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46268-002: Clean Energy Finance

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46268-002: Clean Energy Finance Resettlement Planning Document Project Number: 46268-002 January 2018 IND: Clean Energy Finance Investment Program - Tranche 1 Subproject : 50 MW Wind Power Project at Amba Village, Ratlam district, Madhya Pradesh, (EUL) Submitted by Indian Renewable Energy Development Agency, New Delhi This resettlement due diligence report has been prepared by the Indian Renewable Energy Development Agency, New Delhi for the Asian Development Bank and is made publicly available in accordance with ADB’s Public Communications Policy (2011). It does not necessarily reflect the views of ADB. This 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. DUE DILIGENCE REPORT ON SOCIAL SAFEGUARDS (LOAN 3186 IND: CLEAN ENERGY INVESTMENT PROGRAM) Subproject: 50 MW Wind Power Project at Amba Village in the Ratlam district of Madhya Pradesh Subproject Developer: Etesian Urja Limited (EUL) (An SPV formed by IL&FS) M K MOHANTY, ADB TA, Prepared by Social Safeguard Specialist RUCHIKA DRALL, Review by Environmental & Social Officer, ESSU, IREDA KHEKIHO YEPTHO, Head Approved by ESSU & Compliance Officer, IREDA TABLE OF CONTENT NO. DESCRIPTION PAGE NO. 1 Introduction 3 2 Subproject Description 3 3 Status of the Subproject 5 4 Scope of Review and Methodology 5 5 Social Safeguard Issues under the Subproject 6 6 Social Safeguard Categorization and Rationale 11 7 Social Safeguard Requirement for the Subproject 12 8 Other Subproject Specific Issues 12 9 Summary Due Diligence Findings 13 10 Conclusion and Recommendations 14 NO. Annexure 1 NOC from Gram Panchayat 2 Sample Sale deed Agreement 3 Social Safeguard Screening Checklist 4 IR Categorization Form 5 IP Categorization Form 6 CSR Details SDD Report Prepared by M K MOHANTY - ADB TA Social Safeguards Specialist 1 ABRIVIATIONS ADB Asian Development Bank ATS Agreement to Sell COD Commercial Operation Date CSR Corporate Social Responsibility EPC Engineering and Procurement Contractor ESIA Environmental and Social Impact Assessment ESMS Environment and Social Management System EUL Etesian Urja Limited GRC Grievance Redressal Committee IL&FS Infrastructure Leasing & Financial Services Limited IREDA Indian Renewable Energy Development Agency Limited MPPTCL Madhya Pradesh Power Transmission Company Limited MW Mega Watt NOC No Objection Certificate O&M Operation and Maintenance PIAL Prohibited Investment Activities List SPS Safeguard Policy Statement (SPS) 2009 ST Scheduled Tribe WTG Wind Turbine Generator SDD Report Prepared by M K MOHANTY - ADB TA Social Safeguards Specialist 2 SOCIAL SAFEGUARD DUE DILIGENCE REPORT Subproject: 50 MW Wind Power Project at Amba Village in the Ratlam district of Madhya Pradesh Developer: Etesian Urja Limited (EUL), an SPV formed by IL&FS 1. Introduction 1. Indian Renewable Energy Development Agency Limited (IREDA) is the single largest renewable energy financier in India and applied for ADB loan to fund as a part of its overall lending portfolio, to private sector renewable energy and energy efficiency subprojects in India, including small scale wind, biomass, small hydro, solar, cogeneration, and energy efficiency. 2. IREDA’s mandate is to minimize the energy sector’s negative environmental impact by promoting cleaner and more environmentally friendly technologies, and thus is committed to avoid and mitigate adverse environmental impacts, if any, resulting from the projects it finances. In order to identify and effectively address potential impacts from projects funded with the ADB line of credit, IREDA has formulated and adopted an Environment and Social Safeguard Unit (ESSU), which is in compliance with Indian national laws and Asian Development Bank (ADB) Safeguard Policy Statement (SPS) 2009. The objective of the ESSU is to guide IREDA’s actions to safeguard against adverse environmental and social impacts for sub-projects using ADB’s funds. 3. Keeping in view the main objective of the ESSU, ADB social safeguard requirements and in confirmation with the national and local policy and legal framework, a social due diligence study has been carried out for the subproject i.e. 50 MW wind power plant at Amba Village in the Ratlam district of Madhya Pradesh being promoted by Etesian Urja Limited (EUL), an SPV formed by Infrastructure Leasing & Financial Services Limited (IL&FS). 