recommended ,Gap Filling <,

Measures for POVRGRID * , '

ESPP

"Where the community or an individual has volunteered to conserve wild life and its habitat.. .the State

6. Provide for the use of appropriate expertise for the design and implementation of mitigation and monitoring plans.

Government may.. .declare any private or community land not comprised within National Park, sanctuary or a conservation reserve, as a community reserve for purposes of protecting fauna, flora and traditional or cultural conservation values and practices." (WPA, Section 36C (1) "The Central Government shall.. .constitute the National Board for Wild Life consisting of.. ... ten persons .from amongst eminent conservationists, ecologists and environmentalists." (WPA, Wf) .

The ESPP identifies POWERGRID'S skill requirements for implementation of the ESPP. It includes requisite expertise for the conduct of the EA process, environmental management techniques; risk assessment

Full Equivalence. The provisions of the ESPP are fully equivalent to the requirements of this Operational Principle.

None.



"It shall be the duty of the W W L ] to.. .provide for "framing policies and advising the Central [and] State Governments on the ways and means of promoting wildlife conservation.. .making recommendations on the setting up and management of . . .protected areas and on matters relating to restriction of activities in those areas; . . .carrying out or causing to be carried out impact assessments of various projects and activities on wild life or its habitat;. ..reviewing.. .the progress in the field of wildlife conservation in the country and suggesting measures for improvement.. . .." (WPA 5A and 5C).

The Role of State Board with a similar mandate on

Recommended Gap Filling Measures for -PQM~RGRID ESPP '


and management techniques; howledge of GO1 requirements with respect to all necessary clearances in including Forest Clearance, as well as monitoring, internal auditing and review process techniques. The skill requirements are allocated by organizational units including the Environment and Social Management Team; the Environmental and Social Management Cell, the Environment and Social Management Department, and the Engineering and Corporate Planning Departments. (Table 6.2.)

The ESPP also sets forth the element for staff development including training in ESPP, policy, environmental assessment and management, risk assessment and




Wildlife conservation is also important in this regard.


management, and environmental management planning at the corporate HQ, regional and district HQ levels (Table 6.3)

"POWERGFUD.. .maintains monitoring procedures that ensures that comply with environmental legislation.. ." (2.3.2) POWERGRID'S monitoring procedures area detailed in the ESPP and include an organizational support structure, and identification of key indicators for monitoring by POWERGRID and its associates. (Key indicators include tower location and transmission line alignment setbacks from water bodies, ecological protected areas, and reserved forests. 6.5, Figure 6.3 and Table 6.4)



i I I

Under the EIA Notification, Appraisal is defmed as "the detailed scrutiny by the EACISEAC of the application and other documents, including the Final EIA report, outcome of public consultations, including public hearing proceedings submitted by the applicant to the regulatory authority concerned for rant of environmental clearance." ' This statement can be found in the electronic version of the ESSP posted on POWERGRID'S website at 4-ESPPVol-11-120405[1][.pdf However, it is not replicated in the hard copy of the ESPP.

Objectives and Operational Principles on Natural Habitats per OP 4.00 Table A1 7. Disclose draft mitigation plan in a timely manner, before appraisal formally begins, in an place and in a form and language understandable to key stakeholders.


Under the Environmental Notification (EM Notification) the EM document is required to contain a '[d]description] of mitigation measures incorporated into the project.fl Notification, Section (EM 7, Appendix 111)

The regulatory authority is required to make the Draft E M report available for inspection and a notified place during rmrmal business hours prior to and UP to the date of the public hearing and prior to ~ ~ ~ r a i s a l . ~ (EM Notification 7(i)III(vi.)


All relevant information about the project and details of socio-economic survey, Rehabilitation Action Plan (RAP), E A R etc. shall be available at the designated . place (Public information CentreAibrary) of each substations and will be shared with the public or any interested persons whenever askedlrequired. (ESPP, Appendix XVIII')

The I E ~ includes "measures.. .to either.. . avoid or mitigate.. .impact[s] and describes "the monitoring plan and.. .proposed organization support structure. . ." (Appendix =I> .


Partial Equivalence.

POWERGRID'S ESPP requirements on public disclosure of the IEAR is partially equivalent to the requirements of this Operational Principle to the extent that . The E A R contains the elements of a draft mitigation plan and requires its disclosure in an accessible

Recommended Gap Filling Measures for POWERGRID ESPP POWERGRID'S ongoing practice o using the local state language and dialects should be noted as part of Appendix XVIII on POWERGRID'S Public Consultation Process.

However it does

made available

available to key stakeholders."

Annex 2C

Equivalence Matrix: Forests

I The IFA is one of the laws cited by POWERGRID as one of "[olther relevant laws having bearing on the working of POWERGRID." (ESPP 2.3.1 (B)). According to the Guidance and Clarifications issued by the Ministry of Environment and Forests with respect to the Forest Conservation Act and the Forest Conservation Rules, the first step in any Compensatory Afforestation proposal is an agreement "in principle in which ... the conditions relating to transfer, mutation and dereservation as [Reserved Forest/Protected Forest] under the Indian Forest Act of 1927 of equivalent non-forest land for [CAI and funds for raising [CAI are stipulated.. ..." (GC 4.2.i and 5.1 .iv)

According to POWERGRID, the FCA is applicable to POWERGRTD "whenever a transmission line traverses a forest area. Prior approval from [the] Ministry of Environment and Forests (MOEF), Government of India has to be obtained before construction of lien in forest areas." (ESPP Table 2.4)

3 Several designated activities are excluded from the definition of 'hon-forest purpose;" however the construction of electrical transmission lines is not listed among the excluded activities. (Section 2 "Explanation")

Forests per OP 4.00 Table

Principles of State Environment, the ESPP

a sustainable manner,

development, and protect the vital local and global environmental services and values of forests.

safe guard the forest and wildlife of the country" Article 5 1-a ( g) of the Constitution

potential of forests to reduce poverty in a sustainable

Objectives and Operational Principles on Forests per OP 4.00 Table A 1

Legal and Policy Framework-Go1

also imposes a duty on every citizen " to protect and improve the natural environment including forest and wildlife" .

The applicable Indian legislation includes: The Indian Forest Act 1927' (FA). The F A seeks to consolidate laws relating to forests , transit of forest produce and duty on timber and other forest produce. It also provides the State Governments the authority and defines the procedure for declaring an area to be a Reserve Forest, a Protected Forest or a Village Forest and authorizes certain

manner, integrate forests effectively into sustainable economic development. Promoting the use of forests for these purposes is not within POWERGRID'S corporate mandate and is therefore not relevant to the equivalence of

The Rules, 2004 have been stayed vide Supreme Court Order dated 23.2.2004 in the Godavannan Case.

category of forest. (Note that forest is a concurrent subject (i.e., both the Central

Governments are competent to legislate on the subject. The IFA provides an umbrella framework where either the states follow by adapting it in their respective states or there are state specific forest Acts which are framed as per the umbrella IFA.)

The Forest Conservation AC~,' 1980 as amended in 1988 (FCA) requires prior approval of the Central Government for dereservation of Reserved Forests or

Objectives and Operational Principles on Forests per OP 4.00 Table A1



use of "any forest land or portion thereof for any non-forest purpose;"3 clear felling of forests, leasing of forests to any individual or authority, agency or corporations not owned, managed or controlled by the government (Section 2); establishes an Advisory Committee to advise the Government with respect to such approvals and other forest conservation matters; and sets offences and penalties for violations of the Act (Section 3).

The Forest Conservation Rules, 2003 as amended in 2004 (FCR).~ The FCR sets forth the

Gap Analysis POTRGRID A , n ESPP ..: . .,

.Recommended 'Gap Fwng ~ e a s u r e s for a

PQIWERGRID - 2 a -" ,A ; -

Recommended Gap Filling Measures for POWERGRID .'

ESPP



requirements for proposals for non- forest uses of forest lands and specifies the respective roles of State and Central Government as well as the Advisory Committee (Sections 6 and 7)

In addition to the general requirements applicable to all projects seeking FC obtain FC, for transmission lines (TLs) applicants are required to "[c]omplete details of alternative alignments.. . .. to be shown on map with details of area of forest land involved in each alternative to be given - Col. 1 (iii)." (Appendix to the Rules/ Instructions for





Form A).

Comprehensive Handbook of [FCA, FCRl Guidelines & Clarifications, October 20". 2003 (GC) issued by the MoEF, includes excerpts from Supreme Court Orders and other Government circulars.

Guidelines having direct application to TLs:

Exemption from FCA of investigations and surveys carried out in connection with transmission line (1.3 .i)

Full application of FCA to actual construction of TLs (1.3.i~)

Exemption

POWERGRID Environmental and Social Policy and Procedures @spp)

Gap Analysis POWERGRn) ESPP

Recommended Gap Filling ,

' ~ e a s u r e s for . POWERGRID ESPP

Recommended Gap Filling Measures for ,

POWERGRID. ESPP ,


-



from prior endorsement of proposal on the part of the local community ("Gram Sabha" of Gram PanchayatLocal Body of the Area") where "linear diversion of forest land in several villages are involved." (2.1 .vii.4.b) ( Note that there is no term as "aam Sabha" which is legally recognized. The legal term is Gram Sabha which is understood in separate contexts under Panchayat laws, in scheduled areas and most recently under the FRA. )

Simplified Procedure for Certain



Categories of Proposals (2.4)

Conditions stipulated in FC as applicable to Transmission line proposals (5.2.iv.)

Compensatory afforestation (CA) Per Supreme Court Order of 30 Oct 2002 in respect of compensatory Afforestation Fund (I.A. N0.566 IN WP(C) N0.202/1995), para. 8: "user agencies, especially the large public sector undertakings such as 'Power Grid Corporation' that frequently require forest land for their projects should be involved in undertaking." Are



Gap Analysis POWERGW ESPP


required to support compensatory afforestation by establishing Special Purpose Vehicles. Implementing Procedures are to be established by MoEF with the concurrence of the Central Empowered Committee. GC provides detailed guidance on CA requirements. (Chapter 3)

Guidelines For Laying Transmission Lines Through Forest Areas, detail technical data necessary for transmission lines through forest areas. (Annexure -V)

Category of Proposals for Which


diverting the forest land to non-forest use is in the overall public interests. (Annexure

Parameters for evaluation of loss of Forests (Annexure- VI(b))

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006 (FRA) seeks "to recognize and vest the forest rights and occupation in forest land [of] forest dwelling Scheduled Tribes and other traditional forest dwellers. . . "

Further certain reserve forests can directly be

Wildlife Protection Act, 1972 ( Section

Similarly in coastal areas Mangrove Forests may also be converted into CRZ I areas under the CRZ Notification under the EPA as well as reserved forests under IFA.

Further there are other categories such as, unclassified forests, undemarcated protected forests, other revenue forests such as bade jaha ke jungle, chote jhad ke jungle, jungle khurd, sarana,


Operational Principles 1. Screen as early as possible for potential impacts on forest health and quality and on the rights and welfare of the people who depend on them. As. appropriate, evaluate the prospects for new markets


jhudupi jungle, unsettled tracts, deemed forests, and similar categorizations under different nomenclatures which are now considered as recorded forests and deemed forests respectively and are subject to the provisions of the FCA per the December 12, 1996 order of the Supreme Court in the T.N. Godavarman case (C.W.P. No 202 of 1995)

The EIA Notification requires the application for Environmental Clearance (EC) to identify specified impacts of proposed projects including "permanent or

POWERGRID

"In conducting preliminary route selection for transmission lines, POWERGRID uses tools such as the Forest Atlas and Survey of India Maps. Modem tools, like GISIGPS are used for finalization of route .... "

Full Equivalence.

The ESPP is fully equivalent to this Operational Principle to the extent that it

None.

Recommended ~ a p Filling Measures for POWERGRID ESPP


and marketing arrangements.


temporary changes in land use, land cover.. .clearance of existing land, vegetation.. .changes in living conditions [thereby] affecting the welfare of people [including] vulnerable groups of people.. ..introduction of alien species, loss of native species or genetic diversity, use of natural resources [including] undeveloped land.. .forests and timber.. .areas protected under international conventions, national or local legislation for their ecological.. ..areas which are important or sensitive for ecological reasons.. .forests.. .are

POWERGRID Environmental and Social Policy and Procedures W P P )

"When any transmission project falls within a forest area prior clearance is required from relevant authorities under the FCA After finalization of route alignment and Right of Way width, POWERGRID submits details to the respective State Forest Department official for formulation of a Forest Clearance (FC) proposal to the Department of Forests." (MoEF). (ESPP 2.1.2)

With respect to the rights and welfare of forest- dependent people, POWERGRID does not acquire land in it uses for the construction of TLs and does not acquire forest land for construction of substations. Therefore, no physical displacement of project-affected people takes place in the context of

Gap Analysis P O W E R G F ESPP

'

requires that POWERGRID comply fully with the complies with the requirements of the FCA and FCR and avoids activities that would affect the rights and welfare of forest-dependent peoples.

Objectives and Operational Principles on Forests per OP 4.00 Table ~1


as containing important, high quality or scarce resources (forestry). . ..extensive clearing or modification of vegetation.. . ." (Appendices I and 11) However, the EIA Notification is not applicable to the electrical transmission sector.

The FCR stipulates the information to be provided by the user agency seelung FC. It requires, among other things, a map of the forest area, justification for locating the project in a forest area a cost- benefit analysis; and details of any displacement of people resulting from the project including

8ecommended .Gap Filling ~ e a s u r e s for ,

POWERGRID . 'ESPP

POWERGRID En jronmental and Social Policy and procedures (ESpP)

POWERGRID projects (ESPP 2.5.3.)

In general, POWERGRID'S use of Social Assessment and its Social Entitlement Program takes full account of the impacts of proposed projects on all categories of people, with particular attention to "marginalized and vulnerable groups" and "secure(s) their inclusion in overall public participation." POWERGRID also "[g]uarantee[s] entitlements and compensation to affected people per its [Resettlement and Rehabilitation] Policy. " (ESPP 1 .O)




the number of families, including families belonging to Scheduled Castes and Scheduled Tribes the proposed Rehabilitation Plan; and an agreement to bear the cost of implementing compensatory afforestation per government requirements (Rule 6 Appendix Form A, Part I). In addition, the Deputy Conservator of Forests is required to consider the following factors in granting or withholding approval and in specifying conditions for approval: area of forest proposed for diversion; legal status of forest; density of vegetation; species




area within Protected Area: (e.g. National

endangered or unique species of flora and fauna and details on implementation of compensatory afforestation (Rule 6 Appendix Form A, Part 11).

Additional details are provided in the GC on the requirements for FC if projects involving "displacement of people," including "a detailed Rehabilitation Plan and separate consideration.. ..[of] the Scheduled Tribe and Scheduled Caste population[s], and a plan for their

Gap Analysis POWERGRID . ESPP

POWERGRID Environmental and Social Policy and Procedures '

(Espp)




rehabilitation.. .in consonance with their socio-economic- cultural and emotional lifestyle." (GC 2.7.i)

The Supreme Court orders specially relating top transmission lines as well as Power Grid is important. See for example Order dated 08.09.2006 in IA 1632 where the Supreme Court has granted permission to Power Grid Corporation Ltd. for use of forest land falling in the Ratapani Wildlife Sanctuary for laying of Optical Fiber Cable (OFC) subject to adherence to the conditions recommended in the CEC report dated 3 1.8.2006.

Objectives and Legal and Policy Framework-Go1 Operational Principles on

Forests per OP 4.00 Table A1

Order dated 28.1.2005 regarding laying 220KV transmission line from Pykara Ultimate stage Hydro Electric Project Switchyard to Arasur 220 KV Sub Station in Tamil Nadu. See also an Order dated 30.03.2007 in I.A.No.1655-1657 related to diversion of forest for Rajasthan Atomic Power Plant through Jawahar Sagar Wildlife Sanctuary for Power Grid.

See also Judgment dated 16.9 .2005 and Order dated 26.9.2005 ; 27.4.07, 23.1 1.2007 which determines principles of diversion including the charge of net present value and compensatory afforestation among

Under the Scheduled Tribes and Other Traditional Forest

2. Do not finance projects that would involve

recognized under the Act "shall be conferred free of all encumbrances and procedural requirements, including clearance under the [FCA] requirement of paying the 'net present value' and 'compensatory afforestation' for diversion of forest land, with specified exceptions (as specified under FRA) (FRA 4(7). The F A establishes three categories of

"POWERGRID is fully conscious of the need to

Full Equivalence.

None.

Forests per OP 4.00 Table

forest areas or related Forest and Village

that would contravene applicable international the most restrictive

forest authorities is obtained

Chapter V of the GC and Annexure V provide for technical details for FC in transmission line projects. They require an avoidance strategy when planning the TL routes and that only a minimum amount of trees to be removed.

Simplified FC procedures are prescribed for laying of TLs and certain other categories of projects located in forests but which do not involve any felling or cutting of trees.

Conservation Act of 1980." (ESPP 2.3.1B). POWERGRID also ensures that the National Forest Policy, 1988 "[is] adhered to and maintains monitoring procedures that comply with environmental legislation. . ..in the country." (ESPP 2.3.2). "During route alignment all possible efforts are made to avoid.. .forest area.. .or to keep it to the barest minimum. Whenever it becomes unavoidable due to the geography or terrain or heaving cost involved in avoiding it, different alternative options are considered to minimize the


POWERGRID Environmental and Social Policy and Procedures (ESpp)

requirement of forest area. To achieve this, route selection of transmission line is undertaken in close consultation with representatives of the State Forest Department.. ..Minor alterations are made to avoid environmentally sensitive areas." (ESPP 2.1.2)


Recommended Gap Filling Measures for P O W E R G P ESPP


Information required from forest users includes: (a) map of the area required along with geographical location of the project; (b) purpose for which forest land is required to be used; (c ) extent of forest area to be diverted; (d) legal status of forest land; (e) whether forest land forms part of a national park, wildlife sanctuary, biosphere reserve or part of the habitat of any endangered species of flora or fauna; (f) whether no alternative alignment is possible to avoid or minimize use of forest land; and whether the required forest area is the minimum needed for the purpose; (g) compensatory

irrespective of trees on the land. The material thing is the extent of the land. The CA is on twice the land) ; and (h) a certificate stating specifically that no cutting or felling of trees is involved." (GC 2.4) The GO1 has ratified the following international environmental agreements with respect to project impacts on forests and related natural habitats: Convention on International Trade in Endangered Species (CITES), 1975 Convention on Biodiversity, 1992, Ramsar Convention, 1971, 1975

- -

The GC alternatively provides that "[wlhere non-forest lands are not available.. .in extent to the forest area being diverted, [CAI may be carried out over degraded forest twice in extent to the area being diverted or to the difference between forest land being diverted and available non-forest land, as the case may be." This option is also made available for several specified activities regardless of the availability of non-forest land, including the construction of laying of TLs up to 220 KV. (3 .2 . i~ and vi.) 6 Notwithstanding the general provision that "[ilnvestigation and surveys carried out in connection with development projects such as transmission line.. ..will not attract the provisions of the Act so long as these surveys do not involve any clearing of forest or cutting of trees and operational are restricted to clearing of bushes and lopping of tree branches for purposes of sighting." (FCA 1.34


3 . Do not finance natural forest harvesting or plantation development that would involve any conversion or degradation of critical forest areas or related critical natural habitats.

POWERGRID ~nvironmental and Social Policy and Procedures (ESPP)

"POWERGRID follows the principle of avoidance during route alignment and avoids routing through forestland unless it is unavoidable and obtains appropriate clearances from forest authorities. It follows all relevant guidelines including the directions from the Supreme Court.. .." (ESPP 2.1.2 (D)

POWERGRID "seeks to avoid environmentally sensitive areas such as forests, wildlife reserves and biosphere reserves." (ESPP 1 .O)


The requirements of the FCA and FCR along with GC issued by MoEF for Forest Clearance (FC) are applicable to POWERGRID'S activities to the extent that these activities affect natural forests as the term is defined by the applicable legislation.

With respect to all FCs the GC requires that the Site Inspection by the Regional Offices determine "whether

Gap Analysis POWERGRID ESPP +

Full Equivalence. Although the ESPP relies on the GO1 legal framework to identify critical forest areas or related critical natural habitats and shares the weaknesses of that framework in distinguishing

. critical forest from non- critical forest areas and natural habitats, the


None.

Gap Analysis POWERG- ESPP "

I . /

ESPP provides for additional measures that provide equivalence to this Operational Principle regardless of where a TL is located.

POWERGRID Environmental and Social Policy and Procedures (ESPP) . i

"For selection of the optimum route the following criteria are taken into account : . . .(v) the line route does not pass through any sanctuary, national park, biosphere reserve or eco-sensitive zone.. . " (ESPP2.1.2.A)

"Maximum permissible with of ROW and for transmission lines on forestland and minimum clearances between conductors and trees are given.. ." (ESPP 4.1 and Table 2.1) )

"A width clearance of 3 m is presently allowed. . .[After] trees on such strips are felled natural regeneration is encouraged." (ESPP 4.1.1)

"Lopping and felling of


Recommended $ap Filling Measures for '

POWERGRID -ESPP-


the land under diversion forms part of any unique ecosystem." (Annexure XI)

The GC sets forth specific "Guidelines for Laying Transmission Lines Through Forest Areas." The Guidelines contain several imperative statements, while others are stated as recommendations. The imperative statements involve the maximum width of the right of way for TLs on forest land, depending on the KV capacity of the TL (ranging from 7 meters for 1 1 KV to 85 meters for 800 KV); the minimum clearance between


-


trees can open up forest canopy allowing more sun light into the under storey where it can lead to an edge effect and allow for proliferation of socio-phytic weeds. This can add repercussions within a semi- evergreen biotope (fragile ecosystems restricted to North East India and the Western Ghats." (ESPP 4.1.1 A) To minimize damage to the environment POWERGRID uses manual stringing in thick forests and on slopes whenever possible." (ESPP Box. 4.1) POWERGRID, wherever possible, uses.. .existing path.. ..access roads for the movement and man and machinery [to avoid] temporary disturbance to the forest." (ESPP 4.1.1 B) "[A] Compensatory Afforestation (CA) Scheme is prepared to compensate


Recommended Gap Filling , ,

Measures for POWERGRID ESPP


conductors and trees (for purposes of preventing electrical hazards); and requirements for natural regeneration following stringing; and a prohibition against cutting of trees in hilly areas where adequate clearance between conductors and trees is already available. (Annexure v>

Legal provisions relating to plantation development are relevant to the extent that POWERGRID is required to participate in compensatory afforestation (CA) to compensate for clearing of trees for TLs.

