Resettlement Plan (Tranche - 1)

Document Stage: Draft for Consultation Project Number: 43464 May 2011

India: Clean Energy Transmission Investment Program (HPCETIP)

HP Power Transmission Corporation Limited (HPPTCL) Government of Himachal Pradesh

The Resettlement Plan 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. 2

TABLE OF CONTENTS ...... List of Acronyms

ADB Asian Development Bank APs Affected Persons DC District Collector DP Displaced Persons EA Executing Agency ESC Environment and Social Cell FGD Focus Group Discussions GOHP Government of Himachal Pradesh GRC Grievance Redress Committee HPCETIP Himachal Pradesh Clean Energy Transmission Investment Program HPPTCL Himachal Pradesh Power Transmission Corporation Limited IA Implementing Agency LAA Land Acquisition Act 1894 LAO Land Acquisition Officer MFF Multi-Tranche Financing Facility MRM Management Review Meeting NGOs Non-Government Organizations NRRP National Rehabilitation and Resettlement Policy, 2007 PIU Project Implementation Unit PMU Project Management Unit RF Resettlement Framework RP Resettlement Plan SIA Social Impact Assessment SPS Safeguard Policy Statement, 2009 STs Scheduled Tribes 4

EXECUTIVE SUMMARY

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I. INTRODUCTION AND PROJECT DESCRIPTION

1. The Government of Himachal Pradesh (GoHP) through the Government of (GoI) has requested Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to partly fund the Himachal Pradesh Clean Energy Transmission Investment Program (HPCETIP) in the state of Himachal Pradesh. HP Power Transmission Corporation Limited (HPPTCL) is both the Executing Agency (EA) and Implementation Agency (IA) for the project. The Tranche-1 of HPTECIP project consists of one transmission lines and three pooling substations. The subprojects under the tranche-1 components are (i) 28 kilometre of 220 kV double circuit transmission (twin moose conductor) line from Hatkoti to Gumma (Pragati Nagar), (ii) 400/220 kV GIS pooling sub – station at Gumma (Pragati Nagar), (iii) 400/220/66 kV GIS Pooling station near Sherpa Colony (Wangtoo), (iv) 220/66 kV GIS Pooling Station at Bhoktoo. This Resettlement Plan has been prepared for tranche - 1 component under HPCETIP. Based on the nature, scale and significance of expected impacts, the tranche-1 component under the investment program has been classified as Category ‘B’1 for impact on Involuntary Resettlement (IR) as per ADB’s Safeguard Policy Statement, 2009. 2. The Tranche 1 projects are located in the and Kinnaur Districts of Himachal Pradesh. Himachal Pradesh extends from the Shivalik Hills in the south to the Great Himalayan ranges including a slice of trans-Himalayas in the north. The state falls between latitude 30’22‖ and 30’12‖ north and longitude 75’45‖ and 79’04‖ East. It is located between the Ravi river in the west and Yamuna river in the east. Its greatest length is 355 Km from the north-western extremity of Chamba to the South-eastern tip of Kinnaur and the maximum width is 270 Km from Kangra in Southwest to Kinnaur in the northeast. The altitude ranges from 450 to 6500 meters above mean sea level, which increases from West to East and South to North.

1. 220 kV double circuit transmission (twin moose conductor) line from Hatkoti to Gumma (Pragati Nagar)

3. This project is being constructed to evacuate power from 111 MW Sawra Kuddu HEP (will be commissioned by year 2014) of Himachal Pradesh Power Corporation Limited (HPPCL). Other HEPs which will be commissioned in future like 44 MW Tangnu Romai HEP (commissioned by year 2016) of Independent power producers (IPPs) initially followed by other HEPs such as 60 MW Chirgaon Majhgaon (commissioned by year 2016), 24 MW Paudital Lassa (commissioned by year 2016), 70 MW Dhamwari Sunda (commissioned by year 2016) & 45 MW Rupin (commissioned by year 2017) and other small HEPs (will be commissioned in near future) being undertaken by various IPP’s and HP Government. As a number of new projects are upcoming in Pabbar River basin, HPPTCL is intending to construct an Integrated Transmission System in the area due to limited corridor availability and hilly terrain constraints. Total available potential in the area is about 524 MW. This 524 MW of power will be evacuated by constructing proposed 220 kV Hatkoti - Gumma (Pragati Nagar) line on twin moose conductor where it will terminate at the proposed 220/400 kV pooling substation Gumma (Pragati Nagar), which will link two circuits of 400 kV Jhakri- Abdullapur Line of PGCIL. This will take care of network reliability and redundancy in the system to evacuate power in case of outage of any transmission line because of unforeseen

1 A proposed project is classified as category B if it includes involuntary resettlement impacts that are not deemed significant which means less than 200 or persons will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating). The level of detail and comprehensiveness of the resettlement plan are commensurate with the significance of the potential impacts and risks. A resettlement plan is required for category B project

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conditions. Full details of the location of the towers and the profile of the alignment resulting from the surveys undertaken by HPPTCL are presented in Annex 1

2. 400/220 kV GIS pooling sub-station Gumma (Pragati Nagar)

4. The substation is being constructed to pool power from 111 MW under construction Sawra Kuddu HEP (will be commissioned by year 2014) of Himachal Pradesh Power Corporation Limited (HPPCL). Other HEPs which will be commissioned in future include 44 MW Tangnu Romai HEP (commissioned by year 2016) of Independent power producers (IPPs) initially followed by other HEPs such as 60 MW Chirgaon Majhgaon (will be commissioned by year 2016), 24 MW Paudital Lassa (commissioned by year 2016), 70 MW Dhamwari Sunda (will be commissioned by year 2016) & 45 MW Rupin (commissioned by year 2017) and other small HEPs (will be commissioned in near future) being undertaken by various IPP’s and HP Government. As a number of new projects are coming in Pabbar River basin, HPPTCL is intending to construct an Integrated Transmission System in the area due to limited corridor availability and hilly terrain constraints. Total available potential in the area is about 524 MW. The work involves construction of new 400/220 kV substation at Gumma (Pragati Nagar) in the of Himachal Pradesh. The substation is proposed to be constructed on private land identified and to be acquired by HPPTCL

