Naidupeta Economic Zone Subproject – Common Effluent Treatment Plant at Naidupeta

Initial Environmental Examination

Document Stage: Final Project Number: 48434-003 February 2019

IND: Visakhapatnam Chennai lndustrial Corridor Development Program – Naidupeta Economic Zone Subproject – Common Effluent Treatment Plant at Naidupeta

Package No: VCICDP/APIIC/01

Prepared by Andhra Pradesh Industrial lnfrastructure Corporation Limited, Government of Andhra Pradesh for the Asian Development Bank.

This final 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.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Initial Environmental Examination

Document Stage: Final Project Number: 48434 February 2019

IND: Vishakhapatnam Chennai Industrial Corridor Development Program (VCICDP) Naidupeta Economic Zone Subproject – Common Effluent Treatment Plant at Naidupeta

Prepared by the Government of Andhra Pradesh for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 14 August 2018) Currency unit – Indian rupee (Rs) Rs1.00 = $0.01429 $1.00 = INR69.96

ABBREVIATIONS

ADB - AsianDevelopmentBank APIIC - AndhraPradeshIndustrialandInfrastructure CorporationLimited BGL - BelowGroundLevel BOD - BiologicalOxygenDemand BIS - Bureauof IndianStandard CPCB - CentralPollutionControlBoard DO - DissolvedOxygen DoE - Departmentof Environment PMC - ProjectManagementConsultant EA - ExecutingAgency EIA - EnvironmentalImpactAssessment EMP - EnvironmentalManagementPlan EMoP - EnvironmentalMonitoringPlan ESO - EnvironmentalandSafetyOfficer GoAP - Governmentof AndhraPradesh GoI - Governmentof India IEE - InitialEnvironmentalExamination IMD - IndianMeteorologicalDepartment IS - IndianStandard MFF - MultiTrancheFinancialFacility MoEF - Ministryof EnvironmentandForests MSL - MeanSeaLevel MW - MegaWatt NGO - Non-GovernmentOrganization NOx - OxidesofNitrogen APIIC - ProjectImplementationUnit RF - ReserveForest ROW - RightofWay PMSC - ProjectManagementandSupervisionConsultant SPCB - StatePollutionControlBoard SPM - SuspendedParticulateMatter SO2 - SulphurDioxide SSI - SmallScaleIndustries

NOTE (i) In this report, "$" refers to US dollars. (ii) “INR” and “Rs” refer to Indian rupees

This 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.

TABLE OF CONTENTS

Page I. INTRODUCTION 1 A. Background 1 B. Purpose andobjective ofthestudy 3 C. ExtentoftheIEEstudy 3 D. IEE Methodology 3 1. Primary Data Collection 4 2. Secondary DataCollection 4 3. PublicConsultation 4 4. Other Tools 4 5. AssessmentofPotentialImpacts 5 6. PreparationoftheEnvironment ManagementPlan 5 E. Structureofthe report 5

II. POLICY, LEGALAND ADMINISTRATIVEFRAMEWORK 5 A. ADB Policy 5 B. Environmental Legislation (National andState Laws) 6 C. Governmentof India EnvironmentalAssessmentProcedures 10 D. International Environmental Agreements 11 E. ADB'sSafeguard Requirement 12 F. Grievance RedressMechanism 12

III. DESCRIPTIONOFTHEPROJECT 13 A. Location 13 B. WasteWater CharacteristicsExpected at CETPs 14 C. ProjectNeed andCost 16 D. Proposed Scheme of Treatment: 17

IV. DESCRIPTIONOFTHEENVIRONMENT 22 A. Physical Resources 22 B. Socio Economic Profile 26 C. Baseline Environmental Condition 27

