Draft Initial Environmental Examination

Project Number: 46943 July 2012

IND: HORTICULTURE COLD CHAIN PROJECT

Prepared by Champion Agro Limited (CAL)

The initial environmental examination 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. Your attention is directed to the “Terms of Use” section of this website.

IND: Horticulture Value Chain Project Champion Agro Limited, Gujarat, India

INITIAL ENVIRONMENTAL EXAMINATION REPORT

ON

FRUIT AND VEGETABLE PROCESSING FACILTIES

OF

CHAMPION AGRO LIMITED,

Regd. Corporate Office: Champion Agro Limited Survey No 217, Plot No 2, NH 8-B, Veraval Main Road, Veraval(Shapar) Rajkot-360024, Gujrat, India

Contact Person: Mr Shamender Sharma, COO Email: [email protected] URL:www.championagro.com

IEE Report Prepared by

HARI PRAKASH, Environmental and Social Safeguards Consultant, Deccan Consulting Engineers Private Limited, B-98/5A, 3rd Floor, Joshi Colony, Behind BALCO Market, I P Extension, Delhi 1100 92

Email: [email protected] URL: www.deccan.org.in

CONTENTS Page A Executive Summary 1

B Policy, Legal and Administrative Framework 2 B1 Applicable National Regulatory Acts and Notifications 2 B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation 4 B3 Regulatory/Legal Policy Framework for Indigenous Peoples 6

C Description of Current and Proposed Facilities 8 C1 Current / Existing Facilities 8 C2 Proposed Facilities 10

D Description of Baseline Environment 18 D1 Baseline Environmental Profile of IQF Facility Location / Site 19 D2 Baseline Environmental Profile of CA Storage Facility Location/Site 20 D3 Baseline Environmental Profile of ARCCs and ADCs Location/Site 21

E Anticipated Environmental Impacts and Mitigation Measures 21 E1 Pre-Construction Stage Impacts and Mitigation Measures 21 E2 Pre-construction Stage Regulatory Compliances: 22 E3 Construction Stage Impacts and Mitigation Measures: 22 E4 Operation Stage Impacts and Mitigation Measures: 22 E5 EHS Performance Standards/Requirements 24

F Analysis of Alternatives 24 F1 No Project Facility Alternative 25 F2 Equipment Layout and Selection of Machinery 25 F3 Siting of the Facilities and Land Purchase Arrangement 25

G Information Disclosure, Consultation 26

H Grievance and Redress Mechanism 27

I Environmental Management Plan 28 I1 Environmental Mitigation Action Plan 28 I2 Environmental Enhancement Measures 28 I3 Operation Stage Environmental Monitoring 29 I4 Budgetary Cost Provision for EMAP Implementation 29 I5 Institutional Arrangements 30

J Conclusion and Recommendation 30

List of Tables Table 1 Applicable Environmental Regulations for CAL’s proposed facilities 4 Table 2 Current Facilities of CAL for Fruits and Vegetables processing 9 Table 3 Proposed Facilities by CAL under ADB Financing 10 Table 4 Land Requirements for IQF Facility 12 Table 5 Location and Land Requirements of Proposed Facilities 18 Table 6 Liquid Waste Generation from CAL’s Proposed Facilities (Location Wise) 23 Table 7 Liquid Waste Discharge Standards for Fruits and Vegetables Processing 23 Industry Table 8 Sanitary Waste Generation from CAL’s Proposed Facilities (Location 23 Wise) Table 9 Solid Waste Generation from CAL’s Proposed Facilities (Location Wise) 24 Table 10 Summary EMAP Implementation cost (Figures in INR) 29 Table 11 Institutional Arrangements for Implementation of EMAP 30

List of Exhibits Exhibit 1 Process / Operations Flow Diagram of IQF Facility for Fruits & 33 Vegetables Exhibit 2 Layout Plan of IQF Facility for Fruits & Vegetables 35 Exhibit 3 Operations / Process Flow Diagram of CA Storage Facility 37 Exhibit 4 Layout Plan of CA Storage Facility 39 Exhibit 5 Operations / Process Flow Diagram of ARCC with Linkage to ADC 41 Exhibit 6 Layout Plan of ARCC 43 Exhibit 7 Layout Plan of ADC 45 Exhibit 8 Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, 47 Rajkot District, Gujarat Exhibit 9 Location Plan of CA Storage Facility Site at Palanpur, Banaskantha 49 District, Gujarat

List of Annexures Annexure 1 Categorisation of Industries by SPCB for Consent Management under 51 - 54 Water & Air Pollution Act, 1974 Annexure 2 Land Acquisition Policy of GIDC, Govt. of Gujarat 55 – 59 Annexure 3 CAL’s Corporate Considerations for Siting and Land Purchase for New 60 – 62 Facility Annexure 4 Environment Mitigation Action Plan (EMAP) 63 – 69 Annexure 5 EHS Guidelines for Food & Beverage Processing Sector 70 – 87 Recommended by IFC Annexure 6 Detailed Cost Estimate for EMAP 88 - 89

Abbreviations

IEE Initial Environmental Examination ADB Asian Development Bank ADC Agri Distribution Centre ARCC Agri Retail and Collection Centre CA Controlled Atmosphere CAL Champion Agro Limited CAP Corrective Action Plan CFE Consent for Establishment CFO Consent for Operation CSF Cold Storage Facility EHS Environmental Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EPA Environmental Protection Act ESMS Environmental and Social Management System ESMU Environmental and Social Management Unit GIDC Gujarat Industrial Development Corporation GOI Government of India GPCB Gujarat Pollution Control Board Ha Hectare (1 Ha = 10000 Sq. mtrs) IP Indigenous People IQF Individual Quick Frozen Facility LA Land Acquisition LAA Land Acquisition Act MOEF Ministry of Environment and Forests, Govt. of India NCST National Commission for Scheduled Tribes NOC No Objection Certificate NRRP National Resettlement and Rehabilitation Policy PESA Panchayat Extension to the Scheduled Areas Act PH Pack House PPEs Personal Protection Equipment RC Ripening Chamber SC Scheduled Castes SPCB State Pollution Control Board SPS Safeguards Policy Statement, 2009, ADB ST Scheduled Tribes

Initial Environmental Examination Report on Fruits and Vegetable Processing Facilities of Champion Agro Limited, Gujarat

A Executive Summary 1 M/s Champion Agro Limited (CAL), established in 1994, is a leading Indian agribusiness corporate entity from Gujarat, providing fully integrated services from agricultural inputs to farmers up to the delivery of fresh fruits & vegetables to corporate retailers.

2 CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). The proposed project facilities comprise four types namely a) Individual Quick Frozen (IQF) facility (1No.); b) Controlled Atmosphere (CA) Storage (1No.); c) Agri-Retail Collection Centres (5No.s) and d) Agri-Distribution Centres (ADC) (5No.s). The first three type of facilities are proposed to be located within Gujarat, whereas the fourth type facility i.e. ADCs are proposed in major urban centres such as Ahmedabad in Gujarat, Jaipur in Rajasthan, Indore in Madhya Pradesh, Ludhiana and Jalandar in Punjab and in Delhi.

3 In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL. As required under SPS1, an Initial Environmental Examination was carried out for the proposed facilities, to determine the likely potential impacts and risks, and to enable preparation of an environmental management plan, so as develop the facilities in environmentally sustainable manner and in compliance with the SPS, 2009 as well as National and State regulatory requirements.

4 Due to the nature and scale, CAL’s presently proposed facilities (Table 3) does not require prior environmental clearances and is out of the purview of EIA Notification, 2006 of MOEF, GOI. At the state level, all of the proposed facilities fall under orange category2 in Gujarat and therefore will require ‘Consent for Establishment’ (CFE) during pre-construction stage and ‘Consent For Operation (CFO)’, prior to commencement of commercial operations from the Gujarat Pollution Control Board (GPCB)3. Since, 5 ADC’s are being considered in other States like Rajasthan, Delhi, Punjab, and Haryana, the respective State wise applicable consent procedures have been reviewed and found to be same as applicable in Gujarat.

1 The Safeguards Policy Statement is available at http://www.adb.org/Documents/Policies/Safeguards 2 State Pollution Control Board has categorized all industries into RED, ORANGE and GREEN categories for consent management procedures to regulate the establishing and operation of Industries under the Air Pollution and Water Pollution Act. Red category industries indicate high pollution potential and has stricter compliance requirements whereas Green category indicate least pollution potential and has the least compliance conditions. All industries will require to obtain Consent to Establish (CFE), prior to establishing and follow it up to obtain Consent for Operation (CFO), prior to commencement of commercial operations. The procedure for obtaining the CFE and CFO is well established and industries can obtain the consent in a time bound manner, after submitting the required information and consent fee to the State Pollution Control Board. However, it shall be at the discretionary of State Pollution Control Board to assess the process and determine the applicable category based on the pollution potential of an industry 3 The consent management procedure for Gujarat State is available at www.gpcb.gov.in/

1 5 The procedure for obtaining the CFE and CFOs from the State Pollution Control Boards in Gujarat and in other states are well established and consents can be obtained in a time bound manner and not a major constraint to establish and operate the proposed facilities.

6 The IEE indicates that pre-construction stage impacts due to location or siting of facility can be mitigated through adopting pre-determined criteria for siting and finalization of location for the facilities. The involuntary resettlement impacts are avoided through purchase of land for the facility on a ‘willing seller and willing buyer’ principle through direct negotiated settlement from one or a maximum of three land owners. The proposed facilities will avoid impacts in indigenous peoples. The construction stage impacts of the facilities are comparable to any general building construction projects and can be mitigated through site specific environmental management plan/measures.

7 The operation stage impacts are to be mitigated through implementation of liquid and solid waste management systems (mainly wash water discharge and organic agri-residue and discarded fruits & vegetables), apart from EHS performance standards for the work force at all the proposed facilities. In addition, measures such as recycling of treated wash water, rain water harvesting and ground water recharging, renewable (solar) energy are to be adopted to further enhance environmental sustainability of the proposed facilities.

8 During the operation stage, the facility has to adopt a schedule for monitoring environmental, occupational health and safety indicators in order to comply with the consent conditions stipulated by the SPCB, if any as well as safeguards monitoring and reporting requirements of ADB.

9 The IEE has enabled to prepare an Environmental Management Plan (EMP) for the pre-construction, construction and operation stage of the proposed facilities and has suggested institutional arrangements for implementing the EMP along with the required budgetary provisions. The IEE also includes a periodical environmental monitoring schedule for the operation stage of the facilities.

10 The implementation of EMP for all stages of the facilities, complying with the regulatory requirements of the State Pollution Control Board like obtaining pre-construction and operation stage consents (CFE & CFO) and further implementation of environmental enhancement measures like recycling of treated wash waters, rain water harvesting and ground water recharging, adopting renewable (solar) energy for lighting applications will enable the proposed facilities to be environmentally sustainable operation, and become consistent with the safeguard requirements of SPS, 2009 and will not involve any kind of reputational risk to ADB on environmental and social safeguard issues.

B Policy, Legal and Administrative Framework B1 Applicable National Regulatory Acts and Notifications 11 Environment. All developmental projects, subject to the applicability are required to strictly comply with the relevant National environmental laws and regulations of the Government of India and respective State laws and regulations. These laws and regulations

2 include: The Environmental Protection Act,(1986); The Water (Prevention and Control of Pollution )Act, 1974, as amended upto 1988, The Air (Prevention and Control of Pollution) Act, 1981 as amended upto 1987 and Environmental Impact Assessment Notification,1994 with latest amendments.

12 Applicability of Environmental Laws and Regulations. Due to the nature and scale, CAL’s presently proposed facilities under ADB financing does not require prior environmental clearances and is out of the purview of EIA Notification, 2006 of MOEF, GOI notified under the Environmental Protection Act (1986).

13 Under the provisions of Water (Prevention and Control of Pollution) Act, 1974, any individual, industry or institution, discharging industrial or domestic wastewater is required to obtain consent of the Board. Similarly, under the Air (Prevention and Control of Pollution) Act, 1981, any individual, industry or institution responsible for emitting smoke or gases by way of use as fuel or chemical reactions is required to obtain consent from the State Pollution Control Boards. It is an offence to commence or run any such industries without obtaining the consent and the State Pollution Control Board is empowered to close down and seal the unit, in case of violation.

14 Two types of consents are issued by the State Pollution Control Boards. Prior to establishment of an industry, operation or a process, Consent for Establishment (CFE) has to be obtained and Consent for Operation (CFO) has to be obtained, prior to commissioning of an industry and subsequently for continuation of discharge of emission and effluents or for expansion and modernization of existing Industry. Based on the capital investment and pollution potential, the industries are classified into Red category: Highly polluting units; Orange Category: Moderately pollution and Green Category: Less Polluting. The consents are issued by the State Pollution Control Boards, on submission of project related information in a prescribed application along with applicable consent fee, based on the scale and category of a specific industry. The consent management procedures are well established by all State Pollution Control Boards and can be obtained in a time bound manner.

15 At the state level, the proposed facilities by CAL, are listed under orange category4 and therefore will require CFE during pre-construction stage and Consent for Operation (CFO), prior to commercial production from the Gujarat Pollution Control Board (GPCB)5. The categorization of Industries for Consent Management by the Gujarat Pollution Control Board is given in Annexure 1. Although, these facilities are apparently listed under orange category, it shall be at the discretion of the SPCB to assess the process of an industry and

4 State Pollution Control Board has categorized all industries into RED, ORANGE and GREEN categories for consent management procedures to regulate the establishing and operation of Industries under the Air Pollution and Water Pollution Act. Red category industries indicate high pollution potential and have stricter compliance requirements whereas Green category indicate least pollution potential and has the least compliance conditions. All industries will have to obtain Consent to Establish (CFE), prior to establishing and follow it up to obtain Consent for Operation (CFO), prior to commencement of commercial operations. The procedure for obtaining the CFE and CFO is well established and industries can obtain the consent in a time bound manner, after submitting the required information and consent fee to the State Pollution Control Board.

5 The consent management procedure can be available at www.gpcb.gov.in/

3 determine the applicable category, based on the pollution potential and accord the consent. The procedures for obtaining the CFE and CFOs in a time bound manner are well established and are not a major constraint to establish and operate the proposed facilities in Gujarat and other States.

16 Among the proposed facilities, 5 ADC’s are being considered in other States like Rajasthan, Delhi, Punjab, and Haryana and therefore the respective State wise applicable consent procedures were also reviewed and found to be same as applicable in Gujarat.

17 The applicable environment regulatory requirements for the CAL’s proposed facilities under ADB financing are summarized in Table 1 hereunder:

Table 1 : Applicable Environmental Regulations for CAL’s proposed facilities Regulatory Applicability for CAL’s Proposed Sl. No. Regulatory Body Action Required Requirements Facility 1 Prior Environmental MOEF, Govt. of Not Applicable. None Clearances under EIA India Facilities does not fall under the Notification, 2006 purview of the EIA Notification 2 ‘Consent For State Pollution Applicable. Applications are to Establishment’ (CFE) Control Boards CFE & CFO needs to be obtained be submitted to during Pre- from Gujarat State Pollution Control State Pollution construction Stage & Board for all proposed facilities Control Board in ‘Consent For within Gujarat. For ADCs located the prescribed Operation’ prior to outside Gujarat, CFE & CFO are to application form commencement of be obtained from respective State and consent fee, commercial operation/ Pollution Control Boards depending upon production. (Rajasthan, Delhi, Punjab and capital investment Haryana) 3 NOC (No Objection State Pollution Applicable for all facilities proposed Applications are to Certificate) for Control Board, in Gujarat and other states where be made to conversion of land to District Authority/ ADCs are proposed depending competent non-agricultural use Industries Dept. upon the location of the facility. authorities 4 NOC (No Objection Central/State Depends on fresh water Depending up on Certificate) for Ground Water requirement of facility. Exempted location of facility construction of new Authority/ Dept from NOC, if facility requires upto & categorization of tube wells /Distt. Authorities 25000 litres/day in over exploited area by state areas: upto 50000 litres/day in Ground Water critical areas: upto 100000 litres/day Dept. from ground in semi-critical areas and upto water utilization 1000000 litres/day in safe areas. perspective.

B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation 18 In India, compensation for land acquisition (LA) and resettlement assistance for project affected persons/families is governed by the Land Acquisition Act (1894), which has been amended from time to time.

19 Land Acquisition Act, 1894 as amended in 1984. This Act enables the State to acquire private land for public purpose and has provisions for acquisition of land for industrial

4 purposes. The Act ensures that no person is deprived of land except under law and entitles APs (landowner, tenant or licensee) to a hearing before acquisition, with due and adequate compensation made thereafter. The Act deals with cash compensation and provides several methods of valuing compensation. Several Indian states are using negotiations as a means to determine compensation and acquire land. The Act has a provision which enables any project proponent to opt for direct purchase of land on the basis of negotiated price after issue of notification requiring acquisition of land under relevant Act(s) i.e., section 4(1) of the Land Acquisition Act, 1894 through the competent District authorities. However, only landowners, tenants and licensees are possible compensation recipients and the Act does not recognize and exclude the landless, agricultural and non- agricultural laborers, artisans, forest produce collectors. Grievance redress mechanisms are also in place and APs may seek the intervention of the High Court and Supreme Court under this Act.

