Land Acquisition and Resettlement Due Diligence Report

Project No.: 45371-007

February 2019

India: Irrigation Efficiency Improvement Project Subproject: Pumping Station, Delivery Chamber and Fabrication Yard Establishment for Kundalia Irrigation Project – Left Bank (CCA-63,548 hectares)

This document is prepared by the Water Resources Department Madhya Pradesh for the Government of and the Asian Development Bank in accordance to the resettlement plan requirement as described in ADB’s Safeguard Policy Statement (2009).

This land acquisition and resettlement due diligence report 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.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CURRENCY EQUIVALENTS (As of Feb 01, 2019) Currency unit – Indian Rupee (Rs) INR 1.00 = $ 0.014 $ 1.00 = INR 71.34

ABBREVIATIONS

ADB : Asian Development Bank AH : Affected Households AP : Affected People DC : Delivery Chamber DMS : Detailed Measurement Survey DP : Displaced People EA : Executive Agency GO MP : Government of Madhya Pradesh GRM : Grievance Redress Mechanism GRC : Grievance Redress Committee IA : Implementing Agency IP : Indigenous People KIP : Kundalia Irrigation Project LAR : Land Acquisition and Resettlement LVC : Land Valuation Committee MFF : Multi Tranche Financing Facility MPIEIP : Madhya Pradesh Irrigation Efficiency Improvement Project NGO : Non-Governmental Organization PIU : Project Implementation Unit PPTA : Project Preparatory Technical Assistance PS : Pumping Station RF : Resettlement Framework ROW : Right of Way RP : Resettlement Plan R&R : Resettlement and Rehabilitation SC : Scheduled Caste SPS : Safeguard Policy Statement ST : Scheduled Tribe WRD : Water Resources Department WUA : Water User Association 1

CONTENTS

Page I. PROJECT DESCRIPTION 1 A. Introduction 1 B. General Profile of the Subproject Area 3 C. Scope and Objectives of Preparation of Due Diligence Report 4 D. Approach and Methodology 4 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 6 A. Land Acquisition Requirement 6 B. Resettlement Impacts 7 III. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 11 A. Public Consultations 11 B. Outcome of the Consultations 11 IV. LEGAL FRAMEWORK 12 A. Resettlement Policy and Provisions 12 (i) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCT in LARR), 2013 12 (ii) Legal and Policy Frameworks of Madhya Pradesh State to be applicable: 12 (iv) ADB’s Safeguard Policy Statement (SPS), 2009 12 V. IMPLEMENTATION SCHEDULE 13 A. Introduction 13 VI. CONCLUSIONS OF DUE DILIGENCE 16

TABLES Table 1: Details of Components of Subproject 2 Table 2: Land Acquisition Requirements for the Subproject 6 Table 3 : Ownership of Land Affected in the Subproject 7 Table 4: Consultation Locations 11

FIGURES Figure 1 : Schematic of Kundalia Irrigation Project Left Bank...... 2 Figure 2 : Pump Station Layout Diagram at Kothadi Village for Kundalia Irrigation Project- Left Bank ...... 3 Figure 3 : Permanent Government land allotted for construction of pump house at Village Kothadi ...... 8 Figure 4: Temporary Government land allotted for establishing site office, labor colony, fabrication yard and material stockyard...... 8 Figure 5: Permanent Government land identified for construction of Delivery Chamber 3 along with construction of Booster Pump House 3...... 9

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ANNEXESURES

Annexure 1 : Permanent land details for Pump House 1 and allied structures at Kothadi 17 Annexure 2 : Permanent land details for DC-3 and Booster Pump House-3 (LASUDALIYA KELWA) ...... 19 Annexure 3 : Temporary Land Acquisition for Fabrication Yard and Site Establishment .20

Appendix Appendix 1 Details of Payments made to Kothadi land owners of 26.74 Ha……………… 22

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I. PROJECT DESCRIPTION

A. Introduction

1. Madhya Pradesh Irrigation Efficiency Improvement Project (MPIEIP) is intended to achieve high irrigation efficiency and water productivity in the State. The MPIEP includes the development of the Kundalia Irrigation Project (KIP), which is planned as a pressurized pipeline distribution system for 1, 30,690 hectares (ha) cultivable command area (CCA) and for supply of water for potable and industrial use.

2. Government of Madhya Pradesh has received loan from Asian Development Bank for implementation of the Project. The Water Resource Department (WRD) of Madhya Pradesh will be the Implementing Agency (IA) for the Project. The feasibility design for piped distribution system including, pump stations, sub-stations and power supply system, transmission pipelines, valves, controls and associated structures had earlier been planned by the PPTA with a (Design, Build and Operate) DBO Contractor to be engaged for detailed design and construction of Kundalia Irrigation Project.

