Initial Environmental Examination Document Stage: Draft for Discussion Project Number: 43464-026-IND October 2012 India: Himachal Pradesh Clean Energy Transmission Investment Programme Tranche – 2 Prepared by HP Power Transmission Corporation Limited (HPPTCL) The 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 ABBREVIATIONS iii WEIGHTS AND MEASURES iii EXECUTIVE SUMMARY 1 1.0 INTRODUCTION 4 1.1 Background 4 1.2 Scope of Work and Methodology Adopted 5 1.3 Applicable Environmental and other Legislations 6 2.0 DESCRIPTION OF THE PROJECT 7 2.1 Type of Project 7 2.2 Category of Project 7 2.3 Need for the Project 8 2.4 Location 10 2.5 Size and Magnitude of the Operation 24 2.6 Implementation Plan 31 3.0 DESCRIPTION OF ENVIRONMENT 33 3.1 Physical Resources 33 3.2 Ecological Resources 40 3.3 Economic Development 44 3.4 Social and Cultural Resources 51 4.0 SCREENING OF POTENTIAL ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 56 4.1 HPPTCL’s Approach for Route Selection 56 4.2 Alternatives for Subproject Components 57 4.3 Environment Impacts and Mitigation Measures 61 4.4 Environmental Management Plan 70 5.0 INSTITUTIONAL REQUIREMENT AND ENVIRONMENTAL MONITORING PROGRAMME 73 5.1 Institutional arrangements 73 5.2 Monitoring of Environmental Management Plan (EMP) 74 5.3 Environmental Management Plan Budget Costs 75 5.4 Critical Environmental Review Criteria 77 5.5 Associated Facilities 77 5.6 Health and Safety Management 79 6.0 GRIEVANCE REDRESS MECHANISM 80 6.1 Information Disclosure 80 6.2 Awareness of Stakeholders 80 6.3 The Grievance Redress Mechanism 80 7.0 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 82 7.1 Consultation Findings 84 8.0 FINDINGS AND RECOMMENDATIONS 85 9.0 CONCLUSIONS 87 Annexure 1 Applicable Rules, Regulations, Policies and Procedures 88 Annexure 2 Alternative Site Analysis for Grid Substations 90 Annexure 3 Alternative Route Analysis for Transmission Lines 98 Annexure 4 Inventorisation along the Transmission Lines 105 Annexure 5 Environment Management Plan (EMP) 116 Annexure 6 Measurement of Environmental Parameters & Periodicity 123 Annexure 7 Details of Public Consultations 126 Annexure 9 Highlights of Census 2011 in comparison with 2001 data 138 Annexure 10 National Parks and Sanctuaries in Himachal Pradesh 139 Annexure 11 Application for Connectivity for Associated Hydropower Projects to HPPTCL system 150 ABBREVIATIONS ADB – Asian Development Bank ACSR – Aluminium Conductor Steel Reinforced AMSL – Average Mean Sea Level CEA – Central Electricity Authority 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 EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage EPC – Engineering, Procurement and Construction ESC – Environment and Social Cell GHG – Green House Gases GoHP – Government of Himachal Pradesh GoI – Government of India GRM – Grievance Redressal Mechanism HP – Himachal Pradesh HPCEDIP – Himachal Pradesh Clean Energy Development Investment Program HPCETIP – Himachal Pradesh Clean Energy Transmission Investment Program HPSPCB – HP State Pollution Control Board HPPCL – Himachal Pradesh Power Corporation Limited HPPTCL – HP Power Transmission Corporation Limited HPSEB – Himachal Pradesh State Electricity Board IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MOEF – Ministry of Environment and Forests, Government of India PCB – Poly Chlorinated Biphenyl PGCIL – Power Grid Corporation of India Limited PMU – Project Management Unit ROW – Right of Way RP – Resettlement Plan SF6 – Sulphur Hexafluoride WEIGHTS AND MEASURES ha (hectare) – 10,000 sq m km (kilometer) – 1,000 m kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) kWh – kilowatt-hour MVA – Megavolt-Amperes MW – Mega Watt EXECUTIVE SUMMARY 1. Himachal Pradesh is a mountainous state in northern India with a population of slightly over 6 million, has abundant water resources in the five major rivers flowing through the state from the western Himalayas. The hydropower generation potential of Himachal Pradesh is about 23,000 MW, which is about one-fourth of the total hydropower potential of India. In its Hydropower Policy (2007)1, the Government of Himachal Pradesh (GoHP) targets its comparative advantage in hydropower with the goal to become the "hydropower state" of the country. 