SFG1232
India Infrastructure Financing Company Limited
(IIFCL)
ENVIRONMENTAL AND SOCIAL SAFEGUARDS
FRAMEWORK
(Updated in July 2013)
New Delhi
India
CONTENTS
Page
ABBREVIATIONS
I. INTRODUCTION 1
II. ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICY 2
III. ENVIRONMENTAL AND SOCIAL SAFEGUARD FRAMEWORK 3
A. Environmental Safeguard Framework 4
B. Social Safeguard Framework 16
IV. INSTITUTIONAL/ORGANIZATIONAL STRUCTURE OF INDIA
INFRASTRUCTURE FINANCE COMPANY LIMITED 22
A. Periodic Safeguard Audit and its Disclosure 25
B. Reporting to Development Financial Institutions 26
C. Mainstreaming ESSF in Project Processing 27
D. Allocation of Responsibilities for Safeguard Compliance 28
E. Capacity Development for Safeguard Compliance 29
F. Responsibilities in Safeguard Compliance 30
G. Environment and Social Safeguard Framework Update 30
ANNEXES
1. E-1 to E-21 (Annexes pertaining to Environmental Safeguard Framework)
2. S-1 to S-13 (Annexes pertaining to Social Safeguard Framework)
3. G-1 to G-5 (List of General Annexes)
ABBREVIATIONS
ADB - Asian Development Bank
CMD - Chairman and Managing Director
COD - Commercial Operation Date
CPCB - Central Pollution Control Board
CRZ - Costal Regulation Zone
DFIs - Development Financial Institutions
EA - Environmental Assessment
EC - Environmental Clearance
ED - Executive Director
EDP - Environmental Due Diligence Procedures
EIA - Environmental Impact Assessment
EMP - Environment Management Plan
ESSF - Environment and Social Safeguard Framework
ESF - Environmental Safeguards Framework
E&S - Environmental and Social
ESP - Environment and Social Policy
ESS - Environment Safeguards Systems
ESMU - Environment and Social Safeguards Management Unit
FI - Financial Intermediary
GC - General Conditions
GOI - Government of India
HUDCO - Housing and Urban Development Corporation Limited
IDFC - Infrastructure Development Finance Company Limited
IIFCL - India Infrastructure Finance Company Limited
IL&FS - Infrastructure Leasing & Financial Services Limited
IR - Involuntary Resettlement
IPDP - Indigenous People’s Development Plan
IP - Indigenous People
JBIC - Japan Bank for International Cooperation
KfW - Kreditstalt für Wiederaufbau
MOEF - Ministry of Environment and Forest
MOU - Memorandum of Understanding
NGO - Nongovernment Organizations
NRRP - National Rehabilitation and Resettlement Policy
OM - Operational Manual
O&M - Operation & Maintenance
PAP - Project-affected person
PC - Project Cycle
PCB - Pollution Control Board
PIAL - Prohibited Investment Activities List
PFR - Periodic Finance Requests
PLC - Project Life Cycle
PIM - Project Information Memorandum
PMC - Project Management Consultants
PPP - Public Private Participation
RAP - Resettlement Action Plan
RP - Resettlement Plan
R&R - Resettlement and Rehabilitation
SEIAA - State/Union Territory Environmental Impact Assessment Agency
SIA - Social Impact Assessment
SPCB - State Pollution Control Board
SSDP - Social Safeguard Due Diligence Procedures
SSF - Social Safeguard Framework
SSLO - Social Safeguards Liaison Officer
SIFTI - Scheme for Infrastructure Financing through IIFCL
SPV - Special Purpose Vehicle
TDP - Tribal Development Plan
TOR - Terms of Reference
WB - The World Bank
I. INTRODUCTION
1. The India Infrastructure Financing Company Limited (IIFCL) was incorporated on 5
January 2006, under the Companies Act 1956, as a fully government-owned company. The
IIFCL is an apex financial intermediary for developing and financing commercially viable
infrastructure projects and facilities in India through the following modalities:
(i) long-term debt,
(ii) refinance to banks and public financial institutions for loans granted by them,
(iii) take-out financing,
(iv) subordinate debt,
(v) credit enhancement (on pilot basis), and
(vi) any other mode approved by the Ministry of Finance from time to time.
2. Projects in the following sectors are eligible for IIFCL’s financing:
Table 1: Sectors Eligible for IIFCL Financing
Sr. No. Sector Subsector
1. Transport Roads and bridges
Ports
Inland waterways
Airport
a
Railway tracks, tunnels, viaducts, bridges
Urban public transport (except rolling stock in case of urban road
transport)
2. Energy Electricity generation
Electricity transmission
Electricity distribution
Oil pipelines
b
Oil/gas/liquefied natural sas (LNG) storage facility
c
Gas pipelines
3. Water sanitation Solid waste management
Water supply pipelines
Water treatment plants
Sewage collection, treatment and disposal system
Irrigation (dams, channels, embankments etc.)
Storm water drainage system
d
4. Communication Telecommunication (fixed network)
Telecommunication towers
5. Social and commercial Education institutions (capital stock)
e
infrastructure Hospitals (capital stock)
Three-star or higher category classified hotels located outside cities
with population of more than one million
Common infrastructure for industrial parks, SEZ, tourism
facilities and agriculture markets
Fertilizer (Capital investment)
Post-harvest storage infrastructure including cold storage for
agricultural and horticultural products
Terminal markets
Soil-testing laboratories
2
Sr. No. Sector Subsector
f
Cold chain
a
includes supporting terminal
b
includes strategic storage of crude oil
c
includes city gas distribution network
d
includes optic fibre/cable networks which provide broadband / internet
e
includes medical colleges, paramedical training institutes and diagnostics centres
f
includes cold room facility for farm-level pre-cooling for preservation or storage of agricultural and allied products,
marine products, and meat.
3. The above list of sectors will be kept in line with the clause 5.2 (c) in Scheme for
Infrastructure Financing through IIFCL (SIFTI) and its subsequent modifications, if any.
4. In order to be eligible for funding under the “Scheme for Financing Viable Infrastructure
Projects through the India Infrastructure Finance Company Limited” (the Scheme), a project
should meet the following criteria:
(i) The project will be implemented (i.e., developed, financed, and operated for the
project term) by
(a) a public sector company
(b) a private sector company selected under a private-public partnership
(PPP) initiative
(c) a private sector company
(ii) Provided that the Special Purpose Vehicle (SPV) will assign overriding priority to
PPP projects that are implemented by private sector companies, selected
through a competitive bidding process.
(iii) Provided further that a private sector company, other than that defined in the first
provision above, would not be eligible for direct lending by SPV and may be
funded only through the refinance mode.
(iv) The total lending for such private projects shall not exceed 20% of the lending
program of SPV in any accounting year. The eligibility for direct lending and/or
raising the limit of 20% will be reviewed at the end of one year based on the
progress in funding public sector and PPP infrastructure projects.
II. ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICY
5. The IIFCL finances medium to large-scale infrastructure projects. They could generate
adverse environmental and social impacts. As an environmentally informed and socially
responsible financial institution, IIFCL is committed to avoid or mitigate adverse environmental
and social impacts, if any, of the projects in its portfolio. For this purpose, IIFCL has an
Environmental and Social Safeguard Policy (ESSP) and procedural framework to implement it.
6. The ESSP takes note of environmental and social safeguard requirements of its financial
partners and lenders including multilateral and bilateral development financial institutions (DFIs).
7. The ESSP is guided by IIFCL’s commitment to integrate environmental protection and
social development into its mandate in a proactive manner in order to contribute towards
sustainable development. To achieve a balance between developmental imperatives, and
environmental sustainability and social well-being in its operations, IIFCL:
(i) gives due importance to environmental and social (E&S) considerations in
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appraising and financing infrastructure projects in order to avoid, minimize, and
mitigate environmental and social adverse impacts and risks, if any; and
(ii) is committed to comply with all relevant environmental and social policies, laws,
and regulations of the Government of India (GOI) and states of India, and also
remains responsive to E&S safeguard policy requirements of DFIs wherever
DFI’s Line of credit is involved.
8. The ESSP of IIFCL emphasizes its sensitivity to environmental and social safeguard
issues of project that it finances, commitment to comply with its own environmental and social
safeguard policy, and its responsiveness to environmental and social safeguard policy
requirements of DFIs. The ESSP is implemented as per the procedures outlined in the
Environmental and Social Safeguard Framework (ESSF) of IIFCL.
9. The ESSF provides an enabling mechanism to IIFCL to meet environmental and social
safeguard requirements associated with projects that it finances. It defines roles,
responsibilities, and provides procedures to avoid, minimize, and mitigate any direct, indirect
and potential:
(i) adverse impacts/risks on environment,
(ii) adverse impacts and risks of involuntary resettlement, and
(iii) adverse impacts on tribal peoples and their communities that may arise from the
implementation of such projects.