3. 400/220/66 kV GIS Pooling station near Sherpa Colony (Wangtoo)

5. This project is being constructed to evacuate power from 65 MW under construction Kashang-I (will be commissioned by year 2013), 100 MW Tidong-I (will be commissioned by year 2014), 130 MW Kashang-II & III (will be commissioned by year 2014), 20 MW Raura-II (will be commissioned by year 2014), 24 MW Selti Masrang (will be commissioned by year 2014) and other 11 small power houses (commissioning in near future) having a total installed capacity of 81.6 MW through various IPP’s. The substation will cater about 421 MW power from various HEPs of Satluj basin. The substation is proposed to be constructed on vacant and barren government land identified in two separate sites due to limitations of land availability. These sites belong to the HP Government and will be transferred to HPPTCL.

4. 220/66 kV GIS Pooling Station Bhoktoo

6. This project is being constructed to evacuate power from 3 MW Shyang (commissioned by year 2010), 5 MW Tangling (commissioned by year 2011), 5 MW Pangi (commissioned by year 2013) SHEPs of various IPP’s. Projects having an installed capacity of 8 MW have already been commissioned. The substation is proposed to be constructed on vacant and barren government land which is already acquired

7. The Tranche 1 of HPTECIP project consists of one transmission line and three pooling substations (details in Table 1). Figure 1 and 2 give the location of each of the projects in the state of Himachal Pradesh.

Table 1: Tranche 1 Subprojects SNo Name of Work Cost In Million Dollars 1 66/220 kV, 31.5 MVA sub-station at Bhoktoo with LILO of one circuit of 220 kV 14.4 Kashang- Bhaba double circuit line. 2 220 kV D/C (Twin Moose conductor) line from Hatkoti to 220/400 kV Gumma 19.4 (Pragati Nagar) sub-station 3 220/400 kV, 1x315 MVA Gumma (Pragati Nagar) substation with LILO of two 38.2 circuits of 400 kV Jhakri- Abdullapur double circuit line 3

4 66/220/400 kV (66/220 kV, 2x80/100 MVA+220/400 kV, 2x315 MVA) substation at 70.7 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. Total 142.7

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Figure 1: Tranche 1 subprojects in the state of Himachal Pradesh

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Figure 2: Tranche 1 - 220 kV Hatkoti-Gumma Transmission Line in the state of Himachal Pradesh 1

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

8. The project will entail minimum private land acquisition. Land acquisition will be required for one of the three proposed sub stations at Gumma (Pragati Nagar) in Shimla district where 33 bigha, equivalent to 2.50 hectares of private land will be acquired. The land acquisition for substation will affect one household having 4 persons. Additionally, the construction of transmission lines (220 kV Hatkoti-Gumma - Pragati Nagar - 28 km double circuit line) will require small scale private land acquisition for the tower footings. A total of 75 towers will be constructed, out of which 51 towers will be erected on private land, each of which will require approximately 225 square meters (15m X 15m) of land, 2 towers will be erected on community land and the remaining 22 towers will be erected on government land. Total land requirement for installing the towers footing is approximately 1.15 hectares. A total of 49 households (321 affected persons) will be affected by the loss of small portions of land. No physical displacement will occur. A total of 638 trees including 469 fruits, 163 forest trees and 6 non fruit trees will be affected. 7 households will lose more than 10% of their total landholding. Additionally, temporary impacts on loss of crop are anticipated on the Right of Way during the construction of transmission line for which the HPPTCL will provide compensation for the loss of crop. As per the current assumption, it is estimated that approximately, 71.44 Ha of land will be considered for crop compensation. Details on the subproject components and its impact on land acquisition and resettlement are given in Table-2 and the summary of land acquisition and resettlement is given in Table 3 respectively.

Table 2: Project Components and Impacts

Sl Project Components Unit Quantity Impact on Temporary Remarks (Status on Nº Private land Impact on Crops Land Ownership and Acquisition Possession) and Resettlement 1 400/220 kV GIS Number 1 Yes Nil Private land to be pooling sub-station at (Area in (2.50 Ha) acquired by HPPTCL as Gumma (Pragati Ha) per the government rules. Nagar) Section-4 of the Land Acquisition Act, 1894 has been issued. One household having 4 persons will be affected. 2 400/220/66 kV GIS Number 1 Nil Nil This is a government Pooling station near (Area in (4.94 Ha) land free from any Sherpa Colony Ha) encroachment and (Wangtoo) squatters. 3 220/66 kV GIS Number 1 Nil Nil This is a government Pooling Station (Area in (1.5 Ha) land free from any Bhoktoo Ha) encroachment and squatters. 4 220 kV double circuit km 28 Yes Yes The quantity of the land transmission (twin 1.15 Ha of (71.44 Ha of land for crop compensation for moose conductor) line permanent land for crop temporary impacts has from Hatkoti to acquisition for compensation) been estimated based on Gumma (Pragati 51 tower base assumptions. Nagar),

Table 3: Summary of Land Acquisition and Resettlement Sl. No. Impacts Quantity 1 Total area of private land (Ha) 3.65 2 Total area for crop compensation for temporary Impact (Ha) 71.44 2

3 Total number of Fruit trees 469 4 Total number of Non fruit trees 06 5 Total Number of Affected Households (HHs) 50 6 Total number of Affected Persons (APs) 321 7 Total Number of Vulnerable Households 9 8 Total number of titleholders 50 9 Total number of non-title holders 0

