Initial Environmental Examination (Draft) September 2013 IND: Madhya Pradesh Power Transmission and Distribution System Improvement Project Prepared by the Madhya Pradesh Power Transmission Corporation Ltd. (MP Transco), Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company (DISCOM-C), Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company (DISCOM-E), and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company (DISCOM-W) for the Asian Development Bank The initial environmental examination report 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 No. EXECUTIVE SUMMARY 1.0 INTRODUCTION 23 1.1 Overview of the Project 23 1.1.1 Impact and Outcome 24 1.1.2 Outputs 24 1.1.3 Tentative Financing Plan and Implementation Arrangement 25 1.2 The Need for an Initial Environmental Examination 26 1.2.1 National Requirements 26 1.2.2 Requirements of Asian Development Bank 27 1.2.3 Objectives of the IEE 27 1.2.4 Scope and Methodology 27 1.3 Structure of the Report 28 2.0 POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 30 2.1 ADB Safeguard Policy Statement 2009 30 2.2 Applicable National and State Legislation 31 2.3 National and State Environmental Assessment Requirements 31 2.4 Applicable International Environmental Agreements 34 2.5 Other Applicable Laws and Policies 35 3.0 DESCRIPTION OF THE ENVIRONMENT 36 3.1 Physical Resources 36 3.1.1 Topography, Geology, and Soils 36 3.1.2 Meteorology and Climate 36 3.1.3 Air Quality and Noise 36 3.1.4 Natural Hazards 37 3.1.5 Water Resources 38 3.2 Biological Resources 40 3.2.1 Terrestrial Ecology 40 3.2.2 Aquatic Ecology 43 2 3.3 Socioeconomic Profile 43 4.0 POWER TRANSMISSION SYSTEM IMPROVEMENT 4.1 Project Description 46 4.1.1 Objectives and Benefits 47 4.1.2 Location and Components 47 4.1.3 Implementation Activities 49 4.2 Analysis of Alternatives 50 4.3 Anticipated Environmental Impacts and Mitigation Measures 52 4.3.1 Pre-construction and Design Phase 53 4.3.2 Construction Phase 54 4.3.3 Operation Phase 59 4.4 Information Disclosure, Consultation, and Participation 62 4.5 Grievance Redress Mechanism 63 4.6 Environmental Management Plan 66 4.6.1 Mitigation 66 4.6.2 Monitoring 66 4.6.3 Implementation Arrangements 66 4.7 Conclusion and Recommendation 79 5.0 POWER DISTRIBUTION SYSTEM IMPROVEMENT 80 5.1 Introduction 80 5.1.1 Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company Limited (DISCOM-C) 80 5.1.2 Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (DISCOM-E) 80 5.1.3 Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (DISCOM-W) 80 5.2 Project Description 81 5.2.1 Components 81 5.2.2 Implementation Activities 82 5.3 Analysis of Alternatives 83 3 5.4 Anticipated Environmental Impacts and Mitigation Measures 85 5.5 Information Disclosure, Consultation, and Participation 91 5.6 Grievance Redress Mechanism 92 5.7 Environmental Management Plan 95 5.7.1 Mitigation 95 5.7.2 Monitoring 95 5.7.3 Implementation Arrangements 95 5.8 Conclusion and Recommendation 108 List of Tables Table E.1 Environmental Management Plan, MP Transco and DISCOMS Table E.2 Environmental Monitoring Plan, MP Transco and DISCOMS Table 1.1 Tentative Financing Plan Table 2.1 Comparison of Environmental Requirements of ADB and GoI Table 3.1 Noise Standards Ministry of Environment and Forests Table 3.2 Calamity Events in Madhya Pradesh (1992-2007) Table 3.3 Basin Wise Water Resources and Availability Table 3.4 National Park and Sanctuaries in Madhya Pradesh Table 3.5 Land Use Pattern in MP Table 4.1 Existing Capacity of MP Transco Table 4.2 Summary of Subprojects, MP Transco Table 4.3 Relevant Construction Standards of the Government of India Table 4.4 “With Project” and “Without Project” Scenario Table 4.5 Summary of Land Affected by ROW and Tower Footings Table 4.6 Public Consultation Plan During Implementation Table 4.7 Environmental Management Plan, MP Transco Table 4.8 Environmental Monitoring Plan, MP Transco Table 5.1 Summary of Subprojects, DISCOM-C Table 5.2 Summary of Subprojects, DISCOM-E Table 5.3 Summary of Subprojects, DISCOM-W Table 5.4 “With Project” and “Without Project” Scenario Table 5.5 Public Consultation Plan During Implementation Table 5.6 Environmental Management Plan, DISCOMS Table 5.7 Environmental Monitoring Plan, DISCOMS List of Figures Figure 1.1 Indicative Project Implementation Arrangements 4 Figure 2.1 Environmental Clearance Process in India Figure 3.1 Seismic Zones of India Figure 3.2 Groundwater Quality of MP Figure 3.3 Map of Forest Cover in Madhya Pradesh Figure 3.4 Map of National Park and Sanctuaries in Madhya Pradesh Figure 4.1 Project Implementation Schedule Figure 4.2 Process of Grievance Redress Mechanism at MP Transco Figure 5.1 Process for Grievance Redress Mechanism at the DISCOMs List of Appendices Appendix 1 - Details of Subprojects Appendix 2 - List of Acts, Rules and Notifications, India as Applicable to the Project Appendix 