2. The Himachal Pradesh Clean Energy Transmission Investment Program (HPCETIP) is a $350 million multi tranche financing facility (MFF) from the Asian Development Bank (ADB), which will contribute to economic development in Himachal Pradesh through expanded power supplies from clean energy sources, and support a sustainable electricity sector in the state. HPCETIP will produce the following outcomes: (i) increase availability of clean energy downstream at pooling stations for effective power evacuation in a financially sustainable manner, (ii) improve state finances and power sector financial viability from sales revenue earned from power exports, (iii) improve sector governance, (iv) improve capacity in HP Power Transmission Corporation Limited (HPPTCL) for better planning, implementation and management of power evacuation infrastructure, and energy efficiency, and (v) improvement in implementation standards of environmental and social safeguards in the sector. With ADB support, the proposed program will sustain the energy sector reform agenda, and is expected to help attract other long-term financiers to the state. 3. The proposed Tranche 2 project, located in Kullu, Mandi, Chamba, Kinnaur and Shimla districts of Himachal Pradesh, consists of the following components: Power transmission lines: T1 - 66 kV 13.382 km double circuit (D/C) transmission line from 66 kV switching station at Urni to Wangtoo GIS substation. T2- 220 kV 1.895 km transmission line from 33/220 kV Lahal substation up to 220 kV yard of Budhil HEP. T3- 132 kV 6 km single circuit (S/C) transmission line from 33/132 kV Banjal GIS substation to 33/132 kV Kurthala substation. T4- 132 kV 10 km D/C transmission line from Chambi (Shahpur) to LILO point at 132 kV Kangra-Dehra S/C transmission line. T5 - 220 kV 22.7 km D/C transmission line from Sunda to Hatkoti. T6- 33 kV 11 km D/C line from 33 kV Palchan GIS switching station to 33/220 kV substation in the yard of Allain Dhaungan HEP. T7- 132 kV 38.7 km D/C transmission line from Barsaini to Charor. T8- 220 kV 18.6 km D/C transmission line from Charor to 400/220 kV Banala substation of PGCIL. EHV Pooling Substations: S1- 66 kV Gas Insulated Switchgear (GIS) switching station at Urni. S2- 33/220 kV, 50/63 MVA Pooling substation (P.S.) at Lahal. S3- 33/132 kV, 1x50/63 MVA GIS P.S.at Banjal. S4 - 33/132 kV, 2x25/31.5 MVA GIS P.S. at Chambi (Shahpur) with LILO of 132 kV Kangra- Dehra S/C transmission line S5 – 220 kV GIS switching station at Hatkoti. S6- 66/132/220 kV, 2x100 MVA GIS pooling substation at Sunda. S7- 33 kV GIS switching station at Palchan. S8- 132/220 kV, 2x50/ 63 MVA, GIS substation, Charor. S9- 33/132 kV, 2x 25/ 31.5 MVA GIS substation, Barsaini. S10- 33/132 kV GIS substation at Pandoh+LILO of one circuit of 132 kV Bajaura- Kangoo D/C transmission line Capacity Building and Training: HPPTCL needs for capacity building and skills augmentation through training on technical aspects, study trips and exposure, project management, contracts related conflict resolution, environmental and social assessment, review and monitoring and IT related Enterprise Resource Planning (ERP) shall be undertaken. More training modules may be added in future depending on new staffing situation. 4. As per Government of India’s (GoI) Environment Impact Assessment (EIA) Act 2009, Power transmission projects are not listed as environmental sensitive projects and hence no clearance is required from Himachal Pradesh State Pollution Control Board (HPSPCB) or Ministry of Environment and Forests (MoEF), GoI. Clearance from HP Forest Department is required only in cases where subproject is constructed on forestland or requires cutting of forest trees. However, National Environmental Policy 2006 of Government of India (GoI) and Safeguard Policy Statement 2009 of ADB and procedures and guidelines thereto apply to all components/subprojects funded by ADB. 5. An Initial Environmental Examination (IEE) has been prepared for Tranche 2 subprojects funded under HPCETIP. This IEE report comprises baseline data on existing conditions on 1 Government of Himachal Pradesh. 2007. Hydro Power Policy (2007). Shimla. IEE for Tranche 2 Himachal Pradesh Clean Energy Transmission Investment Project Implementing Agency – HP Power Transmission Corporation Limited physical, ecological, economic, and social aspects, together with the anticipated environmental impacts and proposed mitigation measures. Observations were made between February to September 2012 along the proposed transmission line tower locations, as well as in and around the proposed premises for new substations. The alignment of line may slightly vary after the exact demarcation of tower locations. Field surveys were also undertaken to assess the physical and biological environment. Detailed assessment of the baseline environment was conducted for the entire