III. ENVIRONMENTAL AND SOCIAL SAFEGUARD FRAMEWORK
10. The objectives of ESSF are to:
(i) avoid any direct, indirect, and potential adverse environmental and social
impacts/risks of projects that it supports;
(ii) minimize or mitigate adverse environmental and social impacts/risks;
(iii) ensure that minimization or mitigation of environmental and social impacts and
risks meet the requirements of laws and regulations of GOI and states, and
environmental and social safeguard requirements of DFIs;
(iv) guide IIFCL, lead banks/designated lead syndicators, and borrowers in preparing
projects for appraisal by IIFCL, and in monitoring, reporting, and in undertaking
corrective actions, if any;
(v) ensure that effective mechanisms are in place for safeguard compliance during
project implementation, and to undertake corrective actions, if required; and
(vi) develop institutional capacity of lead banks and sub-borrowers for safeguard
compliance.
11. The ESSF applies to all projects financed by IIFCL through direct lending and refinance
operations, and to public and private sector projects and DFI’s safeguards compliance is
applicable wherever DFI’s funding assistance is involved1. All lead banks and subborrowers who
seek financial assistance from IIFCL will conduct business in a manner that such business is
compliant with ESSF.
1
An Addendum to this ESSF is provided in Annex G-5, describing the process to be followed for the World Bank assisted sub-
projects.
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12. The ESSF is fully integrated with the project cycle of IIFCL. The environmental and
social due-diligence processes prescribed in ESSF will get triggered when a project enters into
IIFCL’s investment approval system. These processes will remain active until IIFCL’s exposure
to the project is completed.
13. The ESSF comprises of two sub-frameworks, namely, Environmental Safeguard
Framework and Social Safeguard Framework. In the following sections, each Framework is
elaborated.
A. Environmental Safeguard Framework
14. The Environmental Safeguard Framework (ESF) is based on GOI’s environmental laws,
regulations and especially on EIA Procedures found in the EIA Notification of 14 September
2006 and various amendments. The notification provides guidelines on screening projects,
scoping their environmental impacts, obtaining environmental clearances, and environmental
compliance monitoring during project construction and operation phases. At the same time, ESF
draws best practices from environmental safeguard policies of DFIs. The ESF also fills in gaps
between the local environmental safeguard requirements and the common environmental
safeguard best practices of DFIs. The following three paragraphs highlights such gap filling
actions incorporated in ESF.
(i) The GOI’s screening criteria for infrastructure development projects do not entail
obtaining environmental clearances for water supply and sewerage projects,
solar energy, wind power, electrical transmission line, and telecommunication
lines. As a result, such projects do not require an environmental impact
assessment. The environmental safeguard policies of DFIs, however, require
such clearances and an environmental assessment for any physical
infrastructure project, if it is expected to generate adverse environmental
impacts. The ESF therefore applies to above mentioned sectors as well and
requires appropriate environmental planning instruments for such projects.
(ii) As per GOI procedures, a project proponent or its consultants conduct a public
hearing before finalizing an EIA. The hearing is organized by the Central/State
Pollution Control Board. The DFIs’ environmental safeguard policies require the
engagement of all project stakeholders early in the project cycle, namely, at the
scoping stage of an EIA/IEE through consultation. In this context, ESF requires
consultations with project stakeholders including project-affected persons (APs)
during the formulation of an EIA for a project submitted for IIFCL’s financing.
(iii) The ESF outlines a comprehensive process of incorporating an environmental
management plan developed as part of EIA/IEE in the concessionaire agreement
and contract documents to make its implementation mandatory. The IIFCL will
monitor the effectiveness of implementing the EMP. The ESF also provides for
annual environmental audit in order to achieve compliance with environmental
standards and to document lessons learned for future projects.
1. The GOI’s Environmental Policy and Regulatory Framework
15. The key principles of environmental policy and regulatory framework of GOI that are
incorporated in ESF are listed below. The GOI protects and improves the environment of India.
This fundamental responsibility of GOI is enshrined in Articles 48A and 51A (g) of the Indian
Constitution found in 42nd amendment, adopted in January 1977. These articles provide that
(i) the state will protect and improve the environment and safeguard forests and
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wildlife of the country (Article 48A), and
(ii) every citizen is bound to protect and improve the natural environment and to
have compassion for living creatures [Articles 51A (g)].
16. The Ministry of Environment and Forests (MoEF) is the prime regulatory body of GOI for
formulating environmental policies, laws and rules, and for issuing environmental clearance
(EC) for any developmental project, as in the Schedule of the Environmental Impact
Assessment (EIA) Notification, dated 14 September 2006 under the Environmental (Protection)
Act, 1986.
17. The following are the key operational principles of GOI’s Environmental Policy and
Regulatory Framework which are incorporated in ESF.
(i) The EIA system is primarily concerned with assessing direct and indirect impacts
of a project on the biophysical and human environment, and ensuring that these
impacts are addressed by appropriate environmental protection and
enhancement measures.
(ii) The EIA system supports project proponents in incorporating environmental
considerations in project planning and in determining environmental impacts of
their projects.
(iii) Project proponents are responsible for determining and disclosing all relevant
information needed for a methodical assessment of environmental impacts of
their proposed projects.
(iv) Review of an EIA by Central Regulatory Authority/State Environmental Impact
Assessment Agency (SEIAA) is guided by the following criteria: (a)
environmental considerations are integrated into overall project planning; and (b)
the environmental impact assessment is sound, and the proposed environmental
mitigation measures are effective.
(v) Effective regulatory review of an EIA depends on timely, full, and accurate
disclosure of relevant information in the EIA by project proponents to project
stakeholders.
(vi) Meaningful public participation is a part of EIA and it will be assessed in
considering EC application.
18. In order to achieve effective implementation of the above operational principles, GOI
updated its EIA Notification in September 2006. Table 2 provides highlights of the major
improvements.
Table 2: Major improvements in GOI’s EIA Notification of 2006
Compared with EIA Notification of 1994
EIA Notification 1994
EIA Notification 2006 (including amendments)
Decentralization of clearance process. Projects Proponent desiring to undertake any project
under Schedule 1 have been divided into two listed in Schedule 1 had to obtain clearance from
categories, category A and B. Category A project the central government.
will require clearance from the central government
(MoEF). Category B will require clearance from the
state government. The state governments will first
classify if the B project falls under B1 or B2
category. B1 project will require an EIA report while
B2 project will not require an EIA report.
Screening process. Well-defined screening The project proponent assesses/screens if the
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EIA Notification 1994
EIA Notification 2006 (including amendments)
process with projects divided into two categories. proposed activity/project falls under the purview
of environmental clearance, then the proponent
conducts an EIA study either directly or through
a consultant.
Scoping defined. The new notification defines and Scoping was not applicable. The TOR was
includes scoping. The responsibility for determining completely decided by the proponent without any
the terms of reference (TOR) lies with the Expert public consultation.
Appraisal Committee. The determination will be
done in case of category A and category B1
projects. The final TOR shall be displayed on the
website of MoEF and concerned State/Union
Territory Environment Impact Assessment Authority
(SEIAA).
Public consultation. All category A and category The project proponent has to write to SPCB to
B1 projects will have to undertake public conduct public hearing.
consultation except for in six activities for which
public consultation has been exempted. Some of The state boards would be responsible for
the projects exempted include expansion of roads publishing notices for environmental public
and highways (not involving further acquisition of hearings in at least two newspapers widely
land), modernization of irrigation projects, etc. circulated in the region around the project, one
Some of these may have potential social and of which shall be in the vernacular language of
environmental impacts. the locality concerned.
The responsibility for conducting the public hearing
still lies with the state PCBs.
The public consultation will essentially consist of
two components—a public hearing to ascertain the
views of local people and obtaining written
responses of interested parties.
The notification makes provision that MoEF shall
promptly display the summary of draft EIA report on
its website and also make the full draft EIA report
available in the ministry’s library at New Delhi for
reference.
No postponement of the time, venue of the public
hearing shall be undertaken, unless some untoward
emergency situation occurs and only on the
recommendation of the concerned district
magistrate. This was not a part of the earlier
notification.
The SPCBs or Union Territory Pollution Control
Committee shall arrange to video film the entire
proceedings. This was also absent in the earlier
notification and may be considered as a good move
to ensure that public hearing is proper.
EIA = Environmental Impact Assessment, MoEF = Ministry of Environment and Forests, PCB = Pollution Control
Board, SPCB = State Pollution Control Board
19. A detailed description of the EIA and EC system of GOI is presented in Annex E-1. The
ESF of IIFCL incorporates specified requirements of the new EIA Notification (Annex E-2).