3 - India and International Environmental Agreements 5 CURRENCY EQUIVALENTS (As of 1 August 2013) Currency Unit – Indian Rupee (Rs) Rs 1.00 = $0.02 $1.00 = Rs 50 ABBREVIATIONS ADB – Asian Development Bank CEA – Central Electricity Authority CPCB – Central Pollution Control Board, Government of India DC or D/C – Double Circuit DPR – Detailed Project Report DISCOM – Distribution Company EA – Executing Agency EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage EPC – Engineering, Procurement and Construction GoMP – Government of Madhya Pradesh GoI – Government of India GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line in – Line out MOEF – Ministry of Environment and Forests, Government of India MP – Madhya Pradesh MP Transco – MP Power Transmission Corporation Limited MPPCB – MP State Pollution Control Board MPSEB – MP State Electricity Board PMU – Project Management Unit ROW – Right of Way RP – Resettlement Plan TA – Technical Assistance WEIGHTS AND MEASURES ha (hectare) – 10,000 sq m km (kilometer) – 1,000 m kV – Kilovolt (1,000 volt) kWh – Kilowatt-hour mG - milliGauss MVA – Megavolt-Ampere MW – Mega Watt oC - degree Celsius 6 EXECUTIVE SUMMARY 1.0 Introduction 1. To improve the quality and reliability of service in the power transmission and distribution system networks, the Government of Madhya Pradesh (GoMP) has taken initiatives to invest in the power sector with funding from development partners like the Asian Development Bank (ADB). The investments involve expansion, upgrading and reconfiguration of the existing power transmission and distribution networks. A transmission company and three distribution companies involved in the power transmission and distribution service in Madhya Pradesh (MP) as a result of restructuring the Madhya Pradesh State Electricity Board (MPSEB) in 2005.1 The MPSEB was dissolved on 26 April 2012. The Madhya Pradesh Power Management Company Ltd. (MPPMCL, previously known as Madhya Pradesh Power Trading Company) is the holding company of the three distribution companies (DISCOMs). 2.0 Project Description 2. The Project has three components: (i) transmission system improvement; (ii) distribution system improvement; and (iii) capacity building for the executing agency staff. The executing agency (EA) for the project will be MP Transco, DISCOM-C, DISCOM-E, and DISCOM-W. 3. The component on transmission system improvement will include augmentation of substation capacity and line lengths across all the voltage levels (132 kV, 220 kV, 400 kV). About 1,800 circuit-km of transmission line is proposed to be constructed under the project. A total of 32 substations, (12.5% of the current number of substations) comprising of two 400 kV, four 220 kV and 26 132 kV substations are proposed to be constructed. The total capacity addition under the project would be about 4,000 MVA which is 25% of the targeted substation capacity addition by transmission company during the period of FY 2013-2017. This would result in an increase in the transmission substation capacity from 37,000 MVA in 2013 to 41,000 MVA by 2020. 4. The distribution system improvement component will include the construction of new 33/11 kV substations, bifurcation of overloaded 33 kV feeders, additional/augmentation of power transformers, installation of distribution transformers and capacitor banks. Approximately 2,225 circuit-km of 33 kV lines and 900 circuit-km of 11 kV lines are proposed for construction. An additional 149 new 33/11 kV substations are proposed to be constructed and another 328 existing 33/11 kV substations to be upgraded. 5. The capacity building component will include supporting DISCOM-C’s training center to provide training for the EA staff. The support to the training centre will involve funding for the construction of hostels, laboratory and associated facilities, provide consultants to develop curricula for various courses, train the trainers, and conduct first round of training. Training will include induction training for new staff, and training on new technology, project management, 1 Madhya Pradesh Power Transmission Corporation Limited (MP Transco) and distribution companies: Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company (DISCOM-C), Madhya Pradesh Poorva Kshetra Vidyut Vitaran Company (DISCOM-E) and Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company (DISCOM-W) 7 procurement, monitoring and evaluation, financial management, and safeguards for existing staff. Ten trainers and 100 EA staff will be trained with the support of the project. 3.0 Environmental Requirements 6. The Safeguard Policy Statement 2009 (SPS 2009) of ADB sets out the requirements for environmental safeguard that applies to all ADB-financed projects. Under the SPS 2009, the project is classified as B on environment requiring the preparation of an initial environmental examination (IEE).