III. SOCIO ECONOMIC PROFILE

9. Himachal Pradesh is a ―rich‖ state, compared to the rest of the country. Himachal Pradesh is considered as a model of mountain area development, with relatively low poverty rates (7.63%). The success of the region is attributed not only to a prosperous rural economy and high levels of per capita government expenditure but also to focused public interventions, greater participation of women and strong local institutions. Having obtained the status of ―tribal state, HP population has benefited from investments and subsidies from the central government. In addition, the State government has approved a series of pro-poor policies, including the abolition of tenancy which resulted in a redistribution of land to the landless to fight exploitation of labor and increase the productivity of the land. Now, 100% of the HP population owns land (with the exception of the Nepali labor) and most of them have invested in the highly profitable apple orchards business. Local population, though will still benefit from the Project as it will provide them with a more secure and reliable source of electricity. According to the Human Development Report, 2002 of Himachal Pradesh, life expectancy at birth was 62.8 years higher than the national average of 57.7 years for the period 1986-90. Infant Mortality Rate has fallen from 118 in 1971 to 62 in 1999 (almost half). Decline in crude birth rate from 37.3 in 1971 to 22.6 in 1998 below the national average of 26.5 in 1998 as also crude death rate from 15.6 in 1971 to 7.7 in 1998.Female work force registered an increase from 37.07 per cent in 1981 to 43.66 per cent in 2001. Incidence of income poverty is high, especially in rural areas, so pressure on arable land for food production is increasing. The tranche-1 subprojects cover two districts, Shimla and Kinnaur. According to the human development indices of the UNDP for the district of Himachal Pradesh, the Human Development Index (HDI) Rank of Shimla is 2 and Kinnaur is 3.

10. Himachal Pradesh has a total population of 685,650,9 including 347,389,2 males and 338,261,7 females as per the provisional results of the Census of India 2011, which is only 0.57 per cent of India's total population, placing the state at 21st position and recording a growth of 12.81 per cent. The density of population is 123 per square kilometers. Himachal Pradesh has a literacy rate of 83.78 per cent and gender ratio at 974/1000, according to the 2011 Census figures. Census wise, the state is placed 21st on the population chart Himachal Pradesh has one of the highest literacy rates in India next to Kerala. Hamirpur District is among the top districts in the country for literacy. Education rates among women are quite encouraging in the state. The standard of education in the state has reached to a considerably high level as compared to other states in India. Agriculture contributes over 45% to the net state domestic product. It is the main source of income and employment in Himachal. Over 93% of the population in Himachal depends directly upon agriculture which provides direct employment to 71% of its people. The main cereals grown are wheat, maize, rice and barley.

11. A social analysis was conducted in the subproject area especially along the line route. The survey result revealed that the average family size is 6.29. The sex ratio of the 3

project affected is 828:1000. About 80 % of the households are living in joint family system and the rest 20 % are nuclear families. The survey result reveals that 65% of the families belong to general caste followed by 15% are schedule caste. Agriculture mainly fruits (apple) cultivation is the main occupation in the sub project affected area. About 93% of households have apple orchards and remaining households are busy either in service or are having small enterprises. About 98% of households are having land holding and the average possession is 10.23 Bigha equivalents to 0.82 hectares. Apple is the major crop being cultivated by all the households. The average production of apple is 286 boxes per households. The total average annual income of the household along the project area is Rs. 278,913 out of which agriculture apple production contributes the most to the income. The total annual average expenditure per household is Rs. 60,361 out of which the major expenditure is incurred for the food followed by expenditure on education, clothing and health. All the surveyed households possess household assets like LPG and televisions and radio is possessed by only 7.4%. There is no major illness reported in the last one year and migration is not prevalent in the project influence zone. The major sources of drinking water piped water and is reported by 100% of the households covered. Around 90% of households are having flush toilet and 10% are having traditional latrine. LPG gas is used by 90% of the households and Wood is used by 10% of the households as cooking fuels. 97 % of the houses are residential and only 3% are commercial structures. Most of the houses are constructed of wooden which is almost 78% of the total households, 11% are brick made and 6% are cemented houses. The average possession of rooms is 5.24 and all the rooms are electrified. About 100% of the households are electrified. The main source of electrification is government grid and usually supplied from the government grid.

12. According to the Census of India 2001, 8.2 percent of the Indian population is classified as ST. In comparison to the national figure, Himachal Pradesh has only 4.00 percent of its populations classified as ST (a total of 244,587 peoples). The major tribes of Himachal Pradesh are (1) Bhot, Bodh, (2) Gaddi (Excluding the territories specified in sub- section (1) of section 5 of the Punjab Reorganization Act, 1966 (31 of 1966), other than the Lahaul and Spiti district),(3), Gujjar (excluding the territories specified in sub-section (1) of Section 5 of the Punjab Reorganization Act, 1966 (31 of 1966), (4) Jad, Lamba, Khampa, (5) Kanaura, Kinnara, (6) Lahaula, (7) Pangwala, (8) Swangla, (9) Beta, Beda and (10) Domba, Gara, Zoba. STs in HP are not distinct tribal groups rather they are mainstreamed considering the culture, language, economic activities and source of livelihood,. They have the access to infrastructure facilities such as roads, electricity, schools and hospitals etc. No particular impact or discrimination is expected on indigenous peoples, minorities etc. Provision for additional compensations for IPs is made in the Resettlement framework as vulnerable allowances. No IPs/STs households will be affected by land acquisition. A social screening and census survey was carried out in the project area of influence of tranche-1 components, including areas where land acquisition will be required. Potential impacts of Tranche 1 sub-projects on IPs were evaluated. Of Tranche I components, two new proposed substations located in Sherpa Colony and Bhoktoo in Kinnaur District which is declared as Notified Tribal District (scheduled tribe areas). However, these people are not distinct from the main stream population. Socio-economically, they work in apple cultivation and live well above the poverty line. It is also noted that no land acquisition is required in this project area of Kinnaur as the two proposed substations will be built on government land. Assessment of Tranche 1 subcomponents included consultations with affected persons. Details on the socio-economic profile of the surveyed households are given in Annexure-2