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND ITS MITIGATION MEASURES 35 A. BeneficialImpacts 35 B. Adverse Impacts 36 C. Potential ImpactsduringConstruction Phase: 36 1. ImpactonAir Quality 36 2. Potential ImpactonWater 36 3. Impactonnoise levels 37 4. Impactonthe existing trafficsystem 37 5. ImpactonTopographyand land use 37 6. Impactonsoilquality 37 7. Impactonecology 37 D. Potential Impactsduringoperation phase 37 1. ImpactonAir Quality 38 2. ImpactonOccupational health 38 3. Impactsdueto Hazardous waste 38 4. Impact due to Odor 39 E. SolidWaste Management 39 1. SludgefromCETP 39 2. SludgefromWTP 39

3. Unanticipated Impactsduring ConstructionAnd operation 40 F EHS Guidelines of World Bank and good International Industry Practices 40

VI. PUBLIC CONSULTATION AND INFORMATIONDISCLOSURE 41 A. PublicConsultation andInformation Disclosure 41 B. Future Consultation 42 C. Information Disclosure 43 D. Grievance RedressMechanism 43

VII. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 46 A. SafeguardImplementation Arrangement 46

VIII. INSTITUTIONAL CAPACITYAND DEVELOPMENT 52

IX. ENVIRONMENTAL MANAGEMENTPLAN, MONTORINGPLAN ANDGRIEVANCE REDRESSALMECHANISM 53 A. EnvironmentManagementPlan 53 B. EnvironmentMonitoringProgram 53 C. PerformanceIndicators 53 D. EnvironmentManagementBudget 54 E. GenericGuidelinesfor Implementing EMP 54

X. CONCLUSION AND RECOMMENDATION 55

Appendices

Appendix 1: APPCB–CFE – Approval of CETP design – 56 Amendment to CFE Order – issued Appendix 2: G.O. for establishment of Grievance Redressal Mechanism 59 Appendix 3: Environmental Management Plan 62 Appendix4: Environmental Monitoring Program 66 Appendix 5: National Ambient Air Quality Standards 69 Appendix 6: Guidelines of CPCB on Primary Water Quality 70 Appendix 7: Drinking Water Quality Standards(asperIs:10500-1991) 71 Appendix 8: National Ambient Noise Standards 72 Appendix 9: Rea Checklist 73 Appendix10: Sample Annual Environmental Monitoring Report 77 Appendix11: Sample Environmental Site Inspection Report 82 Appendix12: Construction Site Checklist for EMP Monitoring 84 Appendix13: Sample Grievance Registration Form 86 Appendix 14: Records of Public Consultation 88

List ofTables Table 1: Major Industries in the Naidupeta Cluster: ...... 2 Table 2: Primary and Secondary Information Sources ...... 4 Table 3: Applicable Environmental Regulations for Naidupeta CETPSubproject...... 7 Table 4: International Agreements and Applicability to Naidupeta CETP Subproject ...... 132 Table 5: Estimated Volumetric Contribution to CETP of Different Sectors of Industry...... 164 Table 6: Inlet Effluent Quality for CETP ...... 17 Table 7: Treated Effluent Quality of CETP ...... 175 Table 8: Summary of Cost of Block Items - Naidupeta ...... 196 Table 9: Climatological Summary – Nellore Region ...... 253 Table 10: Monitoring Locations ...... 308 Table 11: Ambient PM10, PM2.5, SO2 and NO2 Monitoring Data ...... 318 Table 12: Ambient O3 monitoring data ...... 339 Table 13: Ambient CO Monitoring Data ...... 30 Table 14: Day and Night Equivalent Noise Levels ...... 33 Table 15: Anticipated impacts ...... 385 Table 16: Details of Public Hearing and Stakeholder Consultation Meeting held on 28.07.2015 for Naidupet Economic Zone ...... 42 Table 17: Tentative PMU Structure ...... 496 Table 18: APIIC Environmental Safeguard Officer Tasks and Responsibilities ...... 518 Table 19: Institutional Roles & Responsibility: Environmental Safeguards ...... 529 Table 20: Training Program for Environmental Management ...... 52

List ofFigures Figure 1: Map location of Industrial Clusters and Nodes of Vishakhapatnam Chennai ...... 1 Figure 2: Proposed location of CETP at Naidupeta Industrial Cluster ...... 15 Figure 3: CETP proposed plant layout at Naidupeta...... 21 Figu