Resettlement Planning Document

Project Number: 46268-002 December 2017

IND: Clean Energy Finance Investment Program - Tranche 1

Subproject: 70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-1), (RBPL 1) 70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-2), (RBPL 2)

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: 70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-1), by M/S Rising Bhadla 1 Private Limited (RBPL 1) And 70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-2), Rajasthan by M/S Rising Bhadla 2 Private Limited (RBPL 2)

Subproject Developer:

M/S Rising Sun Energy Private Limited (RSEPL)

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 4 4 Scope of Review and Methodology 4 5 Social Safeguard Issues under the Subproject 5 6 Social Safeguard Categorization and Rationale 5 7 Social Safeguard Requirement for the Subproject 6 8 Other Subproject Specific Issues 7 9 Summary Due Diligence Findings 8 10 Conclusion and Recommendations 8

NO. Annexure 1 Land Allotment Letter (Bhadla-1) 2 Land Allotment Letter (Bhadla-2) 3 Social Safeguard Screening Checklist & Categorization

1 ABRIVIATIONS

ADB Asian Development Bank 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 GRC Grievance Redressal Committee IREDA Indian Renewable Energy Development Agency Limited O&M Operation and Maintenance PIAL Prohibited Investment Activities List RBPL-1 Rising Bhadla 1 Private Limited RBPL-2 Rising Bhadla 2 Private Limited RPEPL Rays Power Experts Private Limited RSDCL Rajasthan Solar Park Development Company Limited RSEPL Rising Sun Energy Private Limited SPS Safeguard Policy Statement (SPS) 2009

2 SOCIAL DUE DILIGENCE REPORT

Subproject: 70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-1), Rajasthan by M/S Rising Bhadla 1 Private Limited (RBPL 1)

And

70 MW Solar Photovoltaic Power Project at Bhadla Solar Park (Plot-2), Rajasthan by M/S Rising Bhadla 2 Private Limited (RBPL 2)

Developer: M/S Rising Sun Energy Private Limited (RSEPL)

1. Introduction

Indian Renewable Energy Development Agency Limited (IREDA) is the single largest renewable energy financier in 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.

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 Management System (ESMS), which is in compliance with Indian national laws and Asian Development Bank (ADB) Safeguard Policy Statement (SPS) 2009. The objective of the ESMS is to guide IREDA’s actions to safeguard against adverse environmental and social impacts for sub-projects using ADB’s funds.

Keeping in view the main objective of the ESMS, 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 two subprojects of 70 MW solar photovoltaic power plants in Rajasthan being promoted by M/S Rising Sun Energy Private Limited.

2. Subproject Description

The proposed subprojects are consists of two 70 MW solar photovoltaic power plant at Bhadla Solar Park of in the State of Rajasthan using Solar Polycrystalline PV Technology. These subprojects are being promoted by the M/S Rising Sun Energy Private Limited. The subproject Location Map is presented in Figure: 1.

For the 1st plant promoted by Rising Bhadla 1 Pvt. Ltd. is situated within Plot 1 of the Bhadla Solar Park and the 2nd solar power plant promoted by Rising Bhadla 2 Pvt. Ltd. is situated within Plot 2 of the Bhadla Solar Park. The land area allotted for these two solar power plants are 140.2 and 140 hectares each in the respective Plot 1 and Plot 2. Rays Power Experts Private Limited (RPEPL) is the EPC contractor as well as O&M contractor for these two solar power projects.

3 As per the Power Purchasing Agreement between the Vidyut Vyapar Nigam Limited and Rising Sun Energy Private Limited, the evacuated power from these two plants will be connected to 132/220 kV pooling station inside the Solar Park. The subproject location is presented in Figure: 1.

Figure: 1 Subproject Location Map

3. Status of the Subproject

The construction works of the subprojects were under progress during the safeguard due diligence site visit undertaken between 20-21 June 2017. As of third week of June 2017, about 75% of civil work and nearly 50% of installation of solar panels was completed. The commercial operation date (COD) of the subproject was 25th May 2017 but as informed by the Developer, delay in project completion was due to some disruption in supply chain of solar panels, which stands rectified now and the subproject is scheduled to be commissioned by 15th August 2017.

4. Scope of Review and Methodology

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 two separate Environmental and Social Impact Assessment (ESIA) Reports

4 for Bhadla- and Bhadla-2 subproject, Pre Sanction Inception Report prepared by IREDA and Land Allotment Letters for two subprojects issued to the developer by Government of Rajasthan. A site visit was conducted during June-2017 and consulted with the field staff of Project Developer.

5. Social Safeguard Issues under the Subproject

Being a green project established in the designated solar power land belongs to the Government, the subprojects have no such negative social safeguard issues. However, the social safeguard related issues identified through the social due diligence process are discussed in the following section.

