Clean Energy Finance Investment Program - Tranche 1

Environment Due Diligence Report Project Number: 46268-002 December 2017 Part B: Annexures IND: Clean Energy Finance Investment Program - Tranche 1 Subproject: 100.8MW Wind Power Project at Beluguppa, Anantapur District, Andhra Pradesh Submitted by Indian Renewable Energy Development Agency, New Delhi This environment 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 environment 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. TABLE OF CONTENTS 1 INTRODUCTION 1 1.1 BASIS OF THE REPORT 1 1.2 APPLICABLE REFERENCE FRAMEWORK 1 1.3 ORANGE RENEWABLE POWER PVT. LTD. 2 1.4 OVERVIEW OF THE PROJECT 2 1.5 PURPOSE OF THIS REPORT 7 1.6 OBJECTIVES OF THE STUDY 7 1.7 SCOPE OF THE STUDY 7 1.8 APPROACH AND METHODOLOGY 8 1.8.1 Preliminary Discussions with Project Proponent 9 1.8.2 Scoping Study 9 1.8.3 Document Review 9 1.8.4 Site Survey and Preliminary Consultations 9 1.8.5 Environmental Baseline Data Collection 10 1.8.6 Stakeholder Consultation 10 1.8.7 Impact Assessment 11 1.8.8 Environmental and Social Management Plan 11 1.9 LIMITATIONS 11 1.9.1 Uses of the Report 12 2 PROJECT DESCRIPTION 14 2.1 PROJECT SETTING 14 2.1.1 Project location and Setting 14 2.2 LAND REQUIREMENTS 23 2.3 LAND DETAILS 23 2.3.1 Project related land procurement and specific issues 24 2.3.2 Land details and existing procurement status for specific components 27 2.3.3 Land Purchase Process 28 2.3.4 Stakeholder engagement and GRM 29 2.3.5 Labour 30 2.4 PROJECT COMPONENTS 30 2.4.1 Wind Turbine Generators (WTGs) 30 2.4.2 Wind Farm 30 2.4.3 Pooling Sub Station and Power Evacuation Arrangements 31 2.4.4 Supervisory control and data acquisition (SCADA)/ Condition Monitoring System (CMS) 33 2.4.5 Storage Yard 33 2.4.6 Batching Plant 33 2.4.7 Access Road and Site Access 34 2.5 PROJECT ACTIVITIES 35 2.5.1 Planning Phase 35 2.5.2 Construction 35 2.5.3 Operations & Maintenance 36 2.5.4 Decommissioning 36 2.6 RESOURCE REQUIREMNTS FOR THE PROJECT 37 2.6.1 Water Requirement 37 2.6.2 Raw Materials and Equipment 37 2.6.3 Fuel requirement and Storage 38 2.6.4 Power Requirement 39 2.6.5 Pollution Control-Embedded Measures 39 2.6.6 Air Emissions 39 2.6.7 Noise Emissions 40 2.6.8 Waste Management 40 2.6.9 Wastewater Management 41 2.6.10 Fire Safety and Security 42 2.7 PROJECT ORGANIZATIONAL STRUCTURE 43 2.7.1 Orange Uravakonda Wind Power Pvt. Ltd. 43 2.7.2 Suzlon Gujarat Wind Park Ltd. 43 2.8 CORPORATE POLICIES 44 2.8.1 Suzlon Gujarat Wind Park Ltd. 44 3 ADMINISTRATIVE FRAMEWORK 45 3.1 INTRODUCTION 45 3.1 PERMITTING STATUS OF THE PROJECT 45 3.1.1 EIA Notification (2006) and its amendments 45 3.1.2 Central Pollution Control Board 45 3.1.3 Andhra Pradesh Wind Power Policy of 2015 45 3.2 INSTITUTION FRAMEWORK- ENFORCEMENT AGENCIES 46 3.3 APPLICABLE REGULATORY/ POLICY FRAMEWORK 49 3.4 NATIONAL ENVIRONMENTAL STANDARDS 52 3.5 INTERNATIONAL SAFEGUARD REQUIREMENTS 52 3.5.1 IFC Requirements 52 4 SCREENING AND SCOPING 56 4.1 SCREENING METHODOLOGY 56 4.1.1 Kick-off Meeting 56 