3. Presently L&T Construction as a DBO Contractor has been engaged by Water Resources Department (WRD) for detailed design and construction for a period of 3 years to manage the scheme operation and maintenance for an initial period of 5 years, with support to hand-over the long term management to a joint management organization comprised of WRD, a private contractor, and a project-level Water User Association (WUA).

4. The main pumping stations PS1-LB and PS2-RB will be located at the end of concrete- lined approach channels constructed in the reservoir. The DCs are proposed on the nearby hills and the water from pumping stations will be pumped through raising mains (pipelines) to the DCs. Water will be discharged from DCs through pressurized secondary pipelines to the designated command areas. All pipelines under this Project will be underground only. The electric energy supply to the pump stations will provided by a 130 KV grid line system from the nearest existing Sub-stations at Zirapur and Towns, which may need to be upgraded with new transformers and other equipment.

5. The total area to be irrigated by Kundalia Pipeline Irrigation Project will be 1,30,690 ha of agriculture land in Agar and of Madhya Pradesh. Out of the proposed land to be irrigated, there will be a CCA 63548 ha of land from the Left Bank and CCA 67,142ha of land from the Right Bank of the Project.

6. Since no private land and properties will be impacted due to construction of this subproject so there will not be any Land Acquisition of private properties or displacement of affected population. Therefore no involuntary resettlement is there hence this Social Safeguard Due Diligence Report (SDDR) has been prepared for Pump House 1 (PH1) of Left Bank (LB) which is located on left side of the Kundalia Reservoir to supply water for irrigation from the Kundalia Reservoir to Distribution Chamber (DC). The components of Left Bank are to be constructed only on identified Government Land and as depicted in Figure: 1

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Figure 1 : Schematic of Kundalia Irrigation Project Left Bank

Table 1: Details of Components of Subproject

Pump House 1 Nos. [ Kothadi Village ]

Delivery Chamber with 1 Nos. [ Lasuldiya Kelwa Village ] Booster Pump House

Switch Yard PH1- 1 No. (132 KV/11.5 KV)

Staff Quarters 4-6

Fabrication Yard, Site Office, Labour Colony Setup and Material Temporary Structures Stock yard

No of Villages to be 146 Irrigated

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Figure 2 : Pump Station Layout Diagram at Kothadi Village for Kundalia Irrigation Project- Left Bank

B. General Profile of the Subproject Area

7. became the 51st District of Madhya Pradesh on 16 August 2013. It was carved out of the existing District. Agar town is its administrative headquarters.. Agar Malwa District has two Sub Divisions, Agar Malwa Division and Division.There are four Tehsils that is Agar Malwa, , Susner and Nalkheda in Agar Malwa District.

8. The total population of Agar is 5, 71,278 out of which 2, 93,052 are males and 2, 78,226 are females. As per the Census 2011, the literacy rate of Agar is 80.3%. Thus Agar has higher literacy rate compared to 69.1% of . The male literacy rate is 87.8% and the

4 female literacy rate is 72.31% in Agar. There is Schedule Caste (SC) constitutes 13.8% while Schedule Tribe (ST) were 1.3% of total population in Agar.

C. Scope and Objectives of Preparation of Due Diligence Report

9. The MPIEP includes the development of the Kundalia Irrigation Project (KIP), as a pressurized pipeline distribution system for cultivation and for supply of water for potable and industrial use. As part of this scheme, scope of Left Bank canal system is to develop pressurized Pipeline distribution system for 63,548 ha CCA.

10. The components of this subproject as mentioned in Table No. 1 are to be constructed only on Government Land so there is no acquisition of Private Land or any other private properties of the affected population. Since no household and other properties are to be affected by this subproject so no involuntary resettlement or displacement of the affected population is involved in this subproject. Hence this Social Safeguard Due Diligence Report is submitted for the commencement of this subproject.

11. The primary objective of this DDR is to identify the magnitude of impact on the land and to verify its status that whether Private Land or Government Land is being affected. Type and extent of loss of land / non-land assets, loss of livelihood if any, loss of common property resources and its impact on social infrastructure if any is to be assessed.

12. To review preliminary information on potential land use, methods of valuation of land, structure and other assets, eligibility criteria for availing benefits, baseline socio-economic characteristics, entitlements based on type of losses and tenure, the institutional arrangement for delivering the entitlements and mechanism for resolving grievances and monitoring.