The GC, Chapter 3

I Objectives and operational Principles on Forests per OP 4.00 Table A1


sets forth the requirements for Compensatory Afforestation (CA) in consequence of diversion of forest land to non-forest '

uses, including the construction of TLs. It specifies that all proposals for CA be approved by the Central Government based on a "comprehensive scheme' including "the details of the non- forestldegraded area identified for [CAI, maps of areas to be taken up for [CAI, year-wise phased forestry operations, details of species to be planted and a suitability certificate from afforestationlmanagem ent ~ o i n t of view."

important part of the proposal [for Forest Clearance]. For CA, the forest authorities identified degraded forestland of twice the area of affected land. POWERGRID provides [an] undertakingtcerti ficate to meet the cost of compensatory afforestation and the Net Present Value [NPV] of forestland diverted. The NPV are varies from Rs. 5.8 to Rs 9.2 lakh per hectare as per MoEF Notification of 23.04.04 and is payable to the "Compensatory Afforestation Fund Management and Planning Authority (CAMPA) (ESPP 2.1.2.c) . POWERGRID includes its CA undertaking as part of its application for FC (ESPP, Appendix IV)

Note that the values put for NPV etc is interim in nature

Recommended G ~ P F!qn€! \ ."2

Measure$ for h,g,t, $@*@&.;$ j E S p p 4 i ~ r . d I < < a 2'' . . * L , +





(3.1)

The GC provides that CA "shall be done over [an] equivalent area of non-forest land"' and that "as far as possible, the non- forest land.. .should be.. .contiguous to or in proximity of Reserved Forest or Protected Forest to enable the Forest Department to effectively manage the newly planted area. [If the] non-forest land is not available in the same district [it] may be identified anywhere else in the StateAJT as near as possible to the site of diversion, so as to minimize adverse impact on the micro- ecology of the area." (GC3.1 .i-iii).

POWERGRID Environmental and Social Policy and Procedures ' (Espp)

and this is being finalised including which agencies or corporations are outside the purview of such compensations in the Supreme Court at present. (Kanchan Chopra Committee Report along with observations of the Centrally Empowered Committee as well as order dated 26.9.2005.

Under the FCA "investigation and exploration [carried out in connection with development projects such as transmission lines.. .] shall not be carried out in wildlife sanctuaries, national parks and sample plots demarcated by the Forest Department without obtaining prior approval of the Central Government, whether or not felling of trees is involved." (Section 1 .3.iii)6

Further leasing of forest land to any individual, authority,

Objectives and Operational Principles on Forests per OP 4.00 Table A 1

4. Support projects that adversely impact non- critical natural forests or related natural habitats only if viable alternatives to the project are not available and only if appropriate conservation and mitigation measures are in place.


agency or corporation not owned, ,managed or controlled by the Government is put to strict scrutiny by the FCA as well as Supreme Court Orders.

Under the Guidelines on the Forest (Conservation) "while considering proposals for dereservation or diversion of forest land for non-forest use, it is essential that ecological and environmental losses and socio-economic distress caused to the people who are displaced are weighed against economic and social gains" (2.6) The Guidelines specify " the types of projects for cost-


Whenever it becomes unavoidable due to the geography or terrain or heavy cost involved in avoiding it, different alternative options are considered to minimize the requirement of forest area. To achieve this, route selection of transmission line is undertaken in close consultation with representatives of the State Forest Department. . ..Minor alterations are made to avoid environmentally sensitive areas." (ESPP 2.1.2) "After the finalization of


Full Equivalence.

The ESPP includes provisions for analysis of alternatives and as well as cost- benefit analyses that are equivalent to the requirements of this Operational Principle.

None.

Forests per OP 4.00 Table A1

Objectives and Operational Principles on

benefit analysis cost will be required" including transmission lines (Annexure VI(b) and "the parameters for assessing the benefits accruing." (Annexure VI (c)


Under the FCR the cost-benefit analysis is required too be included in the Form submitted by the user agency. (FCR, Rule 6, Appendix Form A,

route, POWERGRID carries out the environmental assessment with the help of authorized agencies (Forest Officials) and formulates an Environmental Assessment and Management Plan (EAMP) which include[s] the forest proposal. Local forest authorities certify that the final route selected involves the barest minimum of forests." (ESPP 3.2)

As part of its process of "Environmental Screening and Scoping for Transmission Lines" as well as for "Environmental Screening and Scoping for Substation[s I" POWERGRID "suggests alternative transmission line routes, if necessary" and "examine[s] various route options" using "Survey of India topographic.. . sheets and the Forest Atlas ..[to1

Recommended Gap Filling ~ e a s u r e s for POWERGRID ESPP


Gap Analysis POWERGRID ESPP :



sensitive areas such as evergreen, semi evergreen, and deciduous and scrub forests. . . [and] critical wildlife habitats.. ..Field units . . .conduct spot verifications to confirm the information.. .and identify possibilities of circumventing environmentally sensitive areas [and] consult state forest departments for transmission lines passing through forest areas." (ESPP 5.1.2, 5.2.1 The Proforma for POWERGRID'S alternatives assessment for Transmission Line and Substations is provided in Appendices XXV and XXVI of the ESPP. Case studies of such alternative assessments are provided in Appendix XXIX of the ESPP.

analysis which it includes as part of its application for FC. (ESPP 5.2.3.a.i and Appendix IV). The Parameters for the costs benefit analysis are included

5. Support commercial, industrial-scale forest harvesting only when the operation is certified, under an independent forest certification system, as meeting, or having a time- bound action plan to meet, internationally recognized standards of responsible forest management and use. 6. Ensure that forest restoration projects maintain or enhance biodiversity and ecosystem

NIA. POWERGRID does not engage in commercial, industrial-scale forest harvesting

The FCA prohibits clearing of naturally grown trees in forest land for purpose of

in Appendix V of the ESPP and include separate parameters for "Loss of Forest" and "Social Assessment" . NA. POWERGRID does not engage in commercial, industrial-scale forest harvesting

"Massive plantation in all of its installations not only improves aesthetics but also contributes ' greatly to

NIA POWERGRID does not engage in commercial, industrial-scale forest harvesting

Full Equivalence.

NIA POWERGRID does not engage in commercial, industrial-scale forest harvesting

None.

I Objectives and Operational Principles on Forests per OP 4.00 Table A1

functionality and that all plantation projects are environmentally appropriate, socially beneficial and economically viable.

Legal and Policy 1 POWERGRID ~ n v i r o h e n t a l and

using its for reforestation. (2. iv as cited in GC 1.8.i )

The GC includes a "Proforma for Site Inspection Reports by Regional Officers." For CA activities, the site inspection is required to determine whether land proposed for CA is "suitable [for] plantation and management.. ..import ant from a Religious/Archeologic a1 point of view.. .involves rehabilitation of displaced persons . . ." (Annexure XI)

The Supreme Court has ruled that "[pllantations must use local indigenous species since exotics have long term

maintaining the desired ecological balance." (ESPP Box. 4.1)

It would appear from the ESPP that POWERGRID relies on the Forest Department to identify sites for species to be used for CA. The legal provisions used by the Forest Department are equivalent to the requirements of this Operational Principle


7. Give preference to small- scale community-level management approaches where they best reduce

Recommended Gap Filling Meas,ures for POWERGRID ESPP

None.


negative impacts on the environment" (Order dated October 10,2002 in respect of Compensatory Afforestation Fund in I.A. No. 566 in EP(C) No. 20211995 cited in GC Annexure 11-B).

The concept of NPV introduced through the Godavarman case is also towards an ecological restoration cost.

Apart from the above the precautionary principle as well as polluter pays principle also are now part of the fundamental right regime of the country. Under the F A a State government may assign to any village community the rights


This Operational Principle has limited application to POWERGRID's operations,


Full Equivalence.

The ESPP


poverty in a sustainable manner.


of Government ["village forest") to or over any land which has been constituted a reserved forest. The State government may make rules for regulating the management of village forests." Otherwise, "[alll of the provisions of [the F A ] relating to reserved forests.. .apply to village forests." (Section 28). In some states such as U.P. the scope for creating village forests are not limited to reserve forests but include any forest. Thus village forests may be created out of any forest within the state.

Further in many states, under Section 28, participatory forest

where project affected peoples who are unable to benefit from land compensation, POWERGRID, as part of its Social Entitlement Framework offers a variety of income generating schemes including "fruit orchards" and "social forestry." (Appendix XVI)

provides POWERGRID with the means to comply with this Operational Principle as one of its income- generating schemes


8. Support commercial harvesting by small-scale landholders, local communities or entities under joint forest management where monitoring with the meaningful participation of local communities demonstrates that these

Legal and Policy Framework-Go1 Environmental and Social POWERGRID , . Gap Filling

Policy and Procedures Measures for @spp) POWERGRID

management or joint forest management has been formalized which seeks to elicit people's participation for forestry management .

According to the GC among the standard conditions stipulated for Forest Clearance for TL proposals are that "dwarf species are to be planted in the right of way under the transmission lines."(5.2.iv).

NIA. POWERGRID does not engage in commercial, industrial-scale forest harvesting, nor is it authorized to support commercial harvesting by small-scale landholders.

NIA. POWERGRID does not engage in commercial, industrial-scale forest harvesting, nor is it authorized to support commercial harvesting by small-scale landholders.

NIA POWERGRID does not engage in commercial, industrial-scale forest harvesting, nor is it authorized to support commercial

None.

c 2 0 a 5 a 0

'E; 0 .5 4

u hpl 9:o

a h g a s ;. .s a z a a s 5 g z a g - O O a d

Fofests per OP 4.00 Table

management planning; (h) active monitoring and assessment of relevant forest management areas; and (i) independent, cost effective, third-party assessment of forest management performance against measurable performance standards defined at the national level and compatible with internationally accepted principles and criteria of sustainable forest management through decision making procedures that are fair, transparent, independent, designed to avoid conflict of interest and involve the meaningful participation of key stakeholders, including the private sector, Indigenous Peoples, and local communities.

' Under the EIA Notification, Appraisal is defined as "the detailed scrutiny by the EACISEAC of the application and other documents, including the Final EIA report, outcome of public consultations, including public hearing proceedings submitted by the applicant to the regulatory authority concerned for rant of environmental clearance." 8 Initial Environmental Assessment Report.

This statement can be found in the electronic version of the ESSP posted on POWERGRID'S website at 4-ESPPVol-11-120405[1][.pdf However, it is not replicated in the hard copy of the ESPP.

Recommended Gap Filling , Measures for POWERGRZD ESPP The ESPP should be revised to reference the Forest Clearance disclosure that is done as part of the FEAR and or other mechanisms.


10. Disclose any time- bound action plans in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.


The ESPP states that "[all relevant information about the project and details of socio-economic survey, Rehabilitation Action Plan (RAP), EAR8 etc. shall be available at the designated place (Public information Centrellibrary) of each substations and will be shared with the public or any interested persons whenever askedlrequired. (ESPP, Appendix XVIII~)


Neither the FCA, the FCR nor GCs provide any mechanism for public disclosure of FC applications or approvals. However, as a result of Supreme Court decisions, Forest Clearance Plans are publicly disclosed.

With respect to EA generally, which may include time-bound action plans to mitigate the impacts of forest clearance,, the regulatory authority, under the Environmental Notification is required to make the draft EIA report



The ESPP is partially equivalent to the requirements of this Operational Principle in that it requires public disclosure of the RAP and E A R in an accessible place (i.e. the substation). However, neither the RAP nor the IEAR normally contain time- bound action



plans to mitigate the impacts of projects on forests. Such a plan would normally be included as part of POWERGRID's application for FC or in the FC itself. It could also be contained in the Environmental Action Management Plan prepared by POWERGRID prior to project implementation. However, there are no provisions in the ESPP for public disclosure of the FC application the FC or the EAMP.



available for inspection and a notified place during normal business hours prior to and up to the date of the public hearing and prior to ~ ~ ~ r a i s a l . ' (EIA Notification 7(i)III(vi.)

The RTI Application may also be used to assist disclosure.



L




. >.

POWERGRID discloses Forest Clearances as part of the Final Environmental Assessment Report (FEAR) but the FEAR is not referenced in the ESPP.

Recommended Gap Filling

.Measures for POWERGRID ESPP

Objectives and Operational Principles per OP 4.00 Table A1

Objectives To assist in preserving physical cultural resources and avoiding their destruction or damage. PCR includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance.

Annex 2 0

Equivalence Matrix: Physical Cultural Resources

Government of India (GoI) Legal Framework

According to the 1950 Constitution of India, it shall be the duty of every citizen to value and preserve the rich heritage of the composite culture (Article 5 1 A (0).

PCRs are primarily regulated in:

The Antiquities and National Treasures Law of 1972 (ANTL) as well as the Rules 1973 is designed to regulate trade in antiquities and art treasures, and provides the Government with the authority to acquire

The ESPP aims to "[alvoid areas of.. ..cultural significance." (Preface)

"For selection of optimum route, the following criteria are taken into account: . . . .(ii) the monument of cultural or historical importance is not affected by the route of the transmission line;. . . "

Partial Equivalence There is partial equivalence with this objective. The ESPP does not define what is included within the definition of "areas of cultural significance," or "monuments of cultural or historical importance." Nor does the ESPP cite any of the applicable

The ESPP should be revised to include all resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural significance within the purview of the its policies and procedures..

Objectives and I Government of India I POWERGRID I Operational Principles per OP 4.00 Table A1

specified treasures for preservation in public places. The ANTL defines antiquities to include "any article, object or thing of historical interest," beyond those specified in the Act, "[wlhich has been in existence for not less than one hundred years" or "any manuscript record or other document.. .of scientific, historical, literary or aesthetic value, which has been in existence for not

(Goo Legal Framework

less than seventy-five years." (2 (1)


It is also necessary to conform to the various notifications under the various provisions of the Antiquities and Art Treasures Act, 1972 and Rules, 1973

legislation pertaining to PCR.




-

The Ancient Monuments and Archaeological Sites and Remains Act of 1958 (AMASRA) and the accompanying Ancient Monuments and Archaeological Sites and Remains Rules of 1959 (AMASRR) provide the Central Government with the authority to declare ancient monuments, etc. as "Protected Monuments" of national importance and, for this purpose to contractually define "owners", (i.e. guardians or "Director Generals" (DGs) of the monuments) . For purposes of the Act, "Ancient Monuments" are defined to include "any structure, monument, tumulus or place of internment, or any cave, rock-sculpture,


Gap Fwng Measures for POWBRGRID ESPP '

Gap Analysis Recommended P


Government of India (Goo Legal Framework

inscription or monolith which is of historical, archeological interest and which has been in existence for not less than 100 years (Section 2) The Act also gives the Central Govemment the authority to declare designated areas surrounding such monuments and sites as "protected areas" and prohibits the construction of any building.. .or utilis[ation] of [protected areas] without the permission of the Central Govemment." (Sections 2(i) and 19)

District Collectors (DGs) are authorized to enter into agreements with DGs to restrict the owners' right to use the monument for any purpose, destroy, remove, alter or deface

Gap Analysis '





the monument or build on or near the site of the monument." Such agreements may also include clauses regard~ng terms and conditions of public access to such monuments. (Section 6). The Act also provides that "No person, including the owner or occupier shall construct any building within the protected area . . .or utilize such area.. .without the permission of the Central Government." (Section 19)

AMASRR places restrictions on access to (including archeological excavation of) protected monuments and sites. It provides that "[nlo person shall under take any construction.. .within a protected area except







[with] permission granted . . .by the Central Government.. . .Applicatio n for permission [for any construction activity ] within a protected area shall be made.. .at least three months before the commencement of construction." (Section 10) The Act contains annexed lists of protected monuments and sites and model applications for licenses.

The Ancient Monuments Preservation Act, 1904 which was repealed, to the extent it is not inconsistent with the AMASRA, is still applicable with the regard to the monuments that have been protected under it.

The Indian Treasure


(GoI) Legal Framework Government of India 1 POWERGRID I Gap Analysis ( Recommended

Trove Act, 1878 is applicable

Under the Scheduled Tribes and Other Traditional Dwellers (Recognition of Forest Rights) Act of 2006 (FRA), forest rights holders are "empowered to ensure that "the habitat of forest dwelling Scheduled Tribes and other traditional forest dwellers is preserved from any form of destructive practices affecting their cultural and natural heritage."

Under PESA the Gram Sabha is competent to safeguard and preserve its customs, cultural identity and customs and community resources. ( See Section 4(d)) These rights need to be


ESPP Gap Filling Measures for POWERGRID ESPP


2. As part of the EA, as appropriate, conduct field based surveys, using qualified specialists.

-


such as way that the cultural property sites and structures are best avoided." (22)

Alternatives assessments undertaken as part of EA include "historical/cultural monument" among the criteria for transmission line route and substation site selection. (Appendix XXV).

"The sitelfield staff will conduct spot verifications to explore available options in order to avoid socially sensitive areas [such as . . .cultural and historical areas]." (5.1.2.ii)

Government of India ((201) Legal Framework

Notification applies to construction projects and requires project proponents to provide "full information.. .and Whenever necessary.. .explanatory notes." Among other issues the proponent is required to identify is the proximity of "any anthropological or archeological sites or artefacts" or "obstruction of any view, scenic amenity or landscapes." (EL4 Notification, Section 6, Form IA]

The AMASR prescribes an application format for requesting permission for construction within a protected area. It requires site plan showing the location of the proposed construction in relation to


^

Partial Equivalence

There is partial equivalence with this Operational Principle. There

Recommended Gap Filling Measures for POWERGRID ESPP'

The ESPP should be revised to provide for the use of qualified specialists in conducting field based surveys


- -


the protected area,and an undertaking to observe the provisions of the AMASRA. (Third Schedule, Form 1)

The EA Notification requires that "a public hearing" be held "at the site or in its close proximity, for ascertaining concerns with local affected persons." (7.III.(ii)(a)

The E M Authorities at the National and State Levels comprise of qualified professionals. The State Environmental Approval Committees also consist of qualified professionals.

The FRA requires consultations with tribes, which have the duty to preserve their cultural and

is no procedure to use qualified specialists in conducting field based surveys.

' The AMASRA defines an "archeological officer" as "an officer of the Department of Archeology of the Government of India not lower than the rank of Assistant Superintendent of Archeology." (Section2 (c).


The ESPP should be revised to provide for consultation with nongovernmental organizations, relevant experts in assessing the nature and extent of potential impacts and designing and implementing implementation measures.


Partial Equivalence

There is partial equivalence to this Operational Principle. There is no provision to consult nongovernmental organizations, relevant experts in assessing the nature and extent of potential impacts and designing and implementing implementation measures.


3. Consult concerned government authorities, relevant nongovernmental organizations, relevant experts and local people in documenting the presence and significance of PCR, assessing the nature and extent of potentla1 impacts on these resources, and designing and ~mplementing mitigation plans.

-


natural heritage (2006 Recognition of Forest Rights Act Section 5).

The AMASRA provides that an "archeological officer' or an officer authorized by him.. .may enter upon and make excavations in any protected area." (Section 2 1)

FRA provides for consultations with the Central government, state governments and tnbal communities for the documentation of PCR (Section 5).

As part of the Forest Clearance process, the Deputy Conservator of Forests is required to

PO WERGRID Environmental and Social Policy and Procedures @spp)

Under the ESPP, "[P]ublic consultation [is] an integral part of the process throughout the planning and execution of a project. (ESPP 2.6)

"The Archeological Survey of India.. . is consulted while finalizing route alignment." (2.2)

site.. .or any other important monument is located in the area. If so, details need to be

and a "NOC [No Objection Certificate] must be obtained "if required."

No Equivalence. The ESPP should may be discovered that for any proposed There is no be revised to

archeological excavation equivalent develop a "or other like operation" procedure for procedure for

provide for the use of "chance find" procedures in the context of the PCR management plan or PCR component of the environmental management plan.

in any area" that is not protected" must request three-month prior authorization from the Central Government" providing (Sections 24- 26): (i) name, location and other details of the site; (ii) nature of antiquities previously found;

"chance finds" during project implementation.

"chance finds" during project implementation.

Operational Principles per OP 4.00 Table A1

(GoI) Legal Framework Environmental and Social Policy and Procedures W P P )

(iii) details of previous explorations, if any; (iv) purpose of the excavation or operation; (v) proposed extent of the excavation or operation (a plan of the site in triplicate showing in red outline the extent of the proposed excavation or operation should be attached); (vi) proposed duration of the excavation or operation; (vii) amount of the proposed expenditure on the excavation or operation; and (viii) name and status of the director of the excavation or operation.

Objectives and

The Indian Treasure Trove Act, 1878 is also applicable and needs to be considered. Under this Act, there is a procedure

Government of India 1 POWERGRID I Gap ~na lys i s I ESPP




prescribed on finding treasure including notice by finder of "treasure" (Section 4), which defines the role of Collector, penalties etc.

POWERGRlD Environmental and Social Policy and Procedures W P P )

5. Disclose draft mitigation plans as part of the EA or equivalent process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

Under the Environmental Notification (Em Notification) the EL4 document is required to contain a ' [dJdescription] of mitigation measures incorporated into the project." ( E m Notification, Section 7, Appendix 111)

All relevant information about the project and details of socio-economic survey, Rehabilitation Action Plan (W), EAR etc. shall be available at the designated place (Public information Centrellibrary) of each substations and will be shared with the public or

Partial Equivalence

Under the Environmental Notification, the regulatory authority is

POWERGRID's ESPP requirements on public disclosure of the IEAR is partially equivalent to the requirements of this Operational Principle to the

any interested persons whenever askedrequired. (ESPP, Appendix Xv1113)

The ESPP should be revised especially for making it available in a language that is easily understandable to the PAPS.

Under the EIA Notification, Appraisal is defined as "the detailed scrutiny by the EAC/SEAC of the application and other documents, including the Final E M report, outcome of public consultations, including public hearing proceedings submitted by the applicant to the regulatory authority concerned for rant of environmental clearance."