IV. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

13. Public participation and community consultation has been taken up as an integral 4

part of social and environmental assessment process of the project. Consultation was used as a tool to inform and educate stakeholders about the project. The participatory process helped in involving the local people in project activities. Initial Public consultation has been carried out in the subproject areas with the objectives of minimising probable adverse impacts of the project through alternate design solutions and to achieve speedy implementation of the project through bringing in awareness among the community on the benefits of the project. The broad objectives of the consultation are as follows:

Understand the views of the people affected, with reference to acquisition of land or loss of property and its due compensation. Identification of subproject sites especially the substations locations. Understand views of people on resettlement options Identify and assess major economic and social characteristics of the project area to enable effective planning and implementation. Examine APs’ opinions on health safety issues during the construction and selection garbage materials or the waste materials. Identify levels and extent of community participation in project implementation and monitoring. To establish an understanding for identification of overall developmental goals and benefits of the project. To develop a thorough coordination between all the stakeholders for the successful implementation of the project.

14. Consultations were carried out in the month of February to mid-May 2011 with stakeholders during the safeguards assessment of Tranche-1 subprojects. As integral part of the safeguards planning, affected persons and local communities were consulted during the preparation of tranche-1 safeguards documents, i.e., RP and IEE. All stakeholders were informed and the stream of information will continue during the implementation of the project. Public consultations with the project affected communities, stakeholders, and government officials were carried out at 27 villages around the proposed transmission line/substations. Additionally, focused group discussions were also conducted in the villages along the transmission line and at substation sites. Local communities generally support the proposed investment components, as better electricity supply is expected to improve their life. They also expect that employment opportunities will be created. Summary of the list of consultation is given in Table 4 and the details are given in Annexure-3

Table 4: Summary Consultations Sl No Village Panchyat Districts Distance from the Number of District Head Participants Quarters Villages involved in consultation at Shimla district for 220 kV (Hatkoti Gumma) Transmission Line 1 Bakneot Purag Shimla 65 km 09 2 Dalsar Bagdomehar Shimla 66 km 09 3 Pandrog Purag Shimla 67 km 08 4 Pudag Pudag Shimla 65 km 06 5 Galera Bagdomehar Shimla 62 km 05 6 Naktada Deem Shimla 91 km 06 7 Deem Deem Shimla 90 km 05 8 Khara Pathar Deem Shimla 88 km 07 9 Chandel Dharkoti Shimla 80 km 06 10 Dharkoti Patshal Shimla 80 km 07 11 Jhandoli Dharkoti Shimla 81 km 10 12 Sholi Kot kaina Shimla 96 km 07 13 Kaina Kot kaina Shimla 93 km 08 14 Vadot Thana Shimla 105 km 06 5

Sl No Village Panchyat Districts Distance from the Number of District Head Participants Quarters 15 Rampuri Deem Shimla 92 km 06 16 Virat Nagar (Hatkoti ) Saraswati Nagar Shimla 100 km 09 17 Sari Sari Panchayat Shimla 90 km 08 18 Astandli Sari Shimla 96 km 05 19 Mandhol Mandhol Shimla 110 km 07 20 Mangara Sari Shimla 98 km 07 21 Magouta Kotkhai Shimla 105 km 14 22 Kot Kotkhai Shimla 105 km 13 23 Mhanghali Pudag Shimla 55 km 09 24 Marathu Tharola Shimla 97 km 08 25 Purjali Bagdomehar Shimla 53 km 06 26 Bagori Bagori Shimla 50 km 02 Consultation at Shimla district for 400/220 kV Gumma (Pragati Nagar) Substations 1 Bagori Bagori Shimla 50 km 02 Consultation at Kinnaur district for 400/220 kV Sherpa Colony Substations 1 Katgaon Katgaon Kinnaur 25 05

15. Section-4 notification for private land acquisition has been issued and published in the gazette for Gumma substation. Copy of the notification is given in Annexure 4. Additionally, notification as per the Electricity Act, 2003 on project information was disclosed in the local news paper on 28 April 2011. Copy of the disclosure notification is given in Annexure-5. HPPTCL will provide relevant resettlement information, in a timely manner, in an accessible place and in a form and language (Hindi/English) understandable to affected persons and other stakeholders. The draft RP will be made available in relevant local government agencies and in relevant HPPTCL/PMU and site offices before the appraisal. The summary RP will be made available in Hindi language. Finalized RP will be disclosed in ADB’s website and in HPPTCL website; and information dissemination and consultation will continue throughout Investment Program implementation. The Resettlement Framework (RF) and the Indigenous Peoples Planning Framework (IPPF) will also be disclosed in the website

V. GRIEVANCE REDRESS MECHANISM

16. Through its Environment and Social Safeguards Policy2, HPPTCL has established a Grievance Redressal Mechanism (GRM) having suitable grievance redressal procedure for the project affected persons. The grievance redress mechanism would address affected persons’ concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to the affected persons at no costs and without retribution. This GRM consists of a Grievance Redressal Committee consists of the following persons as listed in Table 5 below:

Table 5: Constitution of Grievance Redress Committee 1 Project Head Chairman 2 Head of Finance wing at the project level Member 3 Representative of local Panchayat Member 4 Representative of contractor Member 5 Project Environment/RR staff Member Secretary

17. The Grievance Redress Mechanism (GRM) would provide an effective approach for resolution of complaints and issues of the affected community. Project Management Unit

2 Finalized in May 2011 6

(PMU) shall formulate procedures for implementing the GRM. The PIU shall undertake GRM’s initiatives that include procedures of taking/ recording complaints, handling of on-the- spot resolution of minor problems, taking care of complainants and provisions of responses to distressed stakeholders etc. paying particular attention to the impacts on vulnerable groups. Environmental and social grievances will be handled in accordance to the project grievance redress mechanism. Open and transparent dialogue will be maintained with project affected persons as and when needed, in compliance with ADB safeguard policy requirements. The Grievance Redress Mechanism (GRM) for the project provides an effective approach for complaints and resolution of issues made by the affected community in reliable way. This mechanism will remain active throughout the life cycle of the project. Grievances of APs (minor grievance) will first be brought to the attention at the PIU level. Grievances not redressed by the PIU staff (field level) will be brought to the Grievance Redress Committee (GRC) at PMU level. The GRC will meet every month (if grievances are brought to the Committee), determine the merit of each grievance, and resolve grievances within a month of receiving the complaint—failing which the AP will free to approach appropriate court of Law for redressal. Grievance redress mechanism is depicted in Figure 3.

