Initial Environmental Examination Document Stage: Draft for Consultation Project Number: 43464 JUNE 2011 India: Himachal Pradesh Clean Energy Transmission Investment Programme Tranche 1 Prepared by HP Power Transmission Corporation Limited (HPPTCL) The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. i Table of Contents ABBREVIATIONS I WEIGHTS AND MEASURES I 1.0 INTRODUCTION 1 1.1 Background 1 1.2 Scope of Work and Methodology Adopted 2 1.3 Applicable Environmental Policies and other Legislations 2 2.0 DESCRIPTION OF THE PROJECT 3 2.1 Type of Project 3 2.2 Category of Project 3 2.3 Need for the Project 5 2.4 Location 5 2.5 Size and Magnitude of the Operation 6 2.6 Implementation Plan 8 3.0 DESCRIPTION OF ENVIRONMENT 15 3.1 Physical Resource 15 3.2 Earthquake Zone: 20 3.3 Ecological Resources 21 3.4 Economic Development 22 3.5 Social and Cultural Development 28 4.0 SCREENING OF POTENTIAL ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 28 4.1 Route Selection 28 4.2 Environment Impacts and Mitigation Measures 35 4.3 Environmental Management Plan 44 5.0 INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PROGRAMME 48 5.0 Institutional Arrangements 48 5.1 Environmental Monitoring Plan 51 5.2 Environmental Management Plan Budget Costs 52 5.3 Critical Environmental Review Criteria 52 5.4 Associated Facilities 53 5.5 Health and Safety Management 54 6.0 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 54 6.1 Information Disclosure 54 6.2 Public Consultation 55 6.3 Consultation Findings 55 7.0 GRIEVANCE REDRESSAL MECHANISM 56 8.0 FINDINGS AND RECOMMENDATIONS 57 9.0 CONCLUSIONS 60 ANNEX 1 APPLICABLE RULES, REGULATION, POLICIES AND PROCEDURES 61 ANNEX 2 INVENTORISATION DETAILS OF HATKOTI – GUMMA TRANSMISSION LINE 63 ANNEX 3 ENVIRONNENT MANAGEMENT PLAN (EMP) 67 ANNEX 4 ENVIRONMENTAL MONITORING PLAN 74 ANNEX 5 DETAILS OF PUBLIC CONSULTATIONS 77 ANNEX 6: EARTHQUAKE HISTORY OF HIMACHAL PRADESH 85 ANNEX 7: HIGHLIGHTS OF CENSUS 2011 IN COMPARISON WITH 2001 DATA 87 i ABBREVIATIONS ADB – Asian Development Bank ACSR – Aluminium Conductor Steel Reinforced CEA – Central Electricity Authority CPCB – Central Pollution Control Board, Government of India DC or D/C – Double Circuit DPR – Detailed Project Report EA – Executing Agency EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage ESC – Environment and Social Cell GHG – Green House Gases GOHP – Government of Himachal Pradesh GoI – Government of India GRM – Grievance Redressal Mechanism HP – Himachal Pradesh HPCEDIP – Himachal Pradesh Clean Energy Development Investment Program HPCETIP – Himachal Pradesh Clean Energy Transmission Investment Program HPSPCB – HP State Pollution Control Board HPPCL – Himachal Pradesh Power Corporation Limited HPPTCL – HP Power Transmission Corporation Limited HPSEB – Himachal Pradesh State Electricity Board IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MOEF – Ministry of Environment and Forests, Government of India PCB – Poly Chlorinated Biphenyl PGCIL – Power Grid Corporation of India Limited PMU – Project Management Unit ROW – Right of Way RP – Resettlement Plan SF6 – Sulphur Hexafluoride WEIGHTS AND MEASURES ha (hectare) – 10,000 sq m km (kilometer) – 1,000 m kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) kWh – kilowatt-hour MW – Mega Watt 1 1.0 INTRODUCTION 1.1 Background 1. The hydropower generation potential of Himachal Pradesh is about 23,000 MW, which is about one-fourth of the total hydropower potential of India. In its Hydropower Policy (2007)1, the Government of Himachal Pradesh (GoHP) targets its comparative advantage in hydropower with the goal to become the "hydropower state" of the country. The state's hydropower development includes construction of enabling infrastructure such as road access and transmission interconnections to facilitate hydropower development, and to encourage investment from the state, central government and private sectors in hydropower generation projects—the majority of which are run-off-river type. This will improve state finances from sales revenue earned from supplying surplus power to the National Grid. In addition to developing its hydropower resources, HP has to build out its electric transmission infrastructure so that the additional power can be efficiently transmitted within the state and exported to the national grid. 2. For improvement, strengthening of existing and building of new infrastructure for effective power evacuation, the Government of Himachal Pradesh (GoHP) through the Government of India (GoI), has requested the Asian Development Bank (ADB) for a Multi-Tranche Financing Facility (MFF) to part finance the power sector investment program in the state. The investment program covers investments for transmission of clean energy to National Grid of India by construction of pooling substations and EHV transmission lines. To implement this activity, Himachal Pradesh Government has established HP Power Transmission Corporation Limited (HPPTCL) vide HP Government Notification No.: MPP-A (1)-4/2006-Loose dated 11th September, 2008 as the State Transmission Utility (STU). 