This statement can be found in the electronic version of the ESSP posted on POWERGRID's website at 4-ESPPVol-11-120405[1][.pdf However, it is not replicated in the hard copy of the ESPP.

Recommended Gap F i ing ,

~ i a s u r e s for '

POWERGRID, ESPP



The EAR includes "measures.. .to either.. . avoid or mitigate.. .impact[s] and describes "the monitoring plan and.. .proposed organization support structure ..."( Appendix XXXI)

Government of India (GOT) Legal Framework

required to make the Draft EIA report available for inspection and a notified place during normal business hours prior to and up to the date of the public hearing and prior to ~ ~ ~ r a i s a 1 . Z (EIA Notification 7(i) III (vi.)


extent that . the IEAR contains the elements of a draft mitigation plan and requires its disclosure in an accessible location (substation).

However it does not require that the IEAR be made available "in a form and language available to key stakeholders."

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 Objectives

To avoid or minimize involuntary resettlement and, where this is not feasible, to assist displaced persons in improving or at least restoring their livelihoods and standards of living in real terms relative to pre- displacement levels or to levels prevailing prior to


A n n a 2E

Equivalence Matrix: Involuntary Resettlement

The Land Acquisition Act of 1894 as amended in 1984) (LAA,) remains the major legislative instrument at the national level governing land

There is no existing national law 'on Involuntary Resettlement per se.

As part of POWERGRID'S Social Entitlement Framework (SEF) preliminary assessment is carried out for SS at the stage of land selection to assess total land required and its location, current land use pattern, likely persons to be affected, and government body that has jurisdiction to acquire such land (ESPP Appendix XVI)

The ESPP requires social screening and scoping for transmission lines (TLs) and substations (SS)to identify socially sensitive areas, issues and management measures, as well as to suggest alternate sites (ESPP 5.1.2)

Full Equivalence.

The ESPP is generally consistent with this objective

Measures for POWERGRID

Section 5 (A) of the LAA

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 the beginning of project implementation, whichever is higher.


acquisition and associated impacts on project affected people. 1

The LAA addresses the Objective in a limited and indirect manner

by providing project affected peoples (PAPS) with specified procedural means to object to proposed land acquisitions and to seek greater compensation for expropriated asset^.^


I Land Acquisition Assessment is also I prepared for SS (ESPP 5.2.1, Table 5.1) 1 Under the ESPP, Social Assessment and Management Plans (SAMPs) are

I prepared for both TLs and SS. This includes social review and compensation and other rehabilitation

1 measures (ESPP 5.4.1, and Table 5.1)

' A Rehabilitation Action Plan (RAP) is prepared if affected families are more I than 40 (ESPP 5.4.1) Table 5.1). The RAP includes: project description,

I social assessment process, census data and social impact assessment, policy of

1 entitlement (eligibility policy and criteria), participation (description of how the public will participate), consultation, gnevance procedures, implementation mechanisms and due process, analysis of alternatives and assessment of resettlement sites, income generation programs, institutional



- - - - - - - -

2 Apart from the legislative framework there are numerous court decisions which also expand the concepts of project-affected people and principles and bases of compensation including factors that are required to be taken into account for determining compensation. (See for example Adusumilli Gopallcrishna v. Special Deputy Collector (Land Acquisition), AIR 1980 SC 1870; New Reviera Co-operative Housing Society v. Special L.A.0 (1996) 1 SCC 73 1; Hukum Chand Gupta V. State of Haryana 2005(1) SCC 572)

India (GoI) Legal Framework

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A1

( Government of Social Policy and Procedures (ESPP) POWERGRID Environmentat and

capacity and responsibility, budget for R&R operations, monitoring and evaluation, and action plan for implementation (A- 109- 1 12)

The RAP also considers alternatives to project design, particularly those alternatives where minor modification to the project may reduce adverse effects (A-1 1 1)Among the basic objectives of the ESPP is to "guarantee entitlements and compensation to [PAPS] as per its R & R policy" (ESPP 1.0). Accordingly, POWERGRID has adopted the entitlement benefits cited in the NPR&R in its Social Entitlement Framework (SEF) that is implemented whenever land is acquired for the construction of SS. Under the ESPP POWERGRID also strictly follows the procedures specified under the LAA. The ESPP states that "[D]isplacement . ..will not be a major consequence of [POWERGRID] projects." And that "POWERGRID tries to avoid R & R is all its projects by siting [SS] on government land." (ESPP Box 4.2). The ESPP further states that POWERGRID will ensure that PAPS


Recommended Gap Filling Measures for PO WERGRID ESPP

' However, the mandatory consultation with Gram Sabhas in Scheduled areas prior to resettlement and rehabilitation can aid in this process or assessing alternatives as well as minimizing involuntary settlement

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1

Operational Principles

1. Assess all viable alternative project designs to avoid, where feasible, or minimize involuntary resettlement


are not made worse off. .." (ESPP 2.6)

Under the ESPP POWERGRID tries to avoid R & R is all its projects by siting SS and TLs (to the limited extent that land take is required) on government land. (ESPP Box 4.2). To further minimize the impacts on local communities, POWERGRID may delay the construction of a SS to accommodate crop harvesting or relocate a SS to protect a sensitive area.

Under the ESPP POWERGRID undertakes alternative site assessments in order to identify TL routes and SS sites that require a minimum of land acquisition or other impacts on PAPS (ESPP 5.1.2) POWERGRlD seeks to avoid populated urban and rural areas, as well as natural forest and plantations


There is no comparable provision in the Go1 legal system.3


Full Equivalence.

The ESPP is fully equivalent to this OP.


None.


2. Through census

and socio- economic surveys of the affected population, identify, assess, and address the potential economic and social impacts of the project that are caused by involuntary taking of land (e.g., relocation or loss of shelter, loss of assets or access to assets, loss of income sources or means of


The LAA contains no mandatory survey requirements in GO1 law that correspond to this Operational Principle.

With respect to PPAs, according to the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006. (FRA) "[nlo forest rights holders shall be


for the location of SS. POWERGRID does not acquire land for its TLs and transmission towers (TTs) and permits cultivation to continue beneath TLs and TTs during operations. (ESPP Table 4.3) Under the ESPP a Socio-economic survey is carried out to assess each affected village profile (e.g. location, demography, social structure, natural resources), family profile (e.g. cast and religion, age, sex, education), property inventory (e.g. extent of land, livestock), productive assets (e.g. cropping pattern and productions, artisan activity), and income profile (occupation, average income) (ESPP Appendices XVI and XVII).

The RAP required under the ESPP contains census data and social impact assessment on, among others (ESPP Appendix XXXII):

- details of land and other assets to be acquired on a temporarylpermanent basis;

Full Equivalence. Note: The provision on restriction of access to legally designated parks and protected areas (PPAs) is not directly applicable to because POWERGRID does not engage in any activities in Parks or PAS that have the

None.

A similar process has been established for critical tiger habitats (CTH) under the Wildlife Protection Act, 1972. The only legal difference between the two categories however is that while a Critical Wildlife Habitat (CWH) under FRA is necessarily created out of national parks and sanctuaries, CTHs are core areas which may also include areas outside national parks and sanctuaries

Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 livelihood, whether or not the affected person must move to another location) or involuntary restriction of access to legally designated parks and protected areas (PPAs).


Objectives and

resettled or have their . . ..affected in any manner for the purposes of creating inviolate areas for wildlife conservation" [unless]. . . (a) the process of recognition and vesting of rights [as specified elsewhere in the Act] is complete in all the areas under consideration; (b) it has been established by the concerned agencies of the State Government, in exercise of their powers under the Wildlife Protection Act, 1972 that the ~ t iv i t i e s or impact of the




- data on occupation and income levels of PAPS;

- extent of relocation of PAPS required;

- data on the proposed resettlement site and host population;

- access to social services before the project and after completion of the project; and

- impact on poverty in the project area

Under the ESPP, POWERGRID undertakes "social screening" during the initial project planning process to identify sensitive areas and issues, to determine the extent of potential alternative land acquisition requirements and to outline the scope of the SAMP. (ESPP 5.2.2.)

As part of the SAMP, conducted after finalization of the SS sites, POWERGRID undertakes a detailed socio-economic survey and land acquisition census. The survey covers affected villages and populations including land holders, landless,

potential to limit peoples' access to such areas.


presence of holders of rights upon wild animals is sufficient to cause irreversible damage and threat the existence of said species and their habitat; (c) the State Government has concluded that no other reasonable options, such as coexistence are not available; (d) a resettlement or alternatives package has been prepared and communicated that provides a secure livelihood for the affected individuals and communities;

~overnment of India (GoI) Legal Framework

(e) the free informed consent


squatters, and artisans. (ESPP 5.4.1) The survey may utilize, but does not rely on, existing census data. If a preliminary assessment indicates that more than 40 families are affected, the socio-economic survey is conducted by a third party, typically an academic institution or NGO with relevant survey experience. A detailed description of content and procedure to be followed in the survey, including the Terms of Reference for the Baseline Socio- Economic Survey and RAP, as well as consultation with PAPS, is provided in the ESPP, Appendices XVI and XVII.

To calculate tree and crop compensation values, POWERGRID conducts tree enumeration, including species and yield estimates (ESPP Appendix as well as a detailed survey of existing crops, general crop patterns, seasonal variations and the nature and extent of yieldhectare. (ESPP Appendix XIV).

- The R & R Action Plans, do include "details on entitlement of each affected familylperson based on the policy" (per

Gap Analysis PO WERGRID ESPP


~ ~ k r a t i o n a l Principles on Involuntary Resettlement per OP 4.00 Table A1

Oblectlves and Government of

3. Identify and

address impacts also if they result from other activities that are: (a) directly and significantly related to the proposed project;

POWERGRID Environmental and India (GoI) Legal Framework

Social Policy and Procedures (ESPP)

of the Gram Sabhas in the areas concerned to the proposed resettlement and to the package has been obtained in writing and

(f). . .facilities and land allocation at the resettlement location are complete as per the promised package." (Art.

4(2N4

There are no comparable provisions in the cxisting GO1 legal hamework. The LAA does not xovide for any mechanism to ~dentify and ~ddress impacts if

Appendix XVII, p A-59 of ESPP). This satisfies the equivalence requirement that displaced people be informed of their rights.

The ESPP requires social assessment of impacts from associated SS and TLs, which are necessary to transmit power generated from the Central Power Stations (ESPP 5.1.2)

The ESPP provides that the socio- economic survey shall identify various ongoing governmental development and training programs in the area for



Partial Equivalence. Consistent with this Operational Principle, the ESPP seeks to anticipate both direct and indirect

The ESPP should be revised to include the socio-economic impacts of infrastructure related indirectly to proposed projects such as access roads in

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 (b) necessary to achieve its objectives; and (c) carried out or planned to be carried out contemporaneously with the project.

4. Consult project-

affected persons, host communities and local nongovernmental organizations, as appropriate. Provide them opportunities to participate in the planning, implementation,


impacts on PAPS and to consider the cumulative impact of other projects on PAPS. However, the ESPP does not address the socio-economic impacts related to associated facilities such as access roads. Full Equivalence. The ESPP is fully equivalent to the requirements of this Operational Principle


they arise out of other activities that may be related with the proposed projects.

The LAA does not specifically provide either for consultation or public participation for those affected communities who may be involuntarily resettled. However, the procedural


the absence of contemporaneous EIA. Pending Acts when approved should be incorporated in the ESPP.

None.


possible coordination with the POWERGRID'S income generating schemes (IGS). (ESPP Appendix XVI).

During socio-economic survey and after the RAP is prepared, POWERGRID meets with affected people to inform them of the land acquisition details, proposed resettlement and rehabilitation measures, and compensation packages). Consultation may be conducted in the form of a public meeting or by displaying information at designated places (ESPP 2.5.3 and Appendix XVI.

Nearby communities in general and PAPS in particular are informed about

Objectives and I Government of operational Principles on Involuntary Resettlement per OP 4.00 Table

and monitoring of the resettlement program, especially in the process of developing and implementing the procedures for determining eligibility for compensation benefits and development assistance (as documented in a resettlement plan), and for establishing appropriate and accessible grievance

mechanisms. Pay particular attention to the needs of vulnerable groups lmong those displaced, ?specially those )elow the poverty line, the landless, he elderly, women md children,


requirement of inviting objections, (Section 5-A of the LAA), does provide an avenue for consultation and a quasi grievance mechanism. However this recourse is not available in the case of urgent acquisitions per Section 17 of the LAA.~. On the other hand there are Supreme Court decisions which have further enlarged the scope of Section 5 - ~ . ~ . With respect to vulnerable groups, m particular Scheduled Tribes, the Provisions of


the existence of the Grievance and Redressal Committee (GRC) during the consultation process and are advised that in case of any grievance regarding land acquisition/RAP, they can approach the Committee The Committee is comprised of POWEGRID, representatives of local authorities, PAPs, Gram Panchayat or any well-reputed person as agreed with the local authorities and PAPs. (2.6. F).

Participation of PAPs in the monitoring of RAP is ensured through regular consultation and active participation (ESPP 6.5).

The RAP includes: project description, social assessment process, census data and social impact assessment, policy of entitlement (eligibility policy and criteria), participation (description of how the public will participate), consultation and grievance procedures, implementation mechanisms and due process, analysis of alternatives and assessment of resettlement sites, income generation programs, institutional capacity and responsibility, budget for





Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 Indigenous Peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation.

Government of India ((301) Legal Framework

Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA), is the only legislation that provides for consultation at the community level before acquiring any land or before rehabilitating project affected persons in a Scheduled areas.

The FRA advances a step further where it grants a right to vulnerable groups such as forest dwelling STs and Other traditional forest dwellers, in situ rehabilitation in case the aggrieved party establishes that


R&R operations, monitoring and evaluation, and action plan for implementation (ESPP, Appendix XXXII)

To monitor RAP implementation, a Committee will be established, consisting of POWERGRID, representatives of local authorities, Panchayat, PAPS and NGOs (ESPP, Appendix XVI)

Timing of consultations (ESPP Appendix XVIII): For TLs: - during screening, scoping,

assessment, and finalization of route alignment

- during construction - meet with the PAPS, pay compensation for any damages and obtain their final acknowledgement

- during maintenance, consult the individual landowners, obtain their approval and pay compensation for any damage to property

- during development of EAMPISAMP and execution of sociaVenvironmenta1 management

Objectives and Operational

, Principles on Involuntary

1 Resettlement



the process of R&R has been erroneous and proved to be so. ( See FRA, Chapter 2)r

works (compensation payment), monitoring and maintenance

- during environmental and social monitoring (monitor EAMPISAMP measures)

, For SS: - Publication consultation as required

under Land Acquisition Act (notification of substation location/project details are published in the official gazette and in two local daily newspapers, and any objections can be made).

- during screening, scoping, and assessment

- during design of compensation packages

- during development of EAMPISAMP and execution of sociaVenvironmental management works (compensation payment), monitoring and maintenance; and during environmental and social monitoring (monitor EMPISAMP measures)

In addition to the consultative mechanism of the socio-economic


I

I

I

Recommended

Measures for PO WERGRID

~pkrational Principles on Involuntary Resettlement per OP 4.00 Table A 1


Social Policy and Procedures (ESPP) P ~ W R G R I D ESPP

;urvey, PAPS are to be informed and :onsulted on compensation and -ehabilitation options through public neetings and displays of information at cey points in the project planning Irocess. Specifically, during the land survey and acquisition process and after ,reparation of the draft Resettlement 4ction Plan (RAP). All relevant nformation about the project including letails of the socio-economic survey and XAP are to be made available at the lesignated Public Information Center :located at each POWERGRID SS site) md shared with the public on request. :ESPP Appendix XVI).

Objectives and Government of

Under the ESPP, POWERGRID consults with informal small groups of PAPS during the monitoring of SAMP implementation (ESPP Appendix XVIII). Inclusion of PAPS in the monitoring of RAPS is "ensured through regular consultation and active participation." Under this procedures PAPS are consulted during monitoring by the Social and Environmental Officer at the SS site, by the District Administration, locally elected officials,

Gap Filling Measures for POWERGRID ESPP r POWERGRID Environmental and Gap Analysis Recommended


Government of India (GOT) Legal Framework


NGOs and ultimately by the GRC (ESPP 6.5 and Figure 6.3)

The ESPP further provides that the impacts of IR on host communities be included among the categories of PAPS eligible for project benefit "through augmentation of resources to sustain pressure of [PAPs] moving from the affected site." (ESPP Appendix XVI). In addition, the ESPP states specifically that POWERGRID will provide 'adequate compensation' as required . . .p er law and compensate at replacement costs." for loss of assets .... to host communities." (ESPP Appendix XVI).

To facilitate consensus building among PAPs, POWERGRID encourages PAPs to elect or appoint a trusted ombudsman or representative. (ESPP Appendix XVIII)

One of the major social objectives of the ESPP is to "pay special attention to marginalized and vulnerable groups and secure their inclusion in overall public participation." (ESPP 1 .O)


Gap Filling Measures for POWERGRID ESPP

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 5 . Inform

displaced persons of their

rights, consult them on options, and provide them with technically and economically feasible resettlement alternatives and needed assistance, including:


Under the LAA, the Land Acquisition Administrator (typically the district Collector (or Revenue Officer) responsible for carrying out the LAA process is required to make a formal declaration of an intended acquisition, including the public purpose for which the land is to be acquired, the manner on inquiry and the lund of ;ompensation that is to be made to 'affected parties." rhe LAA (Section 5 ) requires that the jeclaration be ~repared in the -egional language

I

Social Policy and Procedures (ESPP) Government of

Under the ESPP, as noted with respect to consultation (See Operational Principle 4, above) PAPS are to be informed and consulted on compensation and rehabilitation options through public meetings and displays of information at key points in the project planning process. Specifically, during the land survey and acquisition process and after preparation of the draft Resettlement Action Plan (RAP). All relevant information about the project including details of the socio-economic survey and RAP are to be made available at the designated Public Information Center (located at each POWERGRID SS site) and shared with the public on request. (ESPP Appendix XVI)

ESPP

POWERGRID Environmental and ( Gap Analysis ( Recommended POWERGRID

Full Equivalence (See 5 a-e, below)


None.

0 b j e d I Operational Principles Involuntary Resettlement per OP 4.00 Table A 1 -- I

-1 compensation

-



The Right to Information Act, 2005 provides some additional recourse with respect to informing displaced persons of their rights.

(a) Full ( (a) None


Equivalence I


Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 full replacement cost for loss of assets attributable to the project;


possession of land can only be taken after the Collector makes the compensation award and requires a time limit for compensation to be provide subject to interest payments . 7

With respect to the amount of compensation the LAA requires that the compensation award "take into consideration". . ." the market value of the land on the date of publication o f the notification" to be determined by "tak[ing] into account transfer of land similarly


"dovetailed into the project cycle, ensuring that RAP implementation is completed within the first 12-1 5 months of project execution." "payment of compensation and acquisition of land" as a single stage undertaken by the government prior to "handing over land to POWERGRID (ESPP, "Activity Chart for Land Acquisition and R & R")

For loss of assets attributable to the project; the ESPP states that "POWERGRID will provide 'adequate compensation' as required . . .per law and compensate at replacement costs." Replacement cost "will include compensation as fixed by competent authorities under the LAA including 'solatium' and interest plus Rehabilitation Assistance."

The ESPP provides specified values of in-lund or cash awards for housing, housing sites and land at equivalent market values.


Recommended Gap Filling Measures for PO WERGRID ESPP





The LAA also provides for an opportunity for those who are dissatisfied with the award to apply to a redetermination of compensation.'



b) None.


b) Full ecluivalence. The ESPP is fully equivalent to the requirements of this Operational Policy.

Social Policy and Procedures (ESPP)

b) Under the ESPP transition benefits are provided to PAPS for loss of house, loss of shops and loss of livelihood, shifting of cattle and other property as well as to PAPS who opt for land-for land compensation, "wherever applicable." Transition benefits include provision of transport or equivalent cash for shifting of material or cattle to a new location Rehabilitation support is provided to PAPS who opt for cash compensation. (ESPP 2.6 and Table 2.3). (ESPP 2.6 and Table 2.3) Land provided to persons with valid titles or customary or usufruct rights are to e of "equivalent productive potential." (ESPP, Appendix XVI)

Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 5 (b) If there is relocation, assistance during relocation, and residential housing, or housing sites, or agricultural sites of equivalent productive potential, as required;

O b j e c t i v e s n d India (GoI) Legal Framework

b) The LAA contains no provisions for assistance during relocation or any requirement that residential housing, housing sites or agricultural sites be of equivalent productive potential.

However there are a number of court decisions that mandate not only compensation for loss of income, realizable potential for land etc but also for rehabilitation assistance and employment assistance for PAFS~ .

Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 5 (c) Transitional support and development assistance, such as land preparation, credit facilities, training or job opportunities as required, in addition to compensation measures

Objectives and 1

5 (d) Cash

-

compensation for land when the impact of land acquisition on livelihoods IS

minor; and




c) No provisions for transitional support are made under the LAA."

d) Under the LAA, cash is the only form of compensation provided. This has also been augmented to include fair methods of computing such cash value through several well recognised

c) The ESPP provides for transitional support and development in the form of various income-generating schemes based on consultation with PAPS and the local government and the results of the socio-economic survey. These may in technical assistance with agriculture, livestock, food processing, and manufacture of farm and pottery products. It also provides for vocational training award of petty contracts support for dairy and poultry production, award of petty contracts; vocational training and award of petty contracts.

d) Under the ESPP cash compensation at pre-determined amounts is provided for cash compensation for the extent of land against which replacement land is not available; for construction of a house; a worlung shed/shop; and lost wages and crops. if PAFs opt for cash compensation for loss of land or not eligible for land for land option, PAFs will receive cash compensation at replacement cost and rehabilitation (ESPP 2.6 and Table 2.3). However, as according to the ESPP, POWERGRlD

(c) Full Equivalence. The ESPP provisions for transitional support are equivalent to this element of the Operational Principle

(d) Full Equivalence. The ESPP provisions for transitional support are equivalent to this OP


(c) None.

d) None.


5 (e) Provision of civic infrastructure and community services as required

6. Give preference to

Land-based resettlement strategies for displaced persons whose livelihoods are land-based.


methods of computing such values.

e) There are no such provisions in the LAA.