Figure 3: Grievance Redress Mechanism

Within 15 working days Aggrieved Party PIU (Affected Persons) (Filed Level Grievance Redressed Staff/ESC)

Grievance Not Redressed (Major Grievances)

Within 30 working days Grievance Redress Committee (GRC) Grievance Redressed

Grievance Not Addressed

Appropriate Court of Law

VI. LEGAL FRAMEWORK

18. The policy framework and entitlements for the Program are based on national laws: The Land Acquisition Act, 1894 (LAA, amended in 1984) when private land acquisition is required and The National Rehabilitation and Resettlement Policy, 2007 (NRRP); ADB’s Safeguards Policy Statement 2009. Additionally, HPPTL’s policies, (i) Environment and Social Safeguard Policy, May 2011 (ESSP) and (ii) Resettlement, Relief, Rehabilitation and Compensation Policy, May, 2011 (RRRCP) were also taken in to consideration. A summary of applicable acts and policies is presented in the following sections and the detailed policy review and comparison is provided in RF

19. Land Acquisition Act-1894: The Land acquisition Act (LAA) 1894, as amended in 1984 provides the legal basis for land acquisition for a public purpose in India. It enables the 7

State Government to acquire private lands for a public purpose, and seeks to ensure that no person is deprived of land except under the Act. Under the Land Acquisition Act 1894, compensation is paid only to the legal titleholders.

20. National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007): The National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007) was adopted by the Government of India in 31st October, 2007 to address development-induced resettlement issues. The policy provides for the basic minimum requirements, and all projects leading to involuntary displacement of people must address the rehabilitation and resettlement issues comprehensively. The State Governments, Public Sector Undertakings or agencies, and other requiring bodies shall be at liberty to put in place greater benefit levels than those prescribed in the NRRP-2007. The principles of this policy may also apply to the rehabilitation and resettlement of persons involuntarily displaced permanently due to any other reason.

21. HPPTCL’ s Policy on Safeguards: HPPTCL is committed to the goal of sustainable development of power transmission network in harmony with nature and natural resources and seeks to avoid, minimize, mitigate or compensate adverse environmental and social impacts. HPPTCL approved its safeguards Policies in the month of May, 2011 which are (i) Environmental and Social Safeguards Policy (ESSP) and (ii) Resettlement, Relief, Rehabilitation and Compensation Policy (RRRCP). The Goal of HPPCL’s Environmental and Social Safeguards Policy (ESSP) is to ensure that development of power transmission system network in environmentally and socially sustainable manner and to bring clarity and transparency about it with public disclosure. HPPTCL shall proactively and voluntarily take all necessary steps to ensure environmental and social sustainability of all its projects. HPPTCL has developed this document of its corporate Environmental and Social Safeguards Policy (ESSP) to address the environmental and socio-economic issues arising from its activities guided by the basic principles of Avoidance, Minimization and Mitigation. The ESSP outlines HPPTCL’s approach and commitment to deal with environmental and social issues relating to its transmission projects. The main aim of ESSP is to give a human face to corporate functioning and to move away from the classical cost-benefit approach to the larger realm of Corporate Social Responsibility, while mainstreaming the environmental and social concerns in its operations. The ESSP has the special provision to deal with social safeguards through its special policy, RRRCP. The RRRCP lays down the guiding policy of HPPTCL for preparation of project specific R&R Plans and its implementation for the transmission projects under HPPTCL.

22. ADB’s Safeguard Policy Statement, 2009 (SPS): ADB has adopted Safeguard Policy Statement (SPS) in 2009 including safeguard requirements for environment, involuntary resettlement and indigenous people. The objective of the involuntary resettlement policy is to avoid involuntary resettlement wherever possible; to minimize involuntary resettlement by exploring project and design alternatives; to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre-project levels; and to improve the standards of living of the displaced poor and other vulnerable groups.

23. The involuntary resettlement safeguards covers physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (i) involuntary acquisition of land, or (ii) involuntary restrictions on land use or on access to legally designated parks and protected areas. It covers them whether such losses and involuntary restrictions are full or partial, permanent or temporary. Followings are the basic policy principle of ADB’s SPS,2009:

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Identification of past, present, and future involuntary resettlement impacts and risks and determination of the scope of resettlement planning. Carry out meaningful consultations with affected persons, host communities, and concerned non-government organizations. Improvement or at least restoration of the livelihoods of all displaced persons, Ensure physically and economically displaced persons with needed assistance. Improvement of the standards of living of the displaced poor and other vulnerable groups. Development of procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement, Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of non-land assets. Preparation of a resettlement plan elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. Disclosure of resettlement plan, including documentation of the consultation process in a timely manner to affected persons and other stakeholders. Execution of involuntary resettlement as part of a development project or program. Payment of compensation and provide other resettlement entitlements before physical or economic displacement. Monitoring and assessment of resettlement outcomes, their impacts on the standards of living of displaced persons

24. Based on the above analysis of applicable legal and policy frameworks of government and in consistent with ADB’s policy requirements, broad resettlement principle for the program shall be the following:

Involuntary resettlement would be avoided wherever possible or minimized as much as possible by exploring project and design alternatives.

