Initial Environmental Examination Project No: 53264-001 June 2021 IND: Maharashtra Agribusiness Network Project (MAGNET) Prepared by MAGNET Society for the Asian Development Bank. 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. Your attention is directed to the “terms of use” section on ADB’s 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. 2 Table of Contents EXECUTIVE SUMMARY I I. INTRODUCTION 1 A. About MAGNET Project 1 B. Purpose of this Report 2 C. IEE Scope and Methodology 3 II. DESCRIPTION OF THE SUB-PROJECTS 4 A. Project Description 4 B. Project Implementation Arrangements 14 C. Rationale 15 III. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 17 A. Applicable National Regulatory Laws and Notifications 17 B. APEDA 23 C. ADB’s Safeguard Policies and Screening and Categories 24 IV. DESCRIPTION OF THE ENVIRONMENT 26 A. Baseline 26 V. ANTICIPATED ENVIRONMENTAL IMPACTS 42 VI. ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN 58 A. Budgetary Cost Provision of EMP Implementation 73 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 76 A. GRM at MAGNET Society for MAGNET 77 B. Grievance Redressal Procedure 78 C. Roles and Responsibilities of GRO and Appellate Authority 79 D. Flow of Grievances received through Online e-Services 79 E. Confidentiality 80 F. Accountability Mechanism 80 VIII. CONCLUSION 82 LIST OF APPENDIXES 83 Appendix 1: Rapid Environmental Assessment Checklist 83 Appendix 2: Example Standard Construction Contract Environmental and Social Safeguard Clauses 85 Appendix 3: Locations of Selected Facilities 86 Appendix 4: Photographs of the Project Components Areas 91 Appendix 5: Stakeholder Consultations 100 Appendix 6: Site Plans of Selected Facilties 111 Appendix 7: Process Flow Diagrams of MSAMB Facilities 120 Appendix 8: Common Clauses Applicable for MSAMB Facilities 121 Appendix 9: Environmental Audit 122 Appendix 10 – Guidance on Preparation of Muck/Debris Disposal Plan 145 Appendix 11: Format for Quarterly Report on Tracking of Grievances Redressal 146 Appendix 12: Environmental Due Diligence of IFC, Vashi 147 Figure 1: Illustrates the location of the sub-project sites at district level 4 Figure 2: Institutional Arrangement for Project Implementation 15 Figure 3: Seismicity Map of Maharashtra, at district level 29 Figure 4: Wind and Cyclone map of Maharashtra 33 Figure 5: GW status in Maharashtra 35 Figure 6: Approximate distance between Thane Creek Flamingo Santuary and the Facility 36 Figure 7: Photograph of Hanuman Langur that is common in the region 38 Figure 8: Proposed grievance Redress Mechanism at ARIAS Society during AACP 78 Figure 9: Institutional Arrangement for Project Implementation 151 Figure 10: Illustrates the location of the sub-project sites at district level 153 Figure 11: Satellite image of the IFC unit location 153 Figure 12: Irradiation Process Flow diagram of IFC Unit 154 Figure 13: Illustration of an Irradiation Chamber using Cobalt-60 155 Figure 14: Warning Signs and Control Pannel at IFC 157 Table 1: Proposed facilities for Expansion and or Modernization ii Table 2: Environment Management Plan for facilities for expansion and/or modernization iv Table 3: Geographical coordinates and location within State administrative districts of the 20 project sites 5 Table 4: Land requirements for Expansion 9 Table 5: Summary of proposed modernization per facility 10 Table 6: Source of water being tapped by the facilities 13 Table 7: Standard for Discharge of wastewater into Municipal Sewerage 18 Table 8:Sound level category 19 Table 9: Emission standard for common hazardous waste incinerators 20 Table 10: Permissible smoke limits 21 Table 11: Allowable dosage for fresh fruits and vegetables 21 Table 12: Seismic Zones Categorization & Induced Damage Intensities 29 Table 13: Seismic Zonation vis-à-vis MSAMB Facility locations 29 Table 14: Ambient Air Quality close to the MSAMB Locations 30 Table 15: Noise level in a typical food producing 31 Table 16: Annual mean rainfall for the concerned districts of Maharashtra 32 Table 17: Status of Groundwater at MSAMB facilities 33 Table 18: Quality of Groundwater near the MSAMB Facilities from Borewells 34 Table 19: Floral Species commonly occurring nearby the facilities 37 Table 20: Ratio of female workers in Maharashtra 40 Table 21: List of anticipated impacts due to scope of works and/or activities. 