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Table 3 outlines the key elements considered in establishing equivalence between GOI
environmental policy and regulatory framework and environment safeguard policies of DFIs.
Table 3: Elements Considered in Assessing Equivalence between GOI’s Environmental
Policy and Regulatory Framework and DFIs Environmental Safeguard Policy
Requirements
Item
Overview Purpose of their application
Topic/scope
Projects requiring environmental assessment
Legal requirements/standards applied
General responsibilities
Timing
Screening Screening process
Screening tools
Categories
Overriding criterion for categorization
EA activities as a result of screening
Screening responsibilities
Terms of Reference (TOR) for EA Responsibilities for TOR preparation and review
Tools and method to be used
Standards applied
EA documentation Contents
Responsibilities for EA studies
Responsibilities for reviewing EA studies
Language in which EA studies are reported
Impact mitigation Principles of mitigation
Environmental Management Plan (EMP)
Consultation and disclosure Public consultation requirements
Information disclosure requirements
Implementation and monitoring Responsibilities for ensuring implementation of EMP
EA = environmental assessment
20. Annex E-3 presents the results of the broad comparison between GOI’s Environmental
Policy and Regulatory Framework and environment safeguard policy requirements of DFIs. It
shows that GOI’s Environmental Policy and Regulatory Framework has significant
commonalities with environment safeguard policies of DFIs. The gaps and differences are
limited to categorization, public consultation, and grievance redress mechanism, references to
the World Bank Group Environmental, Health and Safety Guidelines including standards. Such
differences and gaps will be addressed, where necessary, by closely following DFI
environmental safeguard requirements in those cases wherever project comes for IIFCL’s
participation before technical closure and wherever DFI’s funding assistance is involved (Annex
E-4).2 Each project will also be screened against the Prohibited Investment Activities List (PIAL)
of DFIs as well. A list of PIAL activities is given in Annex E-5.
2
GOI uses thresholds for categorization in addition to project type and location. Some DFIs recommend a two-stage
public consultation process or the conduct of a meaningful consultation process against single step public hearing
followed by GOI. In addition, there is a period of 120 days of disclosure for category A projects as per the
requirements of DFIs. DFIs’ recommended standards and pollution prevention approaches broadly fall within the
scope of the World Bank Group Environmental, Health and Safety Guidelines. The GOI follows national standards
as prescribed by the Central Pollution Control Board. The State Pollution Control Boards can, however, specify
stricter standards than the national standards depending on the sensitivity of the location. In case project-specific
circumstances dictate the use of less stringent standards, a full and detailed justification is needed for the proposed
alternative. The justification should demonstrate that the proposal is consistent with the DFI’s safeguard
requirements.
8
21. The adoption of GOI’s environmental policy and regulatory fram ework, responsiveness
to DFI’s safeguard requirements with procedures appropriate to IIFCL supported by guidance to
lead banks/borrowers, system of prioritized monitoring, audit, and disclosure of planning and
monitoring reports place IIFCL’s ESSF on par with that of environmental safeguard policy
requirements.
2. Steps in Checking a Project for its Environmental Safeguard Compliance
22. The MoEF’s notification on environmental clearance (EC) follows a project classification
scheme (Figure 1). This classification takes project type, size, and sensitivity of location into
consideration (Annex E-2).
23. The IIFCL will use the above categorization to prioritize the appraisal and safeguards
compliance monitoring process. As explained in Annex E-2, projects under category A and B1
require EIA and are processed for EC at MoEF and state-level, respectively. Category B2 does
not require EIA but needs information to be submitted in a prescribed format to the State
Department of Environment for review. Projects under category B1 may get re-categorized into
A, if general conditions (GCs) are violated that consider site sensitivity (Please refer to Annex E-
2 for details of General conditions as per GOI’s EIA Notification).
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Figure 1: Ministry of Environment and Forests’ Notification
of Environmental Clearance Project Classification Scheme
Initial Screening by Project Proponent,
For exclusion (from Category A, Category A/B)
In case the project falls under Category A or Category A/B)
Regulatory Screening of Category A/B projects by
regulatory authority/Ministry of Environment and
Forests
Category B Category A
Regulatory scoping of Category A
Further screening at state-level
projects by regulatory authority/
(to determine Category B1/B2)
Ministry of Environment and Forests
Category B1 Category B2 Project feasibility, environment
impact assessment studies, and
public hearing
Environmental Decision on
clearance process environmental
similar to that for clearance based on Appraisal at the Ministry of
Category A but at the information Environment and Forests
state-level provided in executing
agency form
Inform decision on environmental
clearance to project proponent
24. The operational steps of ESF apply to three scenarios:
(i) Scenario A: Project that have achieved technical closure before IIFCL’s
participation (Secondary Appraisal)
(ii) Scenario B: Projects that have not achieved technical closure before IIFCL’s
participation (Primary Appraisal)
(iii) Scenario C: Safeguards Appraisal of Projects under Take-out Finance Scheme
a. Scenario A: Process for Conducting Secondary Appraisal
25. The IIFCL associates with the project at a late stage of project development and as a
result, does not undertake a primary appraisal of the project. As a result, for projects that (i)
expect retroactive financing, or (ii) are in an advance stage of processing, i.e., a project that
enters IIFCL pipeline just before financial closure, IIFCL relies upon the appraisal of the lead
bank/project developer for environmental and social due diligence. Under a secondary
appraisal, environmental due diligence begins after the receipt of primary appraisal (on
environmental safeguards) along with relevant documents and information from lead bank/lead
syndicator (Figure 2). The list of relevant documents and information required as part of the
secondary appraisal is given in Annex E-6. The prime responsibility of secondary appraisal
rests with the Head, Environment and Social Safeguards Management Unit (ESMU) of IIFCL.
10
26. Upon receipt of the required documents, ESMU will check the project for compliance
with the quality checks applicable at various stages of project cycle. The steps to be followed
shall include the following:
(i) Categorize subprojects as per A/B1/B2 following guidelines of MoEF as in the
latest EIA notification. Refer to Figure 1 and Annex E-2.
(ii) Categorize subprojects as per environmental safeguard policy guidelines of the
DFIs. If more than one DFI is participating in financing the project, and if the
categorizations of DFIs differ, then assign the highest category.
(iii) If there is a difference between the categorization based on the EIA Notification
and the categorization of ESF, then the higher between the two categories will be
applied.
(iv) If there is no clear guidance in the EIA Notification, ESF scheme of
categorization will be followed.
(v) Check environment compliance. See Annex E-7, E-8, E-9 and E-10 for
applicable laws and regulations. Verify approvals from SPCB (consent to
establish and operate), environmental clearance from State Department of
Environment/MoEF, Costal Regulation Zone (CRZ), and forest clearances, if
applicable, and whether processes and procedures, especially related to public
consultation and disclosure (e.g. public hearing) are correctly followed. To
facilitate the required consultations with project-affected groups and local
nongovernment organizations, IIFCL will ensure that the project proponent
provides relevant information on the project’s environmental issues in a form and
language(s) accessible to those being consulted. The IIFCL will also ensure
compliance with the 120-day disclosure requirement of EIA for a category ‘A’
project. It will also check the conformity of the project with the standards and
approaches recommended by the Pollution Prevention and Abatement Handbook
of the World Bank. In case the project’s EA report recommends the adoption of
alternative emission levels and approaches to pollution prevention and
abatement to best reflect national legislation and local conditions, the EA report
must justify the levels and the approaches chosen for the project or site.
(vi) Identify gaps, if any, on environmental compliance. If there are no gaps, then
review the EIA report and the adequacy of Environmental Management Plan
(EMP). Please see Annex E-11 for guidance. For category A and B1 projects, an
environmental specialist will visit project sites.
(vii) If there are gaps on environmental compliance, then direct the lead bank/project
proponent to submit action plan with a time frame to attain safeguard
compliance. Hold disbursements until safeguard compliance is achieved.
(viii) Monitor and review whether the agreed gap-filling measures are satisfactorily
met on time. If there is a consistent default in meeting safeguard compliance,
cancel further disbursements.
(ix) For a safeguard compliant project, if the review of EMP shows its adequacy and
appropriate reflection in the project costs, then update legal documents to reflect
the applicability of ESF of ESSF as binding during the period of engagement.
Take appropriate approval from the IIFCL Board.
(x) If the review of EMP shows its inadequacy and/or inappropriate reflection in
project costs, IIFCL will take up these issues with the project proponent for
required rectifications.
(xi) Update legal documents that reflect applicability of ESF of ESSF as binding
during the period of engagement.