3. The $350 million investments in the MFF to be supported by Asian Development Bank (ADB), will contribute to support the economic development in Himachal Pradesh through expanded power supplies from clean energy sources, and support a sustainable state electricity sector in the state. The Himachal Pradesh Clean Energy Transmission Investment Program (HPCETIP) will produce the following outcomes: (i) increase availability of clean energy downstream at pooling stations for effective power evacuation in a financially sustainable manner, (ii) improve state finances and power sector financial viability from sales revenue earned from power exports, (iii) improve sector governance, (iv) improve capacity in HP Power Transmission Corporation Limited (HPPTCL) for better planning, implementation and management of power evacuation infrastructure, and energy efficiency through a better power management program, and (v) Improvement in standards of environmental and social safeguards in the sector. With ADB support, the proposed program will sustain the energy sector reform agenda, and is expected to help attract other long-term financiers to the state. 4. The proposed Tranche 1 Project, located in Kinnaur and Shimla districts of Himachal Pradesh, consists of the following components: Table 1 gives the investment component costs for Tranche 1. The following sections present each of these components. Table 1: Tranche 1 Subproject Costs S No Name of Work Cost in Million Dollars 1 220 kV D/C (Twin Moose conductor) line from Hatkoti to 220/400 kV Gumma 18.94 (Pragati Nagar) sub-station 2 220/400 kV, 1x315 MVA Gumma (Pragati Nagar) substation with LILO of two 41.72 circuits of 400 kV Jhakri- Abdullapur double circuit line 3 66/220/400 kV (66/220 kV, 2x80/100 MVA+220/400 kV, 2x315 MVA) substation at 72.56 Wangtoo with LILO of both circuits of 220 kV Kashang- Bhaba D/C Line and 220 kV interconnection between 220 kV and 400 kV buses. 4 66/220 kV, 31.5 MVA sub-station at Boktoo with LILO of one circuit of 220 kV 15.35 Kashang- Bhaba double circuit line. 5 Capacity Building and Enterprise Resource Planning (ERP) Software 0.25 Total 148.82 1 Government of Himachal Pradesh, Hydro Power Policy (2007). Shimla. 2 5. The Tranche 1 sub-projects are estimated to cost US$ 148.82 Million (including IDCs and contingencies). HPPTCL is both the Executive Agency (EA) and implementation Agency for the project, Project Management Unit (PMU), headed by Senior Project Manager (Planning), is established at corporate level located in Shimla who will be assisted by corresponding personnel from various functions – Administration and finance, Planning and design, Procurement and contracts, Environment Cell and Project Construction. Project Implementation Units (PIUs) at divisional level are headed by Executive Engineers at four geographic locations in the state. 1.2 Scope of Work and Methodology Adopted 6. An Initial Environmental Examination (IEE) has been prepared for tranche 1 subprojects funded under HPCETIP. This IEE requires identification of potential environmental issues associated with the Project and appropriate mitigation measures to be put in place to minimize the environmental Impact. The broad scope of the IEE is: i) To conduct field visits to collect data relevant to the study area and also collect secondary data so as to establish the baseline environmental status of the study area; ii) To assess the impacts on environmental attributes due to the location, design, construction and operation of the proposed Project; iii) To prepare an Environment Management Plan (EMP) outlining the measures for mitigating the impacts for protecting the environment including institutional arrangements; iv) To identify critical environmental parameters required to be monitored subsequent to the implementation of the proposed Project; v) To carry out consultation with local people to identify public perception regarding the project; and vi) To establish an Environment Monitoring Plan for HPPTCL to submit environmental monitoring reports to ADB at regular intervals. 7. This IEE report comprises baseline data on