Subprojects under the program will be screened to identify past, present, and future involuntary resettlement impacts and risks. The scope of resettlement planning will be determined through a survey and/or census of displaced persons, including a gender analysis, specifically related to resettlement impacts and risks.

Meaningful consultations with affected persons, host communities, and concerned non-government organizations will be carried out and all displaced persons will be informed of their entitlements and resettlement options. AP’s participation in planning, implementation, and monitoring and evaluation of resettlement programs will be ensured.

Particular attention will be paid to the needs of vulnerable groups, especially those below the poverty line, the landless, the elderly, women and children, and Indigenous Peoples (IP), and those without legal title to land, and ensure their participation in consultations.

An effective grievance redress mechanism will be established to receive and facilitate resolution of the affected persons’ concerns. The social and cultural 9

institutions of displaced persons and their host population will be supported through proper planning. Where involuntary resettlement impacts and risks are highly complex and sensitive, compensation and resettlement decisions should be preceded by a social preparation phase.

Livelihoods of all displaced persons will be improved or at least restored through (i) land-based resettlement strategies when affected livelihoods are land based where possible or cash compensation at replacement value for land when the loss of land does not undermine livelihoods, (ii) prompt replacement of assets with access to assets of equal or higher value, (iii) prompt compensation at full replacement cost for assets that cannot be restored, and (iv) additional revenues and services through benefit sharing schemes where possible.

Physically and economically displaced persons will be provided with needed assistance, including (i) if there is relocation, secured tenure to relocation land, better housing at resettlement sites with comparable access to employment and production opportunities, integration of resettled persons economically and socially into their host communities, and extension of project benefits to host communities; (ii) transitional support and development assistance, such as land development, credit facilities, training, or employment opportunities; and (iii) civic infrastructure and community services, as required.

Standards of living of displaced poor and other vulnerable groups, including women, will be improved to at least national minimum standards. In rural areas legal and affordable access to land and resources will be provided, and in urban areas appropriate income sources and legal and affordable access to adequate housing will be provided to the displaced poor.

If land acquisition is through negotiated settlement, procedures will be developed in a transparent, consistent, and equitable manner to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. If, however, the negotiated settlement fails, the normal procedure of land acquisition will be followed.

Displaced persons without titles to land or any recognizable legal rights to land will be ensured that they are eligible for resettlement assistance and compensation for loss of non-land assets.

A resettlement plan will be prepared elaborating on displaced persons’ entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule.

The draft resettlement plan, including documentation of the consultation process will be disclosed in a timely manner, before project appraisal, in an accessible place and in a form and language(s) understandable to affected persons and other stakeholders. The final resettlement plan and its updates will also be disclosed to affected persons and other stakeholders.

Involuntary resettlement will be conceived and executed as part of a development project or program. Full costs of resettlement will be included in the presentation of project’s costs and benefits. For a project with significant 10

involuntary resettlement impacts, consider implementing the involuntary resettlement component of the project as a stand-alone operation.

All compensation will be paid and other resettlement entitlements will be provided before physical or economic displacement. The resettlement plan will be implemented under close supervision throughout project implementation.

Resettlement outcomes, their impacts on the standards of living of displaced persons will be monitored; it will be accessed whether the objectives of the resettlement plan have been achieved by taking into account the baseline conditions and the results of resettlement monitoring. Monitoring reports will be disclosed to APs.

Land acquisition for the project would be done as per LAA and

The uneconomic residual land remaining after land acquisition will be acquired as per the provisions of LAA, if the owner is willing to sell . The owner of such land/property will have the right to seek acquisition of his entire contiguous holding/ property provided the residual land remains unviable.

People moving in the project area after the cut-off date will not be entitled to any assistance. In case of land acquisition, the date of publication of preliminary notification for acquisition under section 4.1 of the LAA, 1894 will be treated as the cut-off date. For non-titleholders the date of project census survey or a similar designated date declared by the executing agency will be considered as cut-off date.

All common property resources (CPR) lost due to the project will be replaced or compensated by the project.

25. The project will recognize three types of displaced persons like (i) persons with formal legal rights to land lost in its entirety or in part; (ii) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (iii) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land. The involuntary resettlement requirements apply to all three types of displaced persons.

VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

26. Compensation for the lost assets to all affected persons will be paid on the basis of replacement cost. Resettlement assistance for lost income and livelihoods will be provided to both title holders and non-title holders. Special resettlement and rehabilitation measures will be made available to the vulnerable groups. APs entitled for compensation or at least rehabilitation provisions under the Project are (i) All APs losing land either covered by legal title/traditional land rights, or without legal status; (ii) Tenants and sharecroppers whether registered or not; (iii) Owners of buildings, crops, plants, or other objects attached to the land; and (iv) APs losing business, income, and salaries. Compensation eligibility is limited by a cut-off date to be set for the subproject. For the legal title holder, the issuance of Section 4 notification of LA Act will serve as the cut-off-date. For non-titleholder, the day of the census survey will serve as the cut-off-date. APs who settle in the affected areas after 11

the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice, requested to vacate premises and dismantle affected structures prior to project implementation. The entitlement matrix is described in Table 3.