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Figure 2: Operational Steps in IIFCL’s ESF–Secondary Appraisal
(Case of project having achieved Technical Closure before IIFCL’s Participation)
Subproject
categorization
Subproject related documents (e.g., PIM)
Review and check Environment related documents (e.g. consent, environmental clearance)
for compliance EIA reports and EMP
Field visits for category A/B1
Yes No
Check adequacy Direct corrective measures
and effectiveness of to attain compliance
EMP
Monitor and review compliance
Satisfactory Not Satisfactory
Update legal document IIFCL takes up issues with
to incorporate compliance project proponent for suitable Yes No
with ESF rectifications
Hold/cancel disbursements
Update legal document to until satisfactory compliance
incorporate compliance with is achieved
IIFCL’s ESF
Prepare memo to
IIFCL’s Board
EIA = environment impact assessment, EMP = environmental management plan, ESF = environmental
safeguard framework, IIFCL = India Infrastructure Finance Company Limited, PIM = project information
memorandum.
b. Scenario B: Process for conducting Primary Appraisal
27. For a project entering IIFCL’s pipeline at the stage of conceptualization, IIFCL will have
higher ability to apply ESSF in financing project. The procedure mentioned below will be
relevant for all new projects entering into IIFCL’s project life cycle at the stage of actual project
development, before technical closure. Following steps will be followed by IIFCL in applying the
requirements of ESF for a project that is not yet committed (Figure 3).
(i) At an initial stage of identifying a project for financing and where funds of a DFI
are likely to be used, the ESMU will screen the project against the Prohibited
Investment Activities List (PIAL) (Annex E-5). If the project involves a prohibited
activity, IIFCL will inform the lead bank/subproject proponent that the project will
not be considered.
(ii) The ESMU will categorize the subproject following the guidelines of MoEF based
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on the EIA notification (Annex E-2).
(iii) The ESMU will also categorize the projects as per ESF guidelines. If there is
more than one DFI participate in financing the project, ESMU applies
categorization criteria of each participating DFI. If categorizations differ, ESMU
will assign the highest category (Annex E-3).
(iv) If there is a difference between categorization based on EIA Notification of GOI
and the categorization done as per ESF, ESMU assigns the higher category of
the two to the project.
(v) In case there is no guidance in the EIA Notification on project categorization for a
particular sector, ESMU follows ESF scheme of categorization which is based on
categorization criteria of DFI (ADB’s Safeguard Policy Statement).
(vi) The ESMU categorizes the project as one of the following: category A (with
potential significant environmental and/or social impacts); category B (with less
significant environmental and/or social impacts), and category C (with minimal or
no impacts).
(vii) The IIFCL informs the lead bank/subproject proponent of the applicable
requirements. For a project with potential significant environmental impacts,
ESMU will advise the lead bank/project proponent that (a) safeguard
requirements of DFIs will apply including the need for an environmental impact
assessment (EIA) and an EMP (Annex E-4);3 and (b) it will submit these reports
to IIFCL for review. The IIFCL will also submit these reports to DFIs for their
review and concurrence. Outlines for an EIA and EMP are provided in Annex E-
12.
(viii) Based on the review of the Periodic Audit and Monitoring Reports for category A
and B projects prepared and submitted by the lead banks/project proponent,
ESMU will prepare Periodic Environmental Performance Report substantially in
the form of Annex E-17 and submit it to IIFCL and participating DFIs for review.
The report will also source information related with safeguards compliance status
from the independent environmental audit which is to be conducted by a third
party.
Table 4: Environmental Safeguard Requirements
Category (Risk Rating) Environmental Safeguards
Category A (with potential significant Comply with (i) safeguard requirements of DFIs
impacts) Safeguard Policy requirements including EIA
preparation & submission, and (ii) national laws and
regulations
Category B (with less significant Comply with national laws and regulations
impacts)
Category C (with minimal or no Comply with national laws and regulations
impacts)
3
Annex E-4 was derived from Appendix 1 of the ADB Safeguard Policy Statement (2009).
13
Figure 3: Operational Steps in IIFCL’s ESF– Primary Appraisal
(Projects that have not Achieved Technical Closure before IIFCL’s Participation
Categorize subprojects as
A/B1/B2*
Subproject related documents (e.g., PIM)
Review and check for Environment -related documents (e.g. consent, environmental clearance)
compliance EIA reports and EMP
Field visits for category A/B1
Yes No
Direct corrective measures to
If category If category attain compliance
is A/B1 is B2
Monitor and review
compliance
Check adequacy and
effectiveness of EMP
Yes No
Satisfactory Not Satisfactory
Hold/cancel disbursements
IIFCL will take up the issues until satisfactory compliance
Update legal document is achieved
to incorporate with project proponents for
compliance with suitable rectification
IIFCL’s ESF
Update legal document to
incorporate compliance
with IIFCL’s ESF
Prepare memo to
IIFCL’s board
Approved Not Approved Reject project proposal
Monitor and review based on Direct corrective action as
project categorization appropriate
Conduct annual environmental Disclose results in annual
audit report and on the web
*Based on classification as per environmental clearance notification of the MoEF and site sensitivity.
EIA = environment impact assessment, EMP = environment management plan, ESF = environmental
safeguard framework, IIFCL = India Infrastructure Finance Company Limited, MOEF = Ministry of
Environment and Forests, PIM = project information memorandum.
14
c. Scenario C: Safeguards Appraisal of Projects under Take-out
Finance Scheme
28. Under Take-out Finance Scheme, IIFCL’s engagement in any project takes place after
completion of the construction phase of the project. The disbursement of “take-out” generally
will take place 1 year after the actual commercial operation date (COD) of the project, except in
cases of PPP roads projects (annuity basis) and other sectors as approved by the Empowered
Committee. In such cases, take-out can take place immediately after COD.
29. The following procedures will be guide environmental safeguard appraisal of any project
which enters IIFCL’s project life cycle after achieving COD:
30. As IIFCL’s participation in Takeout Finance Scheme takes place only during the
operation phase of a project, its role in environmental and social due diligence would be limited
to ensuring safeguard compliance applicable to the post-COD phase.
31. The post-COD project safeguard appraisal essentially follows a check list approach. The
Environmental Specialists and Social Specialists of IIFCL will review the project for compliance
with the quality checks applicable at various stages of project development based upon
available documents as provided by lead bank/project developer. The checklist for information
required for reviewing safeguards compliance and the implementation status in any project is in
Annex-13.
32. Operational phase monitoring and reporting arrangement for environmental safeguard
compliance will be ascertained by reviewing the implementation of its EMP.
33. Operational risks typically arise during project operations which could lead to further
regulatory action such as corrective action plans or public protest. To mitigate such risks, IIFCL
will request the lead bank to seek regular operational phase reports and seek corrective
measures by the project proponent in case of non-compliance of standards or adverse impact
on population. To ensure compliance, IIFCL will include suitable covenants in the Take-out
Finance Scheme related documents. For safeguards compliance requirements of any project
during operational phase, the applicable environmental safeguards categorization criteria are
given in Table 5 below.
Table 5: Environmental Safeguard Requirements for Post-COD Projects
Category (Risk Rating) Environmental Safeguards
Category A (with potential significant impacts Comply with (i) Safeguard requirements of the DFIs
during operation phase) safeguard policies including EIA preparation and
submission, and (ii) national laws, regulations and
regulations
Category B (with less significant impacts during Comply with national laws nd regulations
operation phase)
Category C (with minimal or no impacts during Comply with national laws and regulations
operation phase)
3. Environmental Due Diligence
34. The ESMU will follow the following steps in conducting environmental due diligence.
(i) The ESMU undertakes environmental due diligence of each project. Depending
on the complexity of the project, due diligence take the form of a desk review (for
15
category C project) or a report based on a site visit (for category B project), or a
full-scale review conducted by ESMU (for category A project). The lead
bank/project proponent will provide required information and data to IIFCL and
will demonstrate sufficient responsiveness to all applicable environmental
safeguard requirements including that of participating DFIs if DFI’s assistance is
also involved.
(ii) The ESMU review project documents for their compliance with GOI and state
environmental laws and regulations (Annex E-7, E-8, E-9 and E-10). The ESMU
verifies the consent of SPCB (consent to establish and operate), environmental
clearances from State Department of Environment/MoEF, CRZ, and forest
clearances, if applicable, and whether processes and procedures, especially
related to public consultation and information disclosure (e.g. public hearing) are
adequately followed. For projects with potential significant adverse environmental
impacts, ESMU also checks the project’s safeguard compliance with participating
DFI’s safeguard requirements ( Annex E-4) in case if the project is to receive the
DFI’s funding.
(iii) If there are gaps on environmental safeguard compliance, an inadequacy and/or
inappropriate reflection on project safeguard compliance in reports submitted by
the Lead bank or project proponent, IIFCL will agree with the lead bank/project
proponents to formulate targeted corrective actions to attain the project’s
safeguard compliance. The IIFCL will take up these compliance gaps/issues with
project proponent for required rectification.