The LAA contains no comparable provision".


does not acquire land for transmission lines; therefore no monetary compensation is provided as would appear to be required under Section 47 of the R & R Bill. (ESPP.. ...) e) For loss of access to common urban and rural resources and facilities the ESPP provides replacement/augrnentation of common property resources/amenities or provision of functional equivalence

POWERGRID's SEF "incorporates the NPRR," (ESPP Box 4.2) which places considerable emphasis on land based resettlement strategies.

Under its SEF, POWERGRID's endeavor is always to avoidminimize hardship to PAPS and their families through options like Land for Land as far as possible." POWERGRID strives to avoidminimize hardship to PAPS and their families through options such as land for land as far as possible (A- 50). Land-for-land is also preferred for


e) Full Equivalence. The ESPP provisions for transitional support are equivalent to this element of the Operational Principle. Full Equivalence. The ESPP provisions giving preference to land based resettlement strategies is fully equivalent to this Operational Principle.


(e) None.

None.

operational Principles on Involuntary Resettlement per OP 4.00 Table A 1

Objectives and

7. For those without

formal legal rights to lands or claims to such land that could be recognized under the laws of the country, provide resettlement sssistance in lieu of :ompensation for land to help improve or at least restore their livelihoods.


The LAA contains no provisions for resettlement assistance to those without formal legal rights to land or claims to such land that could be recognized under the laws of the country. l 2

Under the LAA there are certain rights such as easements which


tribal PAPs (ESPP 2.6) (see below)

To implement its preference for land- based resettlement, POWERGRID first seeks release of local government land for allotment to eligible PAPs. If government land is not available, POWERGRID will negotiate the purchase of private land from a willing buyer, at existing rates and" so long as such purchase does not promote any indirect displacement." (ESPP, Appendix XVI). Under the ESPP: 1) Loss of Land

- Tenants/sharecroppers/leaseholders are entitled to reimbursement for unexpired lease amount and rehabilitation assistance (200 days of minimum agricultural wages)

- Non-titled (encroachers) are entitled to rehabilitation assistance (375 days of minimum agricultural wages if they are cultivating the acquired land continuously for the last 3 years)

2) Loss of structure (A-52) i) loss of house - Tenants/leaseholders receive


Full Equivalence.


None.


Government of India (GI) Legal Framework

may have to be compensated. These are often recorded under revenue records such as ( nistar patraks, wazib ul urz). Rights are also created as per the law of adverse possession which may have to be compensated for.


lump sum payment equivalent to 6 mo rent based on production of proof or Rs. 5,000 whichever is higher

- Squatters (continuously living there for the last 3 years) receive cost of structure and one time payment ranging between Rs.5,000 to Rs.25,000 depending on type of structure and family size.

ii) loss of shops - TenantsAeaseholders receive transitional allowance equivalent to 1 year income plus transition benefits such as provision of transport or equivalent cash for shifting of material.

Squatters are entitled to a transitional allowance equivalent to 1 year income plus transition benefits such as provision of transport or equivalent cash for shifting of material. Under the ESPP non-titled land occupants are entitled to 375 days of minimum agricultural wages (as set by competent authorities) if they have cultivated land acquitted by the project continuously



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Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 --

begins, in an accessible place and in a form and language that are understandable to key stakeholders.


acquired, identifying the district or other territorial division in which the land is situated, the purpose for which it is needed, its approximate area and situation and where a plan has been made of the land, the place where such as plan may be inspected. (5-A) A plan for land acquisition is also required (8). The Collector is required to give public notice at convenient places on or near the land to be taken, stating the Government' s intention to take possession and


(ESPP, Appendix XVI).

Gap Analysis POWERGRID

understandable

stakeholders."

With respect to resettlement activities affecting Indigenous Peoples (as described below with respect to the Indigenous Peoples safeguard) the TPDP is required to be in the local language(s).





Gap Analysis

inviting compensation claims. (9) In the event of court claims the Collector is required to submit a statement tot the Court providing details on the land subject to court claim, the amount of compensation provided, and the grounds for compensation.

Recommended

The approved resettlement scheme or plan is required by be published in the Official Gazette (6 (2).

The RTI Act can also aid this process although it has to be used

POWERGRID ESPP


--


9. Apply the principles described in the involuntary resettlement section of this Table, as applicable and relevant, to subprojects requiring land acquisition. 10. Design,

document, and disclose before appraisal of projects involving involuntary restnc tion of access to legally designated parks and protected areas, a participatory process for: (a) preparing and implementing


more pro actively.

The LAA does not distinguish between projects and sub projects.

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006 (FRA) provides that "no forest rights holders shall be resettled or have their rights in any manner affected" in critical wildlife habitats of


-- -

The ESPP does not distinguish between projects and sub projects

The ESPP contains several provisions designed to protect the interests of tribal communities, including additional benefits for those affected by resettlement, consistent with the concurrent World Bank Operational Directive 4.20 (superseded in 2006 by World Bank Operational Policy 4.10) These include a policy of avoiding tribal areas for construction of TLs and SS and where unavoidable, additional benefits for "tribals" affected by resettlement and other project impacts as well as the preparation and disclosure of a Tribal Peoples Development Plan


Not Applicable

Partial equivalence. The ESPP does not contain provisions designed for projects involving involuntary restriction of access to legally . designated parks and protected areas.


None.

The ESPP should be updated to reference applicable provisions of the FRA while retaining the public disclosure provisions of the current ESPP with respect to TPDPs..

A1 project components; (b) establishing eligibility criteria; (c) agreeing on mitigation measures that help improve or restore livelihoods in a manner that maintains the sustainability of the park or protected area; (d) resolving conflicts; and (e) monitoring implementation

Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table

National Parks and Sanctuaries unless and until:

- a resettlement or alternatives package has been prepared and communicated that provides a secure livelihood for the affected individuals and communities

- the fiee informed consent of the Gram Sabhas in the areas concerned to the proposed resettlement and to the package has been obtained in writing; and

-facilities and land allocation at the resettlement location are



(TPDP) (ESPP 1 .0 and Table 2.3.)


Although the ESPP contains provisions consistent with World Bank OD 4.20, the ESPP was issued prior to the replacement of OD 4.20 by World Bank Operational Policy 4.10 (and subsequently incorporated into OP 4.00 Table A l ) and the enactment by the GO1 of the FRA - both of which contain provisions designed to protect the rights of people affected by

Recommended Gap Filling Measures for

' POWERGRID ESPP


11. Implement all relevant resettlement plans before project completion and provide resettlement entitlements before displacement or restriction of access. For projects involving restrictions of


complete as per the promised package." (Chapter III)

However this process is primarily for making the areas inviolate for wildlife purposes; such lands cannot be diverted for any other purposes than wildlife conservation. The LAA

provides that the Collector shall, before taking possession of the land, tender payment of the full amount of compensation to the persons entitled thereto (31.1.a)

POWERGRID Environmental and Gap Analysis Social Policy and Procedures (ESPP) POWERGRID

The ESPP includes a time schedule for R&R, which is dovetailed into the project cycle, ensuring that implementation of the RAP is completed within the first 12- 15 months of project execution.

The RAP includes an action plan for implementation (with specific timeline) (ESPP Appendix XXXII)

restrictions on access to PPAs. Accordingly, the ESPP, which was issued in 2005 does not reference the applicable provisions of OP 4.10, .4.00 Table A1 or the FRA.

Full Equivalence. The ESPP requirements that RAP implementation be completed within the first 12-15 months of project execution is equivalent to

Recommended


Objectives and Operational Principles on Involuntary Resettlement per OP 4.00 Table A 1 access, impose the restrictions in accordance with the timetable in the plan of actions.

12. Assess whether

the objectives of the resettlement instrument have been achieved, upon completion of the project, taking account of the baseline conditions


The LAA contains no monitoring requirement.


RAP implementation is monitored by a committee constituted under the chairmanship of POWERGRID. Other members, including representatives of local authorities, Panchayat, PAPS, and NGOS, will oversee overall implementation of RAPS (ESPP 2.6)


the requirement of this OP as most projects are also completed within this time frame. In addition the ESPP refers to the requirement of the LAA wherein compensation payment is tendered to PAPS prior to taking possession of 1 and. Partial Equivalence. The ESPP provisions are equivalent to this Operational Principle, with the exception of the


The ESPP should be revised to incorporate baseline conditions into the monitoring criteria.

Objectives and

-

Operational Principles on Involuntary Resettlement per OP 4.00 Table A1 and the results of resettlement monitoring.

Government of ] POWERGRID Environmental and 1 Gap Analysis

incorporation of baseline conditions into the monitoring criteria


Recommended Social Policy and Procedures (ESPP) POWERGRID 1 ESPP

Gap Filling Measures for PO WERGRID ESPP

Annex 2F Equivalence Matrix: Indigenous People

WB Bank Objectives and Operational

1 Principles per :F 4.00 Table

Objectives To design and implement projects in a way that fosters full respect for Indigenous Peoples' dignity, human rights, and cultural uniqueness and

Go1 Legal Framework

Various Constitutional and legal provisions are designed to foster respect for the dignity, rights and cultural distinctiveness of designated "tribal communities" in India.' The development of criteria for scheduling tribes and presidential orders on scheduling a tribe itself is a recognition of giving special attention to vulnerable tribal communities under the

POWERGRID Environmental and Social Policy and Procedures (POWERGRID ESPP)

The ESPP incorporates provisions of World Bank Operational Directive (OD) 4.20 (superseded in 2005 by OP 4.1 1) on Indigenous Peoples. The ESPP references as one of the objectives of OD 4.20 "to ensure that development benefits are socially and culturally compatible and that the


I A full list ofthese provisions would include Articles 14, 14(4), 16(4), 16(4A), 46, 243(d), 244(1),244 (2), 244A, 275(1), 330, 332, 335, 342,3338(A), 399(1), 340, and 342 and Amendments 73 and 74 as extended by PESA, see below (Source DTP, Paras. 1.5 and 3.1). * "Nothing in this article shall prevent the State from making any provision for reservation in matters of promotion, with consequential seniority, to any class or classes of posts in the services under the State in favour of the Scheduled . . . Tribes which, in the opinion of the State, are not adequately represented in the services under the State." 3 Andhra Pradesh, Chhattisgarh, Gujarat, Orissa, Himachal Pradesh, Maharashtra, harkhand, Madhya Pradesh, and Rajasthan have scheduled areas recognised under the V scheduled of the Constitution.

Under Article 244 of the Constitution Scheduled Areas are defined as "such areas as the President may by order declare to be Scheduled Areas."

Gap Filling Measures POWERGRID ESPP

Full Equivalence. The ESPP is fully equivalent to the Objectives, as the objectives of OP 4.00 as revised by the issuance of World Bank OP 4.10 are virtually

The ESPP could be revised to recognize the objectives of the FRA as well as the north east context under the constitution.

WB Bank Objectives and Operational Principles per OP 4.00 Table

Legal Framework POWERGRID Environmental and Social Policy and Procedures (POWERGRID ESPP)



so that they: (a) receive culturally compatible social and economic benefits; and (b) do not suffer adverse effects during the development process.

Indian Constitution.

The Constitution (Arts. 14- 16, 29 (although 29 is related more with minorities than IP) provides that "the State shall not deny to any person equality before the law, the equal protection of the laws . . .. admission into any educational institution; [or] any employment or office under the State and shall not discriminate against any citizen on grounds only of religion, race, caste, sex, [or] place of birth."

[Indigenous Peoples] are consulted. As part of the Terms of Reference (TOR) for the Baseline Socio-Economic Survey and Preparation of a Rehabilitation Action Plan is required under the ESPP, it is stated that "It is . . . essential 'to ensure that Indigenous (Tribal) people do not suffer adverse effects during the development process and they received culturally compatible social and economic benefits."

identical to the objectives of OD 4.20.

However, the ESPP was also issued prior to enactment of the (FRA) Unlike the FRA, the ESPP does not explicitly recognize all of the objectives of the FRA, in particular with respect to

Under PESA, Section 4 (c) defines Gram Sabha and states that "every village shall have a Gram Sabha consisting of persons whose names are included in the electoral rolls for the Panchayat at the village level" . Note that this definition is similar to the one under Part IX of the Constitution of India, under Article 243 (b) Gram Sabha means a body consisting of persons registered in the electoral role relating to a village comprised within the area of Panchayat at the village level. It is this definition that should be referred to and not under the FRA. The Definition under FRA is for the purposes of recognition of forest right and is limited to the purposes of the Act. FRA, "Grama Sabha" means "a village assembly which shall consist of all adult members of a village and in case of States having no Panchayats, Padas, Tolas and other traditional village institutions and elected village committees, with full and unrestricted participation of women." (Art. 2(g)) 6 DTA, Para. 1.13

WB Bank Objectives

Principles per OP 4.00 Table

Go1 Legal Framework

The constitution also provides for affirmative action on behalf of Scheduled Tribes per article 1 6 (4) (A) .'

With respect to cultural rights, the Constitution provides that " [alny section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same." (Art. 29)

The Constitution also provides the President with the authority to recognize as an official language of a State, any language spoken by a substantial proportion of the population of that State and further provides that such a recognized language may be used for purposes of representations for redress of


(ESPP Appendix XVII)

In addition, among the general objectives of the ESPP [not limited to Indigenous Peoples] are to "avoid socially sensitive areas of human habitations and cultural significance" and to "pay special attention to marginalized and vulnerable groups and secure their inclusion in overall public participation." POWERGRID'S Social Entitlement Framework (SEF) includes Additional Benefits for Tribals as specified below. (ESPP 1.0 and Table 2.3.)


recognizing and vesting the forest rights and occupation in forest land of forest dwelling Scheduled Tribes and other traditional forest dwellers.

It neither recognizes the special areas of administration especially the north-eastem states and most specifically VI scheduled areas and special states.


* 0

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WB Bank Objectives and Operational Principles per OP 4.00 Table A1

Go1 Legal Framework

scheduled areas and two states of West Bengal and Tamil Nadu who do not have Scheduled Areas have TAC. Seventy-five percent of the members of the TAC are to be recruited from State legislative representatives of STs. (Schedule V, Part A.4):

The Provisions of Panchayats (Extension to Scheduled Areas) Act, 1996, (PESA) came into force on December 24, 1996 "with the objective of safeguarding and preserving the traditions and customs of the people living in the Fifih Schedule areas, their social, religious and cultural identifies, and traditional management practices of community resources." (DTP, Para.. 14.12)

PESA extends Constitutional




WB Bank Objectives and Operational Principles per OP 4.00 Table A 1

Go1 Legal Framework

provisions for limited self- government at the village level (Gram Sabha) ("Panchayat") to Scheduled ,4reas4, characterized by a high proportion of tribal inhabitants. The Act provides that State legislation affecting SAs "may be made in consonance with the customary law, social and religious practices and traditional management practices of community resources" and that village assemblies("Grama sabhasW5) "shall be competent to safeguard and preserve the traditions and customs of the people, their cultural identify, community resources and the customary mode of dispute resolution." (Art. 4 (a) and (d). (Gram Sabhas are not representative assemblies. The representative group is the




WB Bank Objectives and Operational Principles per OP 4.00 Table Al

Go1 Legal Framework

Panchayat. Among other things, PESA provides that "Prior consultation with Gram Sabha or Panchayats at the appropriate level [is] mandatory before acquisition of land for development projects." It also provides that "Panchayats at the appropriate level and Gram Sabhas be endowed with the ownership of minor forest produce." (DTP, Para.. 14.2)

However, for its full implementation, PESA requires the State Governments to change their existing laws, wherever these are inconsistent with the central legislation. Not all State Governments have done so, limiting the legislative effect of PESA at the State and local ~ e v e l s . ~ In some cases it is being





Go1 Legal Framework

contested to bring it to the conformity with the central PESA. What is more important is the fact that the current conforming legislations (whether in total conformity or not) is the applicable law for tribal self rule in the respective states. This gets further diluted by the fact that the subject matter legislations including those o f . land, water and forests, have yet not been suitable amended to reflect the true spirit of central PES A.

The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 is intended to protect SCs and Sts from various forms of official and unofficial discrimination subject to criminal penalties.



Measures POWERGRID ESPP


Go1 Legal Framework

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006 Notified on 31 December, 2007 and the Rules Notified on January 1, 2008 (FRA), seeks "to recognize and vest the forest rights and occupation in forest land [of] forest dwelling Scheduled Tribes and other traditional forest dwellers. . ." (Preamble)

The Protection of Human Rights Act constitutes the National Human Rights Commission as well as State Human Rights Commissions to check instances of violations on human rights especially in the context of marginalized communities. The Commission is a fact finding body with powers to conduct inquiry into





Legal Framework Environmental and Social Policy and Procedures (POWERGRID ESPP)

complaints on violation of human rights.

--

Go1 1 POWERGRID

Apart from the above, the Constitution also recognizes certain special areas of administration which are primarily tribal states. These include, the state of Nagaland (See Article 37 1A) where the Naga Customary law and procedure as well as ownership and transfer of land and its resources have been given precedence and even the Act of parliament may not override it and is subject to the approval of the state of Nagaland. Further, the governor has been given special powers for certain districts of the state. There are similar special provisions for state of Assam, Manipur, Sikkim, Mizoram and Arunachal Pradesh. In addition to this the VIth

POWERGRID ESPP

Gap Analysis Measures POWERGRID ESPP

Gap Filling


1. Screen early to

determine whether Indigenous Peoples are present in, or have collective attachment to, the project area. Indigenous

Legal Framework Environmental and Social Policy and Procedures (POWERGRID ESPP)

scheduled areas in the state of Assam, Meghalaya, Mizoram, Tripura also enjoy special status of administration as they have autonomous district councils and regional councils to govern their affairs in accordance with their customary law and practice. Note that most of these states are dominated by scheduled tribes and other tribal communities. Under the Forest Conservation Rules of 2003 every proposed user of any forest land for first-time non- forest purposes must submit Form A to the State Government for review and submission for approval to the Ministry of Environment and Forests (MoEF) Form A (Part I) requires the proposed user to provide details on any

The TOR for the Baseline Socio- Economic Survey and Preparation of Rehabilitation Plan includes within the Scope of the study "Identification of vulnerable sections of population such as SC/ST [Scheduled Castes/Scheduled


Partial Equivalence

The ESPP provisions for identifying vulnerable populations are equivalent to the requirement for early screening.


The ESPP should be revised to expand the definition of Indigenous Peoples or tribals to include the following defining characteristics:

WB Bank Objectives and Operational Principles per OP 4.00 Table A1 Peoples are identified as possessing the following characteristics in varying degrees: self- identification and recognition of this identity by others; collective attachment to geographically distinct habitats or ancestral territories and to the natural resources in these habitats and territories;

Go1 Legal Framework

people to be displaced due to the proposed project, including the "number of Scheduled.. . Tribe families." (Section 6(1) and Appendix).

The EA Notification of 2006 requires that all projects seeking Environmental Clearance (EC) submit an application of Form 1. Form 1 asks the applicant to identify whether the proposed activity would lead to "an influx of people to an area.. .either temporarily or permanently?" (S. No. 1.28) "Use. . . natural resources.. .especially.. .reso urces which are non- renewable or in short supply," such as "forests and


Tribes] ," (ESPP Appendix XVII) POWERGRID's "Guidelines for Tribal People Development Plan" refers to the use of "initial scoping and preliminary assessments" to "establishldetermine that indigenous peoples (referred to as tribals in India) will be affected by a proposed project. (ESPP, Appendix XXXIII).

The Guidelines define Indigenous People as "distinct groups identified based on their social, cultural economic


However, the ESPP's use of the term Indigenous People is equivalent to only a few of the e criteria referenced in this Operational Principle for the identification of Indigenous Peoples: both refer to Indigenous Peoples as having cultural, economic,


-collective attachment to geographically distinct habitats or ancestral territories and to the natural resources in these habitats and territories (beyond forest ecosystems); and -indigenous language.

WB Bank Objectives and Operational Principles per OP 4.00 Table A 1 presence of distinct customary cultural, economic, social or political institutions; and indigenous language.

Go1 Legal Framework

timber," (S.2.5); "affect the welfare of people by changing living conditions"; (S. 3.3) "[affect] vulnerable groups of people (e.g. hospital patients, children, the elderly, etc)";(S. 3.4) impact "areas occupied by sensitive man-made land uses (. . .places of worship, community facilities): '(S 9).

In any case, the EA Notification does not apply to the electrical transmission sector.

The Constitution of India does not define Scheduled Tribes as such. Article 366(25) refers to Scheduled Tribes as those communities who are scheduled in


and political traditions and institutions, which are distinct from the mainstream or dominant society or culture. Tribal with similar cultural characteristics are known as 'Adivasi' in ~ i n d i ~ and are recognized as Schedule Tribes (ST) as per the Indian Constitution." (ESPP Appendix XXXIII)


social or political institutions distinct from the mainstream of dominant society or culture. The ESPP does not use the following criteria to identify Indigenous or tribal people:

self- identification; -recognition of this identity by others; - collective attachment to



Go1 Legal Framework

accordance with Article 342 of the Constitution. This Article says that only those communities who have been declared as such by the President through an initial public notification will be considered as Scheduled Tribes. Any further amendment in the list is through an Act of Parliament. The list of Scheduled Tribes is State specific and a community declared as scheduled tribe in a state need not be so in another state. 7

geographically distinct habitats or ancestral territories and to the natural


resources in these habitats and territories; and - indigenous language.



' The Constitution provides that the President or Parliament with the authority, in consultation with the Governor of a State, publicly designate ("notify"), or by law in the case of Parliament, the tribes or tribal communities or part of or groups within tribes or tribal communities which shall be deemed to be STs. (Arts. 342,366).

he Dhebar Commission was established in 1960 for the delineation of Scheduled Areas. The criteria cited by the Commission include (i) preponderance of tribal population; (ii) compactness and reasonable size of the area (iii) underdeveloped nature of the area; and (iv) marked disparity in economic standards of the people and outside the area."); Likewise, the Lokur Committee on the Revision of the Lists of Scheduled Castes and Scheduled Tribes was established in 1965 The Lokur Committee determined that for a community to be identified as Scheduled Tribe, required characteristics are - "(a) Primitive traits (b) a distinctive culture (c) shyness of contact with the public at large (d) geographical isolation and (e) backwardness-social and economic." (DTP 19.7). Also, some scholars

WB Bank Objectives


Two Advisory Committees have been established to specify the essential characteristics of Scheduled Areas and Scheduled Tribes, respectively and although their findings and recommendations have guided the application of legal provisions pertaining to SAs and STs, neither Committee has any legal standing.8

Go1 Legal Framework

The PESA makes reference to "Scheduled Areas" and "Scheduled Tribes" but without defining these terms. (Title, Preamble, Arts.3, 4(g, h, m (iii, and v)). In fact, in

e.g.,B.K. Roy Burman however, argue that the Lokur Committee was not accepted officially and hence the criteria that is used is not "official" (pers. communication).


