Draft Initial Environmental Examination Project Number: 46943 July 2012 IND: HORTICULTURE COLD CHAIN PROJECT Prepared by Champion Agro Limited (CAL) 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. Your attention is directed to the “Terms of Use” section of this website. IND: Horticulture Value Chain Project Champion Agro Limited, Gujarat, India INITIAL ENVIRONMENTAL EXAMINATION REPORT ON FRUIT AND VEGETABLE PROCESSING FACILTIES OF CHAMPION AGRO LIMITED, Regd. Corporate Office: Champion Agro Limited Survey No 217, Plot No 2, NH 8-B, Veraval Main Road, Veraval(Shapar) Rajkot-360024, Gujrat, India Contact Person: Mr Shamender Sharma, COO Email: [email protected] URL:www.championagro.com IEE Report Prepared by HARI PRAKASH, Environmental and Social Safeguards Consultant, Deccan Consulting Engineers Private Limited, B-98/5A, 3rd Floor, Joshi Colony, Behind BALCO Market, I P Extension, Delhi 1100 92 Email: [email protected] URL: www.deccan.org.in CONTENTS Page A Executive Summary 1 B Policy, Legal and Administrative Framework 2 B1 Applicable National Regulatory Acts and Notifications 2 B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation 4 B3 Regulatory/Legal Policy Framework for Indigenous Peoples 6 C Description of Current and Proposed Facilities 8 C1 Current / Existing Facilities 8 C2 Proposed Facilities 10 D Description of Baseline Environment 18 D1 Baseline Environmental Profile of IQF Facility Location / Site 19 D2 Baseline Environmental Profile of CA Storage Facility Location/Site 20 D3 Baseline Environmental Profile of ARCCs and ADCs Location/Site 21 E Anticipated Environmental Impacts and Mitigation Measures 21 E1 Pre-Construction Stage Impacts and Mitigation Measures 21 E2 Pre-construction Stage Regulatory Compliances: 22 E3 Construction Stage Impacts and Mitigation Measures: 22 E4 Operation Stage Impacts and Mitigation Measures: 22 E5 EHS Performance Standards/Requirements 24 F Analysis of Alternatives 24 F1 No Project Facility Alternative 25 F2 Equipment Layout and Selection of Machinery 25 F3 Siting of the Facilities and Land Purchase Arrangement 25 G Information Disclosure, Consultation 26 H Grievance and Redress Mechanism 27 I Environmental Management Plan 28 I1 Environmental Mitigation Action Plan 28 I2 Environmental Enhancement Measures 28 I3 Operation Stage Environmental Monitoring 29 I4 Budgetary Cost Provision for EMAP Implementation 29 I5 Institutional Arrangements 30 J Conclusion and Recommendation 30 List of Tables Table 1 Applicable Environmental Regulations for CAL’s proposed facilities 4 Table 2 Current Facilities of CAL for Fruits and Vegetables processing 9 Table 3 Proposed Facilities by CAL under ADB Financing 10 Table 4 Land Requirements for IQF Facility 12 Table 5 Location and Land Requirements of Proposed Facilities 18 Table 6 Liquid Waste Generation from CAL’s Proposed Facilities (Location Wise) 23 Table 7 Liquid Waste Discharge Standards for Fruits and Vegetables Processing 23 Industry Table 8 Sanitary Waste Generation from CAL’s Proposed Facilities (Location 23 Wise) Table 9 Solid Waste Generation from CAL’s Proposed Facilities (Location Wise) 24 Table 10 Summary EMAP Implementation cost (Figures in INR) 29 Table 11 Institutional Arrangements for Implementation of EMAP 30 List of Exhibits Exhibit 1 Process / Operations Flow Diagram of IQF Facility for Fruits & 33 Vegetables Exhibit 2 Layout Plan of IQF Facility for Fruits & Vegetables 35 Exhibit 3 Operations / Process Flow Diagram of CA Storage Facility 37 Exhibit 4 Layout Plan of CA Storage Facility 39 Exhibit 5 Operations / Process Flow Diagram of ARCC with Linkage to ADC 41 Exhibit 6 Layout Plan of ARCC 43 Exhibit 7 Layout Plan of ADC 45 Exhibit 8 Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, 47 Rajkot District, Gujarat Exhibit 9 Location Plan of CA Storage Facility Site at Palanpur, Banaskantha 49 District, Gujarat List of Annexures Annexure 1 Categorisation of Industries by SPCB for Consent Management under 51 - 54 Water & Air Pollution Act, 1974 Annexure 2 Land Acquisition Policy of GIDC, Govt. of Gujarat 55 – 59 Annexure 3 CAL’s Corporate Considerations for Siting and Land Purchase for New 60 – 62 Facility Annexure 4 Environment Mitigation Action Plan (EMAP) 63 – 69 Annexure 5 EHS Guidelines for Food & Beverage Processing Sector 70 – 87 Recommended by IFC Annexure 6 Detailed Cost Estimate for EMAP 88 - 89 Abbreviations IEE Initial Environmental Examination ADB Asian Development Bank ADC Agri Distribution Centre ARCC Agri Retail and Collection