4.1.2 Document Review 56 4.2 PROJECT CATEGORISATION 57 4.2.1 Equator Principles Financial Institutions (EFPI) and International Performance Standards (IFC) 57 4.3 SCOPING METHODOLOGY 58 4.4 SCOPING RESULTS 59 4.4.1 Cumulative Impacts 59 5 ENVIRONMENTAL ECOLOGICAL AND SOCIAL BASELINE 64 5.1 LOCATION AND ADMINISTRATIVE SETTING 64 5.2 AREA OF INFLUENCE 64 5.2.1 Study Area 64 5.3 ENVIRONMENTAL BASELINE METHODOLOGY 67 5.4 ENVIRONMENTAL BASELINE FINDINGS 68 5.4.1 Land cover and use 68 5.4.2 Local Topographical Features 71 5.4.3 Geology and Hydrogeology 74 5.4.4 Hydrology and Drainage Pattern 76 5.4.5 Climate and Meteorology 78 5.4.6 Natural Hazards 79 5.4.7 Ambient Air Quality 86 5.4.8 Noise Quality 92 5.4.9 Water Quality 95 5.4.10 Soil Quality 103 5.5 ECOLOGICAL BASELINE 106 5.5.1 Objectives 106 5.5.2 Study area 107 5.5.3 Approach and Methodology 107 5.5.4 Floral Assessment 109 5.5.5 Faunal Assessment 110 5.5.6 Protected Areas 120 5.5.7 Migratory Routes 121 5.6 SOCIO ECONOMIC BASELINE 122 5.6.1 Study Area 122 5.6.2 Approach and Methodology 122 5.6.3 Administrative set up of the Study Area 124 5.6.4 Demographic Profile 124 5.6.5 Education profile 127 5.6.6 Land Profile 131 5.6.7 Occupation and Livelihood 133 5.6.8 Drinking Water Supply 139 5.6.9 Irrigation 141 5.6.10 Health Infrastructure 141 5.6.11 Others physical infrastructure 142 5.6.12 Civil Society Organisations 143 6 STAKEHOLDER MAPPING AND IDENTIFICATION 144 6.1 INTRODUCTION 144 6.2 STAKEHOLDER CONSULTATION AND DISCLOSURE REQUIREMENT FOR THE PROJECT 144 6.3 STAKEHOLDER CATEGORISATION 145 6.4 APPROACH AND METHODOLOGY FOR STAKEHOLDER ANALYSIS 145 6.5 STAKEHOLDER ANALYSIS 146 7 IMPACT ASSESSMENT 153 7.1 INTRODUCTION 153 7.2 SCOPE OF THE ASSESSMENT 153 7.3 ASSESSMENT METHODOLOGY 153 7.4 KEY POTENTIAL IMPACTS 159 7.4.1 Key Environmental Impacts 159 7.4.2 Key Ecological Impacts 159 7.4.3 Key Social Impacts 159 7.5 KEY ENVIRONMENTAL IMPACTS 159 7.5.1 Change in land use 159 7.5.2 Impact on Water Resources 175 7.5.3 Impact on Air Quality 183 7.5.4 Aesthetics and Landscape concerns 186 7.5.5 Occupational health and Safety of Workers 190 7.5.6 Ambient Noise Levels 194 7.6 KEY ECOLOGICAL IMPACTS 204 7.6.2 Impacts during construction Phase 209 7.6.3 Impacts during Operation Phase 217 7.6.4 Cumulative Impact Assessment for Flying Fauna 223 7.7 KEY SOCIAL IMPACTS 225 7.7.1 Impacts to local communities 225 7.7.2 Economic Loss/Displacement due to selling of land 239 7.7.3 Impact on local employment opportunity 241 7.7.4 Social Development through Corporate Social responsibility (CSR) Initiatives242 7.7.5 Cumulative environmental and social impacts 243 8 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 244 8.1 INTRODUCTION 244 8.2 OUWPPL’S ORGANIZATIONAL STRUCTURE 244 8.2.1 OUWPPL’s EHS Management 244 8.3 ROLES AND RESPONSIBILITIES 245 8.3.1 Environmental, Health and Safety Department (EHS Department) 245 8.4 INSPECTION, MONITORING AND AUDIT 245 8.5 REPORTING AND DOCUMENTATION 246 8.5.1 ESMP Review and Amendments 247 8.6 