Assam Power Sector Investment Program (RRP IND 47101) Initial Environmental Examination Document Stage: Final Document Project Number: 47101 June 2014 India: Assam Power Sector Investment Program – Tranche 1 Prepared by Assam Power Generation Corporation (APGC), Government of Assam. i Table of Contents ABBREVIATIONS iii WEIGHTS AND MEASURES iii EXECUTIVE SUMMARY 1 1.0 INTRODUCTION 1 1.1 Background 1 1.2 Scope of Work and Methodology Adopted 2 1.3 Applicable Environmental Policies and other Legislations 4 2.0 DESCRIPTION OF THE PROJECT 5 2.1 The Project 5 2.2 Category of Project 5 2.3 Need for the Project 5 2.4 Location 6 2.5 Size and Magnitude of Operation 12 2.6 Implementation Plan 17 3.0 DESCRIPTION OF ENVIRONMENT 19 3.1 Physical Resources 19 3.2 Ecological Resources 28 3.3 Economic Development 34 3.4 Social and Cultural Development 37 3.5 Historical, Cultural and Archaeology Sites/Places 38 4.0 SCREENING OF POTENTIAL ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 39 4.1 Analysis of Alternatives (Technology & Site) 39 4.2 Environmental Impacts 41 4.3 Environmental Management Plan 48 4.4 Social, Labor Issues and Corporate Social Responsibility (CSR) 51 5.0 INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PROGRAMME 52 5.2 Environmental Monitoring Plan (EMoP) 56 5.3 Critical Environmental Review Criteria 57 5.4 Environmental Management Plan Budget Costs 57 5.5 Associated facilities 59 5.6 Disaster Management, Health and Safety 59 5.7 Disposal of Dismantled Gas Turbine Power plant: 59 6.0 GRIEVANCE REDRESS MECHANISM 61 7.0 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 64 7.1 Information Disclosure 64 7.2 Public Consultation 64 7.3 Consultation Findings 64 8.0 FINDINGS AND RECOMMENDATIONS 66 9.0 CONCLUSIONS 67 ANNEXURES 69 ANNEXURE 1: SUMMARY OF NATIONAL, LOCAL, OTHER APPLICABLE ENVIRONMENTAL LAWS, REGULATIONS, AND STANDARDS 69 ANNEXURE 2: ENVIRONMENTAL MANAGEMENT PLAN (EMP) 74 ANNEXURE 3: APPROVAL OF ENVIRONMENT IMPACT ASSESSMENT 78 ANNEXURE 4: PUBLIC CONSULTATION 89 ANNEXURE 5: ENVIRONMENT MONITORING REPORT 92 ABBREVIATIONS ADB – Asian Development Bank AEGCL – Assam Electricity Grid Corporation AERC – Assam Electricity Regulatory Commission APGC – Assam Power Generation Corporation APDC – Assam Power Distribution Company APCB – Assam Pollution Control Board ASI – Archaeological Survey of India ASEB – Assam State Electricity Board CEA – Central Electricity Authority CERC – Central Electricity Regulatory Commission CPCB – Central Pollution Control Board, Government of India DC or D/C – Double Circuit DPR – Detailed Project Report EA – Executing Agency EARF – Environmental Assessment and Review Framework EHV – Extra High Voltage EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan ESMU – Environment and Social Management Unit GHG – Green House Gas GOA – Government of Assam GoI – Government of India GSS – Grid Sub-station GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination IMD – India Metrological Department LRPP – Lakwa Replacement Power Project LTPS – Lakwa Thermal Power Station MFF – Multi-tranche Financing Facility MOEF – Ministry of Environment and Forests, Government of India MOP – Ministry of Power MSL – Mean Sea Level PCB – Poly Chlorinated Biphenyl PGCIL – Power Grid Corporation of India PLF – Plant Load Factor PTCC – Power Telecom Co-ordination Committee PIU – Project Implementing Unit PMU – Project Management Unit ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF6 – Sulphur Hexafluoride WEIGHTS AND MEASURES Cusec – Measure of flow rate (28.317 litres per second) Ha. (hectare) – 10,000 sq m = 2.47105 Acre GW – Giga watt km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) MW – Mega Watt MMSCMD – Metric Million Standard Cubic Metre per Day Ppm – Parts per million 1 EXECUTIVE SUMMARY 1. ADB is proposing to extend a multi-tranche financing facility to the Government of Assam under Assam Power Sector Investment Program – Tranche 1. Assam State Power Generation Company (APGC) intends to fund the 70 MW Lakwa Replacement Power Project (LRPP) which will replace obsolete 60 MW Gas turbines with 70 MW Gas Engines at the gas based generation Lakwa Thermal Power Station (LTPS). 2. Based on the proposed capacity, proposed replacement project is within the existing LTPS Complex; therefore project is supposed to fall under category B of Project Activity 1(d), Thermal Power Plants <500 MW (coal/ lignite/ naptha & gas based) under the schedule as per Environment Impact Assessment notification issued on 14th September, 2006. However the project attracts general condition of the notification as the Nagaland state boundary is falling within 10 km radius from the project site (4 km in South direction) and hence the project falls under Category A of the Government of India which required an Environmental Clearance from Expert Appraisal Committee, MoEF, GoI. 3. In May 2013, a comprehensive environment assessment for the power project prepared by M/s Ramky Enviro Engineers Ltd., Hyderabad was approved by the Ministry of Environment and Forests (MoEF), Government of India for the 70 MW LRPP. However, to comply with ADB‘s requirements, the government-approved environment assessment for the 70 MW LRPP was supplemented by an IEE following the outline given in Annex to Appendix 1 of the SPS June 2009. This IEE was based on Appendix 3 of the ADB‘s 2003 Environmental Assessment Guidelines because all the sub-project components are situated inside the LTPS site and are contiguous. 