Adivasis (in Devanagari script: m), literally "original mhabitants", comprise a substantial indigenous minority of the population of India. Indian tribals are also called Atavika (forest dwellers, in Sanskrit texts), Vnvasis or Girijans ("hill people") (Source: Wikipedia)

POWERGRID


Go1 Legal Framework

scheduled areas where programs being implemented through the Panchayat at the village level requires the approval of the Gram Sabha is mandatory. Such Gram Sabhas constitutes primarily of STs in scheduled areas. Further in some Land Acquisition Acts as applicable in states there are provisions of preliminary surveys prior to initial notification for Land acquisition. This provision (although currently not used for such social screening) has the potential of screening the socially vulnerable communities such as the scheduled tribes. Examples of such provision exist in Gujarat, Himachal Pradesh to name a few.

The FRA defines "forest



Measures POWERGRID ESPP


free, prior and informed consultation with affected Indigenous Peoples to ascertain their broad community support for ~roiects

Go1 Legal Framework

dwelling Scheduled Tribes" as "the members or community of the Scheduled Tribes who primarily reside in and who depend on the forests or forest lands for bona fide livelihood needs and includes the Scheduled Tribe pastoralist communities." (Art. 2(c)).

Under the PESA "every Grama Sabhas shall approve the plans, programmes and projects for social and economic development before such plans.. .are taken up for implementation. . ." (Art. 4(e)(i). In addition "the Grarna Sabha or the Panchayats at the appropriate level shall be consulted before mahng the acquisition of land in the


POWERGRID'S SEF ( Is this SEF i.e. social entitlement framework?) provides that "all tribal PAFs shall be consulted through their representative or group engaged in their activities for all their rehabilitation measures." (ESPP 2.6).

Among the stated

Zap Analysis POWERGRID ESPP


The ESPP's SEF is equivalent to the requirement for consultation with affected Indigenous People and for soliciting their participation in


The SEP should be revised to include explicit provisions to ensure that consultation takes place prior to project implementation and that consultation is free from undue influence and

WB Bank Objectives and Operational Principles per OP 4.00 Table A1 affecting them and to solicit their participation: (a) in designing, implementing, and monitoring measures to avoid adverse impacts, or, when avoidance is not feasible, to minimize, mitigate, or compensate for such effects; and (b) in tailoring benefits in a culturally appropriate manner.

--

Go1 Legal Framework

Scheduled Areas for development purposes and before re-setting or rehabilitating persons affected by such projects.. .." (Art. 4(i))

An Andhra Pradesh High Court judgment (trying to get the judgment) has interpreted the word consultation to mean consent. Infact the Original Committee that was constituted to report on this aspect and based on which the PESA was modeled (the Buria Committee Report) had recommended the word consent and not consultation. It was the legal framework that had diluted the recommendation. The Andhra Judgment however gives strength to the process by interpreting the word zonsultation to mean zonsent.


objectives for the preparation and implementation of a Tribal Peoples Development Plan (TPDP) is that Indigenous People are "included in the entire process of planning implementation and monitoring of the project. . . [that] all community development plans carried out by POWERGRID will be designed and implemented with the active involvement of hibal groups in the project area.. ..[that] the TPDP will be prepared in consultation with the hibal people both sffected and those living m the vicinity of the xoject area". . .that the rPDP itself will include


the design, implementation and monitoring of avoidance, mitigation and compensation measures.

However, the SEF does not include explicit provisions to ensure that consultation takes place prior to project implementation and that consultation is free from undue influence and results in broad community support.


results in broad community support.


3. Undertake social

assessment or use similar methods to assess potential

Go1 Legal Framework

in fact if they cannot then the settlement officer ( either the Collector or his authorized officers) is required to make suo motu inquiry. He is also required to either ascertain through records or through persons who are familiar with such records. This may also qualify as eliciting broad community support as there are provisions of agreement in terms of exercising such rights between the affected party and the state government. Such agreement can be termed as broad consensus that is arrived at on specific terms and conditions.

The PESA provides that the identification and selection of beneficiaries under government programs can be selected by the village assembly. The village


The ESPP "Guidelines for Tribal People Development Plan" refers to the use of "initial scoping and preliminary


Full Equivalence.

The ESPP's Guidelines for Tribal People

Gap Filling Measures POWERGRID

EsPP

I

WB Bank Objectives and Operational Principles per OP 4.00 Table A1 project impacts, both positive and adverse, on Indigenous Peoples. Give full consideration to options preferred by the affected Indigenous Peoples in the provision of benefits and design of mitigation measures. Identify social and economic benefits for Indigenous Peoples that are culturally appropriate, and gender and inter-

Go1 Legal Framework

assembly is also competent to safeguard its traditions, cultural and community resources.

Under the EIA and especially under the activities listed for area development or construction related thereto, socio economic impacts are supposed to be looked into. ( See Appendix 11, Section 7)


assessments" to "establishldetermine that indigenous peoples (referred to as tribals in India) will be affected by a proposed project.

In such cases the Guidelines require the preparation of "a detailed social assessment to identify issues and prepare a Tribal People Development Plan for affected indigenous peoples." (ESPP, Appendix XXXIII).

The Social Assessment is to yield baseline data on the tribal people, including details on their subsistence, employment, and community networks

Gap Analysis POWERGFUD ESPP

~ e v e l o ~ m e n t Plan" are fully equivalent to the requirement for a social assessment that gives fully consideration to the options preferred by affected Indigenous Peoples, to culturally appropriate and gender and inter- generationally inclusive benefits.


WB Bank Objectives and Operational Principles per OP 4.00 Table A1 generationally inclusive and develop measures to avoid, minimize andlor mitigate adverse impacts on Indigenous Peoples.

--


affected by the project. (ESPP, Appendix XXXIII

The ESPP also provides for the preparation of a Social Assessment and Management Plan (SAMP) that includes, as one of its main components, a Tribal Peoples Development Plan (TPDP) where there is a potential for adverse impacts on Indigenous communities. POWERGRID appoints a suitable agency to prepare the SAMP. "The compensation packages in the TPDP are evolved in consultation with PAPS. (ESPP 5.4.1 .i.and iii)



-2 VJ 8 2 U

U a w


Go1 Legal Framework

(d) a resettlement or alternatives package has been prepared and communicated that provides a secure livelihood for the

I affected individuals and communities;

(e) the free informed consent of the Gram Sabhas in the areas concerned to the proposed resettlement and to the package has been obtained in writing and

(f). . .facilities and land 1 allocation at the resettlement

location are complete as per the promised package." (Art. 4(2))

Under the PESA State Legislatures are required to "ensure that the, Panchayats and . . ..Grama Sabhas [in


Among the criteria used to determine the need for a Tribal People Development Plan under the ESPP is "significant


Equivalence I The requirement ESPP I


The ESPP should be revised to explicitly

Objectives and Operational Principles per OP 4.00 Table

I WB Bank

of customary F- rights to lands and territories, when the project involves: (a) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples traditionally owned, or customarily used or occupied; or (b) the acquisition of such lands.

Go1 Legal Framework

POWERGRID

Scheduled Areas] are endowed specifically with . . ..the power to.. .take appropriate action to restore any unlawfully alienated land of a Scheduled Tribe." (Art. 4(m)(iii)

The PESA also prescribes in one of its essential and fundamental principles that the a State legislation on the Panchayats that may be made ( in accordance with Central PESA) shall be in consonance with the customary law, social and religious practices and traditional management practices of community resources ; Secondly, every Gram Sabha shall be zompetent to safeguard and preserve the traditions and :ustoms of the people, their :ultural identity, community -esources. ..

Environmental and Social Policy and Procedures (PO WERGRID ESPP)

adverse effects on customary rights of use and access to land and natural resources." (ESPP Appendix XXXIII). The TPDP is required to include an "[elxamination of land tenure issues including lands under customary rule and assurance of continued use of these resources by the groups involved." (ESPP Appendix XXXIII)

h addition to the 3enefits to be made available to other zategories of PAFs, the ESPP provides that the 'land for land option ;hall be preferred for -ehabilitation of affected ribal families" and that 'if resettlement is


that assurance be provided to tribals for continued use of customary land resources is consistent with the requirements of this Operational Principle. However, the ESPP does not contain any provisions for legal recognition of such customary land rights as is provided for under the PES A and FRA. (Note: The ESPP was issued prior to


incorporate the PESA and FRA provisions regarding the legal recognition of customary land rights. Also, under the DTP it is recommended that the Indian Registration Act be amended to prevent invalid registration of transfer of tribal land to non-tribals. (DTP 19(e).

WB Bank

Operational Principles per OP 4.00 Table

Legal Framework

Under the FRA, forest dwelling STs and other traditional forest dwellers are entitled to the following forms of ind'ividual" [andlolr community tenure": "(a) right to hold and live in forest land under.. .individual or common occupation for habitation and self- cultivation for livelihood . . . (e) rights including

community tenures of habitat and habitation for primitive tribal groups and pre- agricultural communities ( f ) rights over disputed lands under any nomenclature in any State where lands are disputed; (g) rights for conversion of ~at tas" or leases or grants issued by any local authority of any State Government on forest lands for titles. (h) rights of settlement and conversion of all forest


involved, they will be resettled close to their natural habitat so that they can retain their ethnic, linguistic and cultural identify." (ESPP 2.6)


the enactment 4

Gap Filling Measures POWERGRID


Go1 Legal Framework

villages, old habitation, unsurveyed villages and other villages in forests, whether recorded, notified or not into revenue villages;. . . Cj) rights which are recognized under any State or laws of any Autonomous District or.. .Regional Council or which are accepted as rights of tribals under any traditional or customary law of the concerned tribes of any State.. . ." (1) any other traditional right customarily enjoyed by the forest dwelling [STs] or other traditional forest dwellers.. . (m) right to in situ rehabilitation including alternative land in cases where the [STs] or other traditional forest dwellers have bee illegally evicted or displaced from the forest



( Gap Filling Measures POWERGRID ESPP

WB Bank Objectives


6. Do not I undertake commercial development of cultural resources or knowledge of Indigenous Peoples without obtaining their prior agreement to such development.

Go1 Legal Framework

land.. .prior to [December 13,] 2005."

Among the individual and community rights of forest dwelling STs and other traditional forest dwellers recognized under the FRA are "the community right to intellectual property and traditional knowledge related to biodiversity and cultural diversity." (Art. 3(k)) In addition, "[Tlhe holders of any forest right, Gram Sabha and village level institutions.. .are empowered to . . .(c) ensure that the habitat of any forest dwelling {STs] and other traditional forest dwellers is preserved from any form of destructive practices affecting their cultural and natural heritage; Art. 5(c );

POWERGRID Environmental and Social Policy and Procedures (POWRGRID ESPP)

Among the critiera required under the ESPP for determining the need for a full TPDP due to acquisition of land belonging tolused by tribal people is:. . ."impacts that may alter or undermine indigenous knowledge and customary institutions." The TPDP is to be prepared in consultation with tribal people, both those affected and those living in the vicinity of the project area and their views will be taken into account in finalizing the Plan. ESPP, Appendix XXXIII)

Gap Analj POWERG ESPP

-- Partial equivalenc

The E provides pi equivalence the requiremen this Operationa Principle providing t people consultative role preparation the TI However, 1 is no ex1 provision obtaining "prior

rsis RID

e

{SPP 3rti a 1 : to

ts of

I by

ribal with m w

in of

'DP. there licit

for


The ESPP should be revised to require that the "prior agreement" of Indigenous Peoples be obtained for the commercial development of their cultural resources or knowledge

Objectives and Operational Principles per OP 4.00 Table A 1

Legal Framework Gap Analysis POWERGRID

These provisions are reinforced by the Biological Diversity Act, 2002 which states that "[tlhe Central Government shall endeavor to respect and protect the knowledge of local people relating to biological diversity.. .through.. .measur es which may include registration of such knowledge at the local, State or national levels and other measures for protection including . . .'in situ conservation. "' (Art. 35 (5) The Act also prevents unauthorized persons from obtaining "knowledge associated [with a biological resource] in India for "commercial utilization.. . without .previous approval of the National Biodiversity Authority." (NBA) (Art. 3). Non- official

Environmental and Social Policy and Procedures (POWERGRID ESPP)

ESPP

agreement" of Indigenous Peoples for the commercial development of such resources or knowledge. (Note: The ESPP was issued prior to the revision of OP 4.00 to incorporate the Operational Principle per OP 4.10, which was also approved by the Bank subsequent to the issuance of the ESPP.)



7. Prepare an Indigenous Peoples Plan that is based on the social assessment and draws on indigenous knowledge, in consultation with the affected Indigenous Peoples' communities and using qualified professionals Normally, this plan

8 The term Pattas is commonly used to refer to land that has been worked for more than one generation, generally without formal title or lease.


Full Equivalence.


None.

Go1 Legal Framework

Under the PESA, "every Grama Sabhas shall . ..approve the plans, programmes and projects for social and economic development before such plans.. .programmes and projects are taken up for implementation.. . ." (Art. 4(e)(i). In Scheduled Areas the Chair and at least one half of the total number of seats in the Grama Sabhas shall be reserved for STs, (Art. 4(g). In the Scheduled Areas The Grama Sabha or the Panchayats shall be consulted before any acquisition of land is undertaken for development projects or for resettling or


The ESPP incorporates provisions of World Bank Operational Directive (OD) 4.20 (superseded in 2005 by OP 4.1 1) on Indigenous Peoples. Accordingly, the ESPP incorporates the requirement of OD 4.20 that an Indigenous Peoples Development Plan (IPDP) be prepared as a project prerequisite, wherever necessary. (ESPP 2.7 (B)

Guidelines for [the] Tribal People Development Plan (TPDP) are included as part of the ESPP.


would include a framework for continued consultation with the affected communities during project implementati on; specify measuresto ensure that Indigenous Peoples receive culturally appropriate benefits, and identify measures to avoid, minimize, mitigate or compensate any adverse

--

Go1 Legal Framework

rehabilitation of persons affected by such projects. (Art 40)

Under the FRA the Gram Sabha has the authority to "initiate the process for determining the nature and extent of individual or community forest rights given to the forest dwelling Scheduled Tribes and other traditional forest dwellers within the local limits of its jurisdiction.. ..by receiving claims, consolidating and verifying them a preparing a map delineating the area o each recommended claim . . ." (Art. 6(1)

Under the FRA, "[alany person aggrieved by the resolution of the Gram Sabha may refer a petition to the Sub-Divisional Level Committee constituted by


The Guidelines provide that a TPDP is required if: 1) there are significant adverse impacts on customary rights of use and access to land and natural resources; 2) negative impacts on the socio- economic and cultural identity of tribal communities; 3) impacts on health, education, livelihood and social security status; and 4) any other impacts that may alter or undermine indigenous knowledge and customary institutions. If impacts are "insignificant," specific actions in favor of tribal people will be integrated into RAP instead (A- 1 15).


Gap Filling Measures PO WERGRID ESPP

" - a % 0 G U S M U H k * U U M 0 - U " O f = & XC X p O.-P.-s~,~G~ O a s C G 2 3 5 S P - Q G 6s k . 2 0 g p 2 . 5 ~2~ I z 5 g a+ o g 5 - 0 g a . z g a " + 5 u 0 $ 2 3 s g m % a

V1 - " Z g . $ 2 0 .E =: 3 M X a

" a 6 .$ zm- 2 3 % $ , . e + - m 3 * c g < b0.S S Q ' Z : G 8 - 0 . - 2 s 0 ,..o, C: 0 U P a 8 5 .z 2.2 c g % a s g s Z k " 5 u . g a k - M u . -

o m u " b m " 8 u C h 0 4 S N $ g g ye^ 2 E & B - g u - u " " M 7 '6 G 0 + li 2 a B a Z + g $ , ,

.+ 2 .$ 3 p, % E G P & o c , . Z 0 g . 5 M g 3 xu $m

X E A= b c b k c E G . - w S S 8 S P Q $ % . E B.ie=3.G 0 m E- a., o m.+.- m u -

2 % - 0 5 % u Q + r:.z'iFiz.3I+;+-!"zs 0 0 QJ " 2 -

'd 2 . 5 0 a g 0.s,2p 'd 0 . 2 V) , u , ~ ' d 5 z ' d ~ E & : 0 0 . 7 5 2 2 - V)z=.41; - 5 % c c . -

2 % e a d c 2 - Z = x $'V)-."Z V)' , $ : 2 s : 2 u B Z g 0

g g 5 2 . 5 - 3 a ; ~ ; e, 2 T

~ ~ 2 3 2 !? c ~ c d a - k .- - 2 V ) E : g u s-ii u 0 5 8 g 2 g 5 " ' c e L P . 1 ) i L a . 5 . 3 % -

+ , L m h $ z u a a & , , s - u . z s : O a u 2 i z s ~ 1 ~ ~ 4 t t B % z . -

4 $ 2 , :, 0 > -;.T ~ ~ Z E Z - z s e a $ ; 0 2 e s g g , ; $ g $ 2 7 8 s . g S . g o , s - 5 , 5 2 ~ 2 s 3 e s s a $ e $ Z ~ E . & % k 3 $E- 6 m

Fzl Principles per

Go1 Legal Framework

2004 is the preparation of Peoples Biodiversity Register in consultation with local people. The register shall contain comprehensive information on availability and knowledge of local biological resources, their medicinal or any other use or any other traditional knowledge associated with them.


ST and POWERGRID 'Social Entitlement Framework' will be used to address tribal issues in relation to the interventions at the project level." (ESPP, Appendix XXXIII). [ With respect to monitoring and evaluation of TPDP implementation, the TPDP Guidelines stipulate that internal monitoring of the TPDP will be done by POWERGRID'S Environmental and Social Management Cell and the Environmental and Social Management ream" to be assisted by "a person with tribal development experience" who will be "engaged in both supervision and will



WB Bank 3bjectives and Operational Principles per DP 4.00 Table 4 1

Legal Framework POWERGRID EnvironmentaI and Social Policy and Procedures (POWERGRID ESPP)

guild TPSP implementation" reporting quarterly to the Corporate Environmental and Social Managing Director "who will in turn appraise higher management ." "A set of monitoring indicators will be defined during TPDP preparation and implementation for reviewing.. .progress.. ..I n addition, an external independent monitor will be engaged to undertake monitoring of the TPDP implementation" with "benchmarks to assess progress" and "using specific indicators." . . . The Guidelines provide for a "[dldetailed cost estimatebudget and



WB Bank Objectives

I and Operational , Principles per OP 4.00 Table A1

8.Disclose the draft Indigenous Peoples Plan, including documentatio n of the consultation process, in a timely manner before appraisal formally begins, in an accessible place and in a form and language that are understandab le to key

Go1 Legal Framework


financing plan and sources of funds for the TPDP." (ESPP, Appendix XXXIII)

There are no comparable provisions in GO1 law, though the Right to Information Act, 2005 however, empowers people to force state to disclose their plans and programmes including consultation processes if done or required.

The granting of utilisation certificate under PESA as well as approval of plans together with RTI may be used to demonstrate disclosure.

The ESPP's TPDP Guidelines provide that the tribal people affected by the project as well as those living in the vicinity of the project area "will be informed of the measures proposed [in the TPDP] and their views will be taken into account in finalizing the plan. The Plan will be translated into the local language(s) and made available to them before implementation." (ESPP, Appendix XXXIII)


The ESPP provisions are partially equivalent to this Operational Principle with respect to the drafting of an Indigenous Peoples Plan (TPDP) and its disclosure. The ESPP does not require that the consultation process be documented in the TPDP

The ESPP should be revised to require that the public consultation process be documented in the TPDP.


stakeholders

9. Monitor implementati on of the Indigenous Peoples Plan, using experienced social scientists.

Go1 Legal Framework

The FRA provides that "[Tlhe State Government shall constitute a State Level Monitoring Committee to monitor the process of recognition and vesting of forest rights and to submit to the nodal agency such returns and reports as may be called for by that agency. (Art. 6(7)."

The Constitution also requires the Governor to prepare annually a report regarding the administration of scheduled areas to the President of India. Thus, the Highest office of India is required to monitor through such reports the administration of scheduled areas which predominantly inhabited by scheduled


POWERGRID selects and appoints a suitable agency to implement the SAMP. (ESPP 5.5.2.a). POWERGRID monitors all Resettlement and Rehabilitation (R & R) measures; conducts periodic monitoring reports containing updates on SAMP execution and annually reviews the performance of social management measures. (ESPP 5.6.2 and 5.7.2). In addition, POWERGRID appoints an external agency to conduct the reviewlaudit of implementation performance of its environment and social management systems (ESPP 5.7.1)


Full Equivalence.

The ESPP is equivalent to this Operational Principle .

Gap Filling Measures PO WERGRID ESPP



Go1 Legal Framework

tribes. The Tribes Advisory Council (TAC) also performs a similar role.



Annex 3: Narrative Summary of Government of India Legal Framework Applicable to

POWERGRID

1 . 'The Constitution of India provides broad protection for the environment and rights of peoples affected by the economic activities, including parastatal corporations such as POWERGRID. The Constitution clearly mandates the Government to undertake environmental protection and provides that every citizen is duty bound to protect and improve the natural environment.'. By raising environmental concerns to the constitutional level, India has provided its citizens with a powerful legal tool to protect the environment and maintain health standards by among, other things regulating the activities of government and private actors, including parastatal corporations. The Constitution also contains specific and legally actionable provisions relating to environmental and social rights and obligations.

