E1065 V. 1
ENVIRONMENTAL AND SOCIAL
POLICY & PROCEDURES (ESPP)
VOLUME - I
Environment And Social Management
POWER GRID CORPORATION OF INDIA LTD.
(A GOVERNMENT OF INDIA ENTERPRISE)
Environmental and Social Policy and Procedures
TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY E-1
1.0 POWERGRID’s ENVIRONMENTAL AND SOCIAL POLICY 1
2.0 POLICY, LEGAL AND Regulatory Framework 4
2.1 Mandatory Requirements - Environment 5
2.1.1 The Electricity Act, 2003 5
2.1.2 The Forest (Conservation) Act, 1980 5
2.1.3 Environmental (Protection) Act, 1986 9
2.1.4 The Biological Diversity Act, 2002 11
2.2 Funding Agencies Requirements - Environment 11
2.3 Prescriptive Framework - Environment 13
2.3.1 Constitutional Guarantees / Applicable Legislations 13
2.3.2 Relevant Policies 14
2.3.3 Implementing Agencies 14
2.4 Health and Safety Requirements 15
2.5 Mandatory Requirements - Social 16
2.5.1 National Policy on Resettlement and Rehabilitation for Project Affected Families (PAFs) 16
2.5.2 Rights Of Way and Compensation Under Electricity Laws 16
2.5.3 Provisions under The Land Acquisition Act, 1894 for Sub-Stations 16
2.6 POWERGRID’s social entitlement framework 19
2.7 Funding Agencies Requirements – Social 25
2.8 Prescriptive Framework – Social 26
2.8.1 Constitutional Guarantees 26
2.8.2 National and State-wide Laws and Policies Relating to Land Acquisition and Issues of Resettlement and Rehabilitation 26
2.8.3 Relevant Policies 27
2.8.4 Operational Agencies in R&R Planning Implementation 27
2.9 Implications to POWERGRID 28
2.9.1 Environmental 28
2.9.2 Social 28
2.9.3 Financial 28
3.0 Powergrid project cycle 33
3.1 Project Conceptualisation 35
3.2 Project planning 35
3.3 Project Approvals 36
3.4 Design and Tendering 37
3.5 Project Implementation 37
3.6 Operation and Maintenance 37
3.7 Project Review 37
4.0 Environmental and social issues 39
4.1 Environmental issues 39
4.1.1 Transmission lines 39
4.1.2 Substation 40
4.2 Social Issues 43
4.2.1 Transmission lines 43
4.2.2 Substation 43
5.0 Environment & social Management Procedures 50
5.1 Project conceptulisation 52
5.1.1 Environmental Screening and Scoping for Transmission Lines 52
5.1.2 Social Screening and Scoping for Transmission Lines 53
5.1.3 Environmental Approval 53
5.2 Project planning 54
5.2.1 Environmental Screening and Scoping for Substation 54
5.2.2 Social Screening and Scoping for Substation 55
5.2.3 Environmental Assessment & Management Planning 55
5.3 Project approval 56
5.3.1 Forest Clearance 56
5.3.2 GOI Authorities Approval 57
5.3.3 Funding Agency Acceptance 57
5.4 Detailed design and tendering 58
5.4.1 Social Assessment and Management Planning 58
5.4.2 Concurrence of Funding Agency for SAMP 59
5.4.3 Consultation for Environmental Management Work 59
5.5 Project Implementation 59
5.5.1 Execution of Environmental Management Plan 59
5.5.2 Award of Social Management Contract 60
5.5.3 Execution of Social Management works 60
5.6 Operation and maintenance 60
5.6.1 Environmental Monitoring 61
5.6.2 Social Monitoring 61
5.7 Annual review 61
5.7.1 External Agency Audit 61
5.7.2 Annual Environmental & Social Review 62
5.8 Environmental and social risk management framework 68
6.0 Institutional Framework 70
6.1 Organisational Requirements 70
6.2 Organisational Structure and Responsibilities 71
6.3 Training and Development 79
6.4 Information Management 79
6.5 Monitoring 85
7.0 REGIONAL AND NATIONAL CONSULTATION 89
APPENDICES VOL-II
LIST OF TABLES
Table No. Page No.
Table 2.1: Row Clearance between Conductors and Trees 6
Table 2.2: Powergrid’s Activity Chart for Land Acquisition and R&R 17
Table 2.3: Powergrid’s Social Entitlement Framework 22
Table 2.4: Legal Requirements & Compliance Measures 29
Table 4.1: Environmental Issues in a Typical Powergrid Transmission Project 42
Table 4.2: Social Issues in a Typical Transmission Projects 47
Table 4.3: Powergrid's Environmental and Social Mitigation Measures 48
Table 5.1: Environmental and Social Assessment & Management Process of a Typical Powergrid Transmission Project 63
Table 5.2: Powergrid’s Risk Responsibility Framework 69
Table 6.1: Responsibility Allocation Framework for the E&S Assessment & Management Process 75
Table 6.2: Powergrid’s Expertise Requirement 80
Table 6.3: Staff Development Plan 83
Table 6.4: Monitoring Framework 87
Table- 7.1:Summary of the Consultation Process on Modified ESPP…………………….....89
LIST OF FIGURES
Figure No. Page No.