13. To review the existing Legal Framework based on which the property needs to be acquired and to compare that the ADB Safeguard Policy Statement-2009 designed by ADB to protect the rights of the affected persons and communities have been followed or not. Public consultation and people’s participation is the need of the subproject so that there is co-operation from the local population while the project is constructed and being implemented.

D. Approach and Methodology

14. Review of available information and conduct reconnaissance to collect and assess the baseline conditions of the area. This due diligence report is mainly prepared based on the field visits and review of available project related literature, documents and information provided by local implementing office on the progress of land acquisition.

15. Regulatory review was conducted in order to understand the applicable local legislation, regulatory frameworks and procedures. Comparison of LARR process with ADB SPS requirements. To ensure whether ADB Regulations of SPS 2009 and State Laws as per their applicability are being followed. 5

16. Review of available data on land use and its ownership in the impacted subproject area. Obtain clarifications on pending and unresolved issues if any. It was ensured whether any Encroachers / Squatters are dependent for their livelihood on the identified government land used for the construction of this subproject.

17. It was ensured whether there are any encroachments found on this identified government land by any settlers living in the area or if any Common Property and Public Resources (CPR) are being destroyed due to construction of this subproject.

18. In this Subproject no private property and house hold is being affected so Field visits and Group Consultations were held with People’s Representatives, General Public, Government Officials and the concerning Officials of L&T Construction.

19. To ensure peoples’ participation in the planning phase and aiming at promotion of public understanding and fruitful solutions of developmental problems such as local needs of farmers and prospects of resettlement in future, various sections of people were consulted through group consultations and individual interviews.

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II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Land Acquisition Requirement

20. The subproject component comprises of construction of Pumping Stations with Electrical Control Room, Approach Channel, Distribution Chamber, Switch Yard and Staff Quarters. Some of the components of this Subproject may require permanent structures so the Government land has been identified for construction of these structures.

21. One Pump house, Approach Channel, Switchyard and Road will be permanent structures for which 26.74 ha of government land has already been identified. The said land was earlier acquired permanently by Water Resources Department during land acquisition process of submerging land and its backwater affected zone due to construction of Kundalia Dam. After acquisition of this land and payment of due compensation to the owner of the land by WRD, the ownership of the land changed from Private Property to Government Property. The same piece of government land was then identified for construction of these components of this subproject. The list of the payments of compensation certified by revenue department already made to the previously dam affected people is enclosed with this document at Appendix-1.

22. The Distribution Chamber (DC-3) along with booster pump house (PH-3) as shown in schematic is also proposed to be constructed on the identified Government Land of nearly 7.61 ha of area which has already been acquired permanently. The permanently acquired land is in Khasra Number 1 admeasuring 1.63 ha and in Khasra No. of 2 of 1.07 ha in Village Lasudaliya Kelwa, Khasra Number 943 of 2.424 ha in Village Pandana and Khasra Number 971 of 2.487 ha in Village Suigaon in Tehsil Nalkheda of Agar Malwa District.

23. Then in other structures like Fabrication Yard, Site office and Labour Colony Setup, Material stockyard there will be temporary structures for which government has given NOC to utilize it for 36 months. The details of the land requirements for various permanent and temporary components are presented in the Table no. 2:

Table 2: Land Acquisition Requirements for the Subproject

Sl. No. Components Nature of Acquisition Area (in Ha) One Pump House and allied 1 structures, Approach Channel & Permanent 26.74 Road One Distribution chamber & Booster 2 Permanent 7.61 Pump House Fabrication Yard, Site Office, Labour 3 Temporary 57.62 Colony Setup and Material Stockyard Total 91.97

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B. Resettlement Impacts

24. For construction of Pump House 1, approach channel, switchyard and approach road 26.74 ha of Government Land has been identified and acquired already. For Distribution Chamber No. 3 with Booster Pump house 7.61 ha of government land identified and acquisition is in progress. Government Land of 57.62 ha has been allotted temporarily for utilization to L&T Construction for a period of 36 months for establishment of Fabrication Yard, Labour Colony Setup and Material Stockyard. Thus, 34.35 ha of land will be affected permanently and 57.62 will be required for temporary usage. Overall, there will be a total 91.97 ha of permanent and temporary acquisition of government land.

25. The details of ownership, types of land is summarized in the Table: 3.

Table 3 : Ownership of Land Affected in the Subproject

Permanent Temporary Total Sl. No. Type of Ownership Household (in Ha) (in Ha) (in Ha) 1 Government 0 34.35 57.62 91.97 Total 0 34.35 57.62 91.97

26. The permanent acquisition is limited to only 34.35 ha of Government land required for Pump Station, Switch Yard, Staff Quarter and Distribution Chamber. Hence no private land and household is being affected due to impact only on Government Land. Therefore there is no displacement or involuntary resettlement or loss of any livelihood of the population in this Subproject. There is also no population on this Govt. Land that is occupying it-on lease or as encroachers / squatters.