5.1 Land Acquisition Requirement under the Subproject

Both subprojects are proposed in Government land. The Government of Rajasthan has allotted the entire land of 797.45 hectares of land in Bhadla village to M/s. Rajasthan Solar Park Development Company Limited (RSDCL), a Government of Rajasthan Undertaking Company. Subsequently, Rajasthan Solarpark Development Company Limited has issued 30 years sub- lease to the Rising Sun Energy Private Limited (RSEPL) to set up these two solar power plants. The land allotment letters issued by RSDCL to the developer are attached in Appendix-1 and Appendix-2.

5.2 Involuntary Resettlement Issues under the Subproject

Since there is no private land acquisition required for the subprojects, there does not arise any issue of involuntary resettlement. The allotted Government land for the subprojects are unhabituated unused barren/sandy land and there is hardly any tree on the land.

5.3 Indigenous Peoples Issues under the Subproject

According to the Census of India 2011 statistics, Scheduled Tribe (ST) population of Jodhpur district is only 2.75%. No indigenous people are present in the subproject area and therefore no such issue has been identified for the subproject.

6. Social Safeguard Categorization and Rationale

On the basis of the review of project information and site observation, the Social Safeguard Screening Checklist (refer Appendix-3) was completed as per the requirement set forth in the ESMS. Based on the social safeguard checklist, it was established that the subproject is categorized as “Category-C” from both Involuntary Resettlement and Indigenous Peoples safeguard point of view. The Involuntary Resettlement Categorization checklist and The Indigenous Peoples Categorization checklist are attached in Appendix-3.

The rationale behind the social safeguard categorization as “C” i.e. the subproject does not require any further specific actions so far as the social safeguard point of view is because the subproject does not involve any private land acquisition and does not have any negative impacts on people including indigenous community. The proposed Government land is also free of any encumbrances and being unused barren land, it is not serving any interest of the local people or nobody is dependent on it. The photographs of the subproject sites are shown below in Figure- 2.

5 Figure-2: Photographs of the Subproject Site

7. Social Safeguard Requirement for the Subproject

As per the Environmental and Social Management System (ESMS) adopted by IREDA, followings are the social safeguard requirements for a subproject to qualify for financing under ADB lines of credit:

 The subproject is not among the Prohibited Investment Activities List (PIAL) of the ADB Safeguard Policy Statement (SPS) 2009.  The subproject with potential significant social impacts are complies with Safeguard Requirements of the ADB Safeguard Policy Statement (2009).  The subproject complies with the national laws, regulations, and related to involuntary resettlement, land acquisition, indigenous peoples/ scheduled tribes and management of physical cultural resources.  The subproject addresses the gender and development issues and needs of disadvantaged and vulnerable groups.  The subproject's contracts with civil works contractors, subcontractors and other providers of goods and services ensure provisions to employ local labor, whenever possible, and ensure compliance with ADB's social protection requirements.

6 Keeping in view the subproject context, the specific social safeguard requirements includes the following:

 Carry out social impact assessment for the subproject  Carry out consultation with local community  Make a gender assessment  Disclosure of the social impact assessment and social management plan  Establish grievance redressal mechanism

8. Other Subproject Specific Issues

The other specific social issues like consultation and disclosure, grievance redressal mechanism, employment opportunity from the subproject and corporate social responsibility etc. discussed in the following section.

8.1 Public Consultation and Disclosure

The developer has not done any formal consultation with the local communities under the subproject. During the preparation of ESIA report also no consultation has been carried out for the subproject.

8.2 Grievance Redressal Mechanism

The ESIA report has suggested establishing a Grievance Redressal Committee (GRC) to ensure that the affected people’s grievances on both environmental and social concerns are adequately addressed. During the site visit no such arrangement has been found at subproject level. Since the subproject does not involve any land acquisition or cause involuntary restrictions on land use, there is no affected persons under it. However, the developer has its own grievance redressal system by maintaining a complain register at site office and it is observed during the site visit that the local community has reported no grievance till date.

8.3 Employment Opportunity from the Subproject

The subproject is expected to create opportunity for some local employment. During the construction phase about 600 local people are engaged in construction work. In addition to the requirement of unskilled labourers, during operation period local people will be hired and trained as security guards and provided employment under the subproject. The employments generated from the subproject are presented in the Table: 1.

Table: 1 Subproject Employment Details

Sl. No. Description Quantity 1 Civil Supervisor 8 2 DC Side Supervisor 6 3 AC Side Supervisor 4 4 P&M Supervisor 4 5 Accts Assistant 1 6 Admin Assistant 1 7 Store Assistant 3

7 8 Testing & Commissioning 2 9 Quality team Supervisor 2 10 EHS - Supervisor 2 11 Surveyor Assistant 2 12 Local Labour 600 13 Head Office Employees 25 14 Consultants 75 Total 735 Source: IREDA, 2017

8.4 Corporate Social Responsibility

Under its corporate social responsibility, specific activities carried out by the subproject developer includes, free health check-up camps at site, plantation of trees including neem, piyali, meethi neem, khajur, ber, aleovera etc within the Project area. In addition, an annual contribution of Rs. 1,00,000 to Rajasthan Renewable Energy Development Fund is also provided by the developer..