Figure 2.1: Forest clearance approval process 8
Figure 2.2: Land acquisition process 18
Figure 3.1: Project cycle of a typical POWERGRID Project 34
Figure 3.2: Gantt Chart for typical Power Grid Project 38
Figure 5.1: Environmental and Social Management Procedure 51
Figure 6.1: ESMD Structure at Corporate Center 73
Figure 6.2: Organization Support Structure at RHQs & Site Office 74
Figure 6.3: Organisational Support Structure for Monitoring of RAP 86
List of Abbreviations
ADB Asian Development Bank
BOD Board of Directors
CCEA Cabinet Committee on Economic Affairs
CEA Central Electricity Authority
DFO Divisional Forest Officer
EA Environmental Assessment
EAMP Environmental Assessment and Management Plan
EHV Extra High Voltage
EMF Electro Magnetic Field
EMP Environmental Management Plan
ESMC Environmental and Social Management Cell
ESMD Environmental and Social Management Department
ESMT Environmental and Social Management Team
ESPP Environmental and Social Policy Procedures
FA Funding Agency
FP Forest Proposal
FR Feasibility Report
GOI Government of India
IPDP Indigenous People Development Plan
ISO International Standard Organization
JBIC Japan Bank for International Cooperation
KV Kilo Volts
LAA Land Acquisition Assessment
MOEF Ministry of Environment & Forests
NO Nodal Officer
OD Operational Directive
OP Operational Policy
OM Operation Manual
OSS Organizational Support Systems
PAP Project Affected Person
PAF Project Affected Families
PIB Public Investment Board
R&R Resettlement and Rehabilitation
RAP Rehabilitation Action Plan
REB Regional Electricity Board
RHQ Regional Headquarters
ROW Right of Way
SA Social Assessment
SAMP Social Assessment and Management Plan
SEB State Electricity Board
WB World Bank
WHO World Health Organization
POWERGRID v
Environmental and Social Policy and Procedures
Power Grid Corporation of India Limited (POWERGRID) was incorporated in October 1989 to transmit power generated from Central Power stations and the surplus electricity from State Electricity Boards, to regional Load Centres, thus establishing Regional and National Power Grids. The infrastructure developed by POWERGRID is reliable, economical, and secured, that comprise of EHV AC and HV DC transmission lines, substations, load dispatch centers and communication facilities. To date, POWERGRID operates approximately 48,000 Circuit kms (Ckm) of 765 KV, 400 KV, 220 KV, 132 KV AC transmission lines, and HVDC transmission system. It has a total installed transformation capacity of 46,500 MVA, distributed over 82 substations, and maintained at a persistent level of over 99% of line availability. POWERGRID is one of the largest power transmission corporations in the world. In order to fulfil its goal of establishing a National Power Grid, POWERGRID plans to augment regional grids, reinforce inter-regional links, set up modern co-ordination systems, and control facilities.
POWERGRID have achieved the distinction of being the first Power company in India certified with Integrated Management System comprising of ISO: 9001 for Quality Management, ISO: 14001 for Environment Management and OHSAS 18001 for Occupational Health & Safety. Independent and internationally accredited external agency audits these systems regularly.
POWERGRID have with in the overall corporate ethics of avoidance, minimisation and mitigation, developed its corporate Environmental and Social Policy and Procedures (ESPP) to address the environment and socio-economic issues arising from its activities The ESPP outlines POWERGRID's approach and commitment to deal with environmental and social issues, relating to its transmission projects, and lays out management procedures and protocols to mitigate the same. The ESPP includes framework for identification, assessment, and management of environmental and social concerns at both organizational and project levels.
POWERGRID believes that the ESPP is a dynamic and living document, which shall be upgraded with the changes in the social and environmental governance in the country and modified in the light of the experiences gained with field implementation of the POWERGRID projects. It is the logical vehicle to give a human face to the corporate functioning and moves away from classical cost-benefit approach to the larger realm of corporate social responsibility, while mainstreaming and upscaling environmental and social concerns. It is dedicated to the firm commitment of the POWERGRID to the paradigm of sustainable development and appropriate processes.
POWERGRID developed the first ESPP document in 1998, based on desk research and national consultations, on the regulatory framework and analysis of priority issues in the power transmission sector consistent with operational directives of the Multilateral Funding Agencies. During the subsequent revisions of ESPP, the consultative process was enlarged to engage all stakeholders including Project Affected Persons (PAPs) and the local communities. The regional level consultations were organised at Southern, Western, Northern and Eastern region of the country and the National level, at its corporate office in Gurgaon.