TRAINING PROGRAMME AND CAPACITY BUILDING 247 8.6.1 Environmental and Social Management Plan 248 9 IMPACT SUMMARY AND CONCLUSION 259 9.1 INTRODUCTION 259 9.2 IMPACTS REQUIRING DETAILED ASSESSMENT 259 9.3 CONCLUSION 260 List of Table Table 1.1 Salient Features of the Project: Snapshot of the Project 3 Table 1.2 Contractors associated with Suzlon for the Project 3 Table 1.3 Structure of the report 12 Table 1.4 Annexes in the report 13 Table 2.1 WTG Profiling of the 100.8 MW Project (up to a distance of 500 m from the WTG) 16 Table 2.2 Summary of the land required for the Project 24 Table 2.3 Technical Specifications of Suzlon S111 turbine 30 Table 2.4 List and quantity of raw material to be utilised for the WTG foundation activities during the construction phase (tonnes per WTG) 37 Table 2.5 Equipment type and quantity to be utilised during the construction phase 38 Table 2.6 Waste Generated, their sources and method of disposal 41 Table 3.1 Categorisation of wind power projects as per A.P. Wind Power Policy, 2015 45 Table 3.2 Enforcement Agencies relevant to the Project 46 Table 3.3 Applicable environmental and social legislative framework for wind power projects 50 Table 3.4 IFC Performance Standards 54 Table 4.1 Potential interactions matrix for the 100.8 MW Project, near the village of Beluguppa. 60 Table 4.2 Interactions identified that are likely to result in significant impacts 61 Table 4.3 Scoped- out interactions during the proposed Project's life cycle 63 Table 5.1 Primary Baseline Data Collection 67 Table 5.2 Secondary Baseline Data Collection 68 Table 5.3 Land use break detail of the Project 69 Table 5.4 Climatological Data, Anantapur 78 Table 5.5 Predominant Wind Direction 79 Table 5.6 Details of Ambient Air Monitoring Stations 86 Table 5.7 Details of Methods and Detection Limits for different Air Quality Parameters88 Table 5.8 Ambient Air Quality in the Study Area 88 Table 5.9 Details of Noise Sampling Locations 92 Table 5.10 Noise Level in the Study Area 92 Table 5.11 Details of Water Sampling Locations 95 Table 5.12 Surface Water Quality observed during the monitoring Period 98 Table 5.13 Primary Water Quality Criteria for Designated-Best-Use-Classes 99 Table 5.14 Groundwater Quality observed during the monitoring Period 101 Table 5.15 Details of soil sampling location 103 Table 5.16 Analysis report of the soil sample (So1) 104 Table 5.17 Vegetation Classification of the Region 107 Table 5.18 Water bodies surveyed in the study area 108 Table 5.19 Time utilization for ecology assessment 110 Table 5.20 Amphibians reported from the study area 111 Table 5.21 Reptiles reported from the study area 111 Table 5.22 Avifaunal Species observed in the Study Area 114 Table 5.23 Avifaunal Species recorded in the Study Area 118 Table 5.24 Details of Mammals recorded from the Study area 120 Table 5.25 Demographic profile of the study region 124 Table 5.26 Demography of the study area villages 125 Table 5.27 Religion

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