ENVIRONMENTAL AND SOCIAL POLICY & PROCEDURES (ESPP)

Environment And Social Management POWER GRID CORPORATION OF INDIA LTD.

(A GOVERNMENT OF INDIA ENTERPRISE)

Structure of Presentation
POWERGRIDs Environment and Social Policy Regulatory Requirements POWERGRIDs Project cycle Environmental and Social Issues Environmental and Social Procedures Institutional Framework Regional and National Consultation

Environment and Social Policy

Environment & Social Policy Statement
POWERGRID is committed to the goal of sustainable development through conservation of natural resources, continually improving its management system, accessing specialist knowledge for management of significant environmental and social issues and introducing new state of the art and internationally proven technologies while strictly following the basic principles of Avoidance, Minimization and Mitigation.

Environment and Social Policy (Cont..)

POWERGRIDs Commitment
Total transparency while dealing with all stakeholders and ensure their involvement in POWERGRIDs operation through a well-defined public consultation mechanism. Maintain highest standards of corporate behaviour not only towards our employees but also to the consumers, societies, and the world in which we operates, shouldering community responsibility as part of its social responsibility through various community development activities.

Environment and Social Policy (Cont..)

Adopt initiatives such as innovative tower designs and multi-circuit towers for reduction in Right of Way, installation of tall towers to minimise impact on flora & fauna in ecologically sensitive areas, land management for substation land, plantation, and provision for rainwater harvesting

Environment and Social Policy (Cont..)

Environment
Avoid carrying out operations in environmentally sensitive areas such as Forest, National Park, and Bioreserve Consider environmental variations in respect of location, terrain, and sensitive areas in impact identification and balance this with practical engineering requirements; Application of efficient and safe technology practices; Abate pollution in all its activities and operations; and Minimizing energy losses and promote energy efficiency

Environment and Social Policy (Cont..)

Social
Avoid socially sensitive areas with regard for human habitations and areas of cultural significance Protect the rights of people affected by its projects; Involve local people affected by projects from inception stage to operation and maintenance Consult affected people in issues of ROWs, land acquisition or loss of livelihood Encourage participation while deciding on routing options and studying environmental and social implications of the projects

Environment and Social Policy (Cont..)

Social (Cont..)
Pay special attention to marginalized and vulnerable groups and secure their inclusion in overall public participation Guarantee entitlements, and compensation to affected people as per its R&R policy Secure appropriate compensation for accidents victims and for adverse health impacts Provide information to local communities about environmental and social implications; and Maintain highest standards on issues of health and safety

Regulatory Requirements
Environment

Mandatory Requirements Prescriptive Framework Funding Agency Requirements

Social

Mandatory Requirements Prescriptive Framework Funding Agency Requirements

Mandatory Requirement Environment

The Forest (Conservation) Act, 1980 :

The Act Provides for conservation of forests and restriction on use of forests or forest land for non-forest purpose This is applicable to POWERGRID whenever a transmission line traverses a forest area Projects, when involving forest areas, undergo detailed review followed by approval procedures to obtain forest clearance. During route alignment, all possible efforts are made to avoid the forest area involvement or to keep it to the minimum. The final route for transmission line is selected in close consultation with State Forest Department and Revenue Department.

Forest Proposal State Forest Department Principal Chief Conservator State Secretariat (Forest Secretary)

MoEF
Area < 5 Ha.
-Processing and approval by MoEF regional office

Area > 5 < 40 ha .

-Processing by MoEF regional office through its state advisory groups/ empowered committee -Approval by Minister of Environment and Forests

Area > 40 ha .
-Processing by Forest Advisory Committee at MoEF -Approval by Minister of Environment and Forests

Area > 100 ha . -Processing by Forest Advisory Committee at MoEF -Additional inspection MoEF regional office -Approval by Minister of Environment and Forests

Mandatory Requirement Environment

Environment Protection Act, 1986 An umbrella legislation that provides a holistic framework for the protection and improvement to the environment
EIA Notification,1994. Environmental clearances for specific types of new / expansion projects. Environmental Clearance for power transmission projects is only required for those, located in two districts in the Aravalli Range (viz., Alwar in Rajasthan and Gurgaon in Haryana)

Mandatory Requirement Environment

Batteries (Management and Handling) Rules, 2001

Restriction on Disposal of used Batteries POWERGRID deposits used batteries with the dealer / manufacturer / registered recycler for handling and disposal. A half-yearly return is filed as per form-8 and submitted to the concerned State Pollution Control Board.