Centre CA Controlled Atmosphere CAL Champion Agro Limited CAP Corrective Action Plan CFE Consent for Establishment CFO Consent for Operation CSF Cold Storage Facility EHS Environmental Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EPA Environmental Protection Act ESMS Environmental and Social Management System ESMU Environmental and Social Management Unit GIDC Gujarat Industrial Development Corporation GOI Government of India GPCB Gujarat Pollution Control Board Ha Hectare (1 Ha = 10000 Sq. mtrs) IP Indigenous People IQF Individual Quick Frozen Facility LA Land Acquisition LAA Land Acquisition Act MOEF Ministry of Environment and Forests, Govt. of India NCST National Commission for Scheduled Tribes NOC No Objection Certificate NRRP National Resettlement and Rehabilitation Policy PESA Panchayat Extension to the Scheduled Areas Act PH Pack House PPEs Personal Protection Equipment RC Ripening Chamber SC Scheduled Castes SPCB State Pollution Control Board SPS Safeguards Policy Statement, 2009, ADB ST Scheduled Tribes Initial Environmental Examination Report on Fruits and Vegetable Processing Facilities of Champion Agro Limited, Gujarat A Executive Summary 1 M/s Champion Agro Limited (CAL), established in 1994, is a leading Indian agribusiness corporate entity from Gujarat, providing fully integrated services from agricultural inputs to farmers up to the delivery of fresh fruits & vegetables to corporate retailers. 2 CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). The proposed project facilities comprise four types namely a) Individual Quick Frozen (IQF) facility (1No.); b) Controlled Atmosphere (CA) Storage (1No.); c) Agri-Retail Collection Centres (5No.s) and d) Agri-Distribution Centres (ADC) (5No.s). The first three type of facilities are proposed to be located within Gujarat, whereas the fourth type facility i.e. ADCs are proposed in major urban centres such as Ahmedabad in Gujarat, Jaipur in Rajasthan, Indore in Madhya Pradesh, Ludhiana and Jalandar in Punjab and in Delhi. 3 In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL. As required under SPS1, an Initial Environmental Examination was carried out for the proposed facilities, to determine the likely potential impacts and risks, and to enable preparation of an environmental management plan, so as develop the facilities in environmentally sustainable manner and in compliance with the SPS, 2009 as well as National and State regulatory requirements. 4 Due to the nature and scale, CAL’s presently proposed facilities (Table 3) does not require prior environmental clearances and is out of the purview of EIA Notification, 2006 of MOEF, GOI. At the state level, all of the proposed facilities fall under orange category2 in Gujarat and therefore will require ‘Consent for Establishment’ (CFE) during pre-construction stage and ‘Consent For Operation (CFO)’, prior to commencement of commercial operations from the Gujarat Pollution Control Board (GPCB)3. Since, 5 ADC’s are being considered in other States like Rajasthan, Delhi, Punjab, and Haryana, the respective State wise applicable consent procedures have been reviewed and found to be same as applicable in Gujarat. 1 The Safeguards Policy Statement is available at http://www.adb.org/Documents/Policies/Safeguards 2 State Pollution Control Board has categorized all industries into RED, ORANGE and GREEN categories for consent management procedures to regulate the establishing and operation of Industries under the Air Pollution and Water Pollution Act. Red category industries indicate high pollution potential and has stricter compliance requirements whereas Green category indicate least pollution potential and has the least compliance conditions. All industries will require to obtain Consent to Establish (CFE), prior to establishing and follow it up to obtain Consent for Operation (CFO), prior to commencement of commercial operations. The procedure for obtaining the CFE and CFO is well established and industries can obtain the consent in a time bound manner, after submitting the required information and consent fee to the State Pollution Control Board. However, it shall be at the discretionary of State Pollution Control Board to assess the process and determine the applicable category based on the pollution potential of an industry 3 The consent management procedure for Gujarat State is available at www.gpcb.gov.in/ 1 5 The procedure for obtaining the CFE and CFOs from the State Pollution Control Boards in Gujarat and in other states are