The ESPP document comprises of seven sections. Section I elaborates the environmental and social policy of POWERGRID. Section II contains legal enactments, regulations, requirements of Multilateral Agencies and their implications on transmission projects. Section III outlines the project cycle of a typical POWERGRID’s transmission project. Section IV provides a summary of environmental and social issues associated with power transmission projects. Section V provides details of POWERGRID’s environmental and social management framework. Section VI details the organizational support required to implement ESPP. Section-VII describes Regional and National consultation process for obtaining stakeholders feedback during revision of ESPP.
Powergrid’s Environmental and social policy
The ESPP defines POWERGRID’s environment and social policy, and assures to:
Ø ensure total transparency in dealing with all stakeholders from Government departments, communities, individual landowners and employees. Their involvement in POWERGRID operation will be assured through well-defined public consultation process and dissemination of relevant information about the project at every stage of its implementation;
Ø maintain highest standards of corporate responsibility not only towards its employees but also to the consumers and the civil society, social responsibility through various community development activities[1] for promoting socio-economic development and enriching the quality of life of the community in areas around its establishments, most importantly through people’s participation; and
Ø to minimise ecological impacts on land and flora/fauna through progressive policies like consciously economising on the requirement of land for civil structures and reducing the width of the Right of Way ( ROW)[2]
Policy, Legal and Regulatory Framework
POWERGRID undertakes all its activities within mandatory requirements under the National law and the guidelines of funding agencies, and prescriptive requirements that determine the management procedures for addressing environmental and social issues.
Mandatory environmental requirements for POWERGRID at a national level include: sanction of GOI under section 68 (1) of the Electricity Act, 2003; forest clearances under the Forest (Conservation) Act, 1980; specifically environmental clearances under Environment (Protection) Act, 1986, for the projects located in two districts in the Aravalli hill ranges viz., Alwar in Rajasthan and Gurgaon in Haryana. During the currency of operations regulations Batteries (Management and Handling) Rules, 2001 regarding disposal of batteries, Hazardous Wastes (Management and Handling) Amendment Rules, 2003 regarding disposal of used transformer oil and Ozone Depleting Substances (Regulation and Control) rules, 2000 putting restriction on use of ozone depleting substances come into force and require voluntary enforcement and funding agencies requirement as set out in their guidelines viz. World Bank OP 4.01/ ADB OM-F1/BP and JBIC environmental guidelines.
Besides the constitutional directives[3], the mandatory social requirements for POWERGRID at the national level includes provisions of Section 68 (5&6) of The Electricity Act 2003 regarding compensation towards damage to crop and trees, provisions of Land Acquisition Act , 1894 for activities involving LA for Substations and National Policy on Resettlement and Rehabilitation for Project Affected Families, 2004. Requirements vis-à-vis funding agencies are World Bank Operational Policy & Directives (OP 4.12 and OD 4.20) pertaining to involuntary resettlement and indigenous people and ADB Operations Manual –F2/BP regarding Involuntary Resettlement.
The prescriptive framework derives from the aforementioned constitutional directives national legislations and relevant policies and, at international level from the international treaties and conventions signed and ratified by India
POWERGRID’s entitlement framework emerges from the National Policy on Resettlement and Rehabilitation for Project Affected Families, 2004, with respect to the inclusion of Project Affected People (PAPs), and the nature and extent of compensation. POWERGRID reiterates that physical displacement of people is not, and will not be, a major consequence of their projects. Irrespective of whether displacement occurs, the entitlement framework will be a base for all its management procedures. The objective of the POWERGRID’s framework is to ensure realistic rehabilitation and replacement of the acquired assets of the PAPs (Table I)
Basic categories of impacts under this entitlement framework are:
Ø Loss of Land
Ø Loss of Structure
Ø Loss of source of livelihood
Ø Loss of access to common resources and facilities
Ø Loss of standing crops and trees
Ø Losses during transition of displaced persons/establishments and
Ø Losses to Host Communities
POWERGRID provides “adequate compensation” as required under Indian law and will compensate at replacement cost. POWERGRID if required will supplement this with rehabilitation assistance and other measures to ensure that PAPs are not made worse off by their operations. In case the PAPs opt for cash compensation for loss of land or structure, they will be provided cash compensation as per Indian law and rehabilitation assistance as per the “Social Entitlement Framework”. However, in case the PAFs opt for “land for land” they will not get any further entitlements except transition benefits if applicable.
Table 1: POWERGRID’s social entitlement framework[4]
SN / TYPE OF ISSUE/IMPACT / BENEFICIARY / ENTITLEMENT OPTIONS /1. / Loss of land
a) / Homestead land with valid title, or customary or usufruct rights / Titleholders / (i) Cash compensation as fixed by authorities
+
Equivalent area of land for alternate home not exceeding 150 sq.m. in rural areas and 75 sq.m. in urban areas free of cost preferably in same village/ panchayat/ area + Registration Charges
b) / Agricultural Land
(i) / With valid title, or customary or usufruct rights
/ Titleholders / Alternative land of equivalent production potential but not more than 1 hectare of irrigated land or 2 hectare of un-irrigated land subject to
§ agriculture based PAPs (rendered landless) availability (State Govt./ Voluntary sellers at existing rate) within same panchayat/ block