4. The project activities would support cost-effective development of energy resources through modernisation of obsolete gas plant in Assam. The table below gives the list of Tranche 1 components and summary of environmental issues. Tranche 1 Components and Summary Environmental Issues No Subproject Environmental Issues Component I: - APGC Component I. Lakwa Replacement Power Project Environment Impact Assessment for the 70 MW replacement project has Replacement of existing 4 x 15 MW (60 been prepared by M/s Ramky Enviro Engineers Ltd. which has been MW) Gas Turbine Units with 70 MW approved by the Ministry of Environment and Forests at the 74th Meeting of capacity of Gas Engines and replacement the reconstituted Expert Appraisal Committee (Thermal) held during May of existing 3 Gas Compressor Units 20-21, 2013. Land required for the LRPP is about 7 acres which is inside the premises of the LTPS plant. Water requirement has been assessed as 0.9 m3/hr (21.6 m³/day) for Gas engine based power plant. This water shall be drawn from the water clarifier inside the plant. Desang River flows 5.5 km N of the site and Suffry canal flows 0.7 km E. LTPS is located at 110m MSL, whereas Desang River and Suffry Canal are at 99 m MSL and 103m MSL respectively thereby providing the least risk of flooding LTPS. There is minimal habitation in the SW direction within 1.2 Km. which is most windy as per windrose diagram in environment assessment document. No Wildlife Sanctuaries or National parks exist in 4 km radius of the project site. The Chala Reserve Forest which is about 1.6 km North-west, Abhaypur Reserve Forest which is about 3.6 km south. Sola Reserve Forest is situated 8 km from LTPS in NW. Singphan Wildlife Sanctuary which lies in the state of Nagaland is 4.4 km south of the proposed project site and does not lie to the SW direction. The Panidehing Wildlife Sanctuary in Shivsagar district about 50 km lies to the NE. Power generated will be evacuated through existing 132 kV feeders as per the scheme of State Transmission Utility (STU) and no additional feeders are envisaged. Component II. Capacity Development Component 2. Capacity Building No associated social and environment impact. 2 5. APGC had studied technological and location specific alternatives for replacement of obsolete gas turbines for power generation in Phase I LTPS plant. The existing plant site does not affect any biodiversity rich area, or any forest area and is situated away from any densely populated or agricultural area – with no schools, temples and other places of social and cultural importance coming within the boundary of the plant. 6. Clearances from Assam Forest Department would not be required as none of the project components require construction on any forest land or require cutting of forest trees. No additional land is being acquired for LRPP as the project will utilise the existing 132 kV power evacuation system at LTPS for power evacuation thereby eliminating the need for additional transmission lines. The LRPP Gas Based Generation plant and power evacuation substation extension is proposed to be set up on existing plant premises and therefore acquisition of land will not be required from the surrounding communities. This proposed land area is barren with some scrubs and weed plants, there is no need for removal of trees. The LRPP shall utilise the existing 132 kV LTPS’s substation to connect to the Assam Electricity Grid Corporation’s (AEGCL’s) 132 kV network at Dibrugarh, Nazira, Namrup and Mariana GSS’s through transmission lines mostly run through cultivated lands and to a lesser extent runs through human settlements. 7. The proposed project will have a number of positive impacts and negative impacts on the existing environment as follows: Positive Impacts: The proposed project will improve operational efficiency and quality of power, reliability of the system and at the same time will reduce losses due to interconnection with Discom network and hence better voltage profile. Evacuation of power to the local areas will boost overall economic development of the state. There no emission control systems installed on the old gas turbines and the hot flue gases are escaping into the atmosphere. With this new gas engine, the system will have monitoring systems for Sox, Nox, O, CO, CO2 and other. This will help improve the pollution footprint of the gas generation plant.