2. According to POWERGRID's ESPP, as confirmed by the GoI, there are a number of environmental and social laws and rules that apply to POWERGRID's operations in a mandated fashion. These include provisions of the Environmental (Protection) Act of 1986 (EPA), which authorizes the Central Government "to take all measures as it deems necessary or expedient for the purpose of protecting and improving the quality of the environment and preventing, controlling and abating environmental pollution" and provides overall authority to the government with respect to the establishment and mandates of regulatory agencies including the Central and State Pollution Control Boards (CPCBI (SPCBs), Pollution Control Committees (PCCs) and various other authorities. Specified Rules issued under the EPA, including the Batteries (Management and Handling) Rules, 2001; the Hazardous Wastes (Management and Handling) Amendment Rules, 2003; Ozone-Depleting Substances (Regulation and Control) Rules, 20002 also apply to POWERGRID's activities.

3. The Environmental (Protection) Act of 1986 (EPA) and its subsidiary Rules provide the overall legal framework for environmental regulation in India. The EPA establishes the general powers of the Central ~ o v e r n m e n t and its relations with State ~ o v e r n m e n t s ~ with respect to "the protection and improvement of the environment and the prevention of hazards to human beings, other living creatures, plants and property." (Preamble) The EPA includes within definition of "environment" the water, air, and land and the relationship between these elements and human beings, other living creatures, plants, microorganisms and property. (Section 2(a)). The Act provides the Central Government with the authority to set standards for emissions or discharges of environmental pollutants as defined in the Act (Section 3(2)(iv); restricting areas in which classes of industries or activities may be carried out, subject to certain safeguards (Section 3(2)(v); and setting forth procedures and safeguards for the prevention of accidents and the handling of hazardous substances (Sections 3(2)(vi and vii). The Go1 is authorized to initiate closure, prohibition or other regulation of any industry, operation or process and to implement

' Article 48-A and 5 1 -A(g) ESPP, 2.1.3

Under Section 23 of the EPA the Central Government is authorized to delegate its powers and functions under the Act to any officer, State Government or any other authority. Under this provision the Central Government has issued delegations of authority under Section 5 of the Act, providing for the closure, prohibition or regulation of any industry operation or process, or stoppage of supply of electricity or water or any other service to various State Governments.

civil and criminal penalties and procedures for violations of the Act. including both companies and Government Departments. (Sections 5, 15-1 7).

4. Further general environmental authorities are specified in the Environmental (Protection) Rules of 1986 (EPA Rules) which are designed to give legal effect to Sections 6 of the EPA dealing with prohibitions and restrictions on various the forms of pollution and the location of polluting industries and Section 25 which includes related procedures for establishing threshold emissions and discharge limits; government access to information and samples of air, water and soil, the functions of government laboratories; the qualification of Government Analysts charged with analysis of samples; reporting authorities and complaint procedures.

5. Particular provisions of the EPA Rules that are relevant to this analysis include the prohibitions and restrictions on the location of industries, processes and operations in various areas (Section 5); the furnishing of information to authorities and agencies (Section 12); the prohibition and restriction on the handling of hazardous substances (Section 13); and the requirement for specified industries to submit an annual environmental audit report to State Pollution Control Boards. (Section 1)

6. Section 5(1) of the EPA Rule has particular potential relevance to POWERGRID's operations as a form of linear infrastructure having a narrow but diverse footprint on the natural and human landscape. This provision of the EPA Rules authorizes the government to take the following considerations into account while prohibiting or restricting the location of industries, processes and operations in different areas:

7. However, these EPA provisions are limited in their direct application to POWERGRID, due primarily to the fact that the electrical transmission sector is not subject to the provisions of EIA Notification first issued under the authority of the EPA in 1994 and subsequently amended in the EIA Notification of 2006 (EIA Notification). The EIA Notification is the only legal means by which the Central governing authority in India can require a project proponent to prepare an environmental assessment for purposes of Environmental Clearance. In consequence, with respect to electrical transmission comprehensive environmental clearance of a project by MoEF is limited to those projects located in the environmentally sensitive Aravalli mountain range in specified regions in the states of Rajasthan and ~ a r ~ a n a . ~

8. The stated rationale for the omission of electrical transmission from the list of activities Scheduled under the EIA Notifcaiont this is that POWERGRID's interventions in constructing trans~nission lines, towers and substations is not land- intensive, and with the exception of the small areas required for the construction and operation of substations, is not particularly in t r~s ive .~ POWERGRID does not formally acquire land for the construction of towers and transmission lines; it avoids forested and cultivated land wherever feasible and clears only so much land of tress as required for the safe passage of transmission lines; agricultural land use is generally not affected by this activity. Sub-stations are located on government land wherever feasible, and when located on private land and are fully subject to the provisions ofthe LAA.

4 0 n May 7 , 1992 MoEF issued a Notification restricting a number of activities, including "Electrification (laying of new transmission lines)" as well as the cutting of trees, from being undertaken in the Aravalli Range for the purpose of preventing environmental degradation in the region. The Notification required that to prior to undertaking such activities, a special application must be made to the Secretary, MoEF, specifying extensive details of the area and the proposed process for operation. The Notification also requires the applicant to submit an Environmental Impact Statement and an Environmental Management Plan along with such other information as may be required by the CentraI Government.

Discussion with MoEF.

9. This rationale ignores the widely accepted view fact that the construction and operation of rights of way for transmission lines (TLs), transmission towers (TTs) and sub-stations (SS) can have a material adverse effect on environment, as well as on the welfare of people living and working in the vicinity of such installations. Electrical transmission lines and substations can have adverse effects on ecosystems both directly through construction of ROWS in ecologically sensitive areas and indirectly by creating and increasing access to such otherwise inaccessible areas.

10. For this reason, electrical transmission is generally subject to the EA process and to other legally-mandated related environmental approval procedures in virtually all developed and many developing countries as well as by multilateral and bilateral development agencies, including the World Bank and the Asian Development Bank. Under World Bank Guidelines for Screening and Classification of projects, power transmission anddistribution networks, including rural electrification are always subject to EA and may be considered to be either Category A or B projects, depending on scale and site ~ensi t ivi ty.~

1 1 . In this connection it is worth noting that the World Bank Group Environmental, Health and Safety Guidelines for Electrical Tranmission and Distribution cites the following potential environmental, health and safety impacts associated with this sector:'

Construction site waste generation;

Soil erosion and sediment control from materials sourcing areas. and site preparation activities;

. Fugitive dust and other emissions (e.g. from vehicle traffic, land clearing activities, and materials stockpiles);

Noise from heavy equipment and truck traffic;

, Potential for hazardous materials and oil spills associated with heavy equipment operation and fueling activities.

. Terrestrial habitat alteration

, Aquatic habitat alteration

. Electric and magnetic fields

. Hazardous materials.

12. Considering the above, the failure to apply EIA requirements to the electrical transmission sector represents a fundamental gap between Indian legal requirements and the EA objectives of OP 4.00 Table A I. Specifically, exempting electrical transmission from the EA requirements of tlie EPA and the EIS Notification Act is not consistent with the EA Objective of

world Bank, "Guidelines for Environmental Screening and Classification," Quality Assurance and Compliance Unit , Operations Policy and Country Services, February 2007. 7

OP 4.00 Table A1 of "help[ing to] ensure the environmental and social soundness and sustainability of investment projects" or to "support[ing] integration of environmental and social aspects of projects into the decision-making process." *

13. Other environmental legislation that is applicable to POWERGRID'S activities include the); the Wildlife (Protection) Act of 1972, as amended in 2002 the Biological Diversity Act of 2002, the Biodiversity Rules (2003) the Indian Forest Act of 1927; the Forest (Conservation) Act of 1980.~ The Forest Conservation Rules, 2003 as amended in 2004 (F and various acts and rules relating to physical cultural resources. including the Antiquities and National Treasures Law of 1972 and the Ancient Monuments and Archaeological Sites and Remains Act of 1958) and accompanying Rules of 1959. The Right to Information Act, enacted in 2005, provides recourse to citizens seeking access to information that is is the public domain and applies potentially to information subject to the relevant and applicable legal requirements.. 10

14. The Go1 does not have a national legal system that corresponds to the Objectives of OP 4.00 Table A1 with respect to Involuntary Resettlement, specifically "to avoid or minimize involuntary resettlement and, where this is not feasible, to assist displaced persons in improving or at least restoring their livelihoods and standards of living in real terms relative to pre- displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher." With the limited exception of affected tribal populations, the only nationally bin(iing legislation that applies to IR in India is the Land Acquisition Act of 1894 as amended in 1984 (LAA), which sets forth detailed procedures for government acquisition of private land. Among other things, the LAA specifies the information that is to be provided to affected parties, the manner of inquiry and the type, amount and timing of compensation that is to be provided. It also provides a recourse mechanism for those who are dissatisfied with colnpensation to request a greater amount." The LAA is directly applicable to POWERGRID as it explicitly provides for land acquisition in the national interest for transmission lines and highways to be carried out by the respective States, in accordance with its provisions. Under the LAA, financial compensation is provided for the loss of land, other productive assets (such as standing crops and fruit and fodder trees), house plots and residences. Restoration of community and household productive assets, or of standard or quality of life, is not covered by the LAA; a policy matter, any form of compensation not provided for under the LAA is determined on a project- by-project basis, unless a State or parastatal company policy applies.I2

15. With respect to projects affecting Indigenous Peoples, applicable Go1 laws include Panchayats (Extension to Rescheduled Areas) Act of 1996 (PESA); the Scheduled Tribes and

"owever, as discussed below other laws including, the above-cited Rules issued under the EPA, as well as provisions of the Forest and Wildlife Acts as well as the LAA, as well as laws intended for the protected of tribal peoples and forest dwellers are applicable to POWERGRID and, taken collectively this, legislation provides partial equivalence with Objective of OP 4.00 Table A1 with respect to EA.

~ c c o r d i n ~ to the ESPP [citation] the Wildlife (Protection) Act 1972 is not directly applicable to POWERGRID operations because the objective of the Act is conservation of wildlife by stopping poaching and other illegal killing as well as declaration of wildlife rich area as sanctuary and National Park. 10 The right to Information Act was issued subsequent the ESPP and is not cited in the ESPP as applicable to POWERGRID. " The LAA forms the basis for other legislative provisions involving land acquisition such as those contained in the Indian Forest Act of 1927; the National Highways Authorities of India Act of 1956; and the Wildlife Protection Act of 1972. I 2 "Resettlement Policy in India, World Bank, Ihttp://www.his.com/-mesas/resindia.htm

Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 200613; and specific provisions of the LAA, the Right to Information Act (RTIA) and the Protection of Human Rights Act (PHRA). '~ The concerns of tribal population also are covered in various sectoral policies and legislations such as land, agriculture, education and health. The Equivalence Analysis of social safeg~~ards also takes account, as a potential source of gap-filling measures, the pending Resettlement and Rehabilitation Bill (R & R Bill), submitted to the Indian parliament in December 2007.

16. Indigenous Peoples are recognized by the Constitution of India as "Scheduled Tribes" (STs) or "tribals." There is no legally binding definition of STs; however the application of the Constit~~tional and other legal provisions evidences significant overlap with the defining characteristics of Indigenous Peoples as set forth in World Bank OP 4.00 Table ~ 1 . " Because many, but not all, of the legal protections applied to STs are identical to those applied to Scheduled Castes ( scs) '~ a number of traits have customarily been seen as establishing tribal rather than caste identity. These include language, social organization, religious affiliation, eco~iomic patterns, geographic location, and self-identification. Recognized tribes typically live in hilly regions somewhat remote from caste settlements; they generally speak a language recognized as tribal.

17. Unlike castes, which form part of a complex and interrelated local economic exchange system, tribes tend to form self-sufficient economic units. Historically, the economy of most tribes was s~~bsistence agriculture or hunting and gathering Most tribes are concentrated in heavily forested areas that combine inaccessibility with limited political or economic significance. For most tribal people, land-use rights traditionally derive simply from tribal membership. Tribal society tends to the egalitarian, with its leadership based on ties of kinship and personality rather than on hereditary status. Tribes typically consist of segmentary lineages whose extended families provide the basis for social organization and control.

18. Many tribes practice tribal religions which are distinct from the dominant religions of India (Hinduism, Islam and Jainism) and often resemble practices associated with Tantric Shivaism. During the 19th century, substantial numbers of tribals converted to Christianity and Brahmanism (a Hindu offshoot). Tribal religion often recognizes no authority outside the tribe. --

19. Some of these defining characteristics may not apply in specific instances. Language does not always give an accurate indicator of tribal or caste status, especially in regions of mixed population. Nor do self-identification and group loyalty provide definitive markers of tribal identity; in the case of stratified tribes, the loyalties of clan, kin, and family may well predominate over those of tribe. In addition, tribes cannot always be viewed as people living apart; the degree of isolation of various tribes has varied tremendously

20. According to the 2001 census, Tribal peoples constitute 8.3% of the nation's total population, over 84 million people. A list of officially recognized STs is included in the fifth Schedule of the Constitution. Such tribes are particularly numerous in the Indian states of Orissa, Madhya Pradesli, Chliattisr?arh, Rajasthan, Guiarat, Maharashtra, Andhra Pradesh, Bihar,

- - --

13 the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 was issued subsequent to the ESPP and is not cited in the ESPP as applicable to POWERGRID. 14 The Protection of Human Rights Act is not cited in the ESPP. I 5 The literal meaning of the Hindi [?] term Adiv6sis is "original inhabitants." Indian tribals are also called Atavika (forest dwellers, in Sanskrit texts), Vanvasis or Girijans (hill people). Wiki 16

.Iharkhand, West Bengal and in extreme northeastern states such as Mizoram. [Wiki]. In the northeaster^^ states of A1.unachal Pradesh, Menhalava, Mizoram, and Nagaland, more than 90% of the population is tribal. However, in the remaining northeast states of Assam, Manipur, Sikkim, and Tripura, tribal peoples form between 20 and 30% of the population.

21. The welfare and standard of living of tribals have been particularly vulnerable to changes in Gover~lment policies on land ownership and on the management of forest reserves. Although the colonial and post-independence regimes belatedly realized the necessity of protecting tribals from the predations of outsiders and prohibited the sale of tribal lands, by the time tribals accepted the necessity of obtaining formal land titles, they had lost the opportunity to lay claim to lands that might rightfully have been considered theirs. In the 1970s, tribal peoples came again under intense land pressure, especially in central India. Migration into tribal lands increased dramatically, as tribal people lost title to their lands in many ways - lease, forfeiture from debts, or bribery of land registry officials. Other non-tribals simply squatted, or even lobbied governments to classify them as tribal to allow them to compete with the formerly established tribes. In any case, many tribal members became landless laborers in the 1960s and l970s, and regions that a few years earlier had been the exclusive domain of tribes had an increasingly mixed population of tribals and non-tribals. Government efforts to evict nontribal members from illegal occupation have proceeded slowly; when evictions occur at all, those ejected are usually members of poor, lower castes.

22. Government efforts to reserve forests have precipitated armed (if futile) resistance on the part of the tribal peoples involved. Intensive exploitation of forests has often meant allowing outsiders to cut large areas of trees (which the original tribal inhabitants were restricted from cutting), and ulti~nately replacing mixed forests capable of sustaining tribal life with single- product plantations

23. The Constitution provides a three pronged framework to improve the situation of both and STs and SCs:.

Protective Arrangements designed to enforce equality, to provide punitive measures for transgressions, and to eliminate established practices that perpetuate inequities.

Co~npensatory Discrimination to provide positive preferential treatment in allotment of jobs and access to higher education, as a means to accelerate the integration of the SCs and STs with mainstream society. Compensatory discrimination is also popularly referred to as Reservation and;

Development - Provide for resources and benefits to bridge the wide gap in social and economic condition between the SCsISTs and other communities.

24. A number of laws have been enacted to operationalize these Constitutional provisions, of which those most relevant to POWERGRID include the Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) ~ c t , 1989, and the Panchayats (Extension to Scheduled Areas) Act of 1996.

25. The 73rd amendment to the Constitution, mandated that resources, responsibility and decision-making be devolved from central government to the lowest unit of the governance, the

Gram Sabha or the Village Assembly. A three-tier structure of local self-government was envisaged under this amendment."

26. Under the Provisions of Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA, also known as the Tribal Self Rule Law as it is variously called) the provisions of the 73rd amendment were extended to Scheduled Areas. Scheduled Areas are those, which are under the Fifth Schedule of the Constitution of India where the tribal populations are predominant. The Constiti~tion of India initially envisaged a special scheme of administration in the scheduled areas where general laws would not be applicable unless the Governor deemed it fit to enforce such laws. The rationale [documented] behind this provision was that these areas are inhabited with people who have resided on the basis of their own customary practices and traditional beliefs and culture and thus general laws of the land would be inappropriate with their customary laws and et~ios."

27. The Draft Tribal Policy assumes 'displacement' to be the only type of potential project impact. It stipulates "...displacement of tribals is kept to the minimum and undertaken only after possibilities of non-displacement and least displacement have been exhausted." There is no mention of social assessment per se.

28. As regards identifying social and economic benefits for lndigenous Peoples that are culturally appropriate, the Tribal sub-plan strategy can be considered to be one document which perhaps takes into account a social assessment type of methodology especially for allocating resources to specific states including the state of West Bengal. The tribal sub-plan approach directs the states to allocate State Plan funds to TSP at least in proportion to the tribaI population in the State. These funds are exclusively for the development of the tribal people and are in addition to the benefits from the overall Plan of a StateIUT. Such a population - proportion budgetary plan is a part of over all plan of a State or UT, and is therefore, called a ' s ~ b - ~ l a n . " ~ Such a plan can be considered as an out come of a need assessment for scheduled tribes in a given context.

29. Under the Constitution, the Tribes Advisory Council has been constituted in West Bengal, which is mandated to look into the administration and the control of schedule tribes which can advise on any measure regarding the welfare and advancement of schedule tribes in the state on matters which are referred to it by the Governor. Note that the TAC has no suo motu power to take on welfare issues of schedule tribes.

30. There are no provisions for legal recognition of customary rights of tribals in the draft tribal policy.

3 1 . The draft tribal policy aims at making legal and institutional arrangements to protect the intellectual property rights of STs and curtail the rights of corporate and other agencies to access and exploit their resources.

32. The draft NEP proposes to "Formulate and adopt an internationally recognized system of legally enforceable sui-generis intellectual property rights for ethno-bioIogy knowledge, to enable

17 Sanjay Upadhyay, "Tribal Self-Rule Law and Common Property Resources in Scheduled Areas of India- A New Paradigm Shift or another Ineffective Sop?" Paper presented at the Tenth Biennial Conference of the International Association for the Study of Common Property (IASCP), Oaxaca, Mexico, 2004. I 8 Udaypay, op cit 19 Evaluation Report on the Integrated Tribal Development Program at www.planningcommission.nic.in

local communities to realize significant financial benefits from permitting the use of such knowledge."

33. These laws and rules are supported by a number of national government policies, which, although not mandatory in their direct application, often serve as a framework for state laws that are mandatory. These include the National Conservation Strategy and Policy Statement on Environment and Development, 1992; the National Forest Policy, 1988, the Policy Statement for Abatement of Pollution, 1992 and the Wildlife Conservation Strategy 2002-15.~' Policy Statement on Environment and Develo ment, National Resettlement and Rehabilitation Policy,

PI 2007 arid the Draft Tribal Policy, 2006. Some of these national level policies are also intended to guide legislation enacted at the state level that is binding on POWERGRID'S operations in various states in which it operates. (Due to the large number of states and territories in which POWERGRID operates a review of individual state legal systems and associated policies are beyond the scope of this Equivalence Analysis.) Because state laws are required to be no less stringent than central laws22 by excluding state-level legislation this Equivalence Analysis may under-state the extent of equivalence between the Indian legal system and the Objectives and Operational Principles of OP 4.00 Table Al , in particular with respect to social safeguards.23

34. The above cited Acts and Rules are supported by numerous amendments, or "Notifications" under Indian law as well as Orders of the Supreme Court that have the force of law. These Notifications and Court Orders are also cited in the matrix of this report.

35. In addition, the government has issued a number of formal guidance documents that, while not legally enforceable, are sometimes useful in interpreting how certain laws and rules are to be implemented by competent authorities at the national and state levels. In addition, the laws and policies are often supplemented by formal "guidances" that are intended to guide national and state governments in the implementation of the policies, laws and regulations that comprise the legal framework. Although these guidances are not legally enforceable, they are sometimes useful i n interpreting the intended meaning of various legal provisions. A prime example is the EIA Manual issued under the Environmental Notification Act of 2006.

36. Relevant provisions of this legislation are cited verbatim in the Equivalence Matrices in Annex and full texts of the above-cited legislation and other legislation cited in the text and footnotes of this report may be accessed via the links included in the References at the end of this report.

'O ESPP 2.3.2. '' The Policy seeks to bring Scheduled Tribes into the mainstream of society through a multi-pronged approach for their all round development with but disturbing their distinct culture. The concerns of tribal population also are covered in various sectoral policies and legislations such as land, agriculture, education, health, etc. While these policies do not exclusively deal with the tribals yet, in addition to their general provisions, they often have special provisions applicable to the tribal population '' [need citation to support this point] 23 Lands which belong to scheduled tribes either on an individual or collective basis are generally covered by the respective state legislations on land such as the Land Revenue Codes or Land Reforms Act. The alienation of tribal land is typically provided under a special provision in the land laws of the state. For example, the West Bengal Reforms Act clearly prohibits the alienation of tribal lands.

Annex 4: Equivalence of Applicable Go1 Legal Framework to Objectives and Operational Procedures

of OP 4.00 Table A1

I . Annex 2 of this Report contains a detailed matrix comparing inter alia, the applicable provisions of the above-cited laws and policies of the Go1 with the corresponding Objectives and Operational Principles of OP 4.00 Table A1 for each of the applicable safeguard policies: Environmental Assessment, Natural Habitats, Forests, Physical Cultural Resources, Involuntary Resettlement and Indigenous Peoples. The matrix also contains indicative measures that the GO1 could take to bring its legal framework into full equivalence with the Objectives and Operational Principles of OP 4.00 Table Al . These indicative measures take into account and build on policies, draft policies and draft legislation that is currently under consideration, in particular with respect to land acquisition, resettlement and rehabilitation and tribal policy.

