Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Strategic Environment and Social Assessment (SESA) for National Dairy Support Project (NDSP): Anand, Gujarat, India Public Disclosure Authorized National Dairy Development Board Final Report June 2011 www.erm.com Delivering sustainable solutions in a more competitive world FINAL REPORT National Dairy Development Board Strategic Environment and Social Assessment (SESA) for National Dairy Support Project (NDSP): Anand, Gujarat, India 21 June 2011 Reference : I7953 Manish Singh Prepared by: Consultant Neena Singh Reviewed & Partner Approved by: This report has been prepared by ERM India Private Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. CONTENTS EXECUTIVE SUMMARY 0.1 ABOUT THE PROJECT I 0.2 PROCESS ADOPTED FOR SESA I 0.3 REVIEW OF POLICIES AND REGULATIONS II 0.4 ENVIRONMENTAL AND SOCIAL BASELINE II 0.5 STAKEHOLDER ANALYSIS & CONSULTATIONS III 0.6 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK IV 1 INTRODUCTION 1 1.1 PROJECT RATIONALE 1 1.2 PROJECT OBJECTIVES 2 1.3 PROJECT CONCEPTION AND FORMULATION 2 1.4 PROJECT AREA AND BACKGROUND 2 1.5 KEY E&S OPPORTUNITIES AND CHALLENGES FOR NDSP 3 1.6 LIMITATIONS 9 1.7 LAYOUT OF THE REPORT 10 2 APPROACH AND METHODOLOGY 12 3 LEGAL & POLICY FRAMEWORK 23 3.1 ENVIRONME NTAL AND SOCIAL REGULATORY FRAMEWORK 23 3.2 WORLD BANK OPERATIONAL POLICIES AND PROCEDURES 26 3.3 POLICIES RELATED TO DAIRY SECTOR 28 4 SOCIAL AND ENVIRONMENTAL BASELINE 38 4.1 DESCRIPTION OF THE SAMPLE SIZE 38 4.2 SOCIO-ECONOMIC BASELINE AND CONTEXT 42 4.3 ENVIRONMENTAL BASELINE 64 5 STAKEHOLDER ANALYSIS AND CONSULTATIONS 93 5.1 STAKEHOLDER IDENTIFICATION AND PROFILING 93 6 IMPACT ASSESSMENT AND ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK 114 6.1 SOCIAL AND ENVIRONMENTAL IMPACT EVALUATION CRITERIA 114 6.2 IMPACT IDENTIFICATION 116 6.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK 120 6.4 PROCESS FLOW FOR THE IMPLEMENTATION OF ESMF 137 6.5 INSTITUTIONAL FRAMEWORK FOR E& S MANAGEMENT 138 6.6 E&S MANAGEMENT PROCESS ELEMENTS 139 6.7 CAPACITY BUIILDING & TRAINING 147 6.8 IMPLEMENTATION SCHEDULE & COSTING 150 6.9 INTEGRATION WITH THE PROJECT 150 ANNEXURE ANNEXURE A: LIST OF STAKEHOLDER CONSULTATIONS ALL STATES ANNEXURE B: LIST OF SURVEY VILLAGES ACROSS ALL STATES ANNEXURE C: LIST OF VILLAGE LEVEL CONSULTATIONS ACROSS ALL STATES ANNEXURE D: ADDITIONAL INFORMATION ON BASELINE SECTION ANNEXURE E: SOPS FOR VARIOUS SUB COMPONENTS UNDER NDSP ANNEXURE F: PILOT PROJECTS PROPOSED UNDER NDSP ANNEXURE G: SAMPLE TOR FOR EIA OF SUB PROJECTS WITH MAJOR IMPACTS ANNEXURE H: PEST MANAGEMENT PLAN ANNEXURE I: GUIDELINES FOR TRIBAL CONVERGENCE ANNEXURE J: ENVIRONMENTAL, HEALTH, AND SAFETY GUIDELINES FOR MAMMALIAN LIVESTOCK PRODUCTION ANNEXURE K: METHANE EMISSION REDUCTION STUDY THROUGH RBP UNDER FIELD CONDITIONS ANNEXURE L: GRIEVANCE REDRESSAL MECHANISM UNDER NDSP ANNEXURE M: FORM A ENVIRONMENTAL AND SOCIAL CHECKLIST FOR SUBPROJECTS ANNEXURE N: ENVIRONMENTAL AND SOCIAL SCREENING CHECKLIST FOR SUBPROJECTS AT PMU LEVEL ABBREVIATIONS ACU Adult Cattle Units AER Agro-Eco Regions AESR Agro-Eco Subregions AI Artificial Inseminations ASCAD Assistance to States for Control of Animal Diseases BAIF Bharatiya Agro Industries Foundation BCM Million Cubic Metres BMC Bulk Milk Cooler BMTPC Building Material and Technology Promotion Council BOD Biochemical oxygen demand BQ Black Quarter BRGF Backward Region Grant Fund BST Bovine somatotropin CAGR Compounded Annual Growth Rate CBP Capacity Building Plan CBPP Contagious Bovine Pleuro - Pneumonia CFP Cattle Feed Plant CGWB Central Ground Water Board CHA Custom House Agents CoC Chamber of Commerce COD Chemical oxygen demand CPCB Central Pollution Control Board CPRs Common Property Resources CRZ Coastal Regulation Zone DCS Dairy Cooperative Society DG Diesel Generator DGFT Directorate General of Foreign Trade DPR Detailed Project Report dudhia Milk vendor in the informal dairy sector E&S Environmental and Social EA Environmental assessment EA & SA Environmental Assessment and Social Assessment EAP Environmental Action Plan EC Electrical conductivity EMP Environmental Management Plan ERM Environmental Resources Management ESMF Environmental and Social Management Framework EXIM Export Import FAO Food and Agriculture Organization FCA Forest Conservation Act, 1980 FGD Focused Group Discussion FMD Foot and Mouth disease gauchar Land-use classification for common grazing land GCMMF Gujarat Cooperative Milk Marketing Federation GDP Gross Domestic Product GEMS Global