9. Summary Due Diligence Findings

Based on the subproject assessment, the summary social safeguard due diligence findings are listed below:

 The subproject does not require any private land and the government land being utilised for the subproject does not involve any R&R issues or social risks.  Social impact assessment has been carried out under the subproject but it does not have a specific social management plan.  No public consultation has been carried out for the subproject and the social assessment report has not disclosed to the communities.

10. Conclusion and Recommendations

The subproject does not have any social safeguard issue as the land required for the proposed facilities are all Government land and therefore does not require any specific actions from safeguard point of view.

The current subproject situation does not involve any kind of reputational risk to ADB funding and therefore recommended for funding under the proposed project. If any change in scope will result in private land acquisition or loss of livelihood, the project developer will comply with the agreed social safeguard framework by the borrower.

IREDA will ensure compliance of ESMS and carry out periodic monitoring of the social safeguard issue and report to ADB as agreed in the ESMS. To comply with the ADB’s social protection measures, the developer has to implement following recommendations.

 Involve and employ local people in project construction and operation activities as mush as possible.  Engage with local community through planning and implementation of CSR activities.  Disclose social management plan and CSR plan to the local communities.  Adhere to national labour laws and regulations in managing health and safety of workers.

8  The developer should encourage employment of women in suitable jobs including unskilled labour during operation and maintenance.

9

RAIASTHAN SOLARPARK DEVELO PMENT COMPANY LIMITED [A Govt. of Rajasthan Undertaking Company) crN No. u40 102RI201 15GCO 36861. Reg. Office : E-t66,Yudhisthir Marg C-Scheme, faipur-302OOL T el= 2225859, 2229 3 41 email : s ol ar. rrec@ gmail. com No. RSDCL/Solar park/ D- 707 Dated: -gV lofl*tl Letter of Allotment

Deputy Secretary, Colonisation, Government of Rajasthan, Jaipur vide its letter No. p.3(1)/OV./2075, Jaipur dated 2007.20L5 has approved allotment of 1797.45 Hectare land in 11 Khasras to M/s, Rajasthan Solarpark Development Company Limited, Jaipur for setting up of Solar Park in Village Bhadla, Tehsil Bap, District Jodhpur as per Notification 'Rajasthan Land Revenue [Allotment of land for setting up of Power Plant based on Renewable Energy SourcesJ Rules, 2007 (Amendment) Rules 2014 dated 04.08.2074'. Accordingly District Collector on behalf of the Government of Rajasthan, vide an allotment order dated 26.03.2015 and subsequent execution of a Lease Deed dated 09.04.2015 has allotted 1797.45 Hectare land to M/s. Rajasthan Solarpark Development Company Limited on the terms and conditions mentioned therein.

NTPC Limited has issued a Notice Inviting Tender RFS No. NTPC/2015- 16/NSM/T[/RA|/03 for 6X70 MW open category in Bhadla Solar Park Phase-ll under State Specific Bundling Scheme of NSM Phase-ll and since the company was selected in the bid, NTPC recommended to allot plot No. 02 to the company M/s Rising Bhadla- 2 Pvt. Ltd. Delhi (A Company of Rising Sun Energy Pvt. Ltd.J for setting up of 70 MW Power project in Bhadla Solar Park Phase- II, District f odhpur, Rajasthan.

Accordingly plot No. 02 measuring 140.00 hectare having the following details, is hereby allotted to M/s Rising Bhadla- 2 Pvt. Ltd. Delhi [A Company of Rising Sun Energy Pvt. Ltd.) (Reg. No. 5/1,036/2014J upon agreement and subject to fulfilment of following terms and conditions:

S. Vlllage Plot No. Type Allotted Detalls of Deposlr No, of area Lartd in Challan Date Amount Hectare No. I Bhadla 02 B-4 140.00 Amount Rs. 22,I9,10,93 4 / - transf'erred to RSDCL throueh RTGS on dated 24.01,.17 Total 22,L9,1O,934/-

1. This land will be allotted for 30 years on sub-lease. 2. One time Development charges @ Rs.10 Lacs per hectare & applicable taxes and Grid connectivity charges @ 2 lacs per MW & applicable taxes have been transferred to RSDCL on24.01,.2017 through RTGS.

