Resettlement Plan (Tranche-2) (Draft) India: Madhya Pradesh Energy Efficiency Improvement Project Department of Energy Government of Madhya Pradesh September 2011 The Resettlement Plan 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. Page 1 ABBREVIATIONS ADB : Asian Development Bank AH : Affected Household AP : Affected Person BPL : Below Poverty Line DISCOM : Distribution Company DISCOM-C : Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited DISCOM-E : Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited DISCOM-W : Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited DPR – Detailed Project Report FGD : Focus Group Discussions GOMP – Government of Madhya Pradesh GoI – Government of India GRC : Grievance Redress Committee HVDS – High-Voltage Distribution System IA – Implementing Agency IEE – Initial Environmental Examination INR : Indian Rupee IP : Indigenous Peoples LA : Land Acquisition MP – Madhya Pradesh PMU : Project Management Unit NRRP : National Resettlement & Rehabilitation Policy ROW – Right of Way RP : Resettlement Plan ST : Schedule Tribe WHH : Women Headed Household Page 2 TABLE OF CONTENTS EXECUTIVE SUMMARY I PROJECT DESCRIPTION II SCOPE OF LAND ACQUISITION AND RESETTLEMENT III SOCIOECONOMIC INFORMATION AND PROFILE IV INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION V GRIEVANCE REDRESS MECHANISMS VI POLICY AND LEGAL FRAMEWORK VII ENTITLEMENT, ASSISTANCE AND BENEFITS VIII RELOCATION AND INCOME RESTORATION IX RESETTLEMENT BUDGET AND FINANCIAL PLAN X INSTITUTIONAL ARRANGEMENTS XI IMPLEMENTATION SCHEDULE XII MONITORING AND REPORTING ANNEXURE 1 SUMMARY CONSULTATIONS 2 SAMPLE MONITORING AND STATUS REPORT Page 3 EXECUTIVE SUMMARY i. Government of Madhya Pradesh (GoMP) has requested the Asian Development Bank (ADB) through the Government of India (GoI) for a Multi-Tranche Financing Facility (MFF) to part finance the feeder separation investment program. The key aspect of the feeder separation project is separation of the irrigation and residential/commercial loads in rural areas and to adopt measures to check pilferage of electricity. The main project activities includes (i) erection of 11 kV additional bays along with VCB, control relay panel; (ii) Laying of 11 kV lines on PCC poles with (rabbit) AAA conductor; (iii) Installation of 25 KVA 11/0.433 kV distribution transformers; (iv) HVDS System (Conversion of existing LT to HT line);(v) 33 kV bays at EHV substations, 33 kV new substations and 33 kV lines; (vi) Replacement of bare conductor of LT lines by AB cables; (vi) replacement of damaged lines by armoured PVC cable; (viii) provision of meters for un-metered consumers; and(vii) GIS based consumer indexing and asset mapping. The Resettlement Plan (RP) has been prepared for the Tranche-2 components of the Madhya Pradesh Energy Efficiency Improvement Project (The Program). The RP based on Detailed Project Report (DPR). Tranche-2 components has been categorized as ‘B’ for Involuntary Resettlement (IR) impact according to ADB’s Safeguard Policy Statement, 2009 (SPS) ii. No physical displacement is foreseen in Tranche-2 components. Minor land acquisition is required (0.5 Hectare) for 2 substations out of the prposed 21 substations. The total numbers of affected title holder are 2. Additionally, 2 agricultural squatters will be affected who are using a portion of government land. Total numbers of affected households are 4 and total number of affected persons 18. Temporary impacts on loss of crop are anticipated during construction of lines which is negligible. As a standard practice, construction activities related to distribution lines are scheduled during off season to minimize the crop damage. Farmers also do not object for construction of distribution lines because of the direct benefits they expect from the reliable power supply. Therefore, the impacts are limited to temporary damage on crops in certain circumstances (assumed to be 10% in this case) during the construction of lines. Tranche-2 components will not have any impacts on indigenous people. iii. Consultations were carried out with various stakeholders during RP preparation and will continue throughout the subproject cycle. To understand the socio-economic profile of the project area, Focused Group Discussions (FGD) were conducted at rural as well urban areas at 21 locations/villages of various project districts during the month of February to March 2011 which included 422 numbers of participants. The same will be continued during the project implementation. Project information will be disseminated through the disclosure of RP. The RP will be available at the offices of local revenue offices and at DISCOM offices. A copy of the RP will be disclosed on