(iv) The ESMU staff of IIFCL prepares the environmental and social due diligence
reports for category A and B subprojects and shares them with project
proponents. In case if any safeguard non-compliance is noted, then corrective
actions are suggested and follow up is done with the project proponent. An
outline of a due diligence report is at Annex E-14.
(v) In case of a category A project which is being considered by IIFCL to fund with
DFI contributions, IIFCL will refer it to the respective DFI with all relevant
environmental information of the project early in the due diligence process. The
IIFCL will also submit to the DFI the draft EIA report together with EMP for review
and approval before the project is considered by IIFCL’s board. The EIA report
will be made publicly available at least 120 days before the IIFCL board
considers the project.
(vi) The ESMU ensures that legal documents will contain appropriate environmental
covenants requiring investments to be in compliance in all material respects with
the applicable environmental safeguard requirements and reflecting the
applicability of ESF as binding during the period of engagement.
4. Safeguard Compliance Monitoring and Reporting
35. The following procedures will apply for both scenario A and scenario B projects.
(i) After a category A or B subproject is approved, IIFCL (a) communicates with the
lead bank/project proponent from time to time to verify whether the project has
met applicable environmental safeguard requirements. It will promptly report any
actual or potential breach of compliance requirements to the lead bank and
request correctional actions immediately. For a category A project, ESMU will
visit the site periodically to monitor the implementation of the EMP.4
4
For a category A subproject investment with facilities and/or business activities that already exist or are under
16
(ii) Each approved project will be evaluated for its environmental safeguard
compliance performance annually. The benchmark for performance will be the
ongoing compliance against the applicable environmental safeguard
requirements. The project proponent will submit periodic environmental
monitoring report to IIFCL for various project activities for which scope of
environment monitoring is suggested in Annex E-15. The IIFCL will also prepare
and submit an Annual Environmental Compliance Monitoring and Evaluation
Report to DFI (Annex E-16), and will review and assess the project’s
environmental safeguard performance.
B. Social Safeguard Framework
1. Objectives of Social Safeguard Framework (SSF)
36. The SSF is an integral component of ESSF. The key objective of SSF is to guide lead
banks and borrowers on safeguards policy issues in preparing projects for appraisal at IIFCL
and in conducting subsequent monitoring of project implementation, reporting, undertaking
corrective actions, if any. Development or expansion of infrastructure projects tends to cause
involuntary resettlement (IR) impacts on persons and communities including tribal peoples.
Where tribal peoples are the project-affected persons, a project can have impacts on their
communal and cultural interests, rights and livelihoods. If a project has direct impacts on their
ancestral domain, tribal knowledge or their control over natural resources, it is necessary to hold
meaningful consultations with them to obtain their free, prior and informed consent for the
project to proceed as per the national laws, regulations, procedures and safeguards policies of
participating DFIs.
37. Other key objectives of SSF are to ensure that project-affected persons benefit from the
proposed projects to the extent possible, and that they are consulted about the project
throughout its life.
38. The IIFCL will ensure that IR impacts of any project submitted for financing are dealt with
closely following the policy and legal instruments listed given below:
(i) Applicable GOI and state laws and regulations governing land acquisition,
compensation, relocation, and resettlement
(ii) Lenders’ safeguard policies on IR impacts, and
(iii) Involuntary resettlement safeguards policy requirements of participating DFIs.
39. The SSF is based on the following key principles regarding involuntary resettlement:
(i) Avoid physical displacement and involuntary relocation, if feasible.
(ii) Explore alternatives to avoid physical displacement and involuntary relocation
(iii) Minimize involuntary relocation, if physical displacement is unavoidable.
(iv) Consult all project-affected persons (PAPs) on land acquisition, compensation,
relocation and income rehabilitation.
(v) Disseminate project information among all PAPs.
(vi) Ensure PAPs receive compensation, resettlement assistance and income
rehabilitation support so that they could improve or at least restore their
construction, the ESMU will visit the site to monitor the implementation of the EMP including the corrective action
plan, if any.
17
livelihoods and sources of income to the pre-project level.
(vii) All PAPs are eligible compensation and resettlement assistance programmes
regardless of title to the land.
(viii) The cut-off date for eligibility should be the date of first notification for land
acquisition.
(ix) Compensation for loss of assets must be at replacement value (Annex S-1).
(x) A comprehensive entitlement matrix is formulated to describe entitlements of
each category of PAPs (Annex S-2).
(xi) Full compensation must be paid prior to taking over the land and other assets.
(xii) Project information should be disseminated in a timely fashion, consultations held
with all affected persons, and plan versions and monitoring reports disclosed at
regular intervals in local languages.
(xiii) Independent monitoring system to monitor the implementation of the involuntary
relocation programme should be incorporated in RP.
(xiv) Detailed timetable for RP implementation
(xv) Detailed budget and sources of budget for compensation, relocation, and
rehabilitation of PAPs.
40. The term “affected person” applies to any person, household, community, firm, or private
institution that would get affected by a project. In case of individuals, such a project would affect
(i) their standards of living; (ii) right, title, or interest in any house, land (including residential,
commercial, and agricultural land, forests, and pastures), water resources, or any other
moveable or fixed assets, permanently or temporarily; and/or (iii) business, occupation, and
place of work or residence.
41. The SSF is based on the following key principles regarding tribal peoples safeguards
(i) Screen the affected population to determine whether tribal peoples (TP) are
present in the project area and the project is likely to have any impact on them
(ii) Conduct a SIA to understand their socioeconomic conditions so that adverse
project impacts on them could be avoided or minimized and their participation in
sharing project benefits is increased.
(iii) Undertake a meaningful consultation with them and their TP organizations
(iv) Obtain their consent for acquiring their ancestral land, commercial development
of natural resources within customary lands under use, and commercial
development of TP cultural resources and knowledge.
(v) Avoid acquisition of ancestral lands and physical displacement of TP.
(vi) Avoid any restrictions on their access to their ancestral domain
(vii) Prepare a TDP based on SIA to address all impacts on TPs and to resolve them
in a culturally appropriate manner without harming their culture, religion or
identity
(viii) Disclose TDP and consultation findings and SIA widely and on websites
(ix) Prepare an Action Plan for legal recognition of customary rights to ancestral
domains when land is acquired for projects and TP are physically displaced.
(x) Monitor TDP implementation through participatory monitoring approach and
disclose monitoring reports
42. The SSF recognizes the needs of the poorest affected persons and vulnerable groups
who are at high risk of impoverishment and further marginalization because of project
interventions.
18
2. Social Safeguard Policy Compliance Review Process
43. The operational steps of SSF consider three scenarios.
(i) Scenario A: projects that have achieved technical closure before IIFCL’s
participation (secondary appraisal).
(ii) Scenario B: projects that have not achieved technical closure before IIFCL’s
participation (primary appraisal)
(iii) Scenario C: safeguards appraisal of projects under take-out finance scheme.
a. Scenario A: Process for Conducting Secondary Appraisal
44. The IIFCL engages with a project at a later stage of project development and as a result,
does not undertake a primary project appraisal. Such projects take the form of (i) retroactive
financing, or (ii) a project in advance stages of processing, i.e., the project enters IIFCL pipeline
just before financial closure. In such projects, IIFCL relies upon the lead bank/lead syndicator
and project proponent for environmental and social safeguard due diligence and appraisal.
Under the secondary appraisal mode, social due diligence begins after the receipt of primary
appraisal (on social safeguards) along with relevant documents and information from lead
bank/lead syndicator. The list of relevant documents and information required as part of the
secondary appraisal is given in Annex S-3. The prime responsibility of secondary appraisal
rests with the Head, ESMU.
45. Upon receipt of the required documents, ESMU will check the project for social
safeguard compliance. The steps to be followed:
(i) Screen proposed subprojects for involuntary resettlement impacts and impacts
on tribal peoples.
(ii) Review Resettlement Plan (RP) and/or Tribal Development Plan (TDP) against
the involuntary resettlement and tribal peoples safeguard principles listed in SSF.
(iii) If RP/TDP implementation shows any serious weakness or prolonged delay,
IIFCL will discuss such issues with the project proponent and agree on required
rectifications.
(iv) Identify gaps, if any, between involuntary resettlement and tribal peoples
safeguard requirements listed in SSF and project borrower/client’s social
safeguard policy. If there are gaps, direct lead bank/project proponent to prepare
targeted actions to address them within a specified time frame in order to attain
safeguard compliance. Hold disbursement until safeguard compliance is
achieved.
(v) Monitor and review whether the agreed gap-filling measures are satisfactorily
met in stipulated time. If there is a consistent default, then cancel any further
disbursements.