44 Table 22: Environmental Risk and Impact Matrix for Irradiation Process 51 Table 23: Precautions to be taken during Operation of Facilities 57 4 Table 24: Guidelines for cleaning toilets for use of Staff and Workers 57 Table 25: EMP for the Facilities Proposed for Expansion and or Modernization 58 Table 26: Corrective Actions for IFC Unit 70 Table 27: Environmental monitoring plan for MSAMB Facility 71 Table 28: Budgetary costs for implementation of EMP 73 Table 29: Flow of Grievances Redress through Online e-Services 80 Currency Equivalents (as of 10 June 2021) Currency unit – Indian Rupee (₹) ₹1.00 = $0.01370 $1.00 = ₹72.99 ABBREVIATIONS ADB – Asian Development Bank AERB – Atomic Energy Regulatory Board APEDA – Agricultural and Processed Food Products Export Development Authority APMC – agricultural produce marketing committees BARC – Bhabha Atomic Research Cente BOQ – bill of quantities CGWA – Central Ground Water Authority COVID-19 – coronavirus disease EDDR – environmental due diligence report EIA – environmental impact assessment EMP – environmental management plan EPC – engineering, procurement, and construction FPO – farmer producer organizations GRM – grievance redress mechanism GRO – grievance redressal officer GSVA – gross state value added IEE – initial environment examination IFC – Irradiation Facility Centre MAGNET – Maharashtra Agribusiness Network Project MSAMB – Maharashtra State Agriculture Marketing Board NIPHT – New training facility at National Institute of Post- Harvest Technology PIU – project implementation unit PMU – project management unit PPE – personal protective equipment SPS – safeguard policy statement TRTA – transaction technical assistance VCO – value chain operator NOTE (i) In this report, “$” refers to United States dollars. i EXECUTIVE SUMMARY 1. Maharashtra Agribusiness Network Project (MAGNET) is proposed for funding by the Asian Development Bank (ADB). It aims to improve the networks of post-harvest facilities and marketing management for the ten selected value chains. They are – banana, custard apple, green and red chilies, guava, okra, orange, pomegranate, sapota, strawberry, and sweet lime. 2. The project targets to support farmer producer organizations (FPOs) and achieve average agriculture sector growth rate of 5 per cent, promote agriculture produce export, and establish fair, competitive and accessible agriculture markets. ADB has engaged Grant Thornton, to support the State government and ADB for designing and preparing the loan for MAGNET Project. This Initial Environmental Examination (IEE) has been prepraed for activities proposed under output 3 of the project as shown below. 3. The Outputs of the MAGNET Project are: (i) Output 1: Institutional, technical, and marketing capacities of agribusiness institutions and FPOs strengthened – Through this component the project will address the need for capacity building and provide advisory services on (a) policy reforms on post-harvest handling, food processing and climate resilient measures; (b) crop-specific guidelines on harvest quality, postharvest handling, climate change adaptation and relevant certification; (c) introduction of best practices to enhance productivity, quality, safety and climate compatibility to meet the market/ export requirements; (d) support on FPOs’ business plan improvement and organizational/financial management capacity enhancement particularly for FPOs led by women; (e) training on the latest agriculture technologies on cultivation and agribusiness marketing; and (f) leadership training and buyer-seller meets to enhance links and supply arrangement between committed buyers and FPOs. (ii) Output 2: Access to finance of FPOs and value chain operators (VCOs) strengthened – This component includes the following activities: a) provision through selected PFIs of investment and working capital sub-loans to beneficiaries; and b) provision of matching grants to beneficiaries. (iii) Output 3: Agriculture value chain infrastructure improved and operational for the target horticulture crops – The component focuses on attending the need of capacity and productivity enhancement of the existing facilities of Maharashtra State Agriculture Marketing Board (MSAMB) and National Institute of Post Harvest Technology as well as development of new infrastructure to meet the demand for post-harvest handling and agribusiness. The component includes – a) expansion and modernization of the seventeen (17) identified facilities across the State, b) develop three (3) new facilities as major capacity addition (at Baramati, Pachod and Bhiwandi) cold-chain and packhouse segment and c) strengthen the existing post-harvest management training facility at Talegaon, Pune. As shown in table 1 one of the sixteen facilities to be expanded and modernized