Ozone Depleting Substances (Regulation and Control) Rules, 2000

Regulation/ control on Ozone Depleting Substances under Montreal Protocol POWERGRID is is phasing out all equipment, which uses these substances.

Mandatory Requirement Environment

Hazardous Wastes (Management and Handling) Amendment Rules, 2003 These Rules classify used mineral oil as hazardous waste that requires proper handling and disposal Used mineral oil generated at the POWERGRID substations can be re- refined. POWERGRID seeks authorisation for disposal of hazardous waste from concernedSPCB. The oil is auctioned to authorised/registered rerefiners and information is submitted to the SPCB vide Form 13.

Mandatory Requirement Environment

The Biological Diversity Act, 2002 Certain areas, which are rich in biodiversity and
encompasses unique ecosystems are identified and designated as Biosphere Reserve POWERGRID abides by the provision of the act and try avoiding these biosphere reserves while finalising the route alignment.

Prescriptive Framework - Environment

Constitutional Guarantees Pollution laws Health & Safety Requirements Natural Resource related laws
Forest Act 1927, which classifies forests and controls timber and
other forest produce Forest Conservation Act 1980 places restrictions on state governments concerning de-reservation of forests or use of forest lands for non-forest purposes National Forest Policy 1988 is a departure from enacted laws and envisages peoples involvement in development and protection of forests Wildlife Protection Act 1972 demarcates protected areas in the form of national parks or sanctuaries.

Funding Agency Requirement

POWERGRIDs requirements vis--vis Funding Agencies are

World Bank (WB) Operational Policies (OP), Asian Development Bank (ADB) Operations Manuals (OM) F1/BP Japan Bank for International Cooperation (JBIC) Environmental Guidelines.

All these Guidelines classify Projects in Three Catgories i.e A, B & C Transmission project falls under category B, and thus requires IEA (WB) or IEE (ADB).

Funding Agency Requirement

Other applicable requirements includes

WB OP- 4.36 on Forestry WB OP-11.03 on Cultural Property WB OP- 4.04 on Natural Habitats

Mandatory Requirements Social

National Policy on Resettlement and Rehabilitation for Project Affected Families (PAFs)

Applicable to all developmental projects where PAFs are more than 500 in plains and 250 in hilly areas

Provides a broad framework for an effective consultation between PAFs, authorities responsible for their R&R and has listed R&R measures /entitlements for different category of PAFs. The National policy is not applicable to POWERGRID because transmission projects do not involve displacement of such a large numbers of families

Mandatory Requirements Social

Rights of Way and Compensation Under Electricity Laws

If the Transmission line passes through agricultural land, section 68 (5 & 6) of The Electricity Act, 2003 provide the basis for compensation to be paid to owner of crop/trees etc. The LA Act requires Compensation to be paid to PAPs in case of Land acquisition POWERGRID complies to these provisions through its Social Entitlement Framework and Public Consultations Process.

The Land Acquisition Act, 1894

Land Acquisition Process of POWERGRID

Prescriptive Framework Social

Constitutional Guarantees

National and State-wide Laws and Policies Relating to Land Acquisition and Issues of Resettlement and Rehabilitation

Land Acquisition Act, 1894 as amended in 1984 Madhya Pradesh Pariyojana Ke Karan Visthapit Vyakti (Punsthapan) Adhiniyam, 1985 Maharashtra Project Affected persons Rehabilitation Act, 1986

Prescriptive Framework Social

R&R Policies

National Policy on Resettlement and Rehabilitation for Project Affected families (Ministry of Rural Development)
The Orissa Resettlement and Rehabilitation of Project Affected Persons Policy, 1994 (water resources projects) Resettlement and Rehabilitation Policy - National Thermal Power Corporation, May 1993.