(vi) Update legal documents that reflect applicability of SSF as binding during the
period of IIFCL’s engagement in the project.
b. Scenario B: Process for Conducting Primary Appraisal
46. Regarding projects that enter its project pipeline at the stage of their conceptualization,
IIFCL will be in a better position to apply SSF requirements fully in financing project. The
procedures mentioned below will apply to all new projects entering into IIFCL’s project life cycle
at the stage of project development, and before technical closure.
19
(i) Categorize the impacts of the project to ascertain whether it will have involuntary
resettlement impacts or impacts on tribal peoples or both (Annexes S-4 and S-
5). The IIFCL, based ESMU’s review of the borrower’s reports and consultations
with lenders, will determine the magnitude of IR impacts of the project and decide
whether or not a RP is required (see Annex S-6 for RP format). An RP will be
required if involuntary resettlement impacts are “significant” (category A). This
means 200 or more persons will experience major project impacts such as being
physical displaced or losing 10% or more of their productive assets which
generate income. If less than 200 persons are estimated to experience above
impacts, the project will be categorized as “less-significant” (category B) and it
will require a RP to address them. No or insignificant involuntary resettlement
impacts on persons will be categorized as C for which no RP is required.
(ii) If the project has any impacts (positive or adverse) on tribal peoples, a
determination will be made with the assistance of an expert on tribal studies as to
the magnitude and significance of the impacts and whether or not to prepare a
TDP. The impacts of a project on tribal peoples will be considered as “significant”
(category A), if they positively or adversely (a) affect their customary rights of use
and access to land and natural resources; (b) change their socioeconomic status;
(c) affect their cultural and communal integrity; (d) affect their health, education,
livelihood, and social security status; or (e) alter or undermine the recognition of
tribal knowledge. “Less significant” impacts on tribal peoples will be categorized
as B. No or insignificant impacts on tribal peoples will be categorized as C. In
case of category A impacts, a TDP will be prepared. In case of category B,
safeguard specialists who have determined the degree of significance of project
impacts on tribal peoples will decide whether to formulate a TDP or to
incorporate elements of a TDP in the project’s RP (Annex S-7 for TDP format).
(iii) Prepare required planning instruments such as RP and TDP based on the above
categorization(s) and determinations. See Annex S-8 for applicable policies,
laws and regulations.
(iv) If a RP and/or TDP are submitted, review them for their adequacy and safeguard
compliance against IR principles incorporated in SSF. Identify gaps, if any,
between SSF and the project borrower/client’s social safeguard policy. If there
are gaps, the borrower/client will address them in the RP/TDP before approving
them. In RP and/or TDPs will include summaries of field level consultations and
decisions. This is to be done by a social safeguards specialist.
(v) Disbursements should not be made until the RP/TDP is considered as
satisfactory by ESMU. This means, the RP/TDP covers all domestic laws and
regulations as well as the safeguards requirements listed in safeguard policies of
participating DFIs pertaining to the project’s social impacts in case if the project is
posed for DFI’s funding.
(vi) Monitor and review whether the agreed gap-filling measures are satisfactorily
met in the stipulated period of time. If there is a continuing default, cancel further
disbursements until a corrective action plan is formulated and implemented to fill
such gaps.
(vii) If a project is found to be compliant with social safeguard (IR and tribal peoples)
requirements, update legal documents to reflect the applicability of IIFCL’s
commitment to the RP and/or TDP as binding during the period of engagement.
Obtain approval of the IIFCL board for the project.
(viii) If the review of the RP and/or TDP shows their significant safeguard
inadequacies IIFCL will contact project proponent to obtain required
20
rectifications. Update legal documents to reflect the applicability of IIFCL’s social
safeguard plans as binding during the period of engagement.
(ix) Revise RP and/or TDP on completion of detailed project design, as necessary.
(x) Monitor RP and/or TDP and prepare monitoring reports. Submit them to
participating DFIs for review.
(xi) Link the project closure to satisfactory completion of social safeguard
requirements as per RP and/or TDP.
c. Scenario C: Safeguards Appraisal of Projects under Take-out
Finance Scheme
47. Under the take-out finance scheme, IIFCL’s participation in a project will take place after
the completion of project’s construction phase. The disbursement of “take-out” generally will
take place 1 year after the actual commercial operation date (COD) of the project except in
cases of PPP roads projects (annuity basis) and projects that may receive the approval of the
Empowered Committee. In such cases, the “take-out” can take place immediately after COD.
48. The following procedure will apply to social safeguards appraisal of any project which
enters IIFCL’s project life cycle after achieving COD:
(i) As IIFCL cannot appraise social safeguard compliance during project
construction phase, it will for environmental and social due diligence relies on the
appraisal done by lead bank/project developers.
(ii) The post-COD project safeguards appraisal essentially follows a check list
approach and relies upon the fact that the lead bank has already reviewed the
project for safeguard compliance. The Social Specialist of IIFCL will check the
project for compliance with the quality checks applicable at various stages of
project development based upon available documents as provided by lead
bank/project developer. The checklist for information required related with
safeguards compliance and implementation status of a project is attached at
Annex S-9.
(iii) The safeguard compliance monitoring and reporting arrangements during the
operational phase of the project will be checked. If they are found to be
inadequate, IIFCL will contact the Lead Bank/Project developer and discuss
necessary arrangements to gain social safeguard compliance.
(iv) In case of projects that enter IIFCL’s pipeline after passing their constructi on
stage, the Lead bank may not have adequate information on compliance of social
safeguards. In such a situation, IIFCL will try to collect additional information
through site visits and consultations with affected persons. The IIFCL will also
sensitize project developers on how to fill the gaps in social safeguard
compliance and update legal documents to reflect applicability of SSF as binding
during the period of engagements.
(v) Operational risks typically arise during project operations which could lead to
further regulatory action such as corrective action plans or public protest. To
mitigate such risks, IIFCL will request the lead bank to seek regular operational
phase reports and seek corrective measures by the project proponent in case of
non-compliance of standards or adverse impact on population. To ensure
compliance, IIFCL will follow-up with the lead bank to include suitable covenants
in operation and maintenance contracts.
21
3. Social Safeguard Due Diligence
49. The ESMU prepares the social due diligence report for each project. The due diligence
report will be shared with the project proponent and if DFI funds are involved in financing the
project, the due diligent report together with all planning instruments such as SIA, RP, and TDP
will be sent to the participating DFI for review and approval.
50. Depending on the complexity of the project, due diligence can be a desk review (for
category C subproject), a full-scale review conducted by ESMU or consultant(s) based on a site
visit (for category A/B subproject). The lead bank/project proponent must provide all requested
information to the IIFCL and should be able to demonstrate adequate responsiveness with
regard to the applicable social safeguard requirements.
51. The ESMU checks social safeguard compliance of the project against SSF which
incorporate GOI and state laws and regulations and also check against DFI’s safeguard
requirements in case the project is posed for DFI’s funding . If there are gaps on social
safeguard compliance, IIFCL agrees with lead bank/borrowers to formulate targeted actions to
attain projects safeguard compliance. The IIFCL will discuss compliance gaps/issues with
project proponent for required rectifications.
52. The ESMU staff ensures that legal documents will contain appropriate social covenants
requiring investments to be in compliance in all material respects with the applicable
environmental safeguard requirements and reflect the applicability of SSF as binding during the
period of engagement.
53. An outline of a Social Due Diligence Report is given in Annex S-10
4. Monitoring and Reporting
54. Monitoring and reporting requirements will be defined as part of each RP and/or TDP. In
addition, each borrower will engage an external independent monitoring agent to undertake
external monitoring of RP and TDPs. Reporting and monitoring formats will be prepared for both
internal and external monitoring. Annual external monitoring reports will be submitted to the
lenders. See Annex S-11 for sample TOR for an external monitoring and reporting agency.
55. One key function of the external monitoring would be to ascertain whether any
unanticipated impacts on tribal peoples or unanticipated resettlement effects become apparent
during project implementation. In such cases, the external monitor would assist the borrower to
assess the significance of the impacts and identify measures to mitigate any adverse impacts
and ensure that benefits accrue to the tribal peoples. The ESMU would be informed of and
review such measures and their implementation. The external monitor would also certify
compliance with the requirements of the RP and/or TDP.
