` FINAL REPORT Environmental and Social Due Diligence (ESDD) for 252 MW Wind Power Project in Thoothukudi district, Tamil Nadu By Engie and Vivid Solaire Energy Private Limited Prepared for: L &T Financial Services Prepared by: Arcadis India Private Limited Inc. Langdon & Seah | Hyder Consulting | EC Harris | SENES CONTACTS DR BIPAL JANA Principal Consultant [email protected] Arcadis India Private Limited 3rd Floor, Tower B Logix Techno Park, Sector 127, Noida-201304, India QUALITY ASSURANCE Issue Number Date Prepared By Technical Review Authorised by /Status Mousumi Mondal 001-Draft V.01 Jan 2020 Dr. Bipal Jana Dr. Bipal Jana Bonhisikha Banerjee Mousumi Mondal 002-Draft V.02 Feb 2020 Dr. Bipal Jana Dr. Bipal Jana Bonhisikha Banerjee 003-Draft V.03 Feb 2020 Mousumi Mondal Dr. Bipal Jana Dr. Bipal Jana Mousumi Mondal 004-Final V.01 Mar 2020 Dr. Bipal Jana Dr. Bipal Jana Bonhisikha Banerjee GRM Disclosure Published ESDD report for 252 MW Wind Power Project in Thoothukudi district, Tamil Nadu project of M/s Engie Group conducted by Arcadis India Pvt Ltd engaged by L & T Financial Services. The study was conducted during December 2019. ESDD report was framed according to the E & S guidelines of AIIB. ESDD study has been conducted based on the site visit in and around project region, review of the project related documents/ information, other study reports and stakeholder consultations with Engie representatives, EPC contractor & other contractors, landowners, and others. The interpretation of data and judgment is based on the professional experience and represent professional opinion of the interpreter. The project’s ESDD have been disclosed for public views, comments, and grievances (if any) for the project and project-affected people on the website of L&T Financial Services in English. Paper copy of this report shall be maintained at project site office. For matter of any grievances, the Investment Manager L&T Financial Services can be contacted through https://www.ltfs.com/companies/lt-infra-finance/contact- us.html Confidentiality: This report is strictly confidential and is to be used exclusively by its investors (L & T Financial Services and others) and by M/s. Engie Group and not be shared with any other party without prior written permission from Arcadis. Reproduction of any part of the report may attract legal action. Disclaimer: Information contained in this report is based on the observations during survey and interview with stakeholders. The interpretation of data and judgment is based on the professional experience and represent professional opinion of the interpreter. Copyright © 2015 Arcadis. All rights reserved. arcadis.com ESDD of 252 MW Wind Power Project in Thoothukudi district, Tamil Nadu State, India ABBREVIATIONS AIIB Asian Infrastructure Investment Bank ASI Archaeological Survey of India CPCB Central Pollution Control Board CSR Corporate Social Responsibility CTE Consent to establish CTO Consent to operate E&S Environment and Social EHS Environment Health and Social EMS Environment Management System ESDD Environmental and social due diligence ESIA Environment and Social Impact Assessment ESMS Environmental and Social Management System ESS Environment and Social Screening FI Finance Intermediaries GRM Grievance Redress Mechanism GSS Grid sub-station PSS Pooling Substation H&S Health & Safety HR Human Resources ISO International Organization for Standardization MoEFCC Ministry of Environment and Forest Climate Change MoM Minutes of Meeting MW Mega watt NDA Non-disclosure agreement NOCs No Objection Certificate NP National Park O&M Operation & Maintenance OEM Original Equipment Manufacturer OHS Occupational Health and Safety OHSAS Occupational Health and Safety Management Systems P.F Provident Fund PPA Power Purchase Agreement SEB State Electricity Board SEHS Social Environment Health and safety SNA State Nodal Agency SPCB State Pollution Control Board SPV Special Purpose Vehicle/Entity WLS Wildlife Sanctuaries 2 ESDD of 252 MW Wind Power Project at Kutch, Gujarat, India CONTENTS 1 Introduction ...................................................................................................... 6 1.1 Objective and Scope of Work ................................................................................................ 6 1.2 Applicable reference framework ........................................................................................... 6 1.3 Description of the methodology followed for the assessment ......................................... 6 1.4 Overview of the Project ......................................................................................................... 7 1.5 Description of due diligence process .................................................................................. 8 1.6 Limitations of the report ........................................................................................................ 8 2 Project Company and Sponsors Description ................................................ 9 2.1 Descriptions of main implementing agencies ..................................................................... 9 2.2 PIU/ Sponsor and PIA/Beneficiary management of E&S issues, ESMS ........................... 9 2.3 Social and environmental capacity assessment of the PIU/ Sponsor and PIA/Beneficiary ..................................................................................................................... 10 3 Environmental and social impacts of project .............................................. 11 3.1 E&S categorization and rationale ....................................................................................... 11 3.2 Environmental impacts ........................................................................................................ 11 3.3 Social impacts ...................................................................................................................... 14 3.4 OHS and Community Health and Safety ............................................................................ 15 4 Disclosure and Stakeholder engagement .................................................... 17 4.1 Description of the E&S documentation disclosed for consultation, .............................. 17 4.2 Consultations onsite ............................................................................................................ 18 4.3 Site visit and on-site observations ..................................................................................... 19 4.4 Stakeholder engagement plan and stakeholder mapping for future activities .............. 20 4.5 Stakeholder feedback obtained in the course of this assignment .................................. 20 5 Administrative Framework ............................................................................ 22 5.1 Country regulatory requirements ....................................................................................... 22 5.2 Regulatory required monitoring and reporting requirements ......................................... 23 5.3 Overview of AIIB requirements applicable to the sub-project. ........................................ 24 6 Compliance with country safeguards system and AIIB requirements (ESP/ESS) ................................................................................ 26 7 Main environmental and social risks ............................................................ 27 8 Environmental and Social Action Plan (ESAP) ............................................ 32 9 Recommendations ......................................................................................... 39 ESDD of 252 MW Wind Power Project in Thoothukudi district, Tamil Nadu State, India LIST OF TABLES Table 4-1: List of Stakeholders ..................................................................................................... 18 Table 5-1: Statutory Clearance Required and Organization Responsible for Procuring ........ 22 Table 5-2: AIIB Environmental and Social Performance Standards ......................................... 24 Table 6-1: Statutory Clearance Required ..................................................................................... 26 Table 7-1: Impact Aspect Matrix for Construction and Operation Phase ................................. 28 Table 8-1: Environment and Social Action Plan ......................................................................... 32 LIST OF FIGURES Figure 1-1: Methodology adopted for Completion of ESDD ........................................................ 7 Figure 2-1: Details of Engie Group (Project Implementor) .......................................................... 9 APPENDIX Annexes: ......................................................................................................................................... 40 Appendix A: sample of PPA for SECI III and SECi IV ................................................................. 41 Appendix B: Stakeholder Consultation in detail ......................................................................... 43 Appendix C1: Sale Deed ................................................................................................................ 46 Appendix C2: Lease Deed ............................................................................................................. 48 Appendix D: VEstas Statutory compliance documents ............................................................. 50 Appendix E: Approval for Energisation CEA 230kV Line .........................................................