Funding Agency Requirements

World Bank OP 4.12: Involuntary Resettlement

Requires an entitlement framework aimed at restoration, replacement, and participation of affected groups A detailed social assessment and action plan is required to be submitted to bank before start of project work
The objective is to ensure that development benefits are socially and culturally compatible Indigenous People Development Plan to be Prepared

World Bank OD 4.20: Indigenous People (IP)

Funding Agency Requirements

ADBs Operations Manual F2/BP: Involuntary Resettlement
Describes Banks policies and procedures on involuntary resettlement. Classifies projects in three categories Category-A: Involves displacement of more than 200 persons and requires a detailed resettlement plan. Category-B: where resettlement is not that significant and requires a short resettlement plan. Category-C where no resettlement of people are foreseen.

Project Cycle
The Key Milestones

Project conceptualisation Project Planning Approval and clearances Detailed design and tendering Project Implementation Operation & maintenance Project review

Project Conceptualisation Project Planning

Project identification Feasibility studies Primary approvals from internal management

Reconnaissance & preliminary surveys Environmental Assessment and Management Planning MoEF Approvals Approvals from Pre-PIB Approvals from PIB Approval from CCEA Approval from funding agencies Formal approval from GoI

Approvals & Clearances

Project size >300 Crores I f Multilateral/ GOI funding Project Size <300 Crores

MoEF Approvals Approval from Internal Management Detailed survey to freeze route alignment and tower points Social Assessment and management plans Design, estimates, and finalization of specifications Tendering and award of contracts Check surveys Execution of EAMP and SAMP Grid operations Preventive maintenance Monitor Project work Review performance of Project Tower erection and stringing Substation construction Testing and commissioning

Detailed Design & Tendering

Project Implementation

Operation & Maintenance Project Review

Gantt Chart
SL. NO I. MILESTONE Project Conceptualisation 1. Project Identification 2. Concurrence of Constituents 3. Feasibility Studies 4. Environment screening & Scoping 5. Preliminary Approvals (BOD & FA Pre-appraisal) Project Planning 1. Reconnaissance & Preliminary Survey 2. Environmental Assessment & Management Planning Project Approvals 1. In-principle approval from Plg. Commission 2. Preliminary Public Investment Board (Pre-PIB) 3. Public Investment Board (PIB) 4. Funding Agencies (FA) 5. Cabinet Committee on Economic Affairs (CCEA) 6. Government of India (GOI) Detailed Design & Tendering 1. Detailed Surveys 2. Social Assessment & Management Planning 3. Design, Estimates & Finalisation of Specifications 4. Tendering, Award of Contract Project Implementation 1. Check Surveys 2. Execution of EAMP and SAMP 3. Tower Erection & Stringing 4. Sub-Station Construction 5. Testing & Commissioning Operation & Maintenance 1. Grid Operation 2. Preventive Maintenance Project Review 1. Monthly Review 2. Annual Review YEAR I YEAR -II YEAR-III YEAR-IV YEAR-V YEAR VI
ONWARDS

II

III

IV

VI

VII

Environment & Social Issues

Environmental Issues

Transmission Line

Lopping of Trees within Right of Way Clearing of Ground vegetation for movement of
Machinery

Substation

Clearing of Ground vegetation Used transformer oil

Environmental Issue (Cont..)

POWERGRIDs Experience & Initiatives

Total Forest involvement has reduced from 6% to 4.25% after implementation of ESPP in 1998. Manual stringing in thick forests and on slopes, to minimise damage to the environment Tower base with leg extension and revetments to prevent soil erosion near the towers Special very high towers (80m) design to reduce impacts on trees, orchard, wildlife wetlands and riverbeds Multi circuit and compact towers for reduced ROW requirement

Social Issue
Transmission lines

Loss to standing crop Change in land prices Aesthetic appeal of an area Temporary loss of access to Common Property Resources
Loss of livelihood due to acquisition of private agricultural land Loss of common property resources due to acquisition of revenue land Loss of homestead

Sub station

Social Issues (Cont..)

POWERGRID Experience & Initiatives

Flexible approach in locating substations Delay Construction to facilitate crop harvesting, if unavoidable compensation is given at market rate for standing crops. Land required for Substation ranges between 15 30 ha. Acquisition generally entails negotiations with 20 50 Landowners. For 82 substation 64 % is private land and rest govt. land 70% agriculture land and rest waste land Addresses R&R issues through its Social Entitlement Framework Till Date Only One homestead is acquired.