t 1,, 3. Other charges: a) Metering cost on actual basis is payable within 30 days from issuance of demand letter by the company. b) Water charges will be payable on actual consumption basis (i.e. on issuance of bill by the relevant authorities.) c) Annual contribution of Rs.1.00 Lac per MW every year for the entire life cycle of the project from the time of commissioning shall be payable towards Rajasthan Renewable Energy Development fund as per Rajasthan Solar Energy policy 201,4. The first year payment will due and payable within 30 days of commissioning thereafter will become due and payable on the same month every year. d) The transmission charges and losses shall be paid by the SPD as per prevailing policy. e) Annual O&M charges and applicable taxes are payable for 20'J,7-\8 @ 5o/o of development charges which shall escalate cumulatively @1,00/o per annum. Applicable service tax and Swachchh Bharat Cess shall also be payable. The charges are payable within 1-5 days from end of financial year i.e. by L5th April of every year.

Annual Lease charges will be payable at the beginning of every financial year but not beyond L5 days from the date of completion of previous financial year. Lease rent will be charged @ 5o/o of DLC rate for first 2 years and thereafter it will escalate for every year @ 5o/o per annum of the previous year. Applicable taxes shall also be payable.

After depositing of above charges as applicable you will have to execute sub- lease agreement within 45 days from issuance of letter of allotment.

4. That the company will take all necessary clearances from respective departments and will bear the cost.

5. That the Company will commission the Solar PV Power Plant on the demised premises as per the terms & conditions of the RfP issued by NTPC Limited, Provided that unutilised land of the allotted plot or plots shall revert to the M/s Rlil)(:1,, Jaipur on explry ot the prescrlhed/extended perlod for commlsslontng 0f the project.

6. That the Company shall take all measures, which are required for Pollution Control and shall strictly adhere to the stipulations, imposed by Rajasthan State Pollution Control Board and other statutory pollution laws of the State for the time being in force. 7. The Land shall revert to the RSDCL free of all encumbrances and without payment of any compensation, in case the company, use it for any purpose other than setting up of Solar PV Power Project.

8. That the company will execute a Sub-Lease Deed with RSDCL immediately after payment of charges as mentioned in Clause.2 hereinabove or within 60 days from the date of issuance of this letter, whichever is earlier, failing which, this Letter of Intent stands automatically cancelled.

9. That upon expiry of the Implementation Support Agreement and the Sub-lease Agreement or in case of termination of these agreement, the land will be revert back to RSDCL free of all encumbrances and without payment of any compensation.

L0. That the Company will not carry on or permit to be carried on, on the demised premises any obnoxious trade or business what so ever or use the same or permit the same to be used for any religious purpose or any purpose other than for setting up of Solar PV Power Project.

1.1.. That the Company will not transfer, sub-lease, sublet, relinquish, mortgage, sub- divide, or assign its interest in the demised premises. Provided further that if at any time the financing body or bodies decide[s) to take over, sell, lease or assign the mortgaged assets in the demised premises in exercise of any rights vesting in it by virtue of deed or deeds executed in its favour by the Company at the time of taking the loan or loans or under any will for the time being in force, the sale, lease or assignment will be subject to the written consent of the RSDCL.

72. That the Company will permit authorised representative of RSDCL and the State Government at all reasonable times of the day to enter in to the demised premises and the PV Plants in order to inspect the same,

13. That the Company will not erect or permit to be erected on any part of the demised premises any stables, sheds or other structures of any description whatsocvcr for keeping house cattle, dogs, poultry or other animals. t4. That the Company will neither exercise its option of determining the lease nor hold RSDCL responsible to make good the damage if by fire, tempest, flood or violence of any army or a mob or other irresistible force, any material part of the demised premises if wholly or partly destroyed or rendered substantially or permanently unfit for building purpose. 15 That the Cnmpany will he horrnd to depnsit any amorrnt which is found to he payable and/or raiscd during audit as pcr rulcs.

L6, The trees, 5u5hes etc. in the allotted land can only be removed after obtaining permission from the competent authority. The company shall have to plant atleast 3 trees in place of each tree so removed.

17. That the Company shall be bound by all the terms and conditions of this allotment letter issued by RSDCL.

1 wal) Director [Technical) RSDCL, Jaipur

3/r Copy to the following for information and necessary action:-

L. District Collector, fodhpur. 2. Deputy Secretary Colonisation, Colonisation Deptt., Govt. Of Rajasthan, Secretariat, Jaipur. 3. Director [FinanceJ, RSDCL/RRECL, faipur. 4. General Manager, NTPC Ltd., New Delhi. (e-mail : [email protected]) 5. Sub Divisional Magistrate, Bap, fodhpur. 6. Tehsildar, Bap, fodhpur 7. PM, RREC, fodhpur 8. M/s Rising Bhadla- 2 Pvt. Ltd., (A Company of Rising Sun Energy Pvt. Ltd.), S-l-8, Second Floor, Green Park Extension, D

11,