2. Subproject Description 4. The proposed project is located in Ratlam district of Madhya Pradesh, and the locations of the windmills spread across two Tehsil – Ratlam and Piploda. The district is well connected by road and rail networks. The nearest site to the administrative capital of the district, Ratlam, is about 10 km and the farthest is locates at about 20 km. The 25 windmills spread across 12 villages – Chandavata, Khedavda, Gudar Kheda, Badoda, Nandleta, Borkheda, Kanchan Khedi, Bodina, Bhainsa Dabar, Khedi, Tajpuriya, and Isarthuni. The areas where the proposed windmills are located are rural areas, and the areas surrounding the windmills are agricultural lands. 5. EUL has contracted Gamesa Renewables to provide turnkey solutions for micro siting, wind resource analysis, supply, erection, commissioning and operation & maintenance of the project WTGs. The project will involve installation of 25 numbers of WTGs of Gamesa Make G114/2 MW each WTG, totaling to a capacity of 50 MW. The map of the project site with WTG locations is provided in Figure 1. SDD Report Prepared by M K MOHANTY - ADB TA Social Safeguards Specialist 3 Figure: 1 Project Site Map 6. The power generated from the WTGs will be pooled into the 33kV/220kV Pooling Substation, constructed by Gamesa at Amba Village, Ratlam District, Madhya Pradesh. The electricity generated from the 33kV/220kV pooling station would then be transferred to the Madhya Pradesh Power Transmission Company Limited (MPPTCL) substation at Nagra, Ratlam District. This transfer of the pooled electricity from Amba to Negra would be done through the 220 kV transmission lines. SDD Report Prepared by M K MOHANTY - ADB TA Social Safeguards Specialist 4 7. M/s Kshema Power and Infrastructure Company Pvt. Ltd., sub-contractor of Etesian Urja Limited, acting as land aggregators for the project was responsible for procuring land through willing buyer-willing seller basis after paying the proper market value to the original landowner. Land purchasing and registration process has been completed by administering Agreement to Sale (ATS) by the original landowners. 8. The power generated from the wind farm shall be transmitted to state govt. sub-station situated at Negra village for which EUL has signed a power purchase agreement with Madhya Pradesh Power Transmission Company Limited (MPPTCL) at wind preferential Tariff. 9. The project requirement in terms of various components and activities involves the following: • Procurement/direct purchasing of land through Land aggregator; • Installation of 25 wind turbines with a unit generating capacity of 2 MW each, totaling a generation capacity of 50 MW; • Electrical connection with feeder underground cable from the turbines, to the distribution transformers and a connection to the substation; • Construction of access roads and internal roads; • Power evacuation at 220/400 kV Amba pooling station. 3. Subproject Status 10. As on 31st April 2017, the status of project implementation is as follows: • Wind Resource Assessment completed; • Micro-siting has been completed; • Procurement of land for all components are fully completed; • Demarcations and pathway finalization completed; • Soil testing completed for all the site purchased; • Pooling Substation and zero point storage yard completed; • Approach and internal roads completed to WTG clusters and clusters to individual WTGs; • All 25 WTGs towers erected stringing completed; • Site office of EUL established and Project staff mobilization completed; • Project is already commissioned. 4. Scope of Review and Methodology 11. This social due diligence report is prepared based on review of various subproject documents, consultation with developers, field staff and on site observation. The documents reviewed for the subproject includes Environmental and Social Impact Assessment (ESIA) Report and Inception Report, Sale deed for land purchase and NOC from Village Panchayats etc. Site visit conducted initially during May-2017 and consulted with the field staff of Project Developer. 12. The ESIA study for the proposed subproject has been conducted as per applicable national regulations in India. The study includes collection and collation of baseline environmental and socio-economic information of the study area, assessment of potential SDD Report Prepared by M K MOHANTY - ADB TA Social Safeguards Specialist 5 project level environmental and social impacts and development of project specific mitigation and management plans. 5. Social Safeguard Issues under the Subproject 13. The social safeguard issues identified through the social due diligence process is discussed in the following section. 5.1 Land Requirement under the Subproject 14. The land requirement for the subproject was for tower locations, approach roads and pooling station. Total land
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