2. For each of the six safeguard polices, the following key findings are made with respect to the Equivalence of the the Indian legal system (GO1 law) to the corresponding Objectives and Operational Principles of OP 4.00 Table Al . For each separate objective or Operational Principle of OP 4.00,the analysis characterizes GO1 law as either "fully equivalent," "partially equivalent" or "not equivalent." The complete analysis supporting these findings along with the corresponding direct references to the text of the Constitutional provision, Act, Rule, Notification or Court Order, whatver the case may be, is included in the matrices (Annex 2 of this report).

GO1 law is fully equivalent to the following objectives and operational principles of OP 4.00 Table A1 with respect to Environmental Assessment:

- Assess potential impacts of the proposed project on physical, biological, socio- economic and physical cultural resources, including trans-boundary and global concerns, and potential impacts on human health and safety;

- Assess the adequacy of the applicable legal and institutional framework, including applicable international environmental agreements, and confirm that they provide that the cooperating government does not finance project activities that would contravene such international obligations;

- Provide for application of the principles in this Table to sub-projects under investment and financial intermediary activities.

GO1 law is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Environmental Assessment:

Objectives: To help ensure the environmental and social soundness and sustainability of investment projects [and] to support integration of environmental and social aspects of projects into the decision making process

- Use a screening process for each proposed project, as early as possible, to determine the appropriate extent and type of environmental assessment (EA) so that appropriate studies are undertaken proportional to potential risks and to direct, and, as relevant, indirect, cumulative, and associated impacts. Use sectoral or regional environmental assessment when appropriate.

- Provide for assessment of feasible investment, technical, and siting alternatives, including the "no action" alternative, potential impacts, feasibility of mitigating these impacts, their capital and recurrent costs, their suitability under local conditions, and their institutional, training and monitoring requirements associated with them.

- Where applicable to the type of project being supported, normally apply the Pollution Prevention and Abatement Handbook (PPAH). Justify deviations when alternatives to measures set forth in the PPAH are selected.

- Prevent and, where not possible to prevent, at least minimize, or compensate for adverse project impacts and enhance positive impacts through environmental management and planning that includes the proposed mitigation measures, monitoring, institutional capacity development and training measures, an imple~nentation schedule, and cost estimates.

- Use independent expertise in the preparation of EA where appropriate. Use independent advisory panels during preparation and implementation of projects that are highly risky or contentious or that involve serious and multi-dimensional.

- Involve stakeholders, including project-affected groups and local nongovernmental organizations, as early as possible, in the preparation process and ensure that their views and concerns are made known to decision makers and taken into account. Continue consultations throughout project implementation as necessary to address EA-related issues that affect them.

- Provide measures to link the environmental assessment process and findings with studies of economic, financial, institutional, social and technical analyses of a proposed project.

- Disclose draft EA in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders.

GO1 law is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A I with respect to Natural Habitats:

Objectives: To promote environmentally sustainable development by supporting the protection, conservation, maintenance, and rehabilitation of natural habitats and their functions

- Use a precautionary approach to natural resources management to ensure opportunities for environmentally sustainable development. Determine if project benefits substantially outweigh potential environmental costs;

- Provide for the use of appropriate expertise for the design and implementation of mitigation and monitoring plans;.

GO1 law is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Natural Habitats:

- Avoid significant conversion or degradation of critical natural habitats, including those habitats that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value, or (d) recognized as protected by traditional local communities;

- Where projects adversely affect non-critical natural habitats, proceed only if viable alternatives are not available, and if appropriate conservation and mitigation measures, including those required to maintain ecological services they provide, are in place. Include also mitigation measures that minimize habitat loss and establish and maintain an ecologically similar protected area;

- Whenever feasible, give preference to siting projects on lands already converted;

- Consult key stakeholders, including local nongovernmental organizations and local communities, and involve such people in design, implementation, monitoring, and evaluation of projects, including mitigation planning.;

- Disclose draft mitigation plan in a timely manner, before appraisal formally begins, in an accessible place and in a form and language understandable to key stakeholders

GO1 law is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A 1 with respect to Forests:

Objective: To realize the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environnlental services and values of forests

- Do not finance projects that would involve significant conversion or degradation of critical forest areas or related critical natural habitats, or that would contravene applicable international environmental agreements.

' The following three operational principles of OP 4.00 Table A I with respect to Forests are not applicable to POWERGRID'S operations and hence are omitted from this analysis of the ESPP: (5) Support commercial, industrial-scale forest harvesting only when the operation is certified, under an independent forest certification system, as meeting, or having a time-bound action plan to meet, internationally recognized standards of responsible forest management and use; (8) .Support commercial harvesting by small-scale landholders, local communities or entities under joint forest management where monitoring with the meaningful participation of local communities demonstrates that these operations achieve a standard of forest management consistent with internationally recognized standards of responsible forest use or that they are adhering to an approved time-bound plan to meet these standards; and (9) Use forest certification systems that require: (a) compliance with relevant laws; (b) recognition of, and respect for, legal or customary land tenure and use rights as well as the rights of Indigenous Peoples and workers; (c) measures to enhance sound community relations; (d) conservation of biological diversity and ecological

- functions; (e) measures to maintain or enhance environmentally sound multiple benefits from the forest; (0 prevention or minimization of environmental impacts; (g) effective forest management planning; (h) active monitoring and assessment of relevant forest management areas; and (i) independent, cost effective, third- party assessment of forest management performance against measurable performance standards defined at the national level and compatible with internationally accepted principles and criteria of sustainable forest management through decision making;

- Ensure that forest restoration projects maintain or enhance biodiversity and ecosystem functionality and that all plantation projects are environmentally appropriate, socially beneficial and economically viable;

- Give preference to small-scale community-level management approaches where they best reduce poverty in a sustainable manner;

GO1 law is partially equivalent to the following operational principle of OP 4.00 Table A1 with respect to Forests:

- Screen as early as possible for potential impacts on forest health and quality and on the rights and welfare of the people who depend on them. As appropriate, evaluate the prospects for new markets and marketing arrangements

- Do not finance natural forest harvesting or plantation development that would involve any conversion or degradation of critical forest areas or related critical natural habitats;

- Support projects that adversely impact non-critical natural forests or related natural habitats only if viable alternatives to the project are not available and only if appropriate conservation and mitigation measures are in place;

- Disclose any time-bound action plans in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders

GO1 law is fully equivalent to the following Objectives and operational principles of OP 4.00 Table A 1 with respect to Physical Cultural Resources:

Objectives: To assist in preserving physical cultural resources and avoiding their destruction or damage. PCR includes resources of archaeological, paleontological, historical, architectural, religious (including graveyards and burial sites), aesthetic, or other cultural signficance

- For materials that may be discovered during project implementation, provide for the use of "chance find" procedures in the context of the PCR management plan or PCR component of the environmental management plan.

GO1 law is partially equivalent to the following Objectives and operational principles of OP 4.00 Table A1 with respect to Physical Cultural Resources:

- Use an environmental assessment (EA) or equivalent process to identify PCR and prevent or minimize or compensate for adverse impacts and enhance positive impacts on PCR through site selection and design;

- As part of the EA, as appropriate, conduct field based surveys, using qualified specialists;

- Consult concerned government authorities, relevant non-governmental organizations, relevant experts and local people in documenting the presence and significance of PCR, assessing the nature and extent of potential impacts on these resources, and designing and implementing mitigation plans; and

- Disclose draft mitigation plans as part of the EA or equivalent process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

GO1 law is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A 1 :

- Apply the principles described in the involuntary resettlement section of this Table, as applicable and relevant, to subprojects requiring land acquisition;

GO1 law is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Involuntary Resettlement:

0bjectives:To avoid or nzinimize involuntary resettlement and, where this is not feasible, to assist displaced persons in improving or at least restoring their livelihoods and standards of living in real ternzs relative to pre-displacengent levels or to levels prevailing prior to the beginning ofproject implengentation, whichever is higher

- Through census and socio-economic surveys of the a'ffected population, identify, assess, and address the potential economic and social impacts of the project that are caused by involuntary taking of land (e.g., relocation or loss of shelter, loss of assets or access to assets, loss of income sources or means of livelihood, whether or not the affected person must move to another location) or involuntary restriction of access to legally designated parks and protected areas (PPAs)

- Consult project-affected persons, host communities and local nongovernmental organizations, as appropriate. Provide them opportunities to participate in the planning, implementation, and monitoring of the resettlement program, especially in the process of developing and implementing the procedures for determining eligibility for compensation benefits and development assistance (as documented in a resettlement plan), and for establishing appropriate and accessible grievance mechanisms. Pay particular attention to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, Indigenous Peoples, ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation;

- Disclose draft resettlement plans, including documentation of the consultation process, in a timely manner, before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders;

- Inform displaced persons of their rights, consult them on options, and provide them with technically and economically feasible resettlement alternatives and needed assistance, including:

prompt compensation at full replacement cost for loss of assets attributable to the project

If there is relocation, assistance during relocation, and residential housing, or housing sites, or agricultural sites of equivalent productive potential, as required;

Transitional support and development assistance, such as land preparation, credit facilities, training or job opportunities as required, in addition to compensation measures;

Cash compensation for land when the impact of land acquisition on livelihoods is minor; and

Provision of civic infrastructure and community services as required.

- Design, document, and disclose before appraisal of projects involving involuntary restriction of access to legally designated parks and protected areas, a participatory process for:

Preparing and implementing project components;

Establishing eligibility criteria;

Agreeing on mitigation measures that help improve or restore livelihoods in a manner that maintains the sustainability of the park or protected area;

Resolving conflicts; and

Monitoring implementation.

- Implement all relevant resettlement plans before project completion and provide resettlement entitlements before displacement or restriction of access. For projects involving restrictions of access, impose the restrictions in accordance with the timetable in the plan of actions

GO1 law is not equivalent to the following operational principles of OP 4.00 Table A1 with respect to Involuntary Resettlement:

- Assess all viable alternative project designs to avoid, where feasible, or minimize involuntary resettlement;

- Identify and address impacts also if they result from other activities that are (a) directly and significantly related to the proposed project, (b) necessary to achieve its objectives, and (c) carried out or planned to be carried out contemporaneously with the project;

- Give preference to land-based resettlement strategies for displaced persons whose livelihoods are land-based;

- For those without formal legal rights to lands or claims to such land that could be recognized under the laws of the country, provide resettlement assistance in lieu of compensation for land to help improve or at least restore their livelihoods;

- Assess whether the objectives of the resettlement instrument have been achieved, upon completion of the project, taking account of the baseline conditions and the results of resettlement monitoring

F. INDIGENOUS PEOPLES

GO1 law is fully equivalent to the following Objectives and Operational Principles of OP 4.00 Table A1 with respect to Indigenous Peoples:

Objectives: To design and implement projects in a way that fosters fill respect for Indigenous Peoples' dignity, human rights, and cultural uniqueness and so that they: (a) receive culturally compatible social and economic beneJits; and (3) do not sufSer adverse effects during the development process

- Put in place an action plan for the legal recognition of customary rights to lands and territories, when the project involves: (a) activities that are contingent on establishing legally recognized rights to lands and territories that Indigenous Peoples traditionally owned, or customarily used or occupied; or (b) the acquisition of such lands;

GO1 law is partially equivalent to the following operational principles of OP 4.00 Table A1 with respect to Indigenous Peoples:

- Screen early to determine whether Indigenous Peoples are present in, or have collective attachment to, the project area. Indigenous Peoples are identified as possessing the following characteristics in varying degrees: self-identification and recognition of this identity by others; collective attachment to geographically distinct habitats or ancestral territories and to the natural resources in these habitats and territories; presence of distinct customary cultural, economic, social or political institutions; and indigenous language;

- Undertake social assessment or use similar methods to assess potential project impacts, both positive and adverse, on Indigenous Peoples. Give full consideration to options preferred by the affected Indigenous Peoples in the provision of benefits and design of mitigation measures. Identify social and economic benefits for Indigenous Peoples that are culturally appropriate, and gender and inter- generationally inclusive and develop measures to avoid, minimize andlor mitigate adverse impacts on Indigenous Peoples;

- Undertake free, prior and informed consultation with affected Indigenous Peoples to ascertain their broad community support for projects affecting them and to solicit their participation:

In designing, implementing, and monitoring measures to avoid adverse impacts, or, when avoidance is not feasible, to minimize, mitigate, or compensate for such effects; and

in tailoring benefits in a culturally appropriate manner;

- Where restriction of access of Indigenous Peoples to parks and protected areas is not avoidable, ensure that the affected Indigenous Peoples' communities participate in the design, implementation, monitoring and evaluation of management plans for such parks and protected areas and share equitably in benefits from the parks and protected areas;

- Do not undertake commercial development of cultural resources or knowledge of Indigenous Peoples without obtaining their prior agreement to such development;

Prepare an Indigenous Peoples Plan that is based on the social assessment and draws on indigenous knowledge, in consultation with the affected Indigenous Peoples' communities and using qualified professionals Normally, this plan would include a framework for continued consultation with the affected communities during project implementation; specify measures to ensure that Indigenous Peoples receive culturally appropriate benefits, and identify measures to avoid, minimize, mitigate or compensate any adverse effects; and include grievance procedures, monitoring and evaluation arrangements, and the budget for implementing the planned measures;

- Monitor implementation of the Indigenous Peoples Plan, using experienced social scientists;

GO1 law is not equivalent to the following operational principles of OP 4.00 Table A I with respect to Indigenous Peoples:

- Disclose the draft Indigenous Peoples Plan, including documentation of the consultation process, in a timely manner before appraisal formally begins, in an accessible place and in a form and language that are understandable to key stakeholders.

Annex 5 : POWERGRID'S Organizational Structure of Environmental and Social Management

1. At the corporate level, an Environmental and Social Management Department (ESMD) headed by a General Manager and supported by five environmental and social specialists reports to the Executive Director for Corporate Planning. ESMD has designated responsibilities for:

Coordinating environmental and social commitments and initiatives with various multilateral agencies and the MoEF.

Coordination of all environmental activities related to a project from

conceptualization to operation and maintenance.

Advising and coordinating RHQs and Site offices to carry out environmental and social surveys for new projects.

Assisting RHQs and Site offices to finalize routes of entire power transmission line considering environmental and social factors that could arise en route

Advising RHQs and Site offices to follow-up with the state forest offices and other state departments in expediting forest clearances and the land acquisition process of various ongoing and new projects

Providing a focal point for interaction with the MoEF for expediting forest clearances and follow-ups with the Ministry of Power on environmental and social issues

Training of RHQs & Site officials on environment and social issues and their management plan

Training of other departments (especially Engineering, Legal, Corporate Planning, Human Resources Management and Contract Services department) to familiarize them with the ESPP document.

2. I n each of tlie nine regions, a separate Environmental and Social Management Cell (ESMC), headed by a Deputy General Manager or Chief Manager is responsible for managing environniental and social activities and ensuring coordination with ESMD. The key functions of ESMC are:

Advising and coordinating with site offices to carry out environmental and social surveys for new projects envisioned in the corporate investment plan

Assisting the ESMD and sites to finalize routes of power transmission lines considering the environmental and social factors that could arise en route.

Follow-up forest clearances and land acquisition processes with state forest offices and other state departments for various ongoing and new projects.

Supervision and Monitoring of EAMP & SAMP implementation.

3. At the site level, after receiving appropriate training from the RHQ responsible for implementation of the requirements of this ESPP document, the site head will select and deploy personnel with relevant background, to form a core group called the Environmental and Social Management Team (ESMT). The key responsibilities of ESMT are:

Conduct surveys on environmental and social aspects to finalize the route for the transmission lines

Conduct surveys on sites being considered for land acquisition

Interact with the Forest Departments to develop the forest proposal and follow up for MoEF clearance.

Interact with Revenue Authorities for land acquisition and follow up with authorized agencies for implementation of SAMP.

Implementation of EAMP and SAMP

Monitoring Of EAMP And SAMP And Producing Periodic Reports.

Annex 6: Com pa rison of POWERGRID's "Processes and Procedures For Community Engagement, Public Consultation and Disclosure"with the

Requirements of IFC Performance Standard 1

Community Engagement

Requirement per PS 1 I L

Community engagement is an on-going process involving the client's disclosure of information. When local communities may be affected by risks or adverse impacts from a project, the engagement process will include consultation with them. The purpose of community engagement is to build and maintain over time a constructive relationship with these communities. The nature and frequency of community engagement will reflect the project's risks to and adverse impacts on the affected communities. Community engagement will be free of external manipulation, interference, or coercion, and intimidation, and conducted on the basis of timely, relevant, understandable and accessible information

Disclosure of relevant project information helps affected communities understand the risks, impacts and opportunities of the project. Where the client has undertaken a process of Social and Environmental Assessment, the client will publicly disclose the Assessment document. If communities may be affected by risks or adverse impacts from the project, the client will provide such communities with access to information on the purpose, nature and scale of the project, the duration of proposed project activities, and any risks to and potential impacts on such

Disclosure

communities. For projects with adverse social or environmental impacts, disclosure should occur early in the Social and Environmental Assessment process and in any event before the

POWERGRID ESPP

POWERGRID uses or more of the following techniques to engage PAPS and the general public at various stage of the project cycle:

Public Meetings at various locations along proposed TLs Informal small group meetings along proposed TL routes Information brochures and pamphlets Public information ofices at Operating field offices Local planning and site visits by POWERGRID staff Response to public inquiries Press releases inviting comments Project coordination and grievance committees (see below) PAP appointed or elected ombudsman or representative Public Displays

I See above section on Community Engagement

POWERGRID posts environmental impact assessments on its website during the project development process

project construction commences, and on an ongoing basis (see paragraph 26 below).

consider and respond to them. Effective consultation: (i) should be based on the prior disclosure of relevant and adequate information, including draft documents and plans; (ii) should begin early in the Social and Environmental Assessment process; (iii) will focus on the social and environmental risks

Consultation

organizations government agencies, concerned citizens and international financials institutions. Notices were published in English and regional vernacular languages

--

Significant Differences

If affected communities may be subject to risks or adverse impacts from a project, the client will undertake a process of consultation in a manner that provides the affected communities with opportunities to express their views on project risks, impacts, and mitigation measures, and allows the client to

None

Public consuItation is an integral part of the process throughout the planning and execution of a project (ESPP p. 17). The ESPP itself is a product of an extensive National Consultation Process including four regional workshops and a national workshop involving about 450 individual participants including PAPS, community representatives, social

None

None.

and adverse impacts, and the proposed measures and actions to address these; and (iv) will be carried out on an ongoing basis as

1 Key Element I Requirement per PS 1

risks and impacts arise. The consultation process will be undertaken in a manner that is inclusive and culturally appropriate. The client will tailor its consultation process to the language preferences of the affected communities, their decision-making process, and the needs of disadvantaged or vulnerable groups.'

POWERGRID I Significant I ESPP Differences

Mechanism will respond to communities' concerns related to the

Monitoring

project. If the client anticipates ongoing risks to or adverse impacts on affected communities, the client will establish a grievance mechanism to receive and facilitate resolution of the affected communities' concerns and grievances about the client's environmental and social performance. The grievance mechanism should be scaled to the risks and adverse impacts of the project. It should address concerns promptly, using an understandable and transparent process that is culturally appropriate and readily accessible to all segments of the affected communities, and at no cost and without retribution. The mechanism should not impede access to judicial or administrative remedies. The client will inform the affected communities about the mechanism in the course of its community engagement process. As an eIement of its Management System, the client will establish procedures to monitor and measure the effectiveness of the management program. In addition to recording information to track performance and establishing relevant operational controls, the client should use dynamic mechanisms, such as inspections and audits, where relevant, to verify compliance and progress toward the desired outcomes. For projects with significant impacts that are diverse, irreversible, or unprecedented, the client will retain qualified and experienced external experts to verify its monitoring information. The extent of monitoring should be commensurate with the project's risks and impacts and with the project's compliance requirements. Monitoring should be adjusted according to performance experience and feedback. The client will document monitoring resuIts, and identify and reflect the necessary corrective and

As part of POWERGRID's Social Entitlement Framework (SEF) a Grievance Redressal Committee (GRC) is established comprising POWERGRID, representatives of local authorities, PAPs, Gram Panchayat or other well-reputed persons as agreed with the local authorities and PAPS to address any grievances of the PAPS. PAPS are informed about the existence of the GRC during the consultation process and are advised to approach the Chair or the site office of POWERGRID regarding any grievance regarding land acquisition or R &R. The GRC shall be convened within 15 days of notification of any grievance.

None.

POWERGRID has established a Corporate Monitoring Group (CMG) dedicated to monitoring entire project activities and reporting to the Director of Projects. Regular monitoring of activities is carried out at RHQ and sites and reports are reviewed by the regional head on a monthly basis. CMG reviews activities in each region at a quarterly project review meeting. An Environmental and Social Monitoring Plan (ESMPO) is developed for each project based on baseline data and impacts predicted during the environmental and social impact assessment process. Concerned Forest Department staff monitor impacts on ecological resources surrounding TLs.

Implementation of POWERGRID'S Social Entitlement Framework, including R &R the RAP is monitored by a committee chaired by the concerned head of the region and including representatives of local authorities, Panchayat, PAPs and NGOs. Corrective measures, if required, will be incorporated into the

None

' For projects with significant adverse impacts on affected communities, the consultation process will ensure their free, prior and informed consultation and facilitate their informed participation. Informed participation involves organized and iterative consultation, leading to the client's incorporating into their decision-making process the views of the affected communities on matters that affect them directly, such as proposed mitigation measures, the sharing of development benefits and opportunities, and implementation issues. The client will document the process, in particular the measures taken to avoid or minimize risks to and adverse impacts on the affected communities.

Requirement per PS I

preventive actions in the amended management program. The client will implement these corrective and preventive actions, and follow up on these actions to ensure their effectiveness.

--

Senior management in the client organization will receive periodic assessments of the effectiveness of the management program, based on systematic data collection and analysis. The scope and frequency of such reporting will depend upon the nature and scope of the activities identified and undertaken in accordance with the client's management program and other applicable project requirements. The client will disclose the Action Plan to the affected communities. In addition, the client will provide periodic reports that describe progress with implementation of the Action Plan on issues that involve ongoing risk to or impacts on affected communities, and on issues that the consultation process or grievance mechanism has identified as of concern to those communities. If the management program results in material changes in, or additions to, the mitigation measures or actions described in the Action Plan on issues of concern to the affected communities, the updated mitigation measures or actions will also be disclosed. These reports will be in a format accessible to the affected communities. The frequency of these reports will be proportionate to the concerns of affected communities but not less than annually. The client should document specific actions, measures or other instances of decision-making that have been influenced by or resulted directly from the input of those who participated in the consultation.

