Initial Environmental Examination (Draft) November 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 1 1.1 Overview of the Project 4 1.2 The Need for an Initial Environmental Examination 6 1.3 Structure of the Report 6 2.0 POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 8 2.1 ADB Safeguard Policy Statement 2009 8 2.2 Applicable National and State Legislation 8 2.3 National and State Environmental Assessment Requirements 9 2.4 Applicable International Environmental Agreements 12 2.5 Other Applicable Laws and Policies 13 3.0 DESCRIPTION OF THE ENVIRONMENT 14 3.1 Physical Resources 14 3.2 Biological Resources 19 3.3 Socioeconomic Profile 22 4.0 POWER TRANSMISSION SYSTEM IMPROVEMENT 25 4.1 Project Description 25 4.2 Analysis of Alternatives 28 4.3 Anticipated Environmental Impacts and Mitigation Measures 30 4.4 Information Disclosure, Consultation, and Participation 39 4.5 Grievance Redress Mechanism 40 4.6 Environmental Management Plan 43 4.7 Conclusion and Recommendation 56 5.0 POWER DISTRIBUTION SYSTEM IMPROVEMENT 57 5.1 Introduction 57 5.2 Project Description 57 5.3 Analysis of Alternatives 60 5.4 Anticipated Environmental Impacts and Mitigation Measures 62 5.5 Information Disclosure, Consultation, and Participation 68 5.6 Grievance Redress Mechanism 69 5.7 Environmental Management Plan 72 5.8 Conclusion and Recommendation 84 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 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 Appendix 4 – Hazard Maps India 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 volts) kWh – Kilowatt-hour mG - milliGauss MVA – Megavolt-Amperes MW – Mega Watt oC - degree Celsius 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) through the Government of India (GoI) 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. 2. There are currently 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 3. The Project has three components: (i) transmission system improvement; (ii) distribution system improvement; and (iii) capacity building for the DISCOMs. The outputs under improved transmission system include: (i) about1,800 circuit-km of transmission lines; (ii) 2 new and 4 upgraded 400 kV substations; (iii) 3 new and 5 upgraded 220 kV substations; and (iv) 26 new 132 kV substations. Outputs of the improved power distribution system include: (i) about 3,125 circuit-km of distribution lines; (ii) 149 new and 328 upgraded 33/11kV substations. The executing agency (EA) for the project will be MP Transco, DISCOM-C, DISCOM-E, and DISCOM-W. 4. 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, 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 5. 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). Following the requirements of SPS 2009, this draft IEE is prepared covering the components of the proposed project on power transmission and distribution system improvement. 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) 6. The Ministry of Environment and Forests (MoEF), GoI, in its notification in September 2006, has exempted transmission projects from environmental clearances due to the non- polluting nature of its activities.2 However, forest clearances under the Forest Conservation Act 1980 will be necessary in the event that transmission line passes through forest areas. MP Transco, DISCOM-C, DISCOM-E and DISCOM-W ensured that the no subproject will traverse any area classified as forest by the MoEF to avoid securing the forest clearance 4.0 Anticipated Environmental Impacts and Mitigation Measures 7. The selection of the subprojects included in the power transmission and distribution system improvement was guided by 13 criteria and a 17-question checklist with an overall objective of avoiding potential significant adverse environmental impacts and land acquisition. Transmission line subprojects traverse mainly agricultural land planted to soybean rice, corn, vegetables and other cash crops. No subproject is located within the areas declared as forest by MoEF, cultural and archaeological sites considered of national importance, and the nine national parks and 25 wildlife sanctuaries in Madhya Pradesh. 8. The subprojects are not expected to cause significant adverse environmental impacts but may cause