Environment & Social Management Procedures

The objective is to Eliminate / Minimise adverse environmental and social issues associated with the projects These Procedures are integrated to the Project cycle ESMP identifies the E&S issues at the early stages of project cycle and enable POWERGRID to implement the basic principals of sustainable development through Avoidance, Minimization and Mitigation.

Project Cycle

Environment & Social Management Procedure

Project details from Engg Dept

Project Conceptualisation

Environmental & Social Screening and Scoping for transmission limes Clearance from Internal Management
Detailed Survey for Baseline Information Finalize optimal route Select Optional Sub Station Site Consultation with Stake Holders

Env. & Social Screening Report as part of Feasibility Report

Environmental & social Screening and Scoping for Substations

Project Planning

Environment Assessment and Management Plan Project Approval MOEF for Forest clearance Detailed Design & Tendering GOI Agencies Funding Agencies Social Assessment and Management Plan (S-E survey) Award of Social * Management Contract Execution of Social Management Plan
Land acquisition Compensation to PAPs Rehabilitation assistance Community Development Programs

Consultation for Environmental Management Work

ROW Clearance Crop / Tree Compensation Public consultation Compensatory Afforestation

Project Implementation Operation & Maintenance

Implementation of EAMP

External IMS Audits Annual Review Annual EAMP Review

Annual SAMP Reviews

ESMP Project Conceptualization

Environmental screening and Scoping for transmission lines

Bee- line Survey (Toposheets & Forest Atlas) Identify Environmental sensitive areas Suggest alternative route if any Field units conducts spot verification RHQs And Site office consult State Forest Department & Revenue Department Scope of EAMP is finalised

ESMPProject Conceptualization (Cont.)

Social screening and Scoping for transmission Lines

Examine route alternatives and examine census records to identify potential socially sensitive areas. Field staff conduct spot verification ESMD & RHQs Finalise scope for SAMP for transmission lines.

Environmental management

approval

from

internal

Submit Feasibility report and IEAR to internal management for approvals

ESMPProject Planning
Environment screening and for substation

ESMD examine substation sites through secondary information. Spot Verifications by field staff. Consult revenue department assess their view for substation site Scope of EAMP finalised for substations.
Asses alternative sites based on revenue records, other secondary sources and field visits Spot verification to avoid socially sensitive areas. Shortlisting of optimum site and finalise Scope for SAMP.

Social Screening for substation sites

ESMPProject Planning (Cont..)

Environmental Assessment Planning (EAMP

and

Management

Preparation of Forest proposal for transmission line traversing through forest with help of forest department Forest proposal includes

Details of Species, GBH classification of trees to be felled, Details on tree enumeration; cost-benefit analysis; Identified degraded forestland and programme Compensatory Afforestation.

for

Environmental review for Non- forest Area ESMD and authorized agency formulates Management Plan for transmission line and substation.

ESMPProject Approvals
Forest Clearance

POWERGRID submit proposal in MoEFs priscribed format to the Nodal Officer of concerned state, who after scrutiny forward it to DFO. DFO conducts survey and assessment of land proposed to be diverted. Proposal along with DFOs recommendation is sent to PCCF, who forwards it to Sate Secretary of Forest. Forest proposal is send to MoEF for approvals Approvals are granted in two stages

Approval on condition that POWERGRID will deposit cost for compensatory Afforestation to forest department State Government informs MoEF about compliance and MoEF grants final approval.

ESMPProject Approvals (Cont..)

GOI Authorities Approval

Submits Feasibility Report to MOP, Pre-PIB, PIB and CCEA EAMP details to concerned authorities.

Funding Agency Acceptance

Submits Fesibility report and EAMP/IEAR to funding agency for appraisal Concurrence with FA prior to starting of work.

ESMPDetailed Design and Tendering

Social Assessment and Management Planning.

Appoint external agency (if required) to prepare SAMP Negotiate and finalize Compensation package with Revenue authorities and PAPs. Finalize substation sites, notify area to the acquired under LA Act and undertake detailed LA census. Formulate RAP if affected families > 40 Tribal People Development Plan (TPDP) if tribals are involved Public Consultation on proposed RAP / SAMP

ESMPDetailed Design and Tendering (Cont..)