DISCOM and ADB website. A Grievance Redress Committee (GRC) will be formed to ensure APs grievances are addressed and facilitate timely project implementation. Minor grievance will be redressed by the DISCOM officials at site level within 15 working days failing which the case will be referred to GRC which will take action within 30 working days. Grievance not redressed by the GRC will be referred to the appropriate court of law. iv. The policy framework and entitlements for the Project are based on national laws: The Land Acquisition Act, 1894 (LAA, amended in 1984), and the National Resettlement and Rehabilitation Policy, 2007 (NRRP); Madhya Pradesh Resettlement and Rehabilitation Policy, 2002 and ADB’s Safeguard Policy Statement, 2009 (SPS). The project will neither result in any physical displacement nor economic displacement except for temporary impacts on crops which are foreseen during the construction period. Adequate Page 4 compensation will be provided as per the entitlement. Additionally, vulnerable households will be given priority in project employment.. v. Three Madhya Pradesh power distribution companies such as DISCOM-C (central distribution zone of Madhya Pradesh), DISCOM-E (eastern distribution zone of Madhya Pradesh) and DISCOM-W (western distribution zone of Madhya Pradesh) will serve as the executing agencies (EAs) for the investment program. The same will be the implementing agencies (lAs). All three distribution companies have established project management units (PMUs). The PMU will have designated officials for safeguards planning and implementation. Payment of compensation and assistance for temporary impacts on crops will be completed in sections before the start of civil works. Construction will start after payment of compensation. The resettlement cost estimate for tranche-2 components includes eligible compensation for loss of crop, support cost for RP implementation and cost for monitoring. These are part of the overall project cost. A tentative budget has been calculated for the project which amounts to INR 6.90 million. RP implementation will be closely monitored and semi annual monitoring report will be submitted by DISCOM to ADB. Page 5 I. INTRODUCTION 1. The Resettlement Plan (RP)1 has been prepared for the Tranche-2 components of the Madhya Pradesh Energy Efficiency Improvement Project (The Program). The RP is based on Detailed Project Report (DPR). Tanche-2 components has been categorized as ‘B’2 for Involuntary Resettlement (IR) impact according to ADB’s Safeguard Policy Statement, 2009 (SPS) 2. Madhya Pradesh (MP) is an agrarian state with 70% rural population and inadequate power supply in rural areas is one of the major obstacle affecting the economic growth and development. At present, rural power feeders feed mix load approximately for 8-10 hours. Agricultural pumps are provided with three-phase supply for 6-8 hours. During the rest of the period, single-phase supply is made available to households. Farmers use phase splitters3 and run their water pumps for extended hours resulting in power interruptions, abnormal loading of feeders and failures of distribution transformers. The current inefficient system results in households not getting power round the clock, leading to unbalanced loading on transformers and defeating the purpose of load shedding. Moreover, the current system of common supply to households and water pumps makes it difficult to locate and reduce the commercial losses. The Government of Madhya Pradesh (GoMP) has undertaken a feeder separation4 program to resolve these issues. The first phase is already under implementation and the proposed ADB assistance plans to finance the second phase of the feeder separation program. 3. In order to ensure adequate power supply to rural households and farmers, 11 kV feeders have been separated for households and farmers under phase 1 of the on-going program. This would enable households to receive reliable and quality power supply, which is at par with the urban population of the project area. Once the feeder separation is accomplished, supply to the households would be through the high voltage distribution system (HVDS) resulting in reduction of commercial losses. Of the total 50 districts in MP, phase two covers 29 districts which belong to three distribution companies: DISCOM-C (central distribution zone of MP), DISCOM-E (eastern distribution zone of MP), and DISCOM-W (western distribution zone of MP). The project activities include installation of new 11 kV feeders, conversion of low tension (LT) feeders to 11 kV feeders, installation of distribution transformers, and installation of meters and service line renovations. 4. GoMP has set up an ambitious