27. It is worthwhile to mention here that this document specifies that this subproject will be constructed only on government land, whereas Annexure 1 indicates the list of private properties to be impacted. The list represents the properties of the people who have been displaced by the main Kundalia Dam. They have already been paid compensation for their properties so now the government of the State owns these properties. Some of the permanent structures like Pump house, Approach Channel, Switch Yard, Staff Quarters of this subproject have to be constructed on these lands considering them to be the property of the Government of State of Madhya Pradesh.

28. For construction of Pump house 1 located in Kothadi Village the private land used 26.74 ha was also earlier acquired for main Kundalia Dam the list of which has been annexed. The Delivery Chamber with booster pump house is proposed on government land 7.611 ha, the proposal for which has been submitted to the Office of Collector Agar Malwa vide letter No. 552/2018-19 dated 20th September 2018 and the acquisition is in progress.

29. No Squatters or encroachers were found living or cultivating the identified Government Land in the subproject area. The identified Government land is not found to be cultivable because there is fallow land without availability of water in the area. Therefore there is no

8 presence of any squatters or encroachers found living or cultivating in the area. The above statement can be verified with the photographs attached with this DDR. Due to scarcity of water in the area there are mainly bushes found in the area instead of timber or other valuable trees.

Figure 3 : Permanent Government land allotted for construction of pump house at Village Kothadi

Figure 4: Temporary Government land allotted for establishing site office, labor colony, fabrication yard and material stockyard.

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Figure 5: Permanent Government land identified for construction of Delivery Chamber 3 along with construction of Booster Pump House 3.

30. Since construction work had to be started due to technical reasons as stated below for which some Corrective Measures will be taken to meet the requirements of SPS 2009:

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(i) The Pump House -1 to be constructed is situated on the bank of Kalisindh River near Kundalia Dam and the depth of Footing/ Sump purposed is 30 M, which is to be excavated and then the construction work is to be carried out.

(ii) The construction of the Dam is almost completed and is into operations since June 2018. As a result of this the water level in the submergence area has raised to the level which was only 8 meter below the Ground Level. This is alarming factor which required appropriate timely attention and a counter mitigation plan.

(iii) Considering the depth/ construction criticality, construction period and the adjacent region dam backwater, it was necessary to start the excavation works by the end of 2018 monsoon period so as to complete the substructure construction work activities below endangered levels before the beginning of 2019 monsoon period and to complete the project within stipulated time frame. Due precautions will be taken in future to get the approval of ADB first and then start the construction work.

31. As a follow up action to meet the requirements of ADB a LAP / RP was earlier submitted on 23rd August 2018 to WRD / ADB to get concurrence of ADB before starting the construction work of Left Bank of the Project in September 2018.

32. After its scrutiny by ADB the LAP/ RP had to be modified as it was not meeting the requirements of ADB.

33. As suggested by ADB a Resettlement Specialist was hired to prepare fresh LAP/ RP as per the guidelines of ADB. The LAP/RP was ready for submission by the end of November 2018 but just before that ADB proposed some design changes to WRD/L&T due to which the LAP/RP could not be submitted.

34. During the visit of ADB Mission from 15th to 17th January 2019, L&T and WRD informed the ADB Mission that the construction work had to be undertaken due to above mentioned unavoidable circumstances and that too, it is constructed only on identified Government Land.

35. So considering the present scenario of the construction stage, ADB advised to submit a social safeguard due diligence report of this subproject because there is involuntary resettlement is involved in this subproject.

36. Based on the suggestion of ADB’s a Social Safeguard Due Diligence Report is being submitted for this subproject with a assurance that in future no construction work will be taken up unless concurrence of ADB is received with regard to the next subproject work. 11

III. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Public Consultations

37. In order to engage with the community and enhance public understanding about the Project and regarding resettlement general public and people’s representative were consulted. The Consultations were held with General Public, Officials of the District Administration and Elected Members of the Local Panchayats. A total of 128 persons (10 females and 118males) participated in the consultations. The date, venue, number of participants and the photographs are provided below:

Table 4: Consultation Locations

Sl.No. Place Date Number of participants 1. Molyakhedi Village 13.11.2018 60 2. Hirankheki Village 14.11.2018 40 3. Dehari Gurjar 15.11.2018 28

B. Outcome of the Consultations

38. The community consultations indicated that local population had been suffering acute shortage of water for drinking and irrigation purposes. Due to shortage of irrigation facilities, they are not able to take two crops in a year and the crop yields are also not up to their expectations. These factors have been the root cause of their low standard of living. The upcoming Project will open new horizons for them when they will be able to take two good crops per year. The proposed Project will not only improve the standard of living of the local population but it will be a source of bringing over all development of the population living in adjoining areas also.