Environmental Monitoring System GHG Greenhouse Gases GOI Government of India Gram panchayat Unit of self-governance at the village level halwai Sweetmeat vendor in the informal dairy sector HHs Households HS Haemorrhagic Septicemia IA Implementing Agency IAEA International Atomic Energy Agency ICAR Indian Council of Agricultural Research IDC Indian Dairy Corporation IGFRI Indian Grassland and Fodder Research Institute IMD India Meteorological Department IPCC Intergovernmental Panel on Climate Change JRY Jawahar Rozgar Yojana LAA Land Acquisition Act LU Livestock Units MDR Major District Roads MINARS Monitoring of Indian National Aquatic Resources MMPO Milk and Milk Products Order, 1992 MNREGS Mahatma Gandhi National Rural Employment Guarantee Scheme MoEF Ministry of Environment and Forest MoRTH Ministry of Road Transport and Highways NATCOM National Communication NBAGR National Bureau of Animal Genetic Resources NCA National Commission on Agriculture NCBBP National Cattle and Buffalo Breeding Program NCDFI National Cooperative Dairy Federation of India Ltd NDDB National Dairy Development Board NDMA National Disaster Management Authority NDRI National Dairy Research Institute NDSP National Dairy Support Project NGCs New generation cooperatives NGO Non-governmental Organization NIA Nett irrigated area NIO North Indian Ocean NOC No Objection Certificate NSA Nett sown area OBC Other Backward Class ODRs Other District Roads OF Operation Flood OIE Office International des Epizooties OP Operational Policy PDFA Progressive Dairy Farmers Association PESA Panchayat Extension to Scheduled (V) Areas Act, 1996 PMGSY Pradhan Mantri Gram Sadak Yojana PMU Project Management Unit ppm Parts per million PRIs Panchayati Raj Institutions PWD Public Works Department R&D Research & Development RAP Resettlement Action Plan RBO River Basin Organisations RTI Right to Information SC Scheduled Caste SCR Season and Crop Report SDMA State Disaster Management Authorities SEC Socio-Economic Class SESA Strategic Environmental and Social Assessment SGSY Swarnjayanti Gram Swarozgar Yojana SHG Self-help Group SMP Social Management Plan SOP Standard Operating Procedures SPCB State Pollution Control Board ST Scheduled Tribe TC Tropical Cyclones TDS Total dissolved solids UK United Kingdom UNCCD United Nations Convention to Combat Desertification UNEP United Nations Environment Programme UNFCC United Nations Framework Convention on Climate Change USA United States of America UT Union Territories VRTI Vivekananda Research & Training Institute WB World Bank EXECUTIVE SUMMARY 0.1 ABOUT THE PROJECT The National Dairy Support Project (NDSP) is proposed for funding by the World Bank (WB). It is aimed at making multi state interventions which are scientifically planned to lay the path for new processes, backed with appropriate policy and regulatory measures, to increase the productivity of milch animals and thereby increase milk production to meet the rapidly growing demand for milk. The project will also seek to increase the access of milk producers to the organised sector for sale of milk. The first phase of the NDSP is to be implemented between October 2011 and September 2017. The various activities proposed in the components/ sub components of the NDSP are such that they are expected to result in social and environmental impacts. To understand these impacts (positive & negative) and to suggest enhancement/ mitigation strategy, as part of preparation of NDSP, a Strategic Environmental and Social Assessment (SESA) was commissioned by National Dairy Development Board (NDDB), through an external agency, M/S ERM India Pvt. Ltd. SESA is also expected to suggest mitigation/ enhancement measures, which could be integrated into the project design wherever feasible. 0.2 PROCESS ADOPTED FOR SESA SESA was based on intensive discussions with the project proponents, review of policies and regulations, baseline study and stakeholder consultations to understand the social and environment issues in the context of the proposed activities under NDSP. The SESA assessed the impacts, both positive and negative, that the project interventions will have on the various stakeholders and social and environmental issues, directly or indirectly. Purposive random sampling was followed for the baseline survey to ensure that social and environmental issues applicable to the project are adequately captured. The survey covered 282 villages across 8 districts in 4 states namely Gujarat, Punjab, Karnataka and Bihar covering