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Environment Due Diligence Report IND: Clean Energy Finance Investment Program

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Environment Due Diligence Report IND: Clean Energy Finance Investment Program Environment Due Diligence Report Project Number: 46268-002 December 2017 Part B: Annexures IND: Clean Energy Finance Investment Program - Tranche 1 Subproject: Bhadla 1 -70MW and Bhadla 2- 70 MW Capacity Solar Power Project(s) at Bhadla Solar Park Phase II, Jodhpur District, Rajasthan State 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. ESIA Report: 70 MW Solar PV Project at Bhadla Solar Park, Rajasthan by Rising Bhadla 2 Pvt. Ltd. 28 granting the consent, SPCB can stipulate conditions pertaining to the effluents arising from the process. The consent to operate is granted for a specific period (usually one year) after which the conditions attached are reviewed by the SPCB before renewal. The proposed project has uses water during construction phase and at the time of module cleaning. The discharge water does not include any chemical or hazardous material and hence no treatment is required. 4.4.2 The air (prevention and control of pollution) act, 1981 This act stipulates the establishment of State Boards for the Prevention and Control of Air Pollution. In States where a water pollution board had already been established under the earlier Water Act, the two boards were combined to form SPCBs. The proposed project releases no hazardous emission during power production. The limited dust and air emission can be mitigated by the ESMP as per the required standards. Moreover, being a renewable energy, it contributes to carbon emission reduction. 4.4.3 Environment Protection (EP) Act and Rules, 1986 EP Act was enacted to provide for the protection and improvement of environment and for matters connected there with. A decision was taken by India to protect and improve the human environment at the United Nations Conference on Human Environment held at Stockholm in June 1972. The EP Act call for procedural requirements for: Obtaining Environmental Clearance Submission of Environmental Statement Under this act, the Central Government is empowered to take measures necessary to protect and improve the quality of the environment by setting standards for emissions and discharges, regulating the location of industries, management of hazardous wastes and protection of public health and welfare. From time to time the Central Government issues notifications under the EPA for the protection of ecologically-sensitive areas or issues guidelines for matters under the EPA. The important environmental legislations applicable to the proposed project are given in table: ESIA Report: 70 MW Solar PV Project at Bhadla Solar Park, Rajasthan by Rising Bhadla 2 Pvt. Ltd. 29 Table 2 Key Environment Legislation Name Scope and Objectives Key Areas Operational Agencies/ Key Players Water (Prevention To provide for the Control of Sewage Central and State and Control of prevention and control and industrial Pollution Control Boards Pollution) Act 1974 of water pollution and effluent discharges enhancing quality of water Air (Prevention and To provide for the Controls emission Central and State Control of Pollution) prevention and control and air pollutants Pollution Control Boards Act 1981 of air pollution Environment To provide for the An umbrella Central Government, Protection Act 1986 protection and Legislation, nodal agencies MoEF, improvement of supplements can delegate powers to environment pollution laws department of environment Forest (Conservation) To provide for the A legislation to Central Government, Act, 1980 and Forest protection and protect forests and nodal agencies MoEF, Conservation Rules, improvement of the forest products can delegate powers to 1981 forests Department of Forest Noise Pollution To control and take Noise in urban Central Government, (Prevention & measures for abatement area and around nodal agencies MoEF, Control) Rules 2000 of noise and ensure that industrial sites State governments the level does not cross specified standards ESIA Report: 70 MW Solar PV Project at Bhadla Solar Park, Rajasthan by Rising Bhadla 2 Pvt. Ltd. 30 Hazardous Wastes To the adequate Hazardous waste Central Government, (Management And handling of hazardous generated from Nodal Agencies MoEF, Handling) Rules, 1989 materials or wastes the industrial CPCB & 2001 activity Public Liability To provide for public To provide public Central Government, Insurance Act, 1991 liability- insurance for liability insurance Nodal Agencies MoEF, the purpose of providing during risk State Govt. immediate relief to the material handling persons affected by accident occurring while handling any hazardous substance and for matters connected therewith or incidental thereto 4.4.4 Land Acquisition Act (LAA) The Land Acquisition Act of 1894, provides for the acquisition of land for public purposes and companies in national interest and for determining the amount of compensation to be made on account of such acquisition. The act is summarized below: Land identified for the purpose of a project is placed under Section 4 of the LAA. Objections must be made within 50 days to the highest administrative officer of the concerned District. The land is then placed under Section 6 of the LAA. This is a declaration that the Government intends to acquire the land. Compensation for land and improvements (such as houses, wells, trees, etc.) is paid in cash by the project authorities to the State government, which in turn compensates landowners. The price to be paid for the acquisition of agricultural land is based on sale prices ESIA Report: 70 MW Solar PV Project at Bhadla Solar Park, Rajasthan by Rising Bhadla 2 Pvt. Ltd. 31 recorded in the District registrar's office averaged over the three years preceding notification under Section 4. The land in which the project is being developed has been allotted by Rajasthan Solar Park Development Company Limited (RSDCL). RSDCL is the Solar Park Implementing Agency (SPIA). The land shall be leased by the developer on a long term basis until the life cycle of the project. Also the project is applicable to get the Non Agricultural conversion certificate from the Collector. 4.4.5 Batteries (Management and Handling) Rules, 2001 The MoEF has issued Batteries (M&H) Rules, 2001 to control the hazards associated with the backyard smelting and unauthorized reprocessing of lead acid batteries. Manufacturers/ assemblers/re-conditioners/importers/recyclers/auctioneers/users/bulk consumers, all are required to submit half yearly returns to the SPCB who have been designated as the prescribed authority. The bulk consumer-means a consumer such as the Departments of Central Government like Railway Defense, Telecom, Posts and Telegraph, the Departments of State Government, the Undertakings, Boards and other agenci es or companies who purchase hundred or more than hundred batteries per annum. The project does not envisage any storage of power and hence it is not applicable. 4.4.6 Indian Labour Laws All the workmen of the company are required to be governed by the relevant Indian Labour laws, which are stated below: Workmen's Compensation Act, 1923 The Workmen's Compensation Act, 1923 is one of the important social security legislations. It aims at providing financial protection to workmen and their dependents in case of accidental injury by means of payment of compensation by the employers. Under the act, the State Governments are empowered to appoint Commissioners for Workmen's Compensation for Settlement of disputed claims Disposal of cases of injuries involving death Revision of periodical payments The project developer will initiate a Grievance Redressal Mechanism (GRM) along with a Grievance Redressal Committee (GRM) for resolving all the compliance disputes and grievances related to the ESIA Report: 70 MW Solar PV Project at Bhadla Solar Park, Rajasthan by Rising Bhadla 2 Pvt. Ltd. 32 project. The developer shall follow regular and periodic payment of the laborers. Further, the developer shall hold an insurance policy which will include the safety for physical or material damage in the site. 4.4.7 National Environment Appellate Authority Act 1997 The National Environment Appellate Authority (NEAA) was set up by MoEF to address cases in which environment clearances are required in certain restricted areas. An Act to provide for the establishment of a NEAA to hear appeals with respect to restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act, 1986 and for matters connected therewith or incidental thereto. The proposed site does not falls under any restricted areas and hence not applicable. 4.4.8 Wild Life (Protection) Act 1972 The Government of India enacted Wild
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