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IV. LEGAL FRAMEWORK

A. Resettlement Policy and Provisions

39. The legal framework and principles adopted for addressing resettlement issues in the subproject have been guided by the existing legislation and policies of the (GOI), the Government of Madhya Pradesh, Asian Development Bank and the Resettlement Framework (RF) adopted for the project. The applicable acts and policies for this subproject are as follows:

(i) Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RFCT in LARR), 2013

40. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCT in LARR Act - 2013) has been effective from January 1, 2014 and is being followed when the provisions of the Consent Policy of the State are not acceptable by the concerned affected person or household.

(ii) Legal and Policy Frameworks of Madhya Pradesh State to be applicable:

41. “Madhya Pradesh Bhumigat Pipeline, Cable Avan Duct (Bhumi ki Upyokta ke Adhikaron Ka Arjan) Adhiniyam, 2012 (No. 5 of 2013)” – (To be referred as The Madhya Pradesh Pipeline Act, 2013)- For Temporary Acquisition of land for Pipeline Irrigation Projects.

(iii) The Madhya Pradesh Government Order No. F 12-2 / 2014 / 07 / 2A Dated 12.11.2014 regarding the ‘Consent Land Purchase Policy’. 42. For the development of the State, different infrastructures are being constructed for which the private land has to be acquired. The process of Land Acquisition is not only time taking but involves heavy financial cost also. To save this cost and time a consideration amount in lieu of impacted private properties is offered to the owner of the land and other properties attached to it.

(iv) ADB’s Safeguard Policy Statement (SPS), 2009 43. The objectives of ADB's SPS (2009) with regard to involuntary resettlement are: (i) to avoid involuntary resettlement wherever possible; (ii) to minimize involuntary resettlement by exploring project and design alternatives; (iii) to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and (iv) to improve the standards of living of the displaced poor and other vulnerable groups.

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V. IMPLEMENTATION SCHEDULE

A. Introduction

44. Construction work has already been initiated at this project site for pump house-1 due to some unavoidable circumstances. L&T had to complete the excavation 30m deep along with the construction of pump house up to substructure level so as to come out of the endangered position before monsoon of 2019. If the same was not completed then this deep excavation will be filled with water resulting into further delay of the progress of the project. Since the identified land is government land free from encroachment and encumbrance, we have taken up the construction activity in full swing. As a part of corrective measure and to meet ADB requirements, we are herewith submitting the Social Safeguard Due Diligence Report for this construction works which is in progress.

45. We are expecting the final design document to be approved by 31st January 2019, further to which we will be starting the construction activities of various structures and Laying of pipeline under this project with prior approval of LAP / RP of that subproject from ADB. An implementation schedule in line to same is being attached herewith:-

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VI. CONCLUSIONS OF DUE DILIGENCE

46. The land acquisition is primarily guided by the Madhya Pradesh Consent Land Purchase Policy to avoid the lengthy process of RFCTLARR-2013, the GOMP has formulated the Consent Land Purchase Policy by making provision of lump sum compensation / grant / consideration amount on top of the entitlements under RFCTLARR-2013.

47. As a result of the review of available documents, plans and references provided by L&T it can be concluded that for construction of the permanent structures of this subproject no private land or property is to be affected. Hence no involuntary resettlement is involved in this subproject.

48. There will be impact only on Government Land as Government Land has already been identified for this purpose. Therefore no private land or household will be affected and need to be acquired for the construction of the Project.

49. Since no displacement will be there of the affected population so the livelihood issues will not be involved in this project.

50. Information on progress of works envisaged by the project will be disseminated in affected communities, so the interested public will be informed and made aware of ongoing and planned construction works.

51. Since construction work has already taken place without the prior approval of ADB on LAP & RP or Social safeguard Due Diligence Report of this subproject so some corrective measures need to be adopted.

52. The proposed pressurized pipeline project will give long term benefits of irrigation to the local population of the area. Once project is completed they will be able to take two crops in a year which will improve their economic condition.

53. The local population is well aware of the increased irrigation potential so their perception about the project is very positive and they are willing to give their 100% co-operation during the construction of the project and even after that.

Annexures 1 to 3 and Appendix 1 are available upon request