Table 5: Entitlement Matrix Type of Losses Definition of APs Entitlement Details 1. Land Loss of Titled owners Compensation based on In case of compulsory acquisition of land, agricultural land market/replacement Compensation will be based on the Land affected persons value Acquisition Act (inclusive of 30% solatium and (APs) with 12% interest) traditional land Resettlement assistance rights Additional Assistance to In case of land to be possessed by the project vulnerable3 APs authority with mutual and voluntary consent of the affected people, compensation will be paid on negotiated market price In case of land to be acquired by paying yearly lease money, the titleholder will get yearly compensation as decided by the land acquisition authorities for the life of the project that is 30 years. The compensation once decided shall not be revised during the operation of the lease agreement. Transaction costs (documentary stamps, registration costs, etc.) Will be borne by the project authority during registration. If the residual plot(s) is (are) not viable, i.e., the AP becomes a marginal farmer, resettlement assistances will be paid in the form of transitional allowances based on three months of minimum wage Additional allowances will be paid to vulnerable APs based on three months of minimum wage 2. Trees and Crops Loss of Trees Land holders Compensation at Market Advance notice to APs to harvest fruits and Share- croppers value to be computed remove trees. Lease holders with assistance of For fruit bearing trees compensation at average horticulture department fruit production for next productive years to be computed at current market value. For timber trees compensation at market cost based on type of trees. Loss of Crops Land holders Compensation at Market Advance notice to APs to harvest crops. Share- croppers value to be computed In case of standing crops, cash compensation at Lease holders with assistance of current market cost to be calculated of mature agriculture department crops based on average production. 3. Government land and Property Government - Lump sum compensation Departmental transfer of land. Property (Loss of as per government rules Land) 4. Community and Cultural Sites Religious Affected Conservation, protection Impacts will be documented and mitigated. structures, community and compensatory Cultural properties will be conserved through Community replacement (Schools, special measures such as relocation in structures, trust, community centers, consultation with the community. etc. markets, health centers, shrines, other religious sites, places of worship, burial sites, rights to food, medicine, and natural

3 women-headed households, scheduled tribe households, below poverty line households, households headed by physically handicapped or disabled persons and severely affected households (household losing more than 10% of productive asset) 12

Type of Losses Definition of APs Entitlement Details resources) 5. Temporary Loss Temporary loss All APs losing land Notice to harvest Provision of rent for period of occupation for legal of land and and crops on standing crops titleholders. temporary temporary basis Compensation at market Compensation for assets lost at replacement damage on loss during the value for one season value. of crops during construction period Restoration Restoration of land to previous or better quality. construction of the lines Additionally, Cash Compensation will be paid for Farming the temporary damage of crop under the RoW households during the maintenance and repair after the Sharecroppers construction. In case there is a need for repair or Tenants maintenance of the transmission lines in the non-titled future, the project authorities would consult with households land owners land owners for access to the land for maintenance and repairs, when necessary, and that the land owners would continue to use the land for farming activities. 6. Vulnerable Households Impacts on All impacts Vulnerable APs Additional assistance based on three months of vulnerable APs minimum wage. Vulnerable households will be given priority in project construction employment where feasible. 7. Unanticipated Impacts Other Impacts Affected Compensation and Unforeseen impacts will be documented and Not Identified households or assistance mitigated based on the principles agreed upon in individuals the resettlement framework. 8. Additional Benefits by HPPPTCL to the project area. Additional applicable to those Various RR schemes Following additional RR Schemes shall be Schemes projects only which implemented in the projects with Project Cost of Rs. applicable only to are more than Rs. 50 Crores or more. projects with cost 50 crore worth Merit & Support Scholarship Scheme of Rs. 50 crores Medical Fund and more Training cum Awareness Camp Provision of Self Employment Award of Petty Contracts & Hiring of Vehicle

VIII. RELOCATION AND INCOME RESTORATION

27. Tranche-1 subproject will not result in any physical displacement except minor land acquisition and temporary impacts on loss of crops at few places during the construction. Compensation will be paid by HPPTCL as per the entitlement matrix. Allowance based on three months minimum wage rates will be paid to the affected vulnerable households. Additionally, vulnerable households will be given priority for employment during construction. HPPTCL and contractor will ensure that advance notice is issued to the APs prior to the start of construction works and that compensation is also completed before then. In case of any maintenance work in the future, HPPTCL and contractor will pay the APs for any loss of crop due to the work. Compensation and assistance to affected persons must be made prior to possession of land/assets and prior to the award of civil works contracts.

IX. RESETTLEMENT BUDGET AND FINANCING PLAN

28. The resettlement cost estimate for this subproject includes eligible compensation, resettlement assistance and support cost for RP implementation. These are part of the overall project cost. This is a tentative budget. The unit cost for land and other assets in this budget has been derived through rapid field appraisal, consultation with affected households 13

and relevant government authorities. Contingency provision equivalent to 5% of the total cost has also been made to accommodate any variations from this estimate. The components of the resettlement cost include various features such as, compensation for land; compensation for crops; solatium for land acquisition, allowances for vulnerable groups and cost for implementation of RP. The total land acquisition and resettlement cost for the Tranche 1 subproject is estimated to be INR 156.04 million. Land acquisition and resettlement costs will be considered as an integral component of sub-project costs. The HPPTCL will make the funds available in its annual budget for the disbursement of compensation and assistance. Detail cost estimate is given in Table 6.

Table 6: Resettlement Cost Unit Rates Total Cost Item Unit Quantity (INR) (INR) A: Compensation for Acquisition of Private Land A1 Agriculture Land (Private) for Ha 26,320,000 3.65 96,068,000 Permanent Acquisition A2 Fruit Trees Numbers 25000 469 11,725,000

A-3 Non Fruit Trees Numbers 5000 6 30000

A3 Temporary Loss of agricultural Land Ha 40,000 71.44 2,857,600 for crop compensation for Lines

11,0680,600 Subtotal: A

B: Assistance B1 Land Acquisition (Agriculture) in 30% Solatium 33,204,180 case of Permanent Acquisition B2 Allowances for Vulnerable Lump Sum 13500 9 121,500 Households Subtotal: B 33,325,680 C: Support Cost for Implementation of RP C1 Resettlement Specialist in PMU Person month 150,000 24 3,600,000

C2 Monitoring Lump Sum 5,00,000 Administrative Cost Lump Sum 5,00,000 Subtotal C 4,600,000 TOTAL 148,606,280 Contingency (5% ) 7,430,314 Grand Total 156,036,594 Grand Total (Million INR) 156.04 Grand Total (Million USD) 3.55