POWERGRID ESPP

RAP. Third party evaluation and assessment of the RAP may be undertaken by external agencies to assess RAP results and other R & R measures.

The ESMP is integrated with the construction. operation and maintenance and is monitored by ESMD on a monthly basis in association with the CMG. Senior management is apprised of the results on the EPMP and RAP monitoring for each project through a monthly report.

POWERGRID has established a Committee of External Experts to provide ongoing advice on its implementation of the ESPP on the corporate level and in specific projects.

POWERGRID requires that public consultations be documented with the date of each meeting, venue, number and possibly the names of attendees, the issues discussed and the outcomes of the meetings

--

Significant Differences

None.

POWERGRII does not publicly disclose the content of periodic reports prepared by i Committee 01

External Experts on individual projects.

-- POWERGRII does not systematicall: document specific actions taken in response tc public consultations

Annex 7 Environmental Health and Safety (EHS) Matrix per World BanWIFC EHS Guideline for Electrical

Power Transmission and Distribution, April 30,2007

Issue Terrestrial Habitat Alteration

EHS Guideline Avoid critical habitat through use of existing utility and transport corridors for transmission and existing roads and tracks for access.roads, whenever possible

POWERGRID SOP* Minimize adverse impacts on natural environment by consciously economizing on the requirement of land for civil structures, reduction the width of the ROW, etc. Avoid operatioons in environmentally sensitive areas such as forests, wildlife reserves and biosphere reserves (ESPP 1 .O) During route alignment all possible efforts are made to avoid the forest areas (including national park or sanctuary or to keep it to the barest minimum). Since 1998, used of forest has been reduced from approximately 6 % to 2% of ROW to 4.25% of total ROW used to date (as of March 2005) ESPP Box 4.1) Whenever it becomes unavoidable due to the geography of terrain or heavy cost involved, different alternative options are considered to minimize the requirement of forest area. Modern tools like GISIGPS are used for finalization of route

Manual stringing is used in thick forests and on slopes whenever possible. (ESPP Box 4.1)

If the Forest is rich in wildlife, the Chief Wildlife Forest Warden also gets a detailed assessment report prepared including measures to protect the wildlife which is submitted with the application for Forest Clearance (ESPP 2.1.2) Wherever possible, POWERGRID uses existing paths and access roads for the movement of man and machinery. Existing

Responsible Party POWERGRID, MoEF (Forest Department, Chief Wildlife Warden)

1 I I plantation is taken (with native species ) 1 1

Install transmission lines above existing vegetation to avoid land clearing

Avoid construction activities during the breeding season and other sensitive seasons or times of day --- Re-vegetate disturbed areas with native plant species

roads that cannot support heavy machinery are upgraded. (ESPP 4.1.1 .)

pp

POWERGRID designs special 80 - 140 meter high towers for reducing impacts on trees, orchards, wildlife and crossing of wetlands and riverbeds. (ESPP Box 4.1) Construction activities are monitored by the Forest Dep't. & forest officials and all such precautions are POWERGRID taken by them to advise PGClL on such activities. Natural regeneration is allowed to specific POWERGRID, Forest heights and whenever required tree Department.

ROW maintenance

Avoid clearing in riparian areas

Implement integrated vegetation management through selective removal of tall-growing tree species and encouragement of low growing grasses and shrubs

(ESPP 2.1.2) POWERGRID designs special 80 - 140 meter high towers for reducing impacts on ... wetlands and riverbeds. (ESPP Box 4.1) The Forest Department is requested to undertake felling, pollarding and pruning of trees for electrical clearance, whenever necessary, under the advice of POWERGRID (ESPP 2.1.2)

POWERGRID

POWERGRID, Forest Department

lssue

Forest Fire Prevention

EHS Guideline Remove invasive plant species during routine maintenance

Monitoring ROW vegetation according to fire risk

Remove blowdown and other 1 1 high hazard fuel accumulations

/ Time thinning, slashing and 1 other maintenance activities to ( avoid forest fire seasons

Disposal of maintenance slash by truck or controlled burning

Prevention of Avian and Bat Collisions and Electrocutions

Planting and managing fire resistant species within and adjacent to ROW Establishing network of fuel - breaks of less flammable materials or cleared land to slow progress of fires and slow progress of fires and allow fire- fighting access Aligning transmission corridors to avoid critical habitats (e.g. nesting grounds, heronries, rookeries, bat foraging corridors, and migration - corridors) Maintaining 1.5 meter (60- inch)l I spacing between energized components and grounded hardware or, where spacing is not feasible, covering energized parts and hardware

Retrofitting existing transmission or distribution systems by installing elevated perches, insulating jumper loops, placing obstructive perch

POWEEGRIDSOP* POWERGRID recognizes that lopping and felling of trees can open up forest canopy allowing more sunlight into the under storey where it can lead to an edge effect and allow for the proliferation of socio- phytic weeds with possible added repercussions within a semi-evergreen or evergreen biotype (as found in Northeast India and the Western Ghats) (ESPP 4.1 . I ) Forest Dept. in association with POWERGRID takes up dwarf tree plantations in such areas to mend the area and to prevent soil erosion. PI. ref. Q&A -16. Maintaining ROW including pruning is normally fire line. Apart from this sophisticated relays installed at Sls break the circuit within milliseconds. Therefore, a chance of fire is very remote. So far No forest fire has taken place in POWERGRID histom No such materials are stored in forest area I

- -

~ e s ~ o n s i b k Party POWERGRID I Forest Department

POWERGRID

POWERGRID1 Forest nor is it permitted. 1 dep't. The Forest De~artment is reauested to I Forest De~artment I undertake felling, pollarding and pruning of trees for electrical clearance, whenever necessary. under the advice of

POWERGRID

POWERGRID (ESPP 2.1.2) Through disposal at selected area or complete removal area from forest as per

Wildlife Warden also gets a detailed assessment report prepared including I :$%Id life Warden,

Forest Department1 POWERGRID

advice of Forest Dept. Part of forest management-either by planting fire resistant species or creating fire line depending upon the situation. One strip is left clear of vegetation to allow for maintenance of the transmission line (ESPP 2.1.2)

measures to protect the wildlife which is submitted with the application for Forest j

ROW width depends on line voltage. A maximum width of ROW for transmission lines on forest land and minimum

Forest Department.

POWERGRID, Forest Department

clearances between conductors and trees is adhered to in route selection as specified in IS 5613 and by MoEF Guidelines At present, a width clearance of 3 meters is allowed below each conductor for the movement of tension stringing equipment. A proposal to increase the width area for 400 KV and above lines, based on the type of conductor used is under consideration with MoEF. (ESPP2.1.2) No such incident reported from EHV lines so far nor it is required as the spacing of conductors are more than 8 to 10 meter for 400kV transmission line

Forest Department

POWERGRID. MoEF

POWERGRID

lssue

Aquatic Habitat Alteration

EHS Guideline

Electric and Magnetic Fields

POWERGRID SOP* deterrents (e.g. insulated "V's"), changing the location of conductors, and / or using raptor hoods Considering the installation of underground transmission and distribution lines in sensitive areas (e.g. critical natural habitats); Installing visibility enhancement objects such as marker balls, bird deterrents, or diverters. Site power transmission towers and substations to avoid critical aquatic habitat (e.g. watercourses, wetlands, and riparian areas), as well as fish spawning habitat, and critical fish over-wintering habitat Maintaining fish access when road crossings of watercourses are unavoidable by utilizing clearspan bridges, open-bottom culverts, or other approved methods Minimizing clearing and disruption to riparian vegetation Evaluating potential exposure to the public against the reference levels developed by the International Commission on Non-Ionizing Radiation Protection (ICNIRP). Average and peak exposure levels should remain below the ICNIRP recolnmendation for General Public Exposure.

Considering siting new facilities so as to avoid or minimize exposure to the public. Installation of transmission lines or other high voltage equipment above or ad.jacent to residential properties or other locations intended for highly frequent human occupancy, (e.g. schools or offices), should be avoided; If EMF levels are confirmed or expected to be above the

Possibility explored. May be possible in distribution System! line but not feasible in EHV line due to exorbitant initial cost and in maintenance also.

These are standard accessories and installed every where.

All such areas are completely avoided for S/s setting and for Transmission line also as far as possible.

A study carried out by the Central Power Research Institute on POWERGRID lines reveals than the EMF about one meter above ground near a 400 kV single circuit transmission line range from 3-7.2uT in the ROW: Based on a review of POWERGRID designs by Power Technologies, Inc., It was found that the phase to phase and circuit to circuit clearances are consistent with practices used in line clearances throughout the world. The values used by POWERGRID are in the middle range of those used throughout the world and are expected to provide satisfactory performance. In particular, the conductor to ground clearances meet or exceed the requirements of the National Electrical Safety Code, American National Standard Institute, C2. (ESPP 2.4.1 and Appendix XIII) For selection of the optimum route the following criteria are taken into consideration: The route does not involve any human habitation and does not affect any public utility services such as playgrounds, schools or other establishments. Alignments are generally sited 10-15 km away from major towns, whenever possible, the account for future urban expansion (ESPP 2.1.2)

All designs of TL are certified within the permissible limit and possible review of

Resoonsible Partv

POWERGRID

POWERGRID

POWERGRID

POWERGRID, State Forest Department and Department of Revenue

Issue

Hazardous Materials

Pesticides (includes herbicides and insecticides)

EHS Guideline recommended exposure limits, application of engineering techniques should be considered to reduce the EMF produced by power lines, substations, or transformers. Examples of these techniques include: o Shielding with specific metal alloys20 o Burying transmission lines o Increasing height of transmission towers o Modifications to size, spacing, and configuration of conductors Replacing existing transformers and other electrical equipment containing PCB, and ensuring appropriate

- . . ~

storage, decontamination, and disposal of contaminated units

~ r ioFto finaldisposal, retired transformers and equipment containing PCB should be stored on a concrete pad with curbs sufficient to contain the liquid contents of these containers should they be spilled or leaked. The storage area should also have a roof to prevent precipitation from collecting in the storage area. Disposal should involve facilities capable of safely transporting and disposing of hazardous waste containing - PCB Surrounding soil exposed to PCB leakage from equipment should be assessed, and appropriate removal and I or remediation measures should be implemented Alternatives to Pesticide Application - The following alternatives to pesticides should be considered: provide those responsible for deciding on pesticides application with training in pest identification, weed identification, and field scouting; U s e mechanical weed control

POWERGRID SOP* design and its modification if necessary is undertaken by Engg. dep't. and type tested etc.

As part a routine maintenance, transformer oil is changed every 10- 15 years. The used transformer oil is categorized as hazardous waste as per Hazardous Waste (Management and Handling) Rules Used mineral oil generated at substations meets the requirements of Schedule 5 of the Rules. POWERGRID seeks authorization for disposal of hazardous waste from concern State Pollution Control Boards as and when required. The oil can be auctioned to authorizedlregistered re-refiners and information to the respective SPCB is submitted. (ESPP 2.113) All such precautions are taken as per requiremint. Generally the used oil is collected from transformer directly to tanker container and taken away and storage is mostly avoided due to sheer volume.

All transformers are having oil trap (concrete) or oil sump pit and possibility of ground contamination is negligible.

No herbicides1 Pesticide1 insecticides are being used. Only manual removable is followed

Responsible Party

POWERGRID, State Pollution Control Board

POWERGRlD

POWERGRID

POWERGRlD

I s sue F hazards from contact with live power lines during construction, maintenance, and operation activities

E H S G u i d e l i n e and / or thermal weeding; 4 Support and use beneficial organisms, such as insects, birds, mites, and microbial agents, to perform biological control of pests Only allowing trained and certified workers to install, maintain, or repair electrical equipment

Deactivating and properly grounding live power distribution lines before work is performed on, or in close proximity, to the lines

Ensuring that live-wire work is conducted by trained workers with strict adherence to specific safety and insulation standards. Qualified or trained employees working on transmission or distribution systems should be able to achieve the following33: o Distinguish live parts from other parts of the electrical system o Determine the voltage of live parts o Understand the minimum approach distances outlined for specific live line voltages o Ensure proper use of special safety equipment and procedures when working near or on exposed energized parts of an electrical system Workers should not approach an exposed energized or conductive part even if properly trained unless: o The worker is properly insulated from the energized part with gloves or other approved insulation; or, o The energized part is properly insulated from the worker and any other conductive ob.ject; or,

P O W E R G R I D S O P *

Check that only erection team members are allowed to stand near the tower while erection is in process and should wear safety helmetlshoes (ESPP Appendix XII, B- 1 4) Ensure that supervisor and workmen engaged in the field are aware of first aid techniques (such as in case of electric shock) (ESPP- Appendix XII- General Points, A-1 I) At substations, ensure that laying of temporary cables used during construction do not cause an danger of electrocution of persons/animalsl Check that no live wires are nearby (ESPP- Appendix XII, Safety Related Check List during Construction of Sub-stations- A-8, B- 17)

Check that capacitor unit is short circuited and earthed until erection and commissioning works are completed (ESPP- Appendix XII, Safety Related Check List during Construction of Sub- stations B-38)

All such norms are part of Standard practices and POWERGRID has developed a detailed safety manual for such activities and is being followed at each site. Dedicated safety dept. and trained personnel are deployed to supervise the compliance.

Responsible P a r t y

POWERGRID, Contractors




Issue

Occupational hazards when working at elevation during construction, maintenance, and operation

EHS Guideline o The worker is properly isolated and insulated from any other conductive object (live- line work) Where maintenance and operation is required within minimum setback distances, specific training, safety measures, personal safety devices, and other precautions should be defined in a health and safety plan. Workers not directly associated with power transmission and distribution activities who are operating around power lines or power substations should adhere to local legislation, standards, and guidelines relating to minimum approach distances for excavations, tools, vehicles, pruning, and other activities Minimum hot stick distances may only be reduced provided that the distance remaining is greater than the distance between the energized part and a grounded surface Testing structures for integrity prior to undertaking work

Implementation of a fall protection program that includes training in climbing techniques and use of fall protection measures; inspection, maintenance, and replacement of fall protection equipment; and rescue of fall- arrested workers, among others Establishment of criteria for use of 100 percent fall protection (typically when working over 2 meters above the working surface, but sometimes extended to 7 meters, depending on the activity). The fall protection system should be appropriate for the tower structure and necessary movements, including ascent,

POWERGRID SOP*

checkthat only erectionteam members are allowed to stand near the tower while erection is in process and should wear safety helmetlshoes (ESPP Appendix XII, B-14)

Being followed.

Jacks and vertical supports shall be positioned such that vertical loads are distributed equally and do not exceed the capacity ofjacks. Proper jacking arrangement is made to take the entire load of template (ESPP Appendix 11, A, 11.8-, 9) Ensure derrick, pulleys, ropes, hooks, guys and lifting tools and tackles (i.e., winch machine, chain pulley block, Trifor, D- shackle) have been checked for adequate strengthlsize (per copy of test certificate) before tower erection (ESPP Appendix 11, B.3-6. 16-18)

Ensure that proper scaffolding arrangements are made during stringing of conductor (ESPP Appendix XII, C-6) Portable ladders shall not be more than 9 meters in length (ESPP, Appendix 11, E-32)

All standard precautions like safety belt, helmet, mechanical ladders etc. are used for safety of such persons.

Responsible Party







Issue I ' EHS Guideline POWERGRID SOP* ( Responsible Party I 1 I descent, and moving from point I I I

to point; Installation of fixtures on tower comoonents to facilitate the use of fall protection systems Provision of an adeauate work- positioning device system for workers. Connectors on positioning systems should be compatible with the tower components to which they are

All equipments required for erection of towers & conductors etc. are used.

Yes, during construction stage.

Contractors


trained; Safety belts should be of not less than 16 millimeters (mm) (518 inch) two-in-one nylon or material of equivalent strength. Rope safety belts should be replaced before signs of aging or fraying of fibers become

attached. equipment should be

properly rated and maintained and hoist operators properly

BSEN355 & EN-358 specification and tested as per EN364-1992 specification are being used in POWERGRID


Yes. POWERGRID, Contractors

1 undertaking work I

I An approved tool bag should be ( Yes. ( POWERGRID,

evident When operating power tools at height, workers should use a second (backup) safety strap Signs and other obstructions should be removed from poles or structures prior to

used for raising or lowering tools or materials to workers on

Yes.

-do- Yes -do-

Contractors

Contractors I workplace, including surveys of exposure levels in new projects and the use of personal

Occupational EMF exposure

clearance and ground clearance are designed and maintained to completely avoid such incidents.

1 ( monitors during working 1 1 1

structures. Identification of potential exposure levels in the

differentiate between work areas with expected elevated

1 EMF levels compared to those

First they are tested during type test and periodic review of maintaining desired

activities; Training of workers in the identification of occupational EMF levels and hazards Establishment and identification of safety zones to

acceptable for public exposure, limiting access to properly


trained workers Implementation of action plans to address potential or confirmed exposure levels that exceed reference occupational exposure levels developed by international organizations such as the International Commission on Non-Ionizing Radiation Protection (ICNIRP), and the Institute of Electrical

Yes, part of safety drill/ training

Taken care of in design process.

All design parameters have been certified by PTI, USA and field testing has also been carried out by CPRI, Hyderabad. Exposure level is well with in the prescribed international limits.




1 1 and Electronics Engineers 1

1 ( Personal exposure monitoring

Issue

Electrocution risk to p~~bl ic

EHS Guideline

equipment should be set to warn of exposure levels that are below occupational exposure reference levels (e.g. 50 percent). Action plans to address occupational exposure

I (IEEE).

may include limiting exposure time through work rotation, increasing the distance between the source and the worker, when feasible, or the use of shielding materials Use of signs, barriers (e.g. locks on doors, use of gates, use of steel posts surrounding transmission towers, particularly in urban areas), and education 1 public outreach to

POWERGRID SOP* / Responsible Party I I

No such incident reported so far. ) POWERGRID,

Before stringing starts check that villagers do not come underneath the job of the concerned section (ESPP, Appendix XII, C24) Check that anti-climbing devices and danger plates are provided in the tower after


) lines, to prevent shock. Electromaenetic 1 Conductor bundles are created I Yes. 1 POWERGRID,

i 1 prevent public contact with potentially dangerous equipment Grounding conducting objects (e.g. fences or other metallic structures) installed near power

changes in property values due

erection, working area of tower has been demarcated during erection (ESPP, Annex X11, B.12, 13 ) Obviously Yes as it is part of our project.

u

Interference 1 to ensure radio reception at the outside limits remains normal

Visual Amenity , Extensive public consultation I during the planning of power

line and power line right-of- , way locations

Accurate assessment of

to Dower line ~roximitv


Siting power lines, and designing substations, with due consideration to landscape

-do- Public consultation is an integral part of the process throughout the planning and execution of a project (ESPP 2.6 and Appendix XVIII) 'These assessments are not done by

views and important environmental and community features

Contractors

POWERGRID Local authorities (specify)

POWERGRID,

Location of high-voltage transmission and distribution lines in less populated areas,

POWERGRID but yes. 1 Contractors 1 Contractors

I distribution lines when power must be transported through dense residential or commercial

from human receptors, to the

All possible precautions are taken to avoid such area during route alignment and substation land identification process.

been practiced to minimize impact as and when required.


Yes, part of route alignment process POWER GRID,^ Contractors

) extent possible / Use of noise barriers or noise I Yes, acoustic device are installed and sound 1 POWERGRID,

Aircrafi Navigation Safety

canceling acoustic devices should be considered as necessary Avoiding the siting of transmission lines and towers close to airuorts and outside of

absorbing trees are planted in all of our installations to reduce the noise level further.

Yes

Contractors 1

I


I known flight path envelopes; 1 I ( Consultation with regulatory air ( Ensure that permission has been obtain I POWERGRID, Aviation

I during Construction of Transmission Lines) I Environmental 1 Environmental monitoring I POWERGRID has a dedicated Cor~orate I POWERGRID.

Issue

1 Monitoring -

programs for this sector should be implemented to address all activities that have been identified to have potentially

EHS Guideline traffic authorities prior to Installation

Monitoring Group to monitor entire project activities reporting to the Director (Projects). Regular monitoring of activities is carried out by at regional HQ and site on

1 significant impact s on the a monthly basis and by CMG on a quarterly 1 environment during normal basis. These unites oversee all

POWERGRID SOP* from Aviation Authority for erection of towers in the vicinity of flying zone and for erection of special towers, where necessary (ESPP, Appendix XII, Safety Check List

operations and upset conditions.

Responsible Party Authority

environmental, social, health and safety aspects of projects. (ESPP 6.5) The Operation Service Department and has framed a guidelines/checklist for workers' safetv.

Environmental monitoring activities should be based on direct or indirect indicators of emissions, effluents, and resource use applicable to the

Agree but for transmission line project its applicability is almost negligible as there is no disposal of such materials in TL project.

Independent Committee of Experts


1 particular project. I Monitoring frequency should I Already in place. But there is always a I POWERGRID, I

I be sufficient to provide scope of improvement and all efforts will Contractors representative data for the be made.

I parameter being monitored. I Monitoring should be I Ensure that supervisory staff from I POWERGRID

conducted by trained individuals following monitoring and record-keeping

POWERGRID is available at site during construction (ESPP XII- General Points A- 6)

procedures and using properly calibrated and maintained

regular intervals and compared with the operating standards so that any necessary corrective

equipment. Monitoring data should be analyzed and reviewed at

1 actions can be taken Accident and I Projects should try to reduce I Yes, POWERGRID takes all possible I POWERGRID, Fatality Rates

Yes, part of review criteria.

the number of accidents among project workers (whether directly employed or subcontracted) to a rate of zero, especially accidents that could result in lost work time, different levels of disability, or

POWERGR~D, Contractors

even fatalities. Facility rates may be benchmarked against the performance of facilities in this sector in developed countries through consultation with published sources (e.g. US Bureau of Labor Statistics and UK Health and Safety Executive)

ng Procedure per ESPP 2005

measures to avoid or to reduce such accidents.

Under process & development.

Contractors

Will be done I POWERGRID, Contractors

Source: World Bank and POWERGRID

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