Concurrence of Funding Agency for SAMP

After internal managements approval, SAMP is submitted to funding agency for approval.

Consultation for Environmental Management work

ESMD, RHQ and site office consults the Forest Department and Revenue Authorities and public to undertake EAMP.

ESMPProject Implementation
Execution of Environmental Management Work

Ground Clearance for Transmission line Forest authorities to carry out Compensatory Afforestation

Award of Social Management contract Execution of Social Management Work

Pay compensation and execute other measures as per SAMP Deposit compensation with LA authorities Execute R&R measures.

ESMPOperation and Maintenance

Environmental Monitoring

Regular patrolling of ROW and Compensatory Afforestation by DHQs Substations to be monitored on daily basis
Monitor R&R Measures

Social Monitoring

ESMPAnnual Review
External Agency Audit

Appoints an external agency to conduct the review/ audit of performance of implementation of its environment and social management systems
Review environmental performance of project during all phases of implementation including external audit findings.

Annual Environmental & Social Review

Environmental and Social risk Management Framework

Via Internal Arrangements

Strengthens internal capacity by creating contingencies fund for unforeseen eventualities

Via Insurance

Only applicable legislation in this regards is Public Liability Insurance Act, 1991 and is applicable to Hazardous water generator Provision for Insurance schemes to cover environmental and social risk

Environmental and Social risk Management Framework (Cont..)

Risk
GOI

Key Role Players

POWERGRID Contractor Insurers

Non Compliance Regulatory Contractual

Major Hazards E.g Tower fall

Impacts on human health

Force Majeure Insurable Non- insurable Inclusion / Eclusion of Concerned communities / NGOs Public interest Litigation

Delayed implementation of SMP

Institutional Framework
Organizational Requirements

A synchronized system of functioning coordinated by a Corporate Planning and Corporate Monitoring group Intradepartmental approach to all projects, delineation of departmental responsibilities and decentralization of authority
Strengthening the implementation of the ESPP by redeployment of appropriately trained personnel at key levels Reinforcing in-house capabilities by working with specialized external agencies

POWERGRID Institutional Framework focus on

Institutional Framework Organizational Structure and Responsibility

Corporate Level - ESMD

Coordinate environmental and social initiatives with various multilateral agencies and Ministry of Environment and Forests (MoEF) Coordination of all environmental activities related to a project from conceptualisation to operation. Advising RHQs and Site office to carry out environmental and social surveys for new projects. Assisting RHQs and Site to for route selection Providing a focal point for interaction and follow-up with the MoEF for expediting forest clearances and Ministry of Power on environmental and social issues Training of POWERGRID personnel on environment and social issues and their management plan

Institutional Framework Organizational Structure and Responsibility

Corporate Level - ESMD

Coordinate environmental and social initiatives with various multilateral agencies and Ministry of Environment and Forests (MoEF) Coordination of all environmental activities related to a project from conceptualisation to operation. Advising RHQs and Site office to carry out environmental and social surveys for new projects. Assisting RHQs and Site to for route selection Providing a focal point for interaction and follow-up with the MoEF for expediting forest clearances and Ministry of Power on environmental and social issues Training of POWERGRID personnel on environment and social issues and their management plan

Institutional Framework Organizational Structure and Responsibility

Regional Level (RHQs) Environment and Social Management Cell (ESMC)

Advising and coordinating with site offices to carry out environmental and social surveys for new projects Assisting the ESMD to for route selection of transmission lines Follow-up forest clearances and land acquisition processes with state forest offices and other state departments Supervision and Monitoring of EAMP & SAMP implementation

Institutional Framework Organizational Structure and Responsibility

Site level Environment and Social Management Team (ESMT)

Conduct surveys on environmental and social aspects to route finalisation Conduct surveys on sites for land acquisition Interact with the Forest Departments to develop the forest proposal and follow up for MoEF for 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 preparation of reports.