X. INSTITUTIONAL ARRANGEMENTS

29. HPPTCL will serve as the Executing Agency (EA) as well as the Implementing Agency (lA) for the investment program and for the Tranche-1 implementation. HPPTCL will establish a Project Management Unit (PMU) for implementing the ADB loan. Associated with the PMU, an Environment and Social Cell (ESC) will be established at HPPTCL which will be headed by Chief Environment Specialist who will be assisted by one Environment Specialist and one Social Development cum Resettlement Specialist. The Project Management Unit (PMU) at corporate level is headed by Senior Project Manager (Planning) who will be assisted by DGM’s from various functions – Administration and Finance, Projects Planning and Design, Procurement and contracts, Environment and Social Cell and Projects Construction. Project Implementation Units (PIUs) at divisional level of the project 14

construction unit are headed by Executive Engineers at four locations – (Shimla), Chamba, Bhabanagar (Kinnaur) and Sarabhai (Kullu). The Environment and Social cell (ESC) at the corporate level monitors the policy and implementation of safeguards impacts of all projects of HPPTCL.

30. Project Implementation Unit (PIU) will assume primary responsibility for the safeguards assessment on the site as well as implementation of RPs for their respective components in consultation with ESC. Keeping in view the capacity of HPPTCL, it is proposed that the ESC head to coordinate with each PIU along with other engineering units to address safeguard issues.

31. The Chief Specialist Environment must be assisted by the PIU for planning, implementing and monitoring of the RP. The duties of the ESC Specialists (in-charge of environment and social) will include at a minimum: (i) oversight of PIU for implementing the RPs with timely payment of compensation and assistance to the APs (ii) liaising with the PIU and seeking their help to solve any grievance and related issues of project implementation; and (iii) preparation of monitoring reports every 6 months (as required by ADB).

32. For Tranche-1 sub-project RPs, HPPTCL will do the overall coordination, preparation, planning, implementation, and financing of all activities. Additional third-party services may be employed by the HPPTCL as necessary. The EA (HPPTCL) through its PMU will ensure that key institutions including local governments are involved in RP preparation, updation and implementation. Further details on agencies responsible for RP activities are in Table 7.

Table 7: Institutional Roles and Responsibilities for Resettlement activities Activity Responsible Agency Sub-project Initiation Stage Establishing PMU/PIU EA (HPPTCL) Establishing ESC in PMU EA (HPPTCL) Designating safeguard Specialist in PMU/ESC EA (HPPTCL) Finalization of sites for sub-projects EA (HPPTCL)/PMU/PIU Disclosure of proposed land acquisition and sub-project details EA (HPPTCL)/PMU/PIU by issuing Public Notice Meetings at community/household level with APs PMU/PIU RP Preparation and Updating Stage Conducting Census of all APs PMU/PIU/ESC Conducting consultation/FGDs/meetings PMU/PIU/ESC Computation of replacement values of land/properties PMU/PIU/ESC/Competent Authority Finalizing compensation packages and entitlements PMU/PIU/ESC/ Competent Authority Disclosure of final entitlements and rehabilitation packages PMU/PIU/ESC Approval of RP EA/ADB Sale deed execution and payment EA/PMU/PIU/LAO/Appropriate Government Department Taking possession of land EA/PMU RP Implementation Stage Sale deed execution and payment EA/PMU/PIU/Appropriate Government Department Taking possession of land EA/PMU/PIU Implementation of proposed rehabilitation measures PMU/PIU/ESC Consultations with APs during rehabilitation activities PMU/PIU/ESC Grievances redress PMU/PIU/GRC Internal monitoring PMU/ PIU/ESC 15

Activity Responsible Agency External monitoring4 External Agency ADB-Asian Development Bank, AP-affected person, EA-Executing Agency, ESC- Environment Social Cell, FGD- focus group discussion, GRC-Grievance Redress Committee, HPPTCL- Himachal Pradesh Power Transmission Corporation Limited, PIU- Project Implementation Unit, PMU- Project Management Unit, RP-Resettlement Plan,

XI. IMPLEMENTATION SCHEDULE

33. All land acquisition, resettlement, and compensation for a sub-project will be completed before award of civil works contracts. All land required will be provided free of encumbrances to the contractor prior to handing over of sub-project sites and the start of civil works. The implementation of the RP will include: (i) identification of cut-off-date and notification, (ii) verification of losses and extent of impacts, (iii) finalization of entitlements and distribution of identity cards, (iv) consultations with APs on their needs and priorities, and (v) resettlement, provision of compensation and assistance, and income restoration for APs. However, public consultation and monitoring will be continued on an intermittent basis as needed during the entire duration of the project. A tentative implementation schedule is described in Table 7 Table 7: Implementation Schedule

Months Subproject R&R Component/Activities 1 2 3 4 5 6 7 8 9 10 11 12  Identification of sub project and notification Community Consultation               Identification of land and Census Survey  Submission of RP for ADB Approval  Disclosure of RP  Establishment of PMU and PIU  Establishment of ESMU  Establishment of GRC    Issue compensation to APs    Payment of all eligible assistance   Initiation of Rehabilitation Measures  Schedule for Civil Work        Monitoring

XII. MONITORING AND REPORTING

34. Monitoring is the responsibility of HPPTCL through its PMU and the Environment Social Cell and it will submit bi-annual monitoring reports to ADB for review .The extent of monitoring activities, including their scope will be commensurate with the project’s risks and impacts. ADB will require HPPTCL to establish and maintain procedures to monitor the progress of implementation of safeguard plans; verify the compliance with safeguard measures and their progress toward intended outcomes; document and disclose monitoring results and identify necessary corrective and preventive actions in the periodic monitoring reports and follow up on these actions to ensure progress toward the desired outcomes. Monitoring reports documenting progress on resettlement implementation and resettlement

4 External monitoring is required for significant IR impact especially for category A project. 16

plan completion reports will be provided by HPPTCL through its PMU to ADB for review on bi annual basis. 17

ANNEXURES

TO BE ATTACHED ......