56. Each approved project will be evaluated for its social safeguard compliance performance
annually. The ESMU will prepare an annual report summarizing the progress of each borrower’s
operations which had IR impacts and/or impacts on tribal peoples. The benchmark for
performance will be the ongoing compliance against the applicable social safeguard
requirements. The project proponent will submit periodic social safeguards monitoring report to
IIFCL for various project activities for which scope of social monitoring is suggested in Annex S-
12. The IIFCL will also prepare and submit an Annual Social Compliance Monitoring and
Evaluation Report to DFI (Annex S-13), and will review and assess the project’s social
22
safeguard performance. Based on the review of the periodic audit and monitoring reports for the
projects prepared and submitted by the lead banks/project proponent, ESMU will prepare
periodic environmental and social performance report substantially in the form of Annex E-17
and submit it to IIFCL and participating DFIs for review. The report will also source information
related with safeguards compliance status from the independent social audit which is to be
conducted by a third party.
IV. INSTITUTIONAL/ORGANIZATION STRUCTURE OF INDIA INFRASTRUCTURE
FINANCE COMPANY LIMITED
57. IIFCL’s board comprises the chairman and managing director (CMD) and a fulltime
director nominated by GOI. In addition, GOI has nominated four experts and three officials as
part-time directors of IIFCL.
58. The CMD is assisted by the executive director and three chief general managers
(CGMs).
59. The company operations team comprises dedicated professionals drawn from different
banks, FIs, campus recruitment, and direct recruitment. The IIFCL operates with a lean and thin
structure to keep overheads to a minimum.
60. ESMU was set up at IIFCL in 2010 to operationalize ESSF and to take charge of
ensuring compliance of safeguard requirements of projects that IIFCL funds. Figure 4 shows the
IIFCL’s organization structure.
23
Figure 4: IIFCL’s Organization Chart
61. Figure 5 below shows the composition and contracting arrangements under ESMU. The
ESMU will be headed by a full-time staff of IIFCL who could be either invited on deputation from
other organizations or recruited. This person will have masters in environmental
science/engineering/planning with at least 10 years of experience in conducting/reviewing
environmental and social assessments. Familiarity with GOI laws, regulations and procedures
will be essential, and exposure to environmental and social safeguard systems of DFIs will be
desirable.
62. ESMU will draw specialists through direct recruitment and one full-time environmental
specialist and one full-time social safeguard specialist will be engaged. These two specialists
will work at IIFCL and report to the Head, ESMU. The environmental specialist should have
masters in environmental science/engineering/planning with at least 5 years of experience.
Previous experience in preparing Environmental Impacts Assessments (EIAs) and Environment
Management Plan (EMPs) and obtaining environmental clearance (EC) at center and state-
24
levels for infrastructure projects will be essential. The social assessment specialists will have
masters in social science or allied areas with at least 5 years of experience in the preparation of
Social Impact Assessments (SIA), Resettlement Plans (RP) and Tribal Development Plans
(TDP). In order to facilitate the delivery of its mandate and the following services, ESMU will
also be supported by external competent consulting organizations/individual specialists working
as Project Management Consultant-I (PMC-I). PMC-I will be identified through competitive
bidding. These specialists will deliver the following services:
(i) Conduct compliance review.
(ii) Check adequacy and effectiveness of EMPs/RPs/TDPs.
(iii) Develop conditions as loan covenants that stipulate requirements or outcomes of
EMP/RAP/TDPs.
(iv) Prepare memos for the Board on the above.
(v) Prepare sector-specific checklists, guidelines, monitoring, and reporting formats
to strengthen ESF. These guidelines will make use of the materials developed by
GOI and DFIs (Annex G-1, E-18, E-19, E-20, E-21, E-6 and S-3 illustrate such
guidance materials of relevance to lead banks/borrowers. PMC-I will build a
compendium to this effect and provide to the lead banks/borrowers).
(vi) Coordinate with field environmental and social specialists in assessment,
monitoring, and review, as required.
(vii) Coordinate with lead banks/borrowers to support independent environmental and
social auditors (PMC-II) for preparing IIFCL’s Annual Environmental and Social
Report.
(viii) Prepare progress and performance reports for various DFIs.
(ix) Coordinate with training specialists provided by PMC-I to conduct training
program for lead banks/borrowers on project processing under ESSF.
(x) Update ESSF based on operational experience.
63. PMC-I will support ESMU on a need basis for the following:
(i) conduct field visits for assessments, monitoring, and reviewing (especially for
category A and B1 projects for safeguard impacts); and
(ii) conduct awareness and training program on ESSF for lead banks/borrowers.
64. PMC -1 support will not be in-house based, but provided using the pool of resources
available at PMC-I. For the delivery of its mandate and the above mentioned services, ESMU
will also be supported by external competent consulting organizations/individual specialists
working Project Management Consultant –II (PMC-II).
25
Figure 5: Composition and Contracting Arrangements
under the Environmental and Social Management Unit (ESMU)
Independent Head/Coordinator
Environmental and
Environmental and Full time staff of
Social Management Unit
Social Auditors*** India Infrastructure Finance Company
Senior Environmental
Assessment Specialist
In-house Environmental
Senior Social and Social Specialists*
Assessment Specialist
India Infrastructure
Project Management Finance Company
Consultant-II
Support Field Unit for
Support Unit for Training Environmental and
for Lead Banks** Social Appraisal and
Monitoring**
Environmental Assessment Specialist
Social Assessment Specialist contracted
from Project Management Consultant-I
* Full time
** Need-based
*** on annual basis
A. Periodic Safeguard Audit and its Disclosure
65. The IIFCL will conduct periodic environmental and social audits through independent
consultants (PMC-II). The audit process will consider project categories for better focus and
optimization. Figure 6 below explains this concept.
66. The PMC-II will conduct a periodic environmental and social audit with the help of Senior
Environmental and Social Specialists using a combination of data reported by lead
banks/borrowers and field visits.
26
67. The PMC-I will provide monitoring assistance to all lead banks/borrowers. It will
supplement such support through field visits, where necessary, and by verifying submitted
information. Specialists from PMC-I will be accompanied by a representative of lead
bank/borrowers during field visits. The PMC-II will prepare the periodic environmental and social
audit report with observations and recommendations, especially if corrective actions are
required. This report will be finalized by ESMU Head and will be submitted to the IIFCL board
along with actions proposed for corrective actions, if any. After the board’s approval, this report
will be included in the annual report of IIFCL. A soft copy of this report will be uploaded on
IIFCL’s website. Annex E-16 and S-13 present a typical audit recording sheet. Annex E-15 and
S-12 lists typical monitoring and reporting format for the periodic report to be submitted by
borrower.
B. Reporting to Development Financial Institutions
68. Apart from the annual environmental and social audit reports, IIFCL will prepare
safeguard compliance reports, from time to time, as required by various DFIs. When a periodic
finance request (PFR) is made, a report on environmental and social safeguard performance of
27
previous projects and corrective action plans are also submitted. Such reports will be prepared
by ESMU in consultation with DFIs building on the regular monitoring and review processes
under ESF as well as on periodic environmental and social audit reports. Annex E-17 provides
a reporting format.
69. Annex G-2 and G-3 provide an outline of TORs for contracting PMC-I and PMC-II. The
IIFCL will call for bids from reputable environmental and social consulting organizations and
recruit PMC-I and PMC-II. The contracts will be valid for a period of 3 years, but tenable only
based on performance indicators. The IIFCL will have every right to ask for replacement of staff,
if so desired.
C. Mainstreaming ESSF in Project Processing
70. The IIFCL will mainstream its ESSF in its business process. Figure 7 below shows how
that integration will be completed.
Figure 7: Integration of ESSF in IIFCL’s Business
Process
Invitation to Guidelines for documents to
participate and PIM be submitted along with PIM
submitted to IIFCL
ESSF update
Periodic environment and Checklist for compliance and
Monitoring Qualifies for
social audit results submitted adequacy clearance from ESMU
and recovery funding?
to board disclosure (field assessment if required)
Checklist for compliance and Loan Memo to board EMP RP TDP after review included in
effectiveness, clearance from disbursement and proposal in project scope, budgeting, and
ESMU brief financial analysis
Loan
document Board
signed sanction
Training and capacity EMP, RP TDP monitoring, and
Terms and
building at Lenders on ESSF Lenders meet Conditions
independent audit included in
and its adherence loan covenants
EMP = Environmental Management Plan, EMS = Environmental Safeguard Framework, ESMU = Environment and
Social Safeguards Management Unit, IIFCL = India Infrastructure Finance Company Limited, PIM = project
information memorandum.
28
D. Allocation of Responsibilities for Safeguard Compliance
71. Proposals to IIFCL will typically arise from lead banks/designated lead syndicator and
borrowers either for seeking direct lending or for refinance.
72. “Lead bank” means a financial institution that is funding the project and is designated as
such by the inter-institutional group or consortium of financial institutions, provided the risk
exposure of IIFCL is less than that of the lead bank in a project.