ESMD Structure at Corporate Centre

Company Secretary Director (Finance) Chairman & Managing Director Chief vigilance officer Director (Operation) Director (Projects) Director (Personnel)

Executive Director (CP& ESMD) GM / AGM (ESMD. CORP. CENTRE) DGM (ESMD. Corp. Centre) Chief Manager Region I & II

Chief Manager Region III & IV

Chief Manager Region V &VI

Environment E3/E2/E1

Social E3/E2/E1

Environment E3/E2/E1

Social E3/E2/E1

Environment E3/E2/E1

Social E3/E2/E1

Expert Group wherever required, (taxonomist, ecologist, Sociologist and Wild life Science. Etc.)

Organization Support Structure At RHQs & Site Office

Corporate office ESMD

REGIONAL HEAD QUARTERS

Chief Manager / Manger Sr. Env. Officer Sr. Social Officer

Env. Officer

Social Officer

SITE OFFICE

Manager (TL) Env. Officer

Manager (SS) Social Officer

Institutional Framework Training and Development

Corporate, regional and Site office identifies training needs. Specialized training modules have been developed for

Strengthening In-house corporate level capacity to implement the ESPP document Creating Awareness, providing the tools for implementation of Environmental and Social Policy to all departments Developing competence within key employees to provide training in their respective departments

Institutional Framework Information Management

ESMD as central nodal agency Mode of Communication

Requests for information from field /sites are routed through the RHQs. Departments at the corporate office, coordinate with the RHQs directly The corporate planning department interfaces with Funding Agencies and GOI authorities. For clearance procedures, ESMD directly interfaces with MoEF, and Engineering directly interfaces with MOP/CEA.

Institutional Framework Monitoring

Corporate Monitoring group (CMG) takes quarterly review of each region through Project review meeting CMD reports to directors Environmental and Social Monitoring plan ESMP is monitored by ESMD on monthly basis Management apprised through monthly reports Third party evaluation of RAP

Monitoring Framework
S Project N Stage Monitoring Indicator Frequency Once - at time of detailed siting and alignment survey and design Responsibility POWERGRID

1 Preconstructi on

Towering location and line alignment w.r.t distance from.

a. b. c. d. e. f.

Set back from nearest dwellings or social institutions Water bodies Agricultural land Ecological protected area Reserved forests Flood Zone

Exclusion of PCB in transformer

Once As part of tender specification Once As part of tender specification

POWERGRID

Exclusion of CFC in electrical or other equipment

POWERGRID

Monitoring Framework (Cont.)

S N Project Stage Monitoring Indicator Frequency Once As part of alignment survey Once Built in design criteria Once during construction machinery specification Once a Quarter based on consultation with PAP Responsibility POWERGRID POWERGRID POWERGRID and assigned contractor

1 PreEMF Strength constructi on (Cont..) Noise level from substation Noise during construction

Compensation for temporary / permanent loss of productive trees a. RAP b. Crop compensation plan c. Tree compensation plan

Monitoring Framework (Cont.)

S Project N Stage Monitoring Indicator Frequency Responsibility

2 Constructi on

Government clearance
Oil spill containment and spill cleanup Sewage disposal System

Fire prevention and fire protection equipment monitoring Crop disturbance during construction Air borne dust emissions during construction

Once for each subproject Once Built in product specification Once in tender specification Once in tender specification
Periodically when required Every two weeks

POWERGRID
POWERGRID POWERGRID POWERGRID

POWERGRID assigned contractor POWERGRID assigned contractor

Monitoring Framework (Cont.)

S Project N Stage Monitoring Indicator Frequency Responsibility

2 Constructi on (cont..)

Vegetation marking and clearance Trimming and cutting of trees in ROW Disposal of cleared vegetation

Every two weeks Once per site

Once per site Every 2 weeks

Disposal of excavated soil

POWERGRID assigned contractor POWERGRID assigned contractor POWERGRID assigned contractor POWERGRID assigned contractor

Monitoring Framework (Cont.)

S Project Stage Monitoring Indicator N Frequency Responsibility

3 Operation and Effectiveness of Training Maintenance programs and plan

Once a year
Once a year

POWERGRID
POWERGRID

Compliance with transmission tower setback conditions

Maintenance of ground clearance to comply with limits of EMF

Once a year

POWERGRID

Noise levels at boundary nearest to substations

Once a year

POWERGRID