20 National Resettlement and Rehabilitation Policy (NRRP), 2007. The Government of India notified the National Rehabilitation and Resettlement Policy in October, 2007. This policy and the associated legislative measures aim at striking a balance between the need for land for developmental activities and, at the same time, protecting the interests of the land owners, and others, such as the tenants, the landless, the agricultural and non- agricultural laborers, artisans, and others whose livelihood depends on the land involved. The objectives of the National Rehabilitation and Resettlement Policy are as follows:- i) to minimize displacement and to promote as far as possible, non-displacing or least- displacing alternatives; ii) to ensure adequate rehabilitation package and expeditious implementation of the rehabilitation process with the active participation of the affected families; iii) to ensure that special care is taken for protecting the rights of the weaker sections of society, especially members of the Scheduled Castes and Scheduled Tribes, and to create obligations on the State for their treatment with concern and sensitivity; iv) to provide a better standard of living, making concerted efforts for providing sustainable income to the affected families; v) to integrate rehabilitation concerns into the development planning and implementation process; and where displacement is on account of land acquisition, to facilitate harmonious relationship between the requiring body and affected families through mutual cooperation.

21 The NRRP 2007 emphasizes the need for participatory and transparent R&R planning and implementation. A strong grievance redress mechanism has been prescribed, which includes standing R&R Committees at the district level, R&R Committees at the project level, and an Ombudsman duly empowered for this purpose. The R&R Committees shall have representatives from the affected families including women, voluntary organizations, panchayats, local elected representatives, etc. Provision has also been made for post-implementation social audits of the rehabilitation and resettlement schemes and plans.

5 22 At State Level, the Gujarat Industrial Development Corporation (GIDC)6 has adopted a new land acquisition policy in year 2010 which safeguards that no farmland is acquired forcibly for the setting up of private companies. Under this policy, farmland acquisition is to be made only if 100% farmers give consent. The Government will not do any forceful acquisition for any private companies. As per this new policy, land will be acquired from farmers at market prices determined by a third party agency such as Centre for Environment Planning and Technology (CEPT) University," Copy of the policy is given in Annexure 2.

23 Applicability of Land Acquisition Acts and NRRP. CAL requires small land parcel(s) at various locations for each of its proposed facilities and intends to purchase the selected land from the willing land owners through negotiated settlement on a willing seller and willing buyer principle and without intervention of land acquisition procedures of the Government. CAL will select the required land parcel based on certain criteria, which is aimed at avoiding fertile agricultural land as well as social impacts arising out of the land purchase. Thus, application of the land acquisition act and its provisions will not be warranted.

B3 Regulatory /Legal Policy Framework for Indigenous Peoples 24 By definition, indigenous people (IP) refer to a population with social, cultural, economic, and political traditions and institutions distinct from the mainstream or dominant society and culture. IP with similar cultural characteristics are known as Adivasi in Hindi and are recognized as Schedule Tribes (STs) as per the Indian Constitution.

25 As per SPS, the term Indigenous People is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self identification as members of a distinct indigenous cultural group and recognition of its identity by others; (ii) collective annexure to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or the region. Essentially, indigenous peoples have a social and cultural identity distinct from the mainstream society that makes them vulnerable to being overlooked in development processes.

The Legal Policy Framework in India for Indigenous People is listed hereunder: 26 National Commission for Scheduled Tribes. The National Commission for Scheduled Tribes has been formed through bifurcation of the National Commission for Scheduled Castes and Scheduled Tribes is under the 94th Amendment Act of the Constitution. Although, the National Commission for Scheduled Tribes has been created in August 2003, little measures in terms of adequate budgetary and staff allocations have been made to make the Commission function effectively. One of the duties assigned to the National Commission for Scheduled Tribes and Scheduled Castes is to submit reports to the

6 GIDC is responsible for setting up Industrial Areas/Estates and therefore extensively involved in land acquisition and development of industrial areas and estates and allot them to those interested in setting up industries. The land acquisition policies developed by GIDC can serve as a good reference for any land acquition for industrial purposes within Gujarat and elsewhere.

6 President annually or at such other time as the Commission may deem fit, upon the working of the safeguards.

27 The SCs/STs Prevention of Atrocities Act, 1989. The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, is the main Act to deal with atrocities against members of Scheduled Castes and Scheduled Tribes. Gujarat has setup 10 exclusive Special Courts, apart from this some states have also setup special courts like Andhra Pradesh (12), Bihar (11), Chhattisgarh (7), Gujarat (10), Karnataka (6), Madhya Pradesh (29), Rajasthan (17), Tamil Nadu (4), Uttar Pradesh (40) and Uttarakhand (1). The remaining States and Union Territories have notified the existing Courts of Sessions as Special Courts for the trial of offences under the Act.

28 Panchayat Extension to the Scheduled Areas Act (PESA), 1996. The Parliament of India has passed the Provisions of the PESA, to extend the provisions of the 73rd Constitutional Amendment to the Schedule V Areas of the country. This Act accords statutory status to the Gram Sabhas in Schedule V areas with wide-ranging powers and authority. This aspect was missing from the provisions of the 73rd Constitutional Amendment. This Act recognizes the prevailing traditional practices and customary laws besides providing the management and control of all the natural resources- land, water and forest in the hands of people living in the Schedule Areas. The Act empowers people in the tribal areas through self governance.

29 One of the important provisions of this act states “the Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-settling or rehabilitating persons affected by such projects in the Scheduled Areas.

30 The Scheduled tribes and Other Traditional Forest Dwellers Act 2006. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006, recognises and vests the forest rights and occupation in forest land to Scheduled Tribes and other traditional forest dwellers who have been residing in such forests for generations but whose rights are not recorded. This law provides for recognition of forest rights to Scheduled Tribes in occupation of the forest land prior to 13.12.2005 and to other traditional forest dwellers who are in occupation of the forest land for at least 3 generations i.e. 75 years, up to maximum of 4 hectares. These rights are heritable but not alienable or transferable.

31 The National Policy on Tribals, 2006. The success of the National Policy on Tribals of the Government of India to a large extent will depend on strengthening of the National Commission for Scheduled Tribes, implementation of the Civil Rights Act and the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 and making necessary budgetary allocations.

32 Applicability of Acts and Provisions related to Indigenous People. CAL’s intended land selection and purchase arrangement(s) for each of its proposed facilities

7 through negotiated settlement on a willing seller and willing buyer principle will not involve application of any of the acts and provisions related to the indigenous people.

C Description of Current and Proposed Facilities 33 CAL was established in 1994 to manufacture pumps and electrical motors for irrigation applications and later on diversified into retail sales business of agro inputs viz. seeds, pesticides, fertilizers, bio-chemicals and bio-products in 2006-07 and fruits and vegetable processing for marketing it to big retailers network in 2008. CAL’s operations also include contract and/or lease farming apart from trading of agricultural inputs and equipment through its agri-retail malls or business centres. The existing facility description of CAL is briefly described hereunder.

C1 Current / Existing Facilities 34 Manufacturing of Pumps and Motors: CAL’s operations began in 1994 with the manufacture of pumps and motors for irrigation applications. CAL manufactures both submersible and turbine type pumps with suitable motors conforming to Bureau of Indian Standards and are designed for high operating efficiency, to withstand wide voltage fluctuations and suitable for long hours of continuous operation and thus has established itself as a formidable local brand in Gujarat.

35 Although, this is stated to be manufacturing operations of pumps and motors, but in actual CAL’s present operations is limited to the assembling of pumps and motors through sourcing of components and parts meeting its specifications and designs from various vendors. Therefore more aptly, these operations may be termed as assembling of pumps and motors rather than a manufacturing unit. The manufacturing /assembling facility is situated in the same premises of CAL’s corporate Office at Veraval, Shapar, District Rajkot, Gujarat.

36 Agri-Retail Mall/Business Centres: CAL at present has 38 established agri-retail malls or business centres across Gujarat, through which it renders agri-extension services like trading of seeds, pesticides, chemical / bio-fertilizers, bio products, agriculture machinery/equipment like tractors & its accessories like harvesters, Sprayers & dusters, drip & sprinkler irrigation system, pipes & fittings, green houses & net houses, cattle feed among others. Through these agri retail malls/business centres, CAL also provide farm services comprising periodic crop inspection, farm visits, soil testing for determining the type and application levels of fertilizers among others to the local agriculturists. Apart from these, the agri-business centres also serve as an information centre for crop loan, equipment loan, commodity finance and CAL facilitates the needy agriculturalists in availing the loans from financial institutions.

37 Cattle Feed Production Facility: CAL is marketing complete range of feed, under the registered trade mark “Champion” and intends to be the leading player of superior quality cattle feed in Gujarat. At present, CAL has an installed pilot production facility at Veraval, Shapar, District Rajkot, Gujarat and has plans to construct a new cattle feed production facility for 200 MT per day, with a state-of-the-art quality control laboratory at the same location.

8

38 Green Houses and Net Houses: CAL in collaboration with Top Green House of Israel provides turnkey solutions for erection of greenhouses, net houses, agronomic extension services including marketing support and buy back of crops at farm gate/yards. These operations are conducted through its CAL’s 38 agri retail cum business centres across Gujarat. The green house and net house solutions aims at creating a conducive environment to regulate and maintain crop growth parameters like ambient temperature, humidity, light level, ventilation rate, air speed, and carbon dioxide concentration levels, which have direct bearing on the overall growth of the plants leading increased productivity, right time flowering, and best timing to market the produce.

39 Contract and Lease Farming: CAL, at present has contract and lease farming7 in saurastra region through 38 Agri Malls in different Talukas. Altogether, there are some 8500 farmers are associated with CAL through contract and lease farming activities. The crop types are wheat, Groundnut, Maiz, castor Seed, Gram etc. The activities are directly connected through CAL’s Agri Malls staff and supervisors without any middlemen.

40 Further, CAL has arrangements including buying back of crops at farm gate/yards as per prevailing market rates from with agricultural land owners for about 24343 acres of land, spread across several Districts of Gujarat. The area under lease farming is 11550 acres for crops like Corn, Castor, Wheat, Gram and Groundnut whereas the contract farming is for 12793 acres for crops like Wheat, Gram, Corn. CAL also has plans to enter into contract and lease farming arrangements for horticultural value crops like Baby Corn & Pomegranate in 1000 acres and Banana in 1250 acres, in other districts within Gujarat.

41 Fruits and Vegetables Processing Facilities: CAL, since Year 2008 has diversified into fruits and vegetable processing through establishing pack houses (PH) comprising cooling chambers, ripening chambers as well as cold storage facilities (CSF) at several locations across Gujarat. The current/existing facilities of CAL for fruits and vegetables processing are summarized in Table 2.

Table 2 : Current Facilities of CAL for Fruits and Vegetables processing Sl. No. Facilities Nos. Unit Capacity Location 1 Cooling Chambers 4 15 ton each Rajkot. Gujrat (Pack House & Ripening Chamber) Multi-chambered CA Cold Storage 1500 ton

2 CA Cold Storage 1 2000 ton Borsad, Gujrat Multi-chambered CA Cold Storage with 2200 ton

7 Contract farming is a formal arrangement between CAL and agricultural land owner, wherein all inputs for agriculture including quality seeds, fertilizers, agri methods and all other related farming consultancy services will be provided by Champion Agro at cost to the land owner whereas the actual farming including arranging farm labour, water and electricity will be arranged by landowner. The Champion Agro will buyback the agri produce at market rates. However, the land owner will have the liberty to sell the produce to anybody and first right of refusal rests with Champion Agro. Lease farming is also a formal arrangement between CAL and agricultural landowner, wherein the land owner will only get a fixed land lease rent on an annual basis and all other agri inputs, responsibilities and marketing of agri produce will be undertaken by Champion Agro.

9 Sl. No. Facilities Nos. Unit Capacity Location sorting & grading facilities 3 Ripening Chambers 3 8 ton each Anand, Gujarat 4 Ripening Chambers 4 15 ton each Delhi

5 Ripening Chambers 3 8 ton each Solan (*ARCC), Cold Storage with Pack House 100 ton Himachal Pradesh

42 CAL directly procures the fruits from agriculturists at farm yards/gates, puts it through their fruit processing operations like washing, grading, waxing and ripening followed by packing prior to marketing it to big retailers like Future Group, Bharti-Walmart, Reliance Fresh, Big Apple, Carrefour, SRS Value Bazar, Safal (Mother Dairy, Aditya Birla Retail among others. The major commodities handled are Banana, Apple, Pomegranate, Papaya and alike. The Farmer produce are collected from Farm gates by CAL’s employees but the process of crop harvesting, up to loading into trucks will be carried out by locally available labour, constituting mainly male and at times female depending upon their availability.

C2 Proposed Facilities 43 CAL is presently seeking a corporate loan from ADB to enhance and invest in horticulture value chain infrastructure facilities. The proposed facilities are grouped into four types and comprise 12 subproject facilities. The proposed facilities, primarily caters to process the harvested fruits and vegetables (from farm yards/gates) involving operations like washing-grading-waxing-ripening (if required/ applicable), pre-cooling storage under regulated/ controlled atmosphere, packing and transportation to retailer destinations. The facilities, with the installed capacities will be designed to ensure demand driven regulated supply of processed fruits and vegetables throughout the year and absorb seasonal fluctuations. CAL has plans to engage upto 90% locally available labour and / or skilled workers for all its post harvest management including fruit processing operations and prefers to engage female workers upto 40% of the overall work force, depending upon their availability.

44 The proposed facilities and its respective unit wise capacities along with their locations are given in Table 3. The operations at each of these facilities are briefly described hereunder.

Table 3: Proposed Facilities by CAL under ADB Financing Sl. No. Type of Project Facility Unit Capacities Location 1 Individual Quick Frozen (IQF) Project Facility (1 No.) i) Vegetable Processing Line 2 ton/hr Gundasara Village, ii) Freezing Line 2 ton/hr Taluka Gondal, iii) Frozen Storage 1000 ton Distt. Rajkot, Gujrat iv) CA Cold Storage 1000 ton 2 Controlled Atmosphere (CA) Storage (1 No.) i) CA store 5000 ton Palanpur, Gujarat State ii) Pre-cooling Chamber 20 ton/day iii) Holding Chamber 500 ton

10 Sl. No. Type of Project Facility Unit Capacities Location 3 Agri-Retail Collection Centers (ARCC) (5 Nos.) i) Grading, Packing Line 1 ton/hr Navsari, Junagadh, Prantij, ii) Pre-cooling Chamber 20 ton/day Rajpipla, Borsad, all in Gujarat iii) Holding Cold Store 100 ton State iv) Reefer Van 10 ton v) Warehouse 500 ton vi) Laboratory (Soil/Water/Food) -- 4 Agri-Distribution Centers (ADC) (5 Nos.) i) Sorting, Packing, Grading Line 1 ton/hr Ahmedabad, Jaipur, Indore, ii) Pre-cooling Chamber 30 ton/day Delhi, Ludhiana, Jalandhar, iii) Holding Cold Store 300 ton

45 Individual Quick Frozen (IQF) Facility: This facility will comprise the following components: i) Individually Quick Frozen Line (IQF) ii) Air cooled Sorting, Grading, Processing and Packing Hall. iii) Multi chambered CA cold store iv) Frozen store for finished goods storage v) Material Storage and Handling Equipment

46 Individually Quick Frozen Facility (IQF): IQF is a food preservation technology, where fresh food passes through the low temperature zone very quickly, leaving very low and safe microbial counts. This type of freezing results in the product free rolling and not clotting into lumps. Through the IQF process it is possible to offer fresh picked' flavors (fruit, vegetable, sea foods, meat, and other fresh foods) all year round, in packaging convenient for the busy consumer. IQF foods lock-in the essential nutrients and flavor, with optimum color, taste and texture. The appeal of IQF foods resembles the much-sought-after appearance, flavor and nutrition of the fresh versions. The project envisages installing a 2000 kg per hour IQF Line capable of handling a variety of products. The suggested system for achieving the sub zero temperature temperatures is ammonia liquid pumping system. The major produces which will be processed in the IQF are green peas, mixed vegetables, sweet corn and other vegetables and fruits.

47 Air Cooled Sorting, Grading, Processing & Packaging Area: It is envisaged to undertake handling of IQF and stored produce by establishing an air cooled processing hall/room to carry out the various operations before and after processing. A prefabricated air- cooled sorting, grading, processing and repackaging hall will be constructed to handle a variety of operations. The facilities will include a sorting grading line of 2 MT/hour capacity.

48 Multi-chambered CA Cold store: This unit is envisaged to be single chambered, 2000 MT multi commodity cold storage (above zero) and 4 chambered 2000 MT frozen cold (sub zero) storage. The unit will have facilities for accurate monitoring of Temperature, Oxygen, Carbon Monoxide and Humidity. Pre-fabricated insulated metal laminated panels with insulation of Poly Urethane Foam (PUF) will be used for construction of cold room chambers. The joinery will be done through cam locks and finished with silicone sealant.

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49 For the above zero cold storage, gas tight sliding doors made of high density PUF as per required specifications will be provided for zero degree application and up to 90% humidity levels. For the multi commodity cold storage, cooling system comprise open drive single screw compressor unit with liquid pumping system integrated to forced air circulation evaporators and low oxygen, CO Scrubbers with PLC Control system.

50 For the sub-zero temperature cold storage, air cooled condensation system with Freon based coolant will be used for creating chilling and freezing temperatures. Vibration eliminators will be used in refrigeration piping to achieve greater efficiency in temperature control. Safety systems like high and low pressure cut outs, microprocessor based thermo controls, pressure relief valves for deep freezers, etc. will be used appropriately to ensure high efficiency and low loss in the system. The major produce, which will be processed in the IQF are potato, green peas, sweet corn and other vegetables and fruits such as papaya, guava, mango among others.

51 Material Storage and Handling Equipment: The proper handling of produce is critical to ensure that the product is not damaged during the physical handling and storage operations. Further, through appropriate storage and handling equipment, proper utilization of space and cost effective movement of produce within cold storage and distribution can be achieved. Therefore, plastic pallets, plastic crates, electric forklifts and crate washing system will be procured for this purpose.

52 Frozen Store for Finished Goods Storage: The storage of finished products at a constant sub 20 Degree Celsius in the frozen storage panel and refrigeration system will enable to maintain the products for longer duration at sub 20 Degree Celsius.

53 The process/operations flow diagram along with the layout of an IQF facility is given in Exhibit 1 & 2.

54 IQF Location and Land Requirements: The IQF is proposed to be set up at Gundasara Village, Taluka Gondal, Distt. Rajkot, Gujrat. The total land requirements for establishing the IQF facility is 12000 sq. mtrs. with a built up area of 4000 sq. mtrs as follows in Table 4.

Table 4: Land Requirements for IQF Facility Built Up Area Sl. No. Components (in Sq. Mtrs.) 1 Raw Material CA Storage 980 2 IQF Process Hall 1050 3 Frozen Storage for Finished Goods 980 4 Administrative Block & Other Misc Areas 1000 Total 4010

55 Power: The facility will require 600 KW of power and CAL will apply and get the power from the state run power distribution company.

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56 Water: The facility will require fresh water supply of about 25,000 litres per day, which is envisaged to be met through installation of a tube well within the facility and reuse/ recycling of treated wash water.

57 Manpower: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The IQF facility will require 60 semi-skilled labour, 6 plant operators, 8 managerial staff and 17 general staff for non-managerial work and administrative work.

58 Controlled Atmosphere (CA) Storage Facility: Controlled-Atmosphere (CA) storage is a technique for maintaining the quality of fresh fruits and vegetables in an controlled atmosphere that differs from normal atmosphere with respect to the concentrations of oxygen (O2), carbon dioxide (CO2), and/or nitrogen (N2). The desired composition of the atmosphere for storing commodities are usually obtained by initially increasing CO2 or decreasing O2 levels in a gastight storage room or container. Sometimes, the addition of Carbon Monoxide (CO) or removal of ethylene (C2H4) may also be beneficial. Modified atmosphere (MA) is a condition similar to CA, but with less or no active control of the gas concentrations. In CA, the O2 level is reduced and the CO2 level is controlled at a rate determined by the respiration rate of the commodity, the storage temperature, humidity and the permeability of the container and film wrap to the gases. Judicious selection of the commodity, the package dimensions, and the package material will ensure establishment and maintenance of the desired atmosphere conditions under specified storage temperatures.

59 Low-oxygen CA has received increased attention in recent years; not only because it markedly retards fruit softening, but also because it greatly reduces the development of storage scales and breakdown of apples and pears. In regular CA, the recommended O2 concentrations are usually 2% or higher. It has been found that O2 levels between 1 and 1.5% are even more effective in extending the storage life of some fruits and vegetables. Careful monitoring to maintain the precise O2 level is essential to avoid damage due to anaerobic respiration.

60 Beneficial Effects of CA Storage: Beneficial effects of CA storage include reduction of respiration, decay, discoloration, and internal breakdown, inhibition of ethylene production and ripening, and retention of firmness, flavor, and nutritional quality. The rate of respiration of fresh fruits and vegetables has been shown to be reduced by low O2 or high CO2. The lower respiration rate indicates that CA has an inhibitory effect on the overall metabolic activities of stored commodities. A slower rate of utilization of carbohydrates, organic acids, and other reserves usually leads to prolong the life of the produce. Ethylene production of fresh fruits and vegetables is suppressed by low O2 and/or elevated concentrations of CO2.

13 61 At present, the pre-dominance of the temperature controlled storage is prevalent in India. The CA storage facility practically non-existent in India. Typically, all the fruits and vegetables produced in India can be stored for the varying length of storage life ranging from few days to few months. Hence, it is varying imperative that the development of such preservation and storages facilities is under taken.

62 In order to increase the shelf life, it is necessary to remove the field heat instantly. In a pre-cooling unit, the produce temperature is reduced the desired levels. Different products require different temperatures for optimum shelf life. Apart from temperature, it is also necessary to control humidity level, since low humidity and high circulation of cold air take away the moisture from the produce and the quality of the produce is adversely affected. Moreover, loss of moisture also reduces volume, which affects the profitability.

63 The facility will handle two types of products. In the first category, products such as fresh vegetable, leafy vegetables, etc. will be received in the pack house in crates and will be dispatched to the market within one day. The second category includes those products, which need to be stored for long time. Such products need to be pre-cooled and handled through the cold chain.

64 Keeping in view the product assortment to be marketed, forced air-cooling is recommended for this project. In this system, cold air is passed through the produce at a high circulation rate so that the produce is cooled inside the box. Pre-cooling equipment consists of an air handler placed against the wall and the produce is placed in two rows in from of the air handler with a gap in between. The gap from the top and on the far end is covered with tarpaulin. The air handler sucks the air, which creates an air draft. The air from the room, which passes through the boxes containing the produce, fills up the containers. The cold air containing the desired humidity levels is pushed into the room through a vent attached to the refrigeration unit.

65 After the core temperature of the produce is brought down to the desired level, the produce can be sent to the cold storage or through reefer trucks to the market.

66 Pre-cooling: High temperatures are detrimental to keeping quality of fruits and vegetables, especially when harvesting is done during hot days. Pre-cooling is a means of removing the field heat. It slows down the respiration of the produce, minimizes susceptibility to attack of microorganism, reduces water loss and eases the load on cooling system of storage or transport. Peas and Okra which deteriorate fast need prompt cooling. Sometimes the stage of ripening and level of field heat of produce also determines the need for pre- cooling. For example, unless tomatoes are above 26.7°C and ripening is to be delayed, there is no need for pre-cooling.

67 In air cooling, cool air can be provided from cold storage. Temperature should not be less than 1°C to avoid freezing. In water cooling (hydro cooling), field heat is removed quickly. It is used for leafy vegetables to retain their texture and freshness. Ice can be added to bring down the temperature. However, temperature should be controlled to avoid chilling injury in cold sensitive fruits and vegetables.

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68 The presently proposed Controlled Storage (CA) facility by CAL will have grading, packing and post-harvest line (5T/H Capacity), Pre- Cooling (20 MT/per day Capacity), controlled atmospheric cold storage facilities, which would be mainly used for enhancing shelf life of fruits and vegetables and value addition etc. The modified atmosphere cold storage will be multi-chambered and have capacity to store 5000 tons of fruits and vegetables, to minimize the post-harvest and loses and also to ensure safe delivery of products. The facility will also be provided with refrigerated vans for collection of raw material and deliver chilled and fresh products to the market center.

69 The operations flow diagram and layout of the CA storage facility is given in Exhibit 3 & 4.

70 CA Storage Facility Location and Land Requirements: The total land requirements for establishing the CA storage facility is 12000 sq. mtrs. with a built up area of 5000 sq. mtrs. The facility is proposed to be installed at Palanpur District, Gujarat.

71 Power: The facility will require 600 KW of connected power and CAL will get the power from the state run power distribution company.

72 Water: The facility will require fresh water supply of about 10,000 litres per day, envisaged to be met through installation of a tube well within the facility and supplement the recurrent requirement through reuse/ recycling of treated wash water.

73 Manpower requirement: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The CA storage facility will require 10 semi- skilled workers, 3 plant operators, 2 Supervisors, 6 personnel for managerial work and 8 personnel for non-managerial work and administrative work.

74 Agri Retail Cum Collection Centers: ARCCs, proposed by CAL will be one of its kind of agri mall, which will serve each and every agri related inputs (be it seeds, pesticides, fertilizers, farm machinery, irrigation system etc) from all major/known brands under one roof. It will also act as a Technical Training and Knowledge Centre to the farmers and positioned to serve as one stop shop the centre. The ARCC will also provide soil & water testing, crop inspection and farm visit, training, agri- advisory, market trends, prices of various crops in the markets to the framers.

75 The ARCC will also include Pack House having facilities for grading, sorting, cleaning packing and storage so that the quality of the agri produce, and fruits & vegetables can be stored for better prices. The pack house will serve as a boon for farmers where the produce will be enhanced quality wise and prepared to be sold at much fairer prices to markets, food processing companies and export houses. CAL’s buy back facilities will facilitate direct contact with farmers and can fetch much better prices for their year round hard work. The

15 ARCC’s will be located at the close vicinity of farm gates where farmers can avail the benefits of all facilities for multi produce under one roof. CAL’s field executives will also provide extension services from time to time and assist the farmer(s) in all farm related processes/activities.

76 ARCC, aims at empowering farmers and meeting the needs of rural households by providing access to agricultural products, services summarized below: i) Quality inputs (fertilizers, seeds, pesticides, farm, equipment’s, veterinary products, animal feed, irrigation items) ii) Agronomic services with team of qualified technical staffs like soil testing, crop inspection, weather forecasts etc. iii) Financial services- acts as a facilitator between the farmers and the financial institutions for different types of loan including farm credit, life insurance, medical Insurance and crop loan, term loan etc. iv) Access to output markets by helping farms produce buyback opportunities, commodity trading v) Information on latest trends, new developments and research in agriculture, government schemes and subsidies, market prices etc.)

77 ARCC is envisaged to provide all the required facilities and services for marketing under one roof and connecting farmers directly with the market. The operation of ARCC is based on hub and spoke format in which the ARCC (Collection center) acting as a hub is connected to many villages (production centers), which act as spokes. Each ARCC will cater to communities within a 25-30 km periphery. The catchment area will depend on convenience needs of farmers like transportation to collection center, operational efficiency and capacity utilization at the center.

78 The ARCC will provide an easy and direct access to agricultural products, technical services regarding product and general agriculture practices so that the farmers can improve upon their produce quality, quantity and subsequently CAL will buy-back farmer’s agri produce at market rates, which will lead to socio-economic development of the farmers,

79 The operations/Process flow diagram at ARCC along with linkage to ADC and lay out plan of an ARCC and ADC are given in Exhibit 5 & 6.

80 ARCCs Location and Land Requirements: The ARCC’s are proposed at 5 locations namely Navsari, Junagadh, Prantij, Rajpipla, Borsad all in Gujarat. The land requirement per location will be 6000 Sq Mtrs with a built up area of 1500 Sq Mtrs.

81 Manpower, Transport & Communication Facilities: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The ARCCs will require a total 310 varied staff, comprising semi-skilled workers, plant operators, supervisors,

16 managerial, non-managerial and administrative staff. In addition, the ARCC will also be provided with adequate number of refer trucks and vans with loading and unloading facilities.

82 Power: ARCC at each location will require 60 KW, CAL intends to get the required power connection from the State run power distribution company.

83 Water: ARCC at each location will require about 10000 litres of water per day, which can be sourced from construction of a tube well within ARCC facility and supplement the requirement through recycle and reuse of treated wash water.

84 Agri Distribution Center: The Agri Distribution Centers (ADC) is intended to provide forward linkage and will receive the agri produce from ARCC as well as from other major F&V growing pockets. The ADC will act as central distribution facility and manage following components of supply chain and will thus help to reduce heavy post-harvest losses of fruits and vegetables.

a. Post-harvest management i) Pack house including pre-cooling (Sorting, Grading, Quality check, Ripening, Short/Long term storage, Packaging) ii) Controlled atmospheric Storage

b. Network marketing (Branding) i) Supply to processing units ii) Retailing(include modern Retail Outlets, food marts / super markets / malls, general trade shops iii) Institutional Sales – Hospitals, Army, NCC, Gurudwaras, Charitable trusts, Mid- day meals, etc. iv) Wholesale marketing

c. Logistics and distribution i) Refer transport ii) Distribution centers

85 Agri Distribution Centers will cater to the market demands of farm output and sourcing the produce from ARCC and other production belts. These centers will be located in high market potential areas, which have huge demands for fruits and vegetables with a focus on B2B sales.

86 Agri Distribution Centers (ADC) will be located in high per capita income and fastest growing cities (with population of 5 million and above) like Ahmedabad, Jaipur/ Indore, NCR (Delhi), Ludhiana, Panchkula (Chandigarh).

87 The lay out plan of an ADC is given in Exhibit 7. The operations/Process flow diagram of ARCC along with its linkage to ADC facility is given in Exhibit 5.

17 88 ADCs Location and Land Requirements; The land requirements for each ADC will be setup in 4000 sq.mt. area (built-up area of 1500 sq.mt.) and will be equipped with facilities comprising pre-cooling unit(cap.20 tonnes/day), processing unit(cap. 50 tonnes/day), ripening unit (cap.15 tonnes/day) and cold storage (cap.150 tonnes).

89 Manpower, Transport & Communication Facilities: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The ADCs will require a total of 150 staff, comprising semi-skilled workers, supervisors, managerial staff, and non- managerial staff and administrative staff. In addition, the ADCs will be provided with refer trucks and vans with loading and unloading facilities.

90 Power: ADC at each location will require 60 KW, CAL intends to get the required power connection from the State run power distribution company.

91 Water Requirement: ADC at each location will require about 10000 litres of water per day, which can be sourced from construction of a tube well within each ADC facility and supplement the requirement through recycle and reuse of treated wash water.

D Description of Baseline Environment 92 The proposed facilities comprising IQF (1No.), CA storage (1No.), ARCC (5No.) are all located in various districts within Gujarat. Whereas the ADCs are located at fast growing cities with high per capita income located in Gujarat, and other neighbouring states like Rajasthan, Madhya Pradesh, Delhi, Punjab and Haryana. The location details and land requirements at each of the locations for the proposed facilities are given in Table 5. The baseline environment of the project facility locations are briefly described hereunder.

Table 5: Location and Land Requirements of Proposed Facilities No. of Land Requirement/ Sl. No. Facility Type Location Unit(s) Unit 1 Individual Quick 1 12,000 Sq. mtrs. with Gundasara Village,Taluka Frozen (IQF) 4000 sq. mtrs of built-up Gondal,Distt. Rajkot, Gujarat Project Facility area 2 Controlled 1 12,000 Sq. mtrs with Palanpur, Gujarat State Atmosphere (CA) 5000 sq. mtrs of built-up Storage area 3 Agri Retail and 5 6,000 Sq. mtrs with 1500 Navsari, Junagadh, Prantij, Collection Centres sq. mtrs of built-up area Rajpipla, Borsad, all in (ARCC) per location Gujarat State 4 Agri Distribution 5 4,000 Sq.mtrs with 1500 Ahmedabad, Jaipur /Indore, Centre(s) (ADC) sq. mtrs of built-up area Delhi, Ludhiana, Jalandhar, per location

18 D1 Baseline Environmental Profile of IQF Facility Location / Site 93 Facility Location: IQF facility has been proposed in Gundasara Village, Taluk Gondal, District Rajkot. Within Gujarat, Rajkot is third-most advanced district and Rajkot city is the administrative headquarters of the district. The location plan of project site and Gundasara Village is given in Exhibit 8.

94 Road Rail Connectivity: The Village Gundasara in Gondal Taluk is well connected to National Highway network through NH 8B and also adjacent to Rajkot Verawal Section of Western Railway and well connected to the National rail network.

95 Weather: The weather in the project region does not exhibit extremities and range between 20°C and 40°C. The summer months are between March to June and winter months are between October and February. The monsoon season span between July to September months with an average annual rainfall ranging between 625-750 mm.

96 Water Resources: Within vicinity of 1-2 km of the project site, there are no rivers or surface water bodies. Owing to the arid climatic conditions, characterized by erratic or limited rainfall and in between drought years, groundwater is the only reliable source of irrigation water for agriculture as well as domestic consumption by the local communities. The ground water table in the project region is 75 to 100 meters below ground level. The water quality is satisfactory and widely used without any restrictions due to quality or any other issues.

97 Flora and Fauna: In the vicinity of project site and/or within a surrounding region of 5 -10 km radius, there is no forest area, wild life sanctuary or ecologically sensitive area. No endangered fauna or their migrant routes have been reported in the project region.

98 Archeological/Historical Monuments: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there are no archaeological and/or historical monuments, declared and protected by the State or Government of India.

99 Landuse: The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 sq metres (1.2 Ha) and is devoid of any human settlements/households or vegetative cover. The site clearing and construction activities of the facility will not require tree felling or clearance of vegetative cover at project site. The general land use pattern in the project region is agriculture land use interspersed with cultivable pasture land, uncultivable open areas with sporadic human settlements.

100 Soil: Soils in the project region vary in depth from 25 to 60 cm and are well drained due to porous sub soil structure. The colour of the soils vary from dark grey to light grey, clay loam to clay in texture and calcareous in nature and thus Calcium is the dominant exchangeable cation. Taxonomically, these soils are classified as Entisols, Inceptisols and further classified as Orthents, Ochrepts, Psamments, Fluvents, Aquepts at sub-group level. The soils in the project region have low fertility values as they are poorly supplied with N and P (Sodium and Phosphorus) but with adequate supply of K (Potassium).

19 101 Agricultural Crops: The major crops cultivated in the project region are Groundnut, Cotton, Pulses, Wheat, Bajra, Jowar & Sugarcane. Vegetables are also grown as an intermittent crop.

D2 Baseline Environmental Profile of CA Storage Facility Location/Site 102 Facility Location: The CA storage facility is proposed in Palanpur town, the district headquarters of Banaskantha District. The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 Sq meters (1.2Ha) and is devoid of any human settlements/households or vegetative cover. The location plan of project site and Palanpur town is given in Exhibit 9.

103 Road Rail Connectivity: The facility location is well connected to National Highway and State Highway network through NH 14, SH 41 and SH 54. Palanpur is also on the main line of Western Railway and well connected to the National rail network.

104 Economy of District: The economy of the Banaskantha district, in which the CA storage facility is being proposed, is largely based on agro & food processing, tourism, textile and mineral (ceramic) based industries. The district ranks 1st in the production of vegetables contributing nearly 18% to the overall vegetable production of the Gujarat State. The district is also the largest producer of potatoes and one of the leading producers of Isabgul (Psyllium husk- a laxative medicinal property) in the country.Thus the district industry profile and economy auger well for the proposed CA storage facility.

105 Weather: The weather in project region comprising Palanpur town and surrounding areas exhibit extremities and range between 5°C and 42°C and occasionally reaching up to 46°C. During summer months of March to June, the weather will be hot and humid with sandy winds. However, during winter months of November to February, the temperature ranges between 5° to 15°C, which is considered as quite cold, compared to other parts of Gujarat. The average rainfall of Palanpur range between 500 to 750 mm.

106 Water Resources: Within vicinity of 1-2 km of the project site, there are no rivers or surface water bodies, although Banas, Saraswati & Sepu rivers flow through the district. Owing to the arid climatic conditions, characterized by erratic or limited rainfall and frequent drought years, groundwater is the only reliable source of irrigation water for agriculture as well as domestic consumption by the local communities. The ground water table in the project region is 75 to 100 meters below ground level. The water quality is satisfactory and widely used without any restrictions due to quality or any other issues.

107 Flora and Fauna: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there is no forest area, wild life sanctuary or any ecologically sensitive area. No endangered fauna or their migrant routes have been reported in the project region.

108 Archeological/Historical Monuments: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there are no archaeological and/or historical monuments, declared and protected by the State or Government of India.

20 109 Landuse: The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 sq metres (1.2 Ha) and is devoid of any human settlements/households or vegetative cover. The site clearing and construction activities of the facility will not require tree felling or clearance of vegetative cover at project site. The general land use pattern in the project region is agriculture land use interspersed with cultivable pasture land, uncultivable open areas with sporadic human settlements.

110 Soil: Soils in the project region vary in depth upto to 90 cm or even more. The colour varies from brown to yellowish brown and soils are sandy loam to loam in texture. Taxonomically these soils are classified as Entisols, Inceptisols, Aridisols. These are further classified as Ochrepts, Orthents, Orthids, Psamments and Fluvents at sub-group level. The NPK (Sodium, Phosphorus and Potassium) value of the soils in the project regions is medium, hence leading to moderate fertility of soil.

111 Agricultural Crops: The major crops cultivated in the project region are Paddy, Bajra, Pulse, Cotton, Groundnut, Tobacco, Wheat, Jowar, Minor Millet, Vegetables (majorly potato), Spices & condiments, Oil Seeds. The vegetable production of the Distrcit constitutes 18% of the overall production of the State.

D3 Baseline Environmental Profile of ARCCs and ADCs Location/Site 112 The baseline environmental profile of site(s) proposed for ARCCs (5no.s) and ADCs (5 No.s) were also assessed and found to be at par or even with lower environmental sensitivity as proposed for IQF and CA storage facilities. Further, these facilities will require much smaller land requirement and will be located near in proximity to urban centres like Navsari, Junagadh, Prantij, Rajpipla, Borsad towns, all in Gujarat State and major cities/business centres like Ahmedabad, Jaipur /Indore, Delhi, Ludhiana, Jalandhar cities of nearby states as per the business plans of CAL. In all these locations, facilities will be established within the designated agri-produce marketing centres, having all basic amenities and facilities and has been setup either directly by the respective State Governments or through co-operatives.

E Anticipated Environmental Impacts and Mitigation Measures E1 Pre-Construction Stage Impacts and Mitigation Measures: 113 The pre-construction stage impacts arising out of the siting and selection of land for the proposed facilities can have wide ranging but limited impacts due to scale of project facility on land, soil, water resources, flora and fauna, socio economic environment. However, CAL’s criteria for siting of the facility and land purchase arrangements (ref Annexure 3), will avoid all such perceivable impacts. The land purchase arrangements adopted by CAL will also avoid any social impacts on the local communities as well as involuntary resettlement impacts and issues arising due to economic displacement.

114 The IEE indicates that pre-construction stage impacts due to location or siting of facility can be mitigated through adopting pre-determined criteria for siting and finalization of location for the facilities. The involuntary resettlement impacts are avoided through purchase of land for the facility on a ‘willing seller and willing buyer’ principle through direct negotiated

21 settlement from one or a maximum of three land owners. The proposed facilities will avoid impacts in indigenous peoples.

E2 Pre-construction Stage Regulatory Compliances: 115 Under the provisions of Water (Prevention and Control of Pollution) Act, 1974, each of the proposed facility is to obtain the consent for establishment (CFE) from the State Pollution Control Board. It is an offence to commence or run any facility/industries, which generate/discharge industrial or domestic wastewater without obtaining the consent and the State Pollution Control Board is empowered to close down and seal the unit, in case of violation.

116 The consent for establishing (CFE) is issued by the State Pollution Control Board, on submission of project related information in the prescribed application along with applicable consent fee, based on the scale and category of a specific facility/industry. The consent management procedures are well established by State Pollution Control Board and can be obtained in a time bound manner.

E3 Construction Stage Impacts and Mitigation Measures: 117 Due to the nature and sale of the proposed facilities, the impacts arising out of the construction activities are comparable to any general building construction projects. Such impacts can be avoided and/or mitigated through site-specific environmental management plan/measures. The likely impacts, mitigation measures along with responsibility for implementing the measures are outlined in Environmental Mitigation Action Plan (EMAP) given in Annexure 4. The construction contract documents will include conditions / provisions to bind the contractors / subcontractors to comply with National Labor and Safety Standards to be maintained at site during work.

E4 Operation Stage Impacts and Mitigation Measures: 118 The operation stage impacts due to the proposed facilities can be mainly due to process wash water, solid waste from operational areas and sanitary waste/sewage from toilets and wash areas. In addition to this, the safety, health and indoor air quality at work area environment will be one of the issues which require to be addressed in order to avoid the associated impacts at work place. These impacts can be readily managed through providing appropriate measures as summarized here under.

119 a) Process Wash Water: Fresh water will be used to wash and clean the fruits and vegetables, prior to further processing operations as per requirements. The washing and cleaning operations are required to remove loose organic scales, dirt and soil present on the fruits and vegetables, which also generate wash water. The facility wise water consumption and estimated liquid waste generation is given in Table 6.

120 The wash water needs to be treated to meet the applicable effluent discharge standards prior to disposal. The applicable effluent standards to be adopted, prior to discharge of treated liquid waste is given in Table 7.

22 Table 6 : Liquid Waste Generation from CAL’s Proposed Facilities (Per Location Wise) Process Water Consumption and Waste Generation (litres/day) Sl. No. Facility Fresh Water Consumption Wash Water Generation 1 IQF 25,000 23,750 2 CA Storage 25,000 23,750 3 ARCC 15,000 14,250 4 ADC 5,000 4,750

Table 7: Liquid Waste Discharge Standards for Fruits and Vegetables Processing Industry IFC Guideline Effluent Standards for Food and Sl. Parameter Values for food & Vegetable Processing Industry, No beverage sector EPA Act 1986, Govt. of India 1 pH 6 – 9 6.5 – 8.5 2 BODs (mg/l) 50 (5 days @ 200 C) 30 (3 days @ 270 C) 3 COD (mg/l) 250 Not specified 4 Total Nitrogen (mg/l) 10 Not specified 5 Total Phosphorus (mg/l) 2 Not specified 6 Oil & Grease (mg/l) 10 10 7 Total Suspended Solids (mg/l) 50 50 8 Total Coliform Bacteria 400 Not specified (MPN/100ml) 9 Temperature increase ( 0C ) < 30 C Not specified 10 Active Ingredients / Antibiotics to be determined on Not specified case specific basis

121 Since, the process wash water is not highly polluted and can be easily treated through settling, filtration, followed by oxidation cum disinfection. The treated wash water can be safely reused /recycled except for toping up the system losses/wastages and enable/avoid use of fresh water.

122 b) Sanitary Waste/Sewage: The proposed facilities will generate sanitary waste/sewage mainly from toilets and wash areas provided for the workers and other staff within the facility. The facility wise estimated sanitary waste/sewage generation is given in Table 8.

Table 8 : Sanitary Waste Generation from CAL’s Proposed Facilities (Per Location Wise) Domestic Waste Generation(litres/day) Sl. No. Facility Staff Strength Sewage/Sanitary Waste* 1 IQF 90 3,650 2 CA Storage 30 1,200 3 ARCC 60 2,450 4 ADC 30 1,215

* based on 45 litres/day/person consumption and 90% of which as sewage/sanitary waste generation

23 123 The sanitary waste/sewage can be directly discharged into public sewer system (municipal) without any treatment. At locations, where public sewer system is not available, septic tank and soak pit disposal systems will have to be provided. Due to the small quantities of the sanitary waste generation at each of these facilities, any other form of mechanized biological treatment may not be feasible or warranted. Since, public sewer systems are not available at locations of the proposed facilities, septic tank and soak pit disposal systems are the preferred option for treatment of sanitary and sewage from toilet and wash areas.

124 c) Process Solid waste: The processing of vegetables and fruits at each of the facilities will generate solid waste in the form of discarded vegetables fruits/vegetables, leaves, packing materials etc, which are mostly organic residues. The facility wise estimated solid waste generation is given in Table 9.

Table 9 : Solid Waste Generation from CAL’s Proposed Facilities (Per Location Wise) Waste Generation Per Ton of Total Waste Sl. No. Facility Product Processed (Kgs)* Generation** (Kg/day) 1 IQF 40 400 2 CA Storage 40 400 3 ARCC 40 200 4 ADC 40 200 *in line with IFC’s EHS guidelines for food and beverage processing sector ** Based on the installed capacity to process fruits and vegetable at respective facility

125 Since the solid waste is mostly organic in nature, it can be decomposed through aerobic composting or through vermin composting process and generate organic manure with good fertility value. The composting process will require minimal space and can be provided at each of the facility.

E5 EHS Performance Standards/Requirements: 126 In order to ensure workers safety, health and work area environment, particularly indoor air quality during the operations stage, industry specific EHS performance standards are to be implemented. The EHS performance standards/requirements shall cover workers safety (including use of PPEs), housekeeping, sanitation and hygiene at the work place. The environmental, health and safety guidelines for food and beverage processing sector recommended by the IFC, World Bank are given in Annexure 5 for reference and adoption by Environmental and Social Safeguard Management Unit (ESMU) of CAL.

F Analysis of Alternatives 127 This section presents the considerations made during the analysis of alternatives carried out to the proposed facilities in terms of equipment layout, selection of machinery, siting/location of facility, land acquisition, including ‘no project facility alternative’. These are briefly summarized hereunder.

24 F1 No Project Facility Alternative 128 India is the second largest producer of fruits and vegetable in World, accounting for nearly 10% of global fruits & vegetables production. Its diverse agro-climatic regions are ideal to grow a large variety of crops. In spite of being one of the world’s 2nd largest producer of fresh fruits & vegetables, its share in the World market in both fresh and processed form is less than 7%. This is mainly due to its inadequacy of proper post-harvest management, resulting in the produce getting perished before it reaches the consumer. As a result of this, an estimated of 25-35% of the horticulture produce perishes due to improper postharvest operations, which in turn reduces the grower’s share in the present marketing arrangements. Fruit and vegetable processing sector in India is underdeveloped and less than 7% is being processed as against 30% in Thailand, 70% in Brazil, 78% in Philippines and 80% in Malaysia.

129 Therefore, urgent interventions are required in the vegetable and fruits processing sector in India comprising harvesting at proper maturity, adoption of improved harvesting and handling techniques, innovations in mechanical harvesting, electronic sorting, proper handling, grading, packaging, storage and transportation under controlled temperatures to reduce the post-harvest losses. Recent developments in the storage techniques for fruits and vegetables like controlled atmosphere and sub-atmosphere storage, computerized sorting and grading and adoption of cold storage facilities are the required interventions required for the growth of the fruits and vegetable processing sector in India.

130 As per the present estimates, this sector needs a significant boost in investments to the tune of Rs 140,000 crores. Such investments are likely to generate direct employment for 7.7 million people and indirect employment for some 30 million people. CAL’s investments plans for the proposed facilities under ADB financing is in sync with these sectoral investment requirements of fruits and vegetable processing Industry and can contribute to the socio economic growth of the country.

F2 Equipment Layout and Selection of Machinery 131 While, finalizing the proposed facilities, several alternatives and options have been considered in (a) selection of equipment and machinery with latest technology for process operations to ensure desired output /handling capacity and (b) Compact design and functional layout for least usage of floor space. These considerations have enabled CAL to arrive at the best functional layout within an optimal floor area as well as selection of equipment and machinery for smooth operations for desired handling capacity and helped in avoiding unwarranted inclusions

F3 Siting of the Facilities and Land Purchase Arrangement 132 CAL’s expansion plans to build fruits and vegetable processing (project) facilities in Gujarat and elsewhere across India, required acquisition of small parcels of land for each project facility. The land requirements varied between 4000 sq. metres (0.4 Ha) to 12000 sq. metres (1.2 Ha). Such land parcels were available in Gujarat and elsewhere either from a single land owner and or group of land owners ranging between 2 to 4, depending upon the location, individual owner’s land holding and willingness to sell the land in part or full.

25 133 However, in order to mitigate the likely social and involuntary resettlement impacts due to siting and land purchase, CAL has applied the following considerations, while finalizing a specific location as well as selection of land parcel for establishing the proposed project facility. These comprised: i) Land parcel, suiting to its business operations should be road facing atleast on any one side with reasonably good connectivity to State Highways and National Highways ii) Land parcel should not be a prime and fertile agricultural land, preferably a barren land or having a low agricultural potential iii) Land parcel shall be devoid of any household(s), structures, free from vegetative cover iv) Land parcel should not be in proximity to any archeological monuments, large natural water bodies, national parks, wild life sanctuaries, forest areas, ecologically sensitive areas declared by the State or Government of India v) Screen the land parcel ownership documents and profile of the owner to determine whether the land belongs to any person of indigenous(Scheduled Tribe or ethnic minorities) group and directly or indirectly affects his or her dignity, human rights, livelihood systems or culture, if any due to proposed land purchase transaction vi) Screen the ownership details of the land parcel to determine whether the land is owned by one owner or how many owners are involved and their willingness to sell the land parcel to CAL on a mutually negotiated rates

134 In case the landowner(s) belongs to an Indigenous Group, CAL’s to exercise its resources to identify an alternative suitable land, in order to avoid purchase of land parcel belonging to an individual or group of indigenous people, to the extent possible. If unable to find an alternate land, suiting its requirements, it shall review project facility planning and design and explore options to minimize land requirements.

135 After exercising option(s) to minimize land requirements, CAL to initiate dialogue with the individual or group of land owner(s) belonging to indigenous group to seek their consent in writing to purchase their land through direct negotiations for proposed project facilities.

136 In case the landowner(s) belongs to a scheduled tribe/group or an indigenous group, it shall be the responsibility of the landowner(s) to get required mandatory permission from the competent authority at District level, prior to negotiations, transaction and transfer of title.

137 CAL shall not apply coercion directly or indirectly on to potential sellers and shall conduct transaction in a transparent, consistent and equitable manner and ensure that transaction leads to better income and livelihood status of the potential seller of land.

G Information Disclosure, Consultation 138 During the siting and selection of the land for the facility, CAL has undertaken the following activities as part of its information disclosure, consultation and participation.

26 i) Meetings with the local village community leaders either in group or individually to ascertain the availability of the land and potential land owners willing to sell the land on direct negotiated basis. ii) Press Notification in one local Newspaper and one national newspaper inviting objections, if any from public at large due to land purchase, through their counsel/legal advisor. iii) Disclosure of a project brief to enable them to understand the nature of operations, land requirements during these initial interactions. iv) Disclosure of a more detailed project brief to potential land owners willing to sell the land upon identifying the suitable land parcel suiting CAL’s business operations, so as to make them understand the nature of operations, land requirements. v) Focused Group meeting with potential land owner(s), to assess their willingness to sell the land through the direct negotiations. CAL has encouraged women members of the land owners’ family to actively participate during the assessment and consenting to sell their land. vi) All such interactions with local people has taken place in an atmosphere free of intimidation or coercion. vii) CAL has provided project brief to several local people, who have shown interest to about CAL’s operations in the project facility area

139 Due to the nature and scale of land requirements, all the consultations conducted by CAL were informal and none of the proceedings of the meetings and viewpoints expressed by the local community have been formally documented /recorded. CAL procures land directly from owners through general practices of purchase and sale of lands in accordance with CAL’s corporate consideration for siting and land purchase for new facilities (Annexure 5 of ESMS Framework).

140 Since the proposed project facility did not involve social impacts due to involuntary resettlement issues and impacts on indigenous peoples, no formal social surveys, consultations, were warranted. The current environment regulatory framework, CAL’s proposed facilities do not fall under the purview of the EIA Notification, 2006, which exempts CAL from conducting formal public consultation with the communities, where the project facilities are located. The issuance of consent for establishment (CFE) and Consent for Operation (CFO) management procedures of the SPCB also does not warrant conducting public consultation with the communities, where the project facilities are located.

H Grievance and Redress Mechanism 141 During the course of interactions, CAL has informed the probable land owners and other community people that local community CAL as a corporate entity has a grievance redress mechanism to address any possible concerns and dissatisfaction of affected local people regarding the social and environmental impact of its project facilities and local community can seek an appropriate and amicable solution. CAL shall promptly respond to the affected groups, be transparent and free of gender discrimination, enable different affected groups to express their opinions, with no fear of reprisal.

27 142 The grievances will be redressed at the subproject level in a consultative manner and with full participation of the affected households, or their representatives, along with CAL and local self-government representatives, if required in the following manner. i) Stage 1. If any person is aggrieved by any aspect of the proposed project facility, he/she (AP) can state his/her grievance and appeal to the head of the specific subproject. If an oral appeal is made, the head of the specific subproject will record it on paper and process it for making a decision on or resolve it in two weeks. The AP will be informed of the result via written notice. ii) Stage 2. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the ESMU at CAL’s corporate office after receiving the decision by the head of the specific subproject. The ESMU manager will reach a decision in two weeks and AP will be informed of the result via written notice. iii) Stage 3. If the aggrieved AP is still not satisfied with the decision of ESMU Manager at CAL’s corporate office, he/she will appeal to the office of the CAL’s Chairman cum Managing Director after receiving the decision from ESMU Manager. The Chairman cum Managing Director of CAL, with the approval of the Board of Directors will reach a decision in two weeks. The AP will be informed of the result via written notice. iv) Stage 4. If the AP is still dissatisfied with the decision of the CAL’s Chairman cum Managing Director, he/she will appeal to the civil court according to the civil procedural law after receiving the decision from the CAL’s Chairman cum Managing Director and decision of the court shall be the final and binding on both CAL and affected persons.

143 CAL has informed the local community and the affected about the grievance and appeal procedure through group meetings, so that they can fully understand their rights for grievance and appeal in a court of law.

I Environmental Management Plan: I1 Environmental Mitigation Action Plan: 144 An environmental management action plan for pre-construction, construction and operation stages for the proposed facilities are given in Annexure 4. The EMAP indicates the role and responsibility for implementation at each of the implementation stages.

I2 Environmental Enhancement Measures: 145 In addition to the implementation of the EMAP, the proposed facilities can include several environmental enhancement measures at the facilities comprising: i) Reuse and Recycling of treated process wash water ii) Rain Water Harvesting and Recharging iii) Regular occupational health checkups and screening for workers iv) Mandatory use of PPEs v) Landscaping and Plantation

28 vi) Adoption of renewable energy for lighting applications

I3 Operation Stage Environmental Monitoring: 146 During the operational stage, periodical environmental monitoring is to be carried out at each of the facility covering the following: i) Quality of water to be used for washing ii) Wash water quality (prior to treatment) iii) Fertility quality of organic waste iv) Performance evaluation of Treatment facility for wash water v) Cleaning of Rainwater harvesting and recharging structures, prior to monsoon

147 The periodical environmental monitoring during the operation stage will enable to determine the effectiveness of the environmental mitigation plan as well as the benefits of the fit

I4 Budgetary Cost Provision for EMAP Implementation: 148 The implementation of EMAP during planning/pre-construction, construction and operation stages for all proposed facilities will require a capital cost of INR 1,64,00,000 and a recurring cost of INR 61,60,000 per annum. The summary of the budgetary provision for implementing the EMAP during planning/pre-construction, construction and operation stages is given in Table 10. The detailed cost provision for EMAP implementation for CAL’s Proposed Facilities is given in Annexure 6.

149 The recurring cost comprises annual maintenance and upkeep of liquid and solid waste management systems as well as components implemented as part of environmental enhancement measures. The recurring cost also includes periodic environmental monitoring in compliance with local regulatory as well as ADBs safeguards requirement.

Table 10: Summary EMAP implementation cost (Figures in INR) CA IQF ARCC ADC Total Cost S No Type of Facility Storage (1No.) (5No.s) (5 No.s) (INR) (1No.) A One time capital cost for 24,50,000 24,50,000 57,50,000 57,50,000 164,00,000 implementation of EMAP components for all Facilities B Annual Recurring Cost for all facilities i Annual Maintenance cost 2,25,000 2,25,000 1,15,000 1,15,000 6,80,000 of EMAP components @10% of capital cost ii Operation stage 6,00,000 3,60,000 3,60,000 3,60,000 16,80,000 periodical environmental monitoring for all facilities Sub-total (Annual 8,25,000 5,85,000 23,75,000 23,75,000 61,60,000 Recurring Cost for all facilities)

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I5 Institutional Arrangements: 150 The institutional arrangements for implementation of EMAP during planning/pre- construction, construction and operation stages are given in Table 11. The role and responsibility for implementing the EMAP is further detailed under Annexure 4.

Table 11 : Institutional Arrangements for implementation of EMAP Implementation Implementation Responsibility Sl.No Stage Planning & Execution Supervision & Monitoring 1 Planning & Pre- Project Development Team and Designated Senior Management Construction Stage ESMU of CAL Functionaries of CAL 2 Construction Stage Contractor/Agency engaged by ESMU and Project Management CAL Group(PMG) of CAL 3 Operation Stage ESMU & Project facility specific ESMU / Project Operations SHE (Safety, Health & Group/Designated Senior Environment) Officer Management Functionaries of CAL

J Conclusion and Recommendation 151 Due to the nature and scale of the facilities proposed by CAL, the likely impacts are not significant. The social impacts are avoided through the purchase of land through direct negotiated settlement on a willing buyer and willing seller principle. The pre-construction, construction and operation stage environmental impacts can be mitigated by implementing management measures through an institutional arrangement with clearly defined roles and responsibilities and dedicated budgetary provisions. The consent for establishing and operation of the proposed project facilities can be obtained from the state pollution control board in a time bound manner. The project facilities will be subjected to periodical environmental monitoring during the operation stage. Further, implementation of environmental enhancement measures like recycling of treated wash water, rain water harvesting and ground water recharging, adopting renewable (solar) energy for lighting applications will enable the proposed facilities to be an environmentally sustainable, compliant to state regulatory requirements and consistent with the safeguard requirements of SPS, 2009 and will not involve any kind of reputational risk to ADB on environmental and social safeguard issues.

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List of Exhibits

Exhibit 1 Process / Operations Flow Diagram of IQF Facility for Fruits & Vegetables Exhibit 2 Layout Plan of IQF Facility for Fruits & Vegetables Exhibit 3 Operations / Process Flow Diagram of CA Storage Facility Exhibit 4 Layout Plan of CA Storage Facility Exhibit 5 Operations / Process Flow Diagram of ARCC with Linkage to ADC Exhibit 6 Layout Plan of ARCC Exhibit 7 Layout Plan of ADC Exhibit 8 Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, Rajkot District, Gujarat Exhibit 9 Location Plan of CA Storage Facility Site at Palanpur, Banaskantha District, Gujarat

31 Exhibit 1 PROCESS / OPERATIONS FLOW DIAGRAM OF IQF FACILITY FOR FRUITS & VEGETABLES

32

Product Receipt in bags

Sorting, grading, preliminary washing & inspection

Automatic cutting / manual trimming / peeling

Automatic washing and cleaning

Small part / excess wash water removal

Manual inspection

Controlled feeding

Blanching / heat treatment

Chilling cooling t0 + 10 deg C

Removal of excess surface water

Spreading for even feed

Individual Quick freezing t0 ‐18 deg C

Bulk packing in bags

Cold storage

Exhibit-1: Process / Operations Flow Diagram of IQF Facility for Fruits & Vegetables

33 Exhibit 2 LAYOUT PLAN OF IQF FACILITY FOR FRUITS & VEGETABLES

34

Exhibit 2: Layout Plan of IQF Facility for Fruits & Vegetables 35

Exhibit 3 OPERATIONS / PROCESS FLOW DIAGRAM OF CA STORAGE FACILITY

36

Dumping (Dry or in water)

Waste Stream 1 Initial‐sorting (to remove culls or foreign material) Cull accumulation bin

Pre‐sizing (small size eliminator)

• Washing 1 (to remove organic matter) • Washing 2 (to clean commodity with water & detergent Waste Stream 2

with 100‐150 ppm chlorine dosage) Wash Water • Rinsing with chlorinated water

Removal of surface moisture (sponge roller + air draft)

Waste Stream 3 Waste Stream 3: Sorting to remove no. 3 grade and overripe fruits Wastage/Scrapped fruits

Brushing and waxing (optional)

Sorting by colour (optional)

Sizing (By weight of dimension)

Small Medium Large Extra

Sorting by Quality grades

Fancy Quality No.1 Quality No.2

Packing in retail units Marketed in identified markets

Packing in master container Weight Check

Inspection Palletization

Loading on to Forced to Transport Vehicle air Cooling

Transport to Temporary Export distribution centre storage

Exhibit-3: Operations / Process Flow Diagram of CA Storage Facility

37 Exhibit 4 LAYOUT PLAN OF CA STORAGE FACILITY

38

Exhibit 4: Layout Plan of CA Storage Facility 39

Exhibit 5 OPERATIONS / PROCESS FLOW DIAGRAM OF ARCC WITH LINKAGE TO ADC

40

FARMERS

PROCUREMENT FEEDBACK & Agri Input & Services Farm Output PLAN & PAYMENT EXTENSION (ARCC) AGRI-RETAIL CENTRES CUM COLLECTION CENTRE Refer / Regular Transport

PACKHOUSE COLD / CA FEEDBACK (GRADING, SORTING, PACKING, WAXING, PIPING, POST STORAGE HARVEST TREATMENT)

Refer / Regular Transport

Market feedback on price & Market feedback on price & quality /new products quality /new products

(ADC) CITY RE- DISTRIBUTION CENTRE Wholesale centres (Auction/sale, (TEMPORARY STORAGE AND Walk-in-cold store DISTRIBUTION TO RETAILERS AND CASH CARRY ACTIVITIES)

Insulated Transport

INSTITUTIONS RETAILERS

Exhibit 5: Operations / Process Flow Diagram of ARCC with Linkage to ADC

41 Exhibit 6 LAYOUT PLAN OF ARCC

42

Exhibit 6: Layout Plan of ARCC

43 Exhibit 7 LAYOUT PLAN OF ADC

44

Exhibit 7: Layout Plan of ADC 45

Exhibit 8 LOCATION PLAN OF IQF FACILITY SITE AT GUNDASARA VILLAGE, GONDAL TALUKA, RAJKOT DISTRICT, GUJARAT

46

District Map of Rajkot

Proposed Location of IQF Facility

Exhibit 8: Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, Rajkot District, Gujarat

47 Exhibit 9 LOCATION PLAN OF CA STORAGE FACILITY SITE AT PALANPUR, BANASKANTHA DISTRICT, GUJARAT

48

District Map of Banaskantha

Exhibit 9: Location Plan of C.A. Storage Facility Site at Palanpur, Banaskantha District, Gujarat 49

List of Annexures

Annexure 1 Categorisation of Industries by SPCB for Consent Management under Water & Air Pollution Act, 1974 Annexure 2 Land Acquisition Policy of GIDC, Govt. of Gujarat Annexure 3 CAL’s Corporate Considerations for Siting and Land Purchase for New Facility Annexure 4 Environment Mitigation Action Plan (EMAP) Annexure 5 EHS Guidelines for Food & Beverage Processing Sector Recommended by IFC Annexure 6 Detailed Cost Estimate for EMAP

50 Annexure 1 CATEGORISATION OF INDUSTRIES BY SPCB FOR CONSENT MANAGEMENT UNDER WATER & AIR POLLUTION ACT, 1974

51 52 53 54 Annexure 2 LAND ACQUISITION POLICY OF GIDC, GOVT. OF GUJARAT

55 56 57 58 59 Annexure 3 CAL’S CORPORATE CONSIDERATIONS FOR SITING AND LAND PURCHASE FOR NEW FACILITY

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Annexure 3

Corporate Considerations of Champion Agro Private Limited for Siting of New Facilities and Land purchase to mitigate Social Impacts

A Background

1. CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for general corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL.

2. In order mitigate the likely social and involuntary impacts due to siting and land purchase for its newly proposed facilities under ADB financing, CAL has adopted the certain considerations, which shall be applied during siting and land purchase transactions. The considerations would enable CAL to avoid the social impacts as a result of its proposed facilities and also would enable to be consistent with requirements of SPS 2009, ADB.

B Land Requirements for Proposed Facilities

3. CAL’s expansion plans to build more project facilities in Gujarat and elsewhere across India, will require acquisition of small parcels of land for each project facility. The land requirements vary between 4000 sq. metres (0.4 Ha) to 12000 Sq. metres (1.2 Ha) and is available in Gujarat and elsewhere either from a single land owner and or group of land owners ranging between 2 to 4, depending upon the location, individual owner’s land holding and willingness to sell the land in part or full.

C Corporate Considerations for siting and Land Purchase

4. CAL will identify and select the required parcel of land based on its business operations and land requirements for establishing the project facility at a specific location and comply the following considerations, to extent possible

• Land shall be road facing atleast on any one side with reasonably good connectivity to State Highways and National Highways

• Land parcel should not be a prime and fertile agricultural land, preferably a barren land or having a low agricultural potential

• Land parcel shall be devoid of any household(s), structures, free from vegetative cover

• CAL shall screen the location to determine whether the land belongs to any person of indigenous(Scheduled Tribe or ethnic minorities) group and directly or indirectly affects

61

his or her dignity, human rights, livelihood systems or culture, if any due to proposed land purchase transaction

• Required land parcel shall preferably be owned by one owner but in case of more than one owner (but preferably not exceeding four), all of them should be voluntarily willing to sell the land parcel to CAL on a mutually negotiated rates

5. In case the landowner(s) belongs to an Indigenous Group, CAL’s shall exercise its resources to identify an alternative suitable land, in order to avoid purchase of land parcel belonging to an individual or group of indigenous people, to the extent possible. If unable to find an alternate land, suiting its requirements, it shall review project facility planning and design and explore options to minimize land requirements.

6. After exercising options to minimize land requirements, CAL shall initiate dialogue with the individual or group of land owner(s) belonging to indigenous group to seek their consent in writing to purchase their land through direct negotiations for proposed project facilities.

7. In case the landowner(s) belongs to a scheduled tribe/group or an indigenous group, it shall be the responsibility of the landowner(s) to get required mandatory permission from the competent authority at District level, prior to negotiations, transaction and transfer of title.

8. CAL shall not apply coercion directly or indirectly on to potential sellers and shall conduct transaction in a transparent, consistent and equitable manner and ensure that transaction leads to better income and livelihood status of the potential seller of land.

D Consistent to ADB Safeguards

9. CAL consideration to select and purchase land for its expansion of its existing facility and/ or for establishing new facilities through this “willing seller and willing buyer” principle and negotiated rate settlement without involuntary resettlement, economic displacement and involuntary physical displacement from land or housing will not trigger Safeguard Requirements 2 and 3: of SPS 2009 of ADB.

62 Annexure 4 ENVIRONMENT MITIGATION ACTION PLAN (EMAP)

63 Annexure 4

Table: ENVIRONMENTAL MITIGATION ACTION PLAN (EMP) Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring PRE- CONSTRUCTION STAGE • The land parcel for project facility shall conform to CAL’s corporate considerations for Criteria for siting and selection of land given as attachment to this EMAP. Designated Senior finalization of Project Development 1 • The land essentially shall not be in proximity to any archeological monuments, large Management Location and Siting of Team of CAL and ESMU natural water bodies, national parks, wild life sanctuaries, forest areas, ecologically Functionaries of CAL Project Facility sensitive areas declared by the State or Government of India • The land parcel shall be purchased through direct negotiations with the consenting land owners on a willing seller and willing buyer principle and avoid any involuntary resettlement issues and social impacts thereof. Designated Senior Land Purchase • In case, land owners belong to scheduled tribe, it shall be their responsibility to get Project Development 2 Management /Acquisition Process required permission from district authorities, prior to transaction/ transfer of title. Team of CAL and ESMU Functionaries of CAL • CAL shall disclose all required information to the probable land sellers and neighboring land owners about the proposed facilities and resolve any of concerns prior to transaction and transfer of title. • Prescribed application for obtaining CFE shall be prepared with all project facility CAL - Project information and submitted to State Pollution Control Board. Management Obtaining CFE • Additional information, if any sought by SPCB shall be provided and CFE shall be Group(PMG)/ 3 (Consent to Establish) ESMU obtained in a time bound manner Designated Senior from SPCB • No Construction work shall be initiated without obtaining the mandatory CFE from Management SPCB Functionaries of CAL Contractor’s • The contract documents for civil, electro mechanical works shall include the CAL - Project Responsibility for environmental management requirements as conditions of contract, so that contractor is 4 ESMU Management Implementation of clearly aware of the requirements and can accordingly quote for works Group(PMG) EMAP CONSTRUCTION STAGE • The site shall be cleared of all unwarranted materials and barricaded on all sides except Clearance and for entry and exit points, so as to cause minimum hindrance/disturbance to adjacent land Contractor/Agency 5 ESMU and PMG Barricading of Site owners/occupants during construction stage engaged by CAL

• All efforts shall be made to preserve trees, if any within the project facility site including reworking on the layout of the facility to save trees. Tree cutting, if unavoidable shall ESMU/Contractor/Agenc 6 Preservation of Trees ESMU and PMG proceed only after getting the required tree cutting permissions from the competent y engaged by CAL authorities. 64

1 Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring • The top soil from the site, if found to be fertile shall be preserved for reusing at a later Preservation of Top stage for landscaping and other applications within project facility site. 7 Contractor ESMU Soil • If top soil preservation is deemed necessary, then, top 150mm thick soil shall be taken out and stacked in a suitable site and covered with polyethylene sheets • All batching plants for production of concrete shall preferably be set up within construction site. In case sufficient land not available within project site, then it shall be located at any other suitable site located at least 100m away from the nearest dwelling preferably in the downwind direction. Concrete Batching • The Contractor shall submit a detailed layout plan for all such sites for approval of 8 Contractor ESMU Plants ESMU prior to the establishment. • Arrangements to control dust pollution through provision of windscreens, water sprinklers and dust extraction systems shall have to be provided at all such sites. • Alternatively, contractor may be encouraged to source concrete from already established ready mix plants and transport it to site through tankers • All vehicles, equipment and machinery to be procured/deployed for construction works Construction shall be in good condition and preferably not less than 5 years old. 9 Vehicles, Equipment • The Contractor shall maintain a record of Pollution Under Control (PUC) for all vehicles Contractor ESMU and Machinery and machinery used during the contract period which shall be produced to ESMU for verification whenever required. • Locations for borrowing earth shall be finalized by the Contractor and reported to the ESMU for its inspection and approval of the site. • The Contractor shall not start borrow operations until the formal agreement is signed between landowner and Contractor and without prior approval of ESMU 10 Borrow Areas • Finalization of borrowing area and all logistic arrangements as well as applicable Contractor ESMU compliance as per local self government requirements shall be the sole responsibility of the Contractor. • The haul roads shall be routed to avoid human settlement and sensitive receptors like schools, hospitals as far as possible and shall use the existing roads wherever available. • Contractor shall procure all stone aggregates sourced from stone crushers, which Stone Aggregate 11 conform to State Pollution Control Board Norms, Contractor ESMU Procurement • Contractor shall work out haul road network and obtain ESMU approval. • The contractor shall identify suitable (ground/surface) water as a source of water for the Construction Water 12 construction and/or may set up own bore well facility for construction work, after Contractor ESMU arrangements obtaining the requisite permissions, if any required under approval of ESMU. 13 Sand • The Sand shall be procured from licensed sand mines. The Contractor shall obtain copy Contractor ESMU 65

2 Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring of the Lease Agreement of the supplier and submit to ESMU before procuring the sand. Sourcing of local • The Contractor shall encourage and use unskilled and or skilled labour as may be 14 labour available/drawn from local communities to give maximum employment benefits to the Contractor ESMU (skilled/unskilled) local community. • The construction camps, if required shall preferably be within an earmarked area of project facility site. If adequate area is not available, contractor may set up construction camps at any suitable nearby site with prior approval of ESMU. Construction Camp • The construction camp sites shall be provided with requisite facilities for safe drinking 15 sites and material water, sanitation and other basic infrastructure facilities like fuel for cooking, lighting, Contractor ESMU stockyards entertainment, basic health care for labour among others and ensure they are not dependant on outside resources to fulfill their basic requirements • Material stockyards shall essentially be within the project facility construction site and all material shall be orderly stacked and covered to prevent dust pollution Arrangements for • The Contractor shall carry out negotiations with the landowners for obtaining their 16 Temporary Land consent for temporary use of lands for setting up construction camp with prior approval Contractor ESMU Requirement of ESMU Environmental • ESMU shall organize orientation and periodic (regular) training sessions at all PMG/ Designated Senior 17 Training for construction stages of the project facility to contractor’s staff to sensitize the ESMU Management Contractor’s Staff environment safeguard requirements at construction site Functionaries of CAL • All vehicles used for transporting construction materials to the site shall be covered to Transporting avoid spillage of materials. Constructing • All existing roads used by material haulage vehicles, shall be kept clear of all dust/mud 18 Contractor ESMU Materials and Haul or other extraneous materials dropped by such vehicles. Road Management • Contractor shall arrange for regular cleaning and water sprinkling as necessary for dust suppression of all such roads and surfaces, if required • Contractor shall ensure that no construction materials like earth, stone, or appendage disposed off in a manner that block the flow of water of any water course and cross Drainage and flood 19 drainage channels, in proximity to project facility site Contractor ESMU control • In addition, Contractor shall take all required measures as directed by the ESMU to prevent temporary or permanent flooding of the project site or any adjacent area. • The Contractor shall take pre-cautionary measures to ensure that no water pollution Water Pollution from occurs through surface runoff from construction vehicle parking areas, fuel/lubricants 20 Fuel and Lubricants storage sites, vehicle, machinery/equipment maintenance sites Contractor ESMU storage/handling areas • Contractor shall ensure that all vehicle/machinery and equipment operation, maintenance and refueling shall be carried out in such a manner that spillage of fuels and lubricants 66

3 Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring does not contaminate the ground. • The Contractor shall take every precaution to reduce the level of dust from construction plants, construction sites involving earthwork by sprinkling of water, and providing Dust Pollution at work 21 screens at source for warding off the dust Contractor ESMU sites • The Contractor shall procure/use construction plants and machinery, which shall conform to the pollution control norms by SPCB Emission from • Contractor shall ensure that all vehicles, equipment and machinery used for construction Construction are regularly maintained and confirm to pollution emission norms of SPCB and/ Motor 22 Contractor ESMU Vehicles, Equipment Vehicles Acts & Rules. The Contractor shall submit PUC certificates for all and Machineries vehicles/equipment/machinery used for the Project. • The Contractor shall ensure that construction plants and equipment used shall strictly Noise from Vehicles, conform to the MoEF/CPCB/SPCB noise standards. The maintenance of vehicles, 23 Plants and equipment and machinery shall be done regularly to keep noise levels at the minimum. Contractor ESMU Equipments • All major noisy activities of construction shall be limited to day hours only and no night shifts shall be allowed for such activities under normal circumstances • The contractor shall prepare a SHE (Safety, Health and Environment) plan for the construction site and shall get it approved by ESMU. At the construction site SHE shall be implemented • All construction personnel shall be provided with Protective footwear, protective goggles and nose masks to the workers employed in concrete works, crusher and dust generating activities • Welder’s protective eye-shields shall be provided to workers who are engaged in welding works and earplugs to workers exposed to noisy environment beyond threshold SHE(Safety, Health levels and Environment) • Contractor shall comply with all regulations regarding safe scaffolding, ladders, safe 24 Contractor ESMU Plan for Construction platforms for working at heights, gangway, staircases, excavations, trenches and safe site means of entry and egress. • Contractor shall comply with all the precautions as required for ensuring the safety of the workmen as per the State and National Regulations and Industry Best practices. • The Contractor shall arrange for first aid unit including an adequate supply of sterilized dressing materials and appliances as per the Factories Act and Rules in every work zone. The arrangements shall include availability of suitable transport at all times to take injured or sick person(s) to the nearest hospital. • Contractor shall ensure availability of trained first aid/ nursing staff at construction camp during all working hours. 25 Landscaping and • The Contractor shall initiate preparatory activities for landscaping so as to ensure Contractor ESMU 67

4 Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring Plantation Strategy landscaping and plantation within project facility site are fully developed as per the developmental plan and coincide with the completion of construction activities • The Contractor shall provide garbage bins at construction workers camp sites and 26 Waste Disposal ensure that these are regularly emptied and disposed off in a hygienic manner approved Contractor ESMU by ESMU. • Contractor shall undertake site cleanup of operations, as approved by ESMU. The Clean-up Operations, clean-up operations are to be implemented by the Contractor prior to demobilization Environmental Specialist 27 Restoration and Contractor and shall comprise clearing of all temporary structures; dispose all garbage, of CSC, KSHIP Rehabilitation construction debris, unused/waste materials unused among others. • The periodical (monthly) monitoring of the ambient air quality, noise level, water quality, 28 Pollution Monitoring at selected locations within the project facility shall be undertaken either by in house Contractor ESMU and PMG facility or through an external laboratory approved by State Pollution Control Board • Communication channel should be kept open with local people around the project facility PMG and Designated Community 29 to ensure that the construction activities at project site are not causing undue Contractor and ESMU Senior Management Participation inconvenience to the local people due to noise, dust or disposal of debris etc. Functionaries of CAL • The contractor shall create a facility at project site to receive any complaints/grievances (either orally or in documented form) related to construction activities from local PMG and Designated 30 Grievance Redress people/adjacent land owners and resolve the matters expeditiously. If grievance(s) cannot Contractor and ESMU Senior Management be resolved at site level itself, the matter shall be referred to PMG and ESMU facility for Functionaries of CAL resolving the matter expeditiously. OPERATION STAGE • Prescribed application for obtaining CFO shall be prepared with all project facility information, prior to commencement of commercial Operations and submitted to State Pollution Control Board. Project Operations ESMU and Project Obtaining CFO • Arrange for visit of SPCB officials for field verification of the facility Group(POG) of CAL and Facility Specific SHE 31 (Consent to Operate) Designated Senior • Additional information, if any sought by SPCB shall be provided and CFO shall be Officer (Safety, Health from SPCB obtained in a time bound manner Management and Environment) • No commercial operations shall be initiated without obtaining the mandatory CFO from Functionaries of CAL SPCB

• The facility shall operate effluent collection (liquid waste/wash water), treatment and ESMU and Project disposal systems as per the liquid waste management plan Waste Management Facility Specific SHE Project Operations 32 • The facility shall operate solid waste collection, treatment and disposal systems as per Operations Officer (Safety, Health Group(POG) the solid waste management plan and Environment) • The facility shall operate environmental health, hygiene and sanitation upkeep systems 68

5 Responsibility Sl. No. Environmental Issue Management Measures Planning and Execution Supervision/Monitoring and procedures The project facility shall implement an EHS performance Operations and Industry Best Practices and ensure its adherence by all workers and management staff (as relevant and EHS Performance Project Facility Specific applicable). 33 Standards and SHE Officer (Safety, ESMU and POG It shall be ensured that all workers are provided with PPEs as required under the EHS Practices Health and Environment) performance and Industry Best Practices standards/operations manual and same is used during the entire operational hours of the facility by all workers. • The periodical (monthly) monitoring of the ambient air quality, noise level, water quality, waste water (before and after treatment) at selected locations within the project Periodical facility shall be undertaken either by in house facility or through an external laboratory Project Facility Specific Environmental approved by State Pollution Control Board 34 SHE Officer (Safety, ESMU and POG Monitoring within • The Periodical monitoring reports are to be submitted to SPCB and ADB as per as per Health and Environment) Project Facility compliance requirements • Any other conditions stipulated in the CFO are to be fully complied and avoid any regulatory violations either willfully or due to negligence 3rd Party Independent • An Environmental and Social Safeguards Audit shall be carried out every year through ESMU, POG and Project Facility Specific Environmental and engagement of an independent 3rd party agency. All audit observations are to be Designated Senior 35 SHE Officer (Safety, Social Safeguards implemented at the facility in a time bound manner Management Health and Environment) Audit • The audit report along with ‘Action Taken Report’ shall be submitted to ADB Functionaries of CAL Communication channel should be kept open with local people around the project facility Project Facility Specific POG and and Designated Community to ensure that the operations of the project facility is not causing undue inconvenience to SHE Officer (Safety, 36 Senior Management Participation the locals residing in the vicinity of project Health and Environment) Functionaries of CAL and ESMU • The facility shall have a mechanism to receive complaints/grievances (either orally or in Project Facility Specific documented form) due to operations of the project facility from local people/adjacent POG and and Designated SHE Officer (Safety, 37 Grievance Redress land owners and resolve the matters expeditiously. If grievance(s) cannot be resolved at Senior Management Health and site level itself, the matter shall be referred to ESMU facility for resolving the matter Functionaries of CAL Environment)/ESMU expeditiously.

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6 Annexure 5 EHS GUIDELINES FOR FOOD & BEVERAGE PROCESSING SECTOR RECOMMENDED BY IFC

70 Environmental, Health, and Safety Guidelines FOOD AND BEVERAGE PROCESSING

WORLD BANK GROUP Environmental, Health, and Safety Guidelines for Food and Beverage Processing

Introduction environment, and other project factors, are taken into account. The applicability of specific technical recommendations should The Environmental, Health, and Safety (EHS) Guidelines are be based on the professional opinion of qualified and technical reference documents with general and industry- experienced persons.When host country regulations differ from specific examples of Good International Industry Practice the levels and measures presented in the EHS Guidelines, (GIIP) 1. When one or more members of the World Bank Group projects are expected to achieve whichever is more stringent. If are involved in a project, these EHS Guidelines are applied as less stringent levels or measures than those provided in these required by their respective policies and standards. These EHS Guidelines are appropriate, in view of specific project industry sector EHS guidelines are designed to be used circumstances, a full and detailed justification for any proposed together with the General EHS Guidelines document, which alternatives is needed as part of the site-specific environmental provides guidance to users on common EHS issues potentially assessment. This justification should demonstrate that the applicable to all industry sectors. For complex projects, use of choice for any alternate performance levels is protective of multiple industry-sector guidelines may be necessary. A human health and the environment. complete list of industry-sector guidelines can be found at: www.ifc.org/ifcext/enviro.nsf/Content/EnvironmentalGuidelines Applicability

The EHS Guidelines contain the performance levels and These guidelines cover the processing of meat2, vegetable, and measures that are generally considered to be achievable in new fruit raw materials into value-added food and beverage3 facilities by existing technology at reasonable costs. Application products for human consumption. Meat and poultry of the EHS Guidelines to existing facilities may involve the slaughtering and processing activities, from reception of the establishment of site-specific targets, with an appropriate animals until the carcasses are ready for sale or further timetable for achieving them. The applicability of the EHS processing, are covered in the EHS Guidelines for Meat Guidelines should be tailored to the hazards and risks Processing and the EHS Guidelines for Poultry Processing. This established for each project on the basis of the results of an document is organized according to the following sections: environmental assessment in which site-specific variables, such Section 1.0 — Industry-Specific Impacts and Management as host country context, assimilative capacity of the Section 2.0 — Performance Indicators and Monitoring Section 3.0 — References 1 Defined as the exercise of professional skill, diligence, prudence and foresight Annex A — General Description of Industry Activities that would be reasonably expected from skilled and experienced professionals engaged in the same type of undertaking under the same or similar circumstances globally. The circumstances that skilled and experienced professionals may find when evaluating the range of pollution prevention and 2 control techniques available to a project may include, but are not limited to, Meat includes beef, pig, and poultry. varying levels of environmental degradation and environmental assimilative 3 Includes only the manufacturing of non-fermented beverages. Beer capacity as well as varying levels of financial and technical feasibility. manufacturing is addressed in the EHS Guidelines for Breweries.

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WORLD BANK GROUP 1.0 Industry Specific Impacts putrescible solid waste in the form of inedible materials and and Management rejected products from sorting, grading and other production processes.5 Where meat products are the raw material, solid The following section provides a summary of EHS issues waste generated during processing may include organic associated with food and beverage processing, which occur materials that have the potential to significantly impact food during the operational phase, along with recommendations for safety due to the proliferation of pathogenic microorganisms.6 their management. Recommendations for the management of EHS issues common to most large industrial facilities during the Recommended measures to prevent and control solid waste construction and decommissioning phases are provided in the generation include the following: General EHS Guidelines. · Minimize inventory storage time for raw materials to reduce 1.1 Environment losses from putrefaction;

Essential tools for managing impacts while optimizing water, · Monitor and regulate refrigeration and cooling systems energy, and resource use and improving working practices during storage and processing activities to minimize involve the adoption of industry-specific good-manufacturing product loss, optimize energy consumption, and prevent practice, quality management systems (including ISO 9000 odors; series, ISO 22000), risk management systems (e.g., Hazard · Consider use of enclosure techniques to minimize damage Analysis Critical Control Points, HACCP), and environmental to raw materials stored outdoors; management standards (e.g., ISO 14000).4 · Monitor and optimize process yields, e.g. during manual grading or cutting activities, and encourage the most Environmental issues in food and beverage processing facilities productive employees to train others in efficient processing. primarily include the following: · Clean, sort, and grade raw foodstuffs at an early stage

· Solid waste (e.g. at the farm site), in order to reduce organic waste and · Wastewater substandard products at the processing facility; · Energy consumption · Contain solid waste in dry form and consider disposal · Emissions to air through composting and / or use for soil amendment; · Organic and non-organic debris / soil, solid organic matter, Solid Waste and liquid effluents, including sludge from wastewater Depending on the raw materials, food and beverage processing activities may generate significant volumes of organic, 5 For example, mushrooms have a low wastage factor (around 3 – 5 percent) whereas the wastage factor for sweet corn kernel processing is much higher (around 50-60 percent). United Nations Environment Programme (UNEP). 2004. Working Group for Cleaner Production in the Food Industry. Fact Sheet 3: Food 4 HACCP is for the systematic identification and management of risks associated Manufacturing Series. Food and Beverage Processing. with the production and distribution of foodstuffs. ISO 22000:2005 covers 6 The proportion of animal by-products in food processing activities in relation to requirements for a food safety management system in which an organization in their carcass weight ranges from approximately 8 to 16.5 percent for pig, 7 to 8 the food chain demonstrates its ability to control food safety impacts to ensure percent for poultry, and 12 percent for beef. European Union (EU) Commission. that food is safe at the time of human consumption. ISO 9000 series is an 2006. Directorate General Joint Research Council (JRC) Institute for international standard for the certification of manufacturing and quality Prospective Technological Studies. Integrated Pollution Prevention and Control management systems; ISO 14001 is an international standard for the Reference Document on Best Available Techniques in the Food, Drink and Milk certification of environmental management systems. Industries.

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WORLD BANK GROUP treatment, which remain after the implementation of waste separation of floatable solids; flow and load equalization; prevention strategies should be recycled as a soil sedimentation for suspended solids reduction using clarifiers; amendment (based on an assessment of potential impacts biological treatment, typically anaerobic followed by aerobic to soil and water resources) or other beneficial uses such treatment, for reduction of soluble organic matter (BOD); as energy production; biological nutrient removal for reduction in nitrogen and · Collect and reuse rejected raw materials for manufacturing phosphorus; chlorination of effluent when disinfection is other products;7 required; dewatering and disposal of residuals; in some · Provide leak-proof containers for collected solid and liquid instances composting or land application of wastewater waste; treatment residuals of acceptable quality may be possible. · Segregating individual by-products from each other and Additional engineering controls may be required to contain and from waste to maximize their use and minimize waste. neutralize nuisance odors.

Wastewater Management of industrial wastewater and examples of treatment approaches are discussed in the General EHS Industrial Process Wastewater Guidelines. Through use of these technologies and good Effluent streams from food and beverage processing may have practice techniques for wastewater management, facilities a high biochemical and chemical oxygen demand (BOD and should meet the Guideline Values for wastewater discharge as COD) resulting from organic wastes entering into the indicated in the relevant table of Section 2 of this industry sector wastewater stream, and from the use of chemicals and document. detergents in various processes including cleaning (discussed below). In addition, effluent may contain pathogenic bacteria, Other Wastewater Streams & Water Consumption pesticide residues, suspended and dissolved solids such as Guidance on the management of non-contaminated wastewater fibers and soil particles, nutrients and microbes, and variable from utility operations, non-contaminated stormwater, and pH. The effluent load should be reduced by preventing raw sanitary sewage is provided in the General EHS Guidelines. materials, intermediates, product, by-product and wastes from Contaminated streams should be routed to the treatment system unnecessarily entering the wastewater system, as discussed in for industrial process wastewater. Food and beverage the solid waste section above. processing activities (e.g. washing, internal transport of raw materials using water, cooling of blanched foods, and general Process Wastewater Treatment equipment cleansing) may consume large quantities of water.8 Techniques for treating industrial process wastewater in this In addition to the recommendations on water conservation sector include grease traps, skimmers or oil water separators for included in the General EHS Guidelines, industry specific measures include the following: 7 Secondary products may include jams and cut products, such as coleslaws; sauerkraut; orange peels for use in dietary fiber supplements; potato pulp for production of biofuel; onion material for onion oil production, fructooligosaccarides, pectic polysaccharides, and low-lignin dietary fiber; 8 Water demands in meat processing are diverse and may, depending upon the animal waste for production of animal feeds with strict recognition of biosafety specific operation, include thawing of frozen materials, continuous equipment, considerations; and use of bones, fat, and other by-products from meat as raw boot, apron and clothing washing and disinfection as well as generation of material for glue, detergents, gelatin, and other materials. steam and process heat, and cooling processes.

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WORLD BANK GROUP · Minimize water consumed during production processes: o Return condensate for use as boiler feed water. o Optimize product conveying systems to reduce Alternative uses for condensate include as a sprinkling contact of raw material and product with water, for agent for dust suppression or in general factory wash example by using dry instead of wet conveying down (e.g. cleaning the floor) systems. Optimize process line operations to avoid o Where feasible, recycle low grade wash water and spills of raw materials and water, reducing the need to reusing it for the primary wash of raw materials or for wastewater treatment and associated energy wet transport consumption; o Explore opportunities collection and use of storm o Use dry methods, such as air classifiers, magnetic water consistent with food safety requirements separators and vibration over sieving and screening · Review process lines and operations to identify devices, for the primary cleaning of robust raw opportunities to reduce the effluent load by minimizing materials with low moisture content; contact with water at every stage of the process, to avoid o Where feasible, use a continuous / batch steam or a contamination of the water and the need for consequent dry caustic process for peeling activities, or treatment, including: alternatively, consider dry caustic peeling; o Use dry methods (e.g. vibration or air jet) to clean raw o Minimize rate of make-up supply to continuously materials overflowing tanks, flumes etc. o Install grids to reduce or avoid the introduction of solid o Use taps with automatic shut-off valves and use high materials into the wastewater drainage system. Install water pressure and optimized nozzles, trays to catch waste from trimming operations and Use counter-current wash techniques for primary o juice / product on conveyors wash of raw materials; o Ensure regular integrity testing of bulk storage tanks o Implement dry clean of equipment with scraper or for product and waste broom before cleaning with water o Provide secondary containment for storage and o Minimize wet transport (pumping) of waste process vessels to contain spills · Reuse water streams in the production processes to the o Adopt best-practice methods for plant cleaning, which maximum extent possible while avoiding water can be manual or automated Clean In Place (CIP)9 contamination or compromising food safety: systems, using approved chemicals and (or) Separate and recirculate cooling water from process o detergents with minimal environmental impact and and waste water streams. Recirculate and reuse compatibility with subsequent wastewater treatment thawing water in a closed circuit provided this practice processes. does not compromise food safety o Recirculate fluming water used in vegetable transfer provided this practice does not compromise food safety

9 Automated CIP systems reduce chemical, water, and energy consumption and facilitate rinse recovery but may not be appropriate for all applications.

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WORLD BANK GROUP Energy Consumption · Recover energy from thermal processes where possible. Food and beverage processing activities may require high levels Heat recovery opportunities may include, for example11: of thermal energy consumption in process heating, cooling, and o Recovering heat from ovens, dryers, evaporators, refrigeration. In addition to the recommendations on energy pasteurizers and sterilizers. conservation included in the General EHS Guidelines, industry o Maximizing regeneration efficiency in plate heat specific measures include the following10: exchanger pasteurizers (regeneration efficiency up to 94 percent is possible) · Implement operational, maintenance and housekeeping o Recovering heat from condensed steam for blanching measures: and steam peeling operations before it is discharged o Insulate refrigeration room/areas and use of o Using multi-effect evaporators in large scale automatically closing doors and airlocks evaporator applications. o Insulate refrigeration rooms / areas · Optimize plant processes for energy efficiency: Emissions to Air o Use Combined Heat and Power (CHP) particularly in The main air pollutants from food and beverage processing plants which have high heat and power demand for operations consist of particulate matter (PM) and odor. PM may more than 5000 hours/year arise from solids handling, solid reduction and drying. Odor may o Reduce the size of refrigeration rooms where feasible, be released by thermal processing steps such as steam peeling, but still taking food safety into consideration blanching and dehydrating and by microbial action in stored o Design plant layout to reduce pumping and conveyor solid waste. In meat processing, odor may also be emitted from belt transportation distances cooking and smoking activities. 12 o Ensure that fouling on heat transfer surfaces, for Management of emissions to air from combustion sources for example in the sterilization process, is regularly electricity generation is addressed in the General EHS cleaned to ensure optimum efficiency Guidelines. o Avoid refrigeration of fruits, vegetables and by- products intended for animal feed by storing outside in Particulate Matter clean covered areas or in containers, when climate conditions and plant design allow Recommended techniques to prevent and control particulate o Use high temperature pre-cooling before refrigerated matter emissions include13: cooling and freezing, for example, after blanching pre- · Cover skips and vessels, and stockpiles, especially chill products by passing them cold water before outdoors; freezing. This is particularly cost –effective when liquid nitrogen freezing is used. · Enclose silos and containers used for bulk storage of powders and fine materials;

11 EC (2006) 12 EC (2006) 13 Based on Environment Agency. 2003. Environment and Heritage Service. 10 EC (2006) Guidance for the Food and Drink Sector. Sector Guidance Note IPPC S6.20.

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WORLD BANK GROUP · Where enclosure is not feasible, use sprays, windbreaks, · Minimize storage duration for solid waste to avoid sweeping, sprinkling, and other stockpile management putrefaction; techniques to suppress dust ; · Operate facilities under partial vacuum to prevent fugitive · Use closed conveyors equipped with filters to clean odor emission; transport air prior to release; · Regular inspection of chilling and freezing equipment to · Use cyclones and, if necessary, and fabric filters to remove monitor loss of refrigerants. dust from exhaust air; · Remove particulate matter from the gas stream using dry 1.2 Occupational Health and Safety

cyclones, venturi scrubbers, electrostatic precipitators Occupational health and safety issues associated with the (ESPs) or dry filter systems, as necessary. operation of food and beverage processing during the construction and decommissioning phases are discussed in the Odor General EHS Guidelines. Hazards during the operational Recommended techniques to prevent and control point source phase include the following: odor emissions include: · Physical hazards · Use exhaust stack heights that are consistent with Good · Exposure to noise Engineering Practice (GEP) as described in the General · Biological hazards EHS Guidelines; · Chemical hazards · If the plant is in close proximity to residential areas · Exposure to heat and cold consider the use of wet scrubbers to remove odor emissions. Wet scrubbers are used to remove odors with a Physical Hazards high affinity to water, such as ammonia emitted during the Physical hazards include exposure to same-level fall hazards rendering process; and due to slippery conditions, the use of machines and tools, and · During the procurement of air emission systems for collisions with internal transport equipment, such as forklift smoking units, it is best practice to install integrated trucks and containers. Guidance on general workplace systems that combine air cleaning, incineration, and heat conditions, including design and maintenance of working and recovery. Such systems are highly effective with regard to walking surfaces to prevent slips and falls, is presented in the the reduction of odor emissions, production / energy General EHS Guidelines. Additional, industry-specific efficiency; recommendations are presented below. · Recirculate exhaust gas from frying and other cooking operations to the burner. · Maintain walking and working surfaces clean and dry by preventing spillages through equipment design and Recommended techniques to prevent and control fugitive operation, providing workers with anti slip footwear where emissions of odor include: still necessary;

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WORLD BANK GROUP · Control of occupational risks at their source through Recommended measures to prevent and control worker implementation of engineering controls. Address residual exposure to noise are discussed in the General EHS risks based on hygiene and safety surveys and by Guidelines. providing workers with training in the proper use and maintenance of safety devises (including the proper use of Biological Hazards machine safety devises) and personal protective Exposure to biological and microbiological agents may be equipment (PPE), such as hearing protection, and gloves, associated with inhalation and ingestion of dust and aerosols. aprons etc. to avoid cuts, amputations, and other sharp Dust from the ingredients used in food and beverage processing instrument traumas; and high levels of humidity may cause skin irritation or other · Ensure that the process layout reduces opportunities for allergic reactions. process activities to cross paths, thus avoiding collisions Recommendations for the prevention and control of exposures and falls; to biological hazards specific to food and beverage processing · Demarcate transport corridors and working areas and include the following: ensure the proper placement of handrails on platforms,

ladders, and stairs; · Avoid dust- and aerosol-generating activities (such as use · Prevent ingress of water; of compressed air or high-pressure water for cleaning) and, · Ground all electrical equipment and installations; where they cannot be avoided, provide proper ventilation of · Prepare emergency plans and train staff for emergency enclosed or semi-enclosed areas to reduce or eliminate situations. exposure to dust and aerosols; · Install exhaust ventilation equipped with filters, cyclones, Lifting, Repetitive Work, and Work Posture Injuries etc., at sources of dust; Food and beverage processing activities may include a variety · Provide workers with PPE that is appropriate for the of situations in which workers can be exposed to lifting, carrying, process activity, e.g. masks and gloves; repetitive work, and work-posture injuries. Such injuries may · Ensure physical segregation of work and welfare facilities result from heavy manual lifting and repetitive work, including to maintain worker personal hygiene. the operation of slicing and vacuum-packing machines and poor working postures caused by inadequate workstation and Chemical Hazards process activity design. Recommended management Exposure to chemicals (including gases and vapors) typically approaches to reduce these injuries are discussed in the involves chemical-handling activities related to cleaning General EHS Guidelines. operations, disinfection of process areas and use of preservatives in long-term food storage, in addition to the Exposure to Noise maintenance of heating (thermal oils) and cooling systems A variety of operations in food and beverage processing units (ammonia). Recommended measures to prevent and control generate substantial noise levels, for example the canning plant, exposure to chemicals are discussed in the General EHS bottling machines, conveyors and blanching applications. Guidelines.

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WORLD BANK GROUP Food and beverage processing sites usually have large be opposite to the flow direction of products (i.e. from “clean” refrigeration systems, which often use ammonia as a primary towards “dirty” zones). Cleaning activities during processing will refrigerant, and may have secondary refrigerants such as depend on the particular production and processing systems. glycols or brines. Ammonia is a toxic substance and can form Daily cleaning and disinfection should comprise: explosive mixtures with air. Guidance on the safe use of ammonia and other refrigerants is readily available from · Ensuring proper equipment clearance for cleaning professional refrigeration institution14 and should be considered. · Removal of solid waste · Pre-rinsing with water Heat and Cold · Application of detergent(s) Food and beverage processing may create changing · Rinsing temperature conditions due to activities such as heat treatment, · Disinfection chilling and freezing. Workers may be exposed to heat from · Post rinsing steam peeling, pasteurization, and canning processes and · Post treatment exposed to low temperatures in refrigerated areas / rooms. Irradiation dosing to extend the shelf-life of fruits and vegetables Staff should be trained in food safety issues and should follow should be monitored for occupational exposure to radiation. established procedures for hand washing, working attire Recommended measures to prevent and control exposure to (clothes, shoes, gloves and hair coverage), and how to handle heat, cold, and radiation are discussed in the General EHS injuries and diseases. Guidelines. Food Safety Impacts and Management 1.3 Community Health and Safety A food product recall caused by contaminated or adulterated food products can devastate a viable business. If a company Community health and safety impacts during the construction can trace its products to specific lot numbers, then recall is a and decommissioning of food and beverage processing facilities matter of removing all foods associated with those numbers. are common to those of most industrial facilities and are With a robust food safety program in place, a company can discussed in the General EHS Guidelines. Industry-specific protect itself from product adulteration, contamination, and the issues with the potential to impact the community are those impacts of food recalls. associated with hygiene and food safety. Food and beverage processing should therefore be performed Process, Equipment, and Staff Hygiene according to internationally recognized food safety standards The design of the processing plant should be organized to consistent with the principles and practices of Hazard Analysis ensure that products move from “dirty” to “clean” areas to avoid Critical Control Points (HACCP)15; and Codex Alimentarius16. recontamination. Employee movement within the facility should

14 See the Institute of Refrigeration (IOR) for guidelines on the safe design of ammonia and other refrigeration systems, as well as safe handling of ammonia. 15 International Organization for Standardization (ISO) (2005) Also, the American Society of Heating, Refrigerating and Air-Conditioning 16 Food and Agriculture Organization of the United Nations (FAO) and World Engineers (ASHRAE). Health Organization (WHO) (1962-2005)

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WORLD BANK GROUP The Codex Alimentarius provides Current Official Standards for frameworks. These guidelines are achievable under normal a range of specific products from the food and beverage operating conditions in appropriately designed and operated processing sector including canned, quick frozen, and whole facilities through the application of pollution prevention and fresh food products. In addition the Codex Alimentarius provides control techniques discussed in the preceding sections of this Current Official Standards for general and specific document. These levels should be achieved, without dilution, at manufacturing steps in the production process, for example least 95 percent of the time that the plant or unit is operating, to General Principles of Food Hygiene, Recommended be calculated as a proportion of annual operating hours. International Code of Hygienic Practice for Canned Food and Deviation from these levels in consideration of specific, local Beverage Products and the Recommended International Code project conditions should be justified in the environmental of Practice for the Packaging and Transport of Tropical Fresh assessment. Food and beverages. In general, recommended food safety principles include: Effluent guidelines are applicable for direct discharges of treated effluents to surface waters for general use. Site-specific · Strictly maintain cold chains and other preservation discharge levels may be established based on the availability processes; and requirements of publicly operated sewage collection and · Full institutionalization of HACCP prerequisites as well as treatment systems or, if discharged directly to surface waters, Standard Operational Procedures, including: on the receiving water use classification as described in the o Sanitation General EHS Guidelines. o Good Manufacturing Practice (GMP) Emissions from food processing activities are principally o Pest control associated with particulate matter (PM) and odor. PM and odor o Chemical control emissions from point sources such as ventilation exhaust o Allergen control systems and smoking units should be released through GEP- o Staff hygiene and education designed stacks. Smoking unit emissions of PM should typically o Customer complaints mechanism not exceed 50 mg/Nm3. Combustion source emissions o Traceability and reuse guidelines associated with steam- and power-generation 2.0 Performance Indicators and activities from sources with a capacity equal to or lower than 50 Monitoring MWth are addressed in the General EHS Guidelines with larger power source emissions addressed in the Thermal Power 2.1 Environment EHS Guidelines. Guidance on ambient considerations based on the total load of emissions is provided in the General EHS Emissions and Effluent Guidelines Guidelines. Table 1 presents effluent guidelines for this sector. Guideline values for process emissions and effluents in this sector are indicative of good international industry practice as reflected in relevant standards of countries with recognized regulatory

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Table 1. Effluent levels for food and beverage processing Resource Use and Waste Generation Pollutants Units Guideline Value Tables 2 and 3 provide examples of resource consumption

pH pH 6 – 9 indicators for energy, water, materials, and waste in this sector. Industry benchmark values are provided for comparative BOD5 mg/l 50 purposes only and individual projects should target continual COD mg/l 250 improvement in these areas. Total nitrogen mg/l 10

Total phosphorus mg/l 2 Environmental Monitoring Oil and grease mg/l 10 Environmental monitoring programs for this sector should be

Total suspended solids mg/l 50 implemented to address all activities that have been identified to Temperature increase °C <3b have potentially significant impacts on the environment, during Total coliform bacteria MPNa / 100 ml 400 normal operations and upset conditions. Environmental

Active Ingredients / To be determined on a case specific monitoring activities should be based on direct or indirect Antibiotics basis indicators of emissions, effluents, and resource use applicable Notes: a MPN = Most Probable Number to the particular project. b At the edge of a scientifically established mixing zone which takes into account ambient water quality, receiving water use, potential receptors and assimilative capacity Monitoring frequency should be sufficient to provide representative data for the parameter being monitored. Monitoring should be conducted by trained individuals following Table 2: Waste Generation in the Food and Beverage Processing Sector monitoring and record-keeping procedures and using properly Solid waste produced per Industry calibrated and maintained equipment. Monitoring data should be Unit tonne of product Benchmark analyzed and reviewed at regular intervals and compared with Maize Kg 40 the operating standards so that any necessary corrective Peas Kg 40 actions can be taken. Additional guidance on applicable Potatoes Kg 40 sampling and analytical methods for emissions and effluents is Broccoli Kg 200 provided in the General EHS Guidelines.

Carrots Kg 200

Strawberries Kg 60

Apples Kg 90

Peaches Kg 180

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80 Environmental, Health, and Safety Guidelines FOOD AND BEVERAGE PROCESSING

WORLD BANK GROUP 2.2 Occupational Health and Safety Table 3: Resource and Energy Consumption in Food and Beverage Processing Occupational Health and Safety Guidelines Industry Outputs per unit of product Unit Occupational health and safety performance should be Benchmark evaluated against internationally published exposure guidelines, Electricity Consumption a of which examples include the Threshold Limit Value (TLV®) Sorting of vegetables (carrots) 8 occupational exposure guidelines and Biological Exposure Caustic peeling of vegetables 2 Indices (BEIs®) published by American Conference of Steam peeling of vegetables 3.5 Governmental Industrial Hygienists (ACGIH),17 the Pocket Washing of vegetables (carrots) 2.5 Guide to Chemical Hazards published by the United States kWhe/t frozen Mechanical processing prior to vegetables 2.5 National Institute for Occupational Health and Safety (NIOSH),18 freezing (diced carrots) Permissible Exposure Limits (PELs) published by the Drum blanching in deep freezing 0.5 – 1.3 of vegetables Occupational Safety and Health Administration of the United Countercurrent water cooling of 0.5 – 1.3 vegetable States (OSHA),19 Indicative Occupational Exposure Limit Values Belt blancher with water cooler 2 - 9 published by European Union member states,20 or other similar Belt blancher with air cooling 7 - 30 sources. Water Consumption

Accident and Fatality Rates Canned fruit 2.5-4.0

Projects should try to reduce the number of accidents among Canned vegetables 3.5-6.0 project workers (whether directly employed or subcontracted) to Frozen vegetables 5.0 – 8.5 a rate of zero, especially accidents that could result in lost work Fruit juices 6.5 time, different levels of disability, or even fatalities. Facility rates 3 Jams m /ton 6.0 may be benchmarked against the performance of facilities in this b Potato processing: 4.5 – 9.0 sector in developed countries through consultation with Range Well managed 5.1 published sources (e.g. US Bureau of Labor Statistics and UK Cooked Ham b 4 - 18 Health and Safety Executive)21. Cured Ham b 2 - 20 Occupational Health and Safety Monitoring Sausages, ham, bacon, etc. b 10 - 20

The working environment should be monitored for occupational NOTES a hazards relevant to the specific project. Monitoring should be Tables 3.31 – 3.39. European Commission. IPPC. Reference Document on BAT in the Food Drink and Milk Industries. P. 169 - 177. b Table 3.20: Water consumption for some processes in the food and beverage sector. European Commission. IPPC. Reference Document on BAT in the Food Drink and Milk Industries. P. 162. 17 Available at: http://www.acgih.org/TLV/ and http://www.acgih.org/store/ designed and implemented by accredited professionals22 as part 18 Available at: http://www.cdc.gov/niosh/npg/ 19 Available at: of an occupational health and safety monitoring program. http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STANDAR DS&p_id=9992 20 Available at: http://europe.osha.eu.int/good_practice/risks/ds/oel/ 22 Accredited professionals may include Certified Industrial Hygienists, 21 Available at: http://www.bls.gov/iif/ and Registered Occupational Hygienists, or Certified Safety Professionals or their http://www.hse.gov.uk/statistics/index.htm equivalent.

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WORLD BANK GROUP Facilities should also maintain a record of occupational accidents and diseases and dangerous occurrences and accidents. Additional guidance on occupational health and safety monitoring programs is provided in the General EHS Guidelines.

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WORLD BANK GROUP 3.0 References and Additional Sources American Society of Heating, Refrigerating and Air-Conditioning Engineers United Kingdom (UK) Environment Agency. 2003. Environment and Heritage (ASHRAE). http://www.ashrae.org/ Service. Sector Guidance Note IPPC S6.10 Guidance for the Food and Drink Sector. Bristol: Environment Agency. Available at Arbejdstilsynet (Danish Working Environment Authority). 2006. Konserves og http://publications.environment-agency.gov.uk/pdf/GEHO1205BJZJ-e-e.pdf drikkevarer mv. (Preserved foods and drinks). Arbejdsmiljøvejviser 39 – 2. udgave. Copenhagen: AT. Available at http://www.at.dk/sw5801.asp United States Department of Labor, Bureau of Labor Statistics (US BLS). 2004a. Industry Injury and Illness Data – 2004. Supplemental News Release Australian Government Department of Environment and Heritage (Environment Tables. Table SNR05: Incident rate and number of nonfatal occupational injuries Australia). 1999. National Pollutant Inventory (NPI). Emission Estimation by industry, 2004. Available at http://www.bls.gov/iif/oshwc/osh/os/ostb1479.pdf Technique Manual for Food and Beverage Processing Industry. Canberra: Environment Australia. US BLS. 2004b. Census of Fatal Occupational Injuries Charts, 1992-2004. Number and rate of fatal occupational injuries by private industry sector, 2004. Australian Government Department of Primary Industries and Water (DPIW). Available at: http://www.bls.gov/iif/oshwc/cfoi/cfch0003.pdf Tasmania. 2002. Emisión Limit Guidelines for Fruit & Vegetable Processing Activities that Discharge Pollutants into Fresh and Marine Waters. Hobart: United States Environment Protection Agency (US EPA). 1995. Compilation of DPIW. Available at: http://www.dpiw.tas.gov.au/inter.nsf/attachments/cdat- Air Pollutant Emission Factors. Volume 1: Stationary Point and Area Sources, 5ba9fv/$file/guidelines%20for%20fruit%20and%20veg%20processing%20activiti AP 42, Fifth Edition, Volume I. Chapter 9: Food and Agricultural Industries. es.pdf Sections 9.8.1 Canned Food and Vegetables and 9.8.2 Dehydrated Food and Vegetables. North Carolina, USA: US EPA. Available at European Commission (EC). 2006. Directorate General Joint Research Council http://www.epa.gov/ttn/chief/ap42/ch09/index.html (JRC) Institute for Prospective Technological Studies (IPTS). Integrated Pollution Prevention and Control Reference Document on Best Available Techniques in the Food, Drink and Milk Industries. Seville: IPTS. Available at http://www.jrc.es/home/index.htm

Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO).1962-2005. Codex Alimentarius. Geneva: FAO and WHO. Available at http://www.codexalimentarius.net/web/index_en.jsp

Food Processing Technology – Principles and Practice. 2000. Second edition. Fellows, P.J. Cambridge: Woodhead Publishing.

Institute of Refrigeration (IOR). http://www.ior.org.uk

International Organization for Standardization (ISO). 2005. ISO 22000: 2005: Food safety management systems - Requirements for any organization in the food chain. Geneva: ISO. Available at http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=3 5466&ICS1=67&ICS2=20&ICS3

ISO. 2004. ISO 14001: 2004: Environmental Management Systems - Requirements with guidance for use. Geneva: ISO. Available at http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=3 1807&ICS1=13&ICS2=20&ICS3=10

ISO. 2004. ISO 9001: 2000: Quality Management System. Geneva: ISO. Available at http://www.iso.org/iso/en/iso9000-14000/index.html

Konserveringsteknik (Preservation technology) 1. 2004. Second edition. Bøgh- Sørensen, L. and Zeuthen, P. Copenhagen: DSR.

Konserveringsteknik (Preservation technology) 2. 2002. Second edition. Bøgh- Sørensen, L. and Zeuthen, P. Copenhagen: DSR.

United Nations Environment Programme (UNEP). 2004. Working Group for Cleaner Production in the Food Industry. Fact Sheet 3: Food Manufacturing Series. See http://www.gpa.uq.edu.au/CleanProd/

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WORLD BANK GROUP Annex A: General Description of Industry Activities The food and beverage processing sector covers a wide range packed beetroot. Typical examples of soft drinks are food and of products. Many process steps are common to the beverage juices and concentrated fruit extracts for dilution with manufacture activities of different products. Food and beverage water. processing plants vary in size and location, and are ideally located in close proximity to fresh water resources. Plant Receipt of Raw Materials operation is often seasonal reflecting the harvesting of the raw Raw materials are typically delivered in bulk on trucks and are materials, however product lines are unaffected by seasonal off-loaded directly for processing or for storage (e. g. in silos). variations and take place throughout the year. Other solid material ingredients may be delivered in bags on pallets. Liquid raw materials and ingredients may be transported Figure 1.0 summarizes the major processes for most food and in bulk tankers and pumped to storage tanks or delivered in beverage products from fruit and vegetable sources, though the containers on pallets. Solid raw materials are conveyed by belts actual process flow will vary depending on the product and the and elevators. plant set-up. Figure 2.0 summarizes the major steps for processing of meat products, specifically applicable to cooked Primary Grading / Screening ham manufacturing. This process stage often covers grading and sorting but its main

Fruit and Vegetable Processing23 objective is the assessment of the overall quality of the food Fruit and vegetable production begins with the preparation of using a number of criteria. Solid raw materials should preferably the raw food and beverages thorough a variety of methods be sorted and graded on the farm in order to minimize the including cleaning, trimming and peeling to reduce the product quantity of waste material, organic and non-organic debris, and to a uniform size before cooking, canning, drying or freezing, as off-specification product that is transported to the processing well as pulping and filtration to make soft drinks. The process plant. culminates with the packaging and transport of the final product. Intermediary Storage There are two major sub-sectors including fresh packed Storage of food and beverages can be required at various products and processed products. Processed products involve stages of the manufacturing process and the storage conditions other unit operations such as cooking, evaporating and drying to will be dependent on the product. In general the parameters to provide product diversity and increase shelf-life. Common be controlled for storage include humidity, temperature, examples of processed fruit products are canned peaches and atmospheric conditions, and hygiene. pears, dried fruits, jams and jellies, and fruit purees for use in the food industry. Examples of processed vegetable products Primary Cleaning include canned beans and frozen peas, as well as vacuum Primary cleaning removes and separates off-specification 23 This section briefly describes the major manufacturing steps in the food and material, organic and non-organic debris, metals, and pesticide beverage processing sector and has been adapted from text in the British Environment Agency’s Guidance for the Food and Drink Sector, Environmental residues, among other contaminants, from the raw material prior Agency (2003).

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WORLD BANK GROUP to further processing. The method used depends on the type of Product Processing materials to be removed and may include the use of water Food and beverages can be processed as a single operation or although dry methods are favored for water conservations and in a combination of several operations. The most common wastewater prevention reasons. processing methods are through heat application and heat

When water is used, the raw materials may be sprayed, and removal. The heat application methods include blanching, then immersed for organic and non-organic debris removal pasteurization, heat sterilization, evaporation, and dehydration using brushes, shaking, and stirring. The spray water may be including heat processing by baking or cooking in oils. Heat chlorinated and detergents may be added to the wash water, removal processing includes chilling, controlled or modified which may also be heated to increase cleaning efficiency. storage and packaging (to reduce the rate of respiration), freezing, and freeze-drying. Other preservation and processing Sorting, Grading and Inspection methods include the use of sodium chloride and sugar, food additives, and irradiation. The washed material may be sorted, graded and inspected prior to further processing to ensure uniformity. Sorting is the Packaging separation of materials into categories and the main factors are size, shape, weight, and color. Size sorting is typically done Products are packed to provide containment, protection, using screens and sieves. Shape sorting may be done manually communication, and convenience. Packaging materials typically or mechanically and weight sorting is typically used for valuable used in the food and beverage processing sector include flexible material such as tropical fruits. Color sorting is performed polymer materials (e.g. single films and laminates), paper, manually or by use of computer technology whereby the cardboard and corrugated cardboard, glass, cans, and wooden material passes the control point on conveyor belts at high rates or polymer boxes. and rejected items are blasted away using compressed air. Meat Processing Product Preparation If beef, poultry and pork are received frozen, processing involves thawing after arrival to the processing plant using air, Most raw materials have parts that are inedible and need to be water showers, or water immersion techniques. The first two removed in order to make the raw materials uniform and techniques generally require less water consumption than suitable for further processing. In the product preparation phase, immersion thawing methods. Thawed meat is then cut into retail the sorted and graded materials are subjected to a variety of portions using electric cutting systems. Excess fat and bones processes including trimming (manual or by rotating knives), can be reprocessed into commercial products such as gelatin, peeling, and size reduction, as well as mixing, forming, glues, etc. Fresh cuts are refrigerated prior to further processing separation and concentration of the food components. Various into preserved meat products, such as sausage, ham, and peeling methods are available including flash steam, flame, bacon. Cuts may be ground down and reconstituted into knife, abrasion, and caustic. different product shapes using various processing machinery. Preservation techniques include heat, such as cooking (e.g. in water bath, shower, steam, and hot air ovens) and smoking,

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WORLD BANK GROUP dehydration, fermentation, brining, curing, pickling, and canning. These activities are performed to increase the shelf life of the product. Brining, curing and pickling typically involve injection of a saline solution, followed by a massaging process to ensure mixing of ingredients and product additives. Meats are then inserted into casings to define their shape and size.

Figure A.1: General Process for Food and Beverage Processing Operations

Receipt of raw materials

Primary grading / screening

Intermediary storage

Primary cleaning and washing

Sorting, grading, and inspection

Product preparation

Product processing

Further processing

Packaging

Storage and dispatch

Source: Adapted from UNEP (2004)

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Figure A.2: Canned Meat Production (Including Cured and Cooked Meat)

CANNED

Receipt of raw materials

Thawing

Cutting/trimming CURED COOKED

Cans Meat dosing Salting Pickling

Weight control Refrigeration Moulding

Cooking (de-aeration) Resting Cooking (de-aeration)

Sealing Trimming Cooking and smoking

Can washing Washing Re-moulding/cooling

Thermal treatment Dehydration Trimming and stuffing Mould washing

Cooling Curing Surface pasteurization

Storage Packing under vacuum Cooling

Refrigeration

Packaging

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87 Annexure 6 DETAILED COST ESTIMATE FOR EMAP

88 Annexure 6

Table: Detailed Budgetary Provision for EMAP Implementation (Per Location wise and Overall cost) S No Project Components Type of Facility IQF CA ARCC ADC (1 No.) Storage (5 No.s) (5 No.s) (1 No.) A One-time Capital Cost 1 Land Purchase As per Rate negotiation by CAL Management (Part of Overall Project Cost) 2 Consent Fee payable to SPCB As determined by SPCB 3 Construction Stage Mitigation Incidental to Civil & Electro Mechanical Measures Contracts awarded by CAL 4 Installation of Wash Water Treatment 6,00,000 6,00,000 2,00,000 2,00,000 & Recycling System 5 Installation of Septic Tank & Soak Pit 5,00,000 5,00,000 2,50,000 2,50,000 Disposal System 6 Installation of Composting & Vermi 5,00,000 5,00,000 2,50,000 2,50,000 Composting 7 Provision of PPEs of Operational work 1,00,000 1,00,000 1,00,000 1,00,000 force 8 Rain Water Harvesting & Recharging 3,50,000 3,50,000 1,50,000 1,50,000 Structures 9 Landscaping and Plantation Part of Overall Project Cost 10 Occupational Health Screening and As per Actual Checkups 11 Adoption of Renewable (Solar) Energy 4,00,000 4,00,000 2,00,000 2,00,000 for Lighting Applications 12 Sub-total (One-time Capital Cost Per 24,50,000 24,50,000 11,50,000 11,50,000 Location ) 13 Sub-total (One-time Overall Capital 24,50,000 24,50,000 57,50,000 57,50,000 Cost for All Facilities) B Recurring Annual Cost 14 Annual Maintenance and up keep cost 2,25,000 2,25,000 1,15,000 1,15,000 @10% of Capital cost 15 Operational Stage Environment 6,00,000/ 3,60,000/ 3,60,000/ 3,60,000/ Monitoring Cost Year Year Year Year 16 Sub-total (Recurring Annual Cost) 8,25,000 5,85,000 4,75,000 4,75,000 17 Sub-total (Recurring Overall Annual 8,25,000 5,85,000 23,75,000 23,75,000 Cost for All Facilities)

89