73. The lead banks/designated lead syndicator and borrowers shall present their appraisal
of the project to IIFCL to appraise it. The IIFCL will not normally be required to carry out any
independent appraisal of a project. Hence, the lead bank/designated, lead syndicator and
borrowers will be expected to provide IIFCL all the required documentation (consents,
clearances, EIA reports, safeguard compliance reports) in line with the requirements of ESF.
74. Similarly, the lead banks/designated lead syndicator and borrowers will be responsible
for regular monitoring and periodic evaluation of compliance of the project with agreed
milestones and performance levels particularly for the purpose of disbursement of IIFCL funds.
It will send periodic progress reports in prescribed formats and according to the timetable
provided by IIFCL. The lead banks/designated lead syndicator, and borrowers will therefore be
responsible to report environmental safeguard compliance of the project to IIFCL in the formats
as prescribed by ESF. Table 6 summarizes allocation of responsibilities.
Table 6: Allocation of Responsibilities
Secondary
Tasks Primary Responsibility Responsibility
Submit all documentation related to environmental
consents, clearances, etc. and EIA/EMP/RP/TDP
reports Lead Bank/borrower
Check environmental and social compliance ESMU/IIFCL PMC-I
Check adequacy safeguard planning reports ESMU/IIFCL PMC-I
Review PIM and EMP, RP, TDP; conduct financial
appraisal ESMU/IIFCL PMC-I
Specify conditionalities and update legal
documents ESMU/IIFCL PMC-I
Prepare memo to IIFCL board ESMU/IIFCL
Implement EMP, RP, TDP Lead Bank/Borrower
Conduct social and environmental monitoring Lead Bank/borrower
Meet environmental and social safeguard
compliance Lead Bank/borrower
Conduct environmental and social monitoring and PMC-I, Lead
evaluation ESMU/IIFCL Bank/borrower
Conduct periodic environmental and social audit
and disclose the periodic environmental audit PMC-II, lead
report ESMU/IIFCL banks/borrower
Conduct awareness and training ESMU/IIFCL PMC-II
Update ESSF ESMU/IIFCL PMC-I
EIA = Environmental Impact Assessment, EMP = Environmental Management Plan, ESF = Environmental Safeguard
Framework, ESMU = Environment and Social Safeguards Management Unit, IIFCL = India Infrastructure Finance
Company Limited, PIM = project information memorandum, PMC = Project Management Consultant.
29
E. Capacity Development for Safeguard Compliance
75. The IIFCL has signed a memorandum of understanding (MOU) for
cooperation/participation in infrastructure finance with several banks/financial institutions. These
include Andhra Bank, Bank of Baroda, Canara Bank, Corporation Bank, HUDCO, IDBI Bank,
IDFC, IL&FS, Indian Bank, Indian Overseas Bank, Oriental Bank of Commerce, Syndicate
Bank, UTI Bank, Vijaya Bank, and Punjab National Bank.
76. Except IL&FS and IDFC, none of the above banks have environmental and social
safeguard frameworks.
77. Since the effectiveness of ESSF depends mainly on the understanding and
preparedness of lead banks/designated lead syndicator and borrower, IIFCL makes an effort to
sensitize lead banks/borrowers on management of environmental and social safeguard issues,
provides guidance and encourages them to build requisite in-house capacities.
78. The IIFCL with the assistance of PMC-I will offer lead banks/designated lead syndicator
and borrowers a short training program (1 to 2 days duration), at least two times a year to
explain ESF, its importance, procedures and benefits. It will further encourage lead
banks/borrowers in particular to consider adopting the ESSF as their own environmental
safeguard policy. The IIFCL will provide incentives, e.g., accelerated monitoring and/or fast
track project processing when proposals are received/approved from lead banks/borrowers
which follow ESSF equivalent in their operations.
79. Annex G-4 provides an outline of sample training program for lead banks/borrowers.
80. The IIFCL’s ESMU will receive capacity building training in (i) screening prospective
subprojects for IR and tribal effects, (ii) plan preparation and appraisal, (iii) plan monitoring, and
(iii) reporting. The ESMU in addition to its own staff, Safeguards Liaison Officers
(resettlement/tribal and environment), IIFCL can contract an external agency to carry out the
social safeguard assessment, guidance, appraisal, monitoring, and reporting functions for which
IIFCL will be responsible.
81. The ESMU’s Social Safeguards Liaison Officer (SSLO) could be either invited on
deputation from other organizations or recruited. This person will have a masters or higher
degree in social science with at least 10 years of experience in conducting/reviewing social
assessments and working with resettlement and tribal issues in India. Familiarity with GOI
regulations and procedures will be essential and exposure to social safeguards at DFIs will be
desirable.
82. The SSLO will deliver the following services:
(i) conduct compliance review of each subproject submitted for financing;
(ii) check the adequacy and effectiveness of RPs/TDPs;
(iii) prepare a memo for the IIFCL board;
(iv) develop conditions as loan covenants that stipulate requirements or outcomes of
RPs/TDPs;
(v) coordinate with subproject social specialists for assessment, monitoring, and
review as required;
(vi) coordinate with subproject social specialists and subproject external monitors for
preparing IIFCL’s annual environmental and social report;
30
(vii) prepare sector specific checklists, formats, and guidelines to supplement the
SSF. These guidelines will fully make use of materials developed by GOI and
DFIs;
(viii) interface and provide guidance to the lead banks/sub-borrowers on project
processing under the SSF; and
(ix) update SSF based on operational experience.
83. Since the effectiveness of IIFCL’s application of the IR and tribal peoples safeguards
measures depends considerably on the understanding and preparedness of the lead
banks/designated lead syndicator, it is important that IIFCL makes effort to sensitize the lead
banks/designated lead syndicator on management of social issues, provide guidance, and
encourage them to build requisite capacities.
84. The IIFCL will offer lead banks/sub-borrowers short programs (1-2 days duration), at
least 2 times a year, to explain IIFCL’s obligations, their importance, and benefits.
F. Responsibilities in Safeguard Compliance
85. The IIFCL, through the ESMU, will be responsible reviewing and approving each project
after examining its environmental and social safeguard compliance. It will also discuss with the
project proponent any gaps and weaknesses in such planning documents and make
arrangements to rectify them.
86. The responsibility of complying with safeguards policy requirements is with each
borrower. But the facility will make sure such compliance is achieved during the loan period.
87. The lead bank/designated lead syndicator and borrower will present its appraisal of the
project for consideration to IIFCL. The IIFCL will not normally be required to carry out any
independent appraisal of the project. Hence, the lead bank/designated lead syndicator and sub-
borrower will be expected to provide IIFCL all the required documentation (consents,
clearances, reports) in line with the requirements of IIFCL’s ESSF.
88. The borrowers will be responsible for planning, preparing, financing, disclosing, and
implementing an EIA/IEE, RP, and TDP in accordance with ESSF and the applicable policies,
laws, and regulations. Borrowers will engage the requisite environmental and social scientific
expertise to help carry out the necessary studies, analyses, and document preparation. Such
experts will also need to oversee borrower implementation of any environmental, resettlement
and tribal peoples development plans. Qualifications should include familiarity with devising EIA,
IEE, resettlement plans, and TDP according to both national and international standards.
89. The lead bank/designated lead syndicator and borrower shall be responsible for regular
monitoring of safeguard compliance of the project with agreed milestones and performance
levels particularly for purposes of disbursement of IIFCL funds. It shall send periodic progress
reports in such form and, at such times, as may be prescribed by IIFCL. The lead
banks/borrowers will therefore be responsible to report EIA/IEE/EMP, RP, and/or TDP
compliance of the project to IIFCL in the formats as prescribed by the plans.
G. Environment and Social Safeguard Framework Update
90. The IIFCL maintains ESSF on its website and welcomes comments and suggestions on
how to improve it.
31
91. The IIFCL periodically reviews and updates ESSF. The need to revise and update ESSF
arises from the need to consolidate vast experience accumulated by applying ESSF to a variety
of projects or from significant changes in GOI environmental policy and regulatory framework or
revision of safeguard policies of DFIs. The revision and update of ESSF will be the responsibility
of ESMU.
ANNEXES TO ENVIRONMENTAL AND SOCIAL SAFEGUARDS FRAMEWORK
1. List of Annexes Pertaining to Environmental Safeguard Framework (Annex E-1 to E-21)
2. List of Annexes Pertaining to Social Safeguard Framework (Annex S-1 to S-13)
3. List of General Annexes (Annex G-1 to G-4)
LIST OF ANNEXES PERTAINING TO ESF (ANNEX E-1 TO E-21)
Annex No. Title of the Annex Remarks
Annex E–1 Overview of the Environment Impact Provides a detailed description of EIA
Assessment (EIA) Process of notification 2006 and the procedure GOI
Government of India (GOI) follows for environmental clearance of
projects
Annex E–2 Specified Requirