Himachal Pradesh Clean Energy Development Investment Program

Environmental Assessment Report _______________________________________________ Summary Environmental Impact Assessment Project Number: 41627 April 2008 India: Himachal Pradesh Clean Energy Development Investment Program Prepared by the Government of Himachal Pradesh for the Asian Development Bank (ADB). The summary environmental impact assessment 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. CURRENCY EQUIVALENTS (as of 25 April 2008) Currency Unit – Indian rupees/s (Re/Rs) Re1.00 – $0.025 $1.00 – Rs40.15 ABBREVIATIONS AAQ – ambient air quality ADB – Asian Development Bank BIS – Bureau of Indian Standards CAT – catchment area treatment CO2 – carbon dioxide DPR – detailed project report EMF – electromagnetic fields EMP – environmental management plan EIA – environmental impact assessment HEP – Hydroelectric project HPCEDIP – Himachal Pradesh Clean Energy Development Investment Program HPPCL – Himachal Pradesh Power Company Ltd. HPSEB Himachal Pradesh State Electricity Board HPSEPPCB – Himachal Pradesh State Environment Protection and Pollution Control Board IEE – initial environmental examination MFF – multi-tranched financing facility MOP – Ministry of Power PGCIL – Power Grid Corporation of India Limited PIU – project implementation unit R&R – resettlement and rehabilitation SEIA – summary environmental impact assessment SIEE – summary initial environmental examination SO2 – sulphur dioxide SPM – suspended particulate matter WEIGHTS AND MEASURES ASL – above sea level °C – degree celsius cm – centimeter DC – direct current dB(A) – decibels measured in the audible noise bands g – gram GW – gigawatt GWh – gigawatt-hour ha – hectare ha m – hectare meter kg – kilogram km – kilometer kV – kilovolt kWh – kilowatt-hour kV – kilovolt l – liter Leq – equivalent noise level m – meter m2 – square meter m3 – cubic meter mg – milligram mld – million liters per day mm – millimeter MW – megawatt MVA – megavolt ampere qtls – quantitative trait loci (Indian yield measurement) sec – second t – ton (metric) V – volt VA – volt-ampere W – watt yr – year NOTES (i) The fiscal year (FY) of the Government of India and its agencies ends on 31 March. FY before a calendar year denotes the year in which the fiscal year ends, for example, FY2008 ends on 31 March 2008. (ii) In this report, "$" refers to US dollars. CONTENTS Page MAP I. INTRODUCTION 1 II SAWRA KUDDU HYDROPOWER PROJECT 4 A. Description of the Project 4 B. Description of the Environment 6 C. Alternatives 13 D. Anticipated Environmental Impacts and Mitigation Measures 15 E. Human Environment 23 F. Environmental Impacts of Operation Activities 25 G. Environmental Management Plan 31 H. Institutional Arrangements 31 I. Organization Support System 33 J. Disaster Management Plan 37 K. Public Consultation and Disclosure 38 L. Due Diligence Review of Associated Facilities 39 M. Subprojects: Transmission Lines 39 III. KASHANG STAGE I HYDROPOWER PROJECT 40 A. Description of the Project 41 B. Description of the Environment 43 C. Alternatives 52 D. Anticipated Environmental Impacts and Mitigation Measures 55 E. Economic Assessment 67 F. Potential Cumulative and Induced Impacts 68 G. Environmental Management Plan 69 H. Disaster Management Plan 75 I. Public Consultation and Disclosure 75 J. Due Diligence Review of Associated Facilities 77 IV. CONCLUSIONS 80 APPENDIXES 1. Details of Sawra Kuddu HPP 81 2. Details of Kashang Stage I HPP 95 3. Standards 104 4. Rehabilitation and Resettlement Policy of the state government 110 5. Second Public Hearing at Sawra Kuddu HPP 115 6. Summary Cumulative Impacts due to Associated Facilities at Pabbar River 123 7. Second Public Hearing at Kashang Stage I HPP Environmental Management 132 8. Environmental Management Plan (including Check List of Anticipated Impacts) 137 9. Environmental Assessment and Review Framework 150 I. INTRODUCTION 1. The Government of India recognizes the importance of increasing the share of hydropower generation in the energy mix and introduced a 50,000 megawatt (MW) hydropower initiative in 2003. Under this initiative, the northwest and northeast states, including Himachal Pradesh, receive special incentives to promote hydropower development. Himachal Pradesh has abundant water resources in five major rivers that originate in the Western Himalayas. The power generation potential of Himachal Pradesh is 20,386 MW, about 25% of the total hydropower potential of India. About 6,204 MW of the state’s total potential has been harnessed as of year 2007. The main strategy of the government of Himachal Pradesh, as outlined in 2006 in its state hydropower policy, is to become the “Hydropower State” of India, by providing affordable, reliable, and quality power to its residents. It plans to export power to India’s northern grid as a major source of revenue for the state. The state government views the exploitation of the immense hydropower potential as a means to prosperity and intends to speed up hydropower development, adding 9,000 MW of additional capacity by the end of the Government of India’s 11th Five Year Plan in 2012. Table 1 presents a breakdown of the existing capacity in the state of Himachal Pradesh. Table 1: Existing Capacity of Himachal Pradesh(MW) Existing Hydropower Installed Capacity (MW) State Sector 467.0 Central Sector 3,829.6 Joint Sector 1,500.0 Private Sector (IPPs) 386.0 Under HIMURJA 21.2 Total 6,203.8 HIMURJA = Himachal Pradesh Energy Development Agency, IPP = independent power producer, MW = megawatt. Source: Central Electricity Authority of India 2. In 1988, Himachal Pradesh became the first of India’s hill states to achieve 100% electrification of all census villages, despite its dispersed customer base and mountainous terrain. As of 2007, it has about 19,000 distribution transformers, 28,000 kilometers (km) of high tension lines, and 50,000 km of low tension lines. It is one of the few states in the country where energy delivered to consumers is 100% metered. It has achieved more than 90% metering on distribution transformers and feeders of up to 33 kilovolts (kV). The aggregated technical and commercial losses in Himachal Pradesh are comparatively low (18%). The state transmission system, as of 2007, consists of 2,100 km of transmission lines rated at 66 kV and above and about 100 power transformers aggregating to about 2,000 MVA of capacity. Significant additional transmission capacity will be needed to handle the planned increase in power production. At present, the available power is less than the requirement, however, resulting in an energy shortage of 1% and a peak shortage of 4.9%. Table 2 gives comparative electrification and consumption data for Himachal Pradesh and India. Table 2: Status of Electrification and Consumption in Himachal Pradesh (percent) India Himachal Pradesh Item National Average Average Village Electrification 86.6 100.0 Household Electrification 55.8 98.0 Per Capita Consumption (kWh) 592 726 kWh = kilowatt-hour. Source: Central Electricity Authority of India 2 2 3. The hydropower potential in Himachal Pradesh is distributed in various river basins; potential and harnessed status is summarized in Table 3. Table 3: Hydro Potential (MW) Balance Item River Basin Hydro Potential Installed Harnessed % of capacity Potential 1. Beas 4,582 1,634.50 35.67 2,947.50 2. Chenab 2,748 5.30 0.20 2,742.70 3. Ravi 2,294 1,043.50 45.49 1,250.50 4. Satluj 9,422 3,150.75 33.44 6,271.25 5. Yamuna 592 211.52 35.73 380.48 HIMURJA 6. 1,362 21.20 1.56 1,340.80 Projectsa Total 21,000 6,066.77 28.89 14,933.23 HIMURJA = Himachal Pradesh Energy Development Agency, MW = megawatt. a A state-owned entity dealing with mini and micro hydro oprojects up to 5 MW capacities. Source: The Central Electricity Authority of India, 2006. 4. Recent developments in the power sector of Himachal Pradesh include: (i) the state government elucidated a comprehensive hydropower development policy; (ii) a new corporate entity, the Himachal Pradesh Power Company Ltd. (HPPCL), was created to develop and operate new hydropower plants; (iii) the proposed Himachal Pradesh Clean Energy Development Investment Program (HPCEDIP) is included in the Asian Development Bank (ADB) India: Country Operations Business Plan as a firm loan project for 2008; and (iv) ADB approved a project preparatory technical assistance (TA) of India. Investment proposals identified for ADB support under the HPPCL include the Kashang Hydroelectric Project, stage I (65 MW), and stages II and III (130 MW); the Shongtong- Karcham Hydroelectric Project (402 MW); the Sainj Hydroelectric Project (100 MW); and the Sawra Kuddu Hydroelectric Project (111 MW). These five hydropower projects will provide a total capacity of 808 MW with a combined generation of 3,256.3 gigawatt-hours (GWh) per year at 90% dependability. The estimated total cost of these projects is $1.4 billion. The state government will finance $420 million (30%). It has requested ADB financing for $800 million, and it will finance $180 million (13%) from other sources. 5. Under the first tranche (tranche 1), HPPCL will implement Kashang stage I (65 MW) and Sawra Kuddu (111 MW), both designed as run-of-river schemes. Construction at Kashang will begin in October 2008; the first unit is scheduled for commissioning in April 2012, and the final unit will come on line in August 2012. The construction of tunnels at Sawra Kuddu started in November 2007; the first unit is scheduled for commissioning in August 2012. The final unit will come on line in December 2012, although efforts are being made to accelerate the final commissioning to October 2012. The two projects will add 176 MW of installed capacity to India’s northern grid—a substantial contribution to meeting the regional shortfall in peak supply. It will be controlled through the Northern Region Load Dispatch Center. 6. All necessary national and state government approvals for both projects have been obtained, as detailed in Table 4. 3 3 Table 4: Status of Project Documentation and Clearances Item Details Kashang Stage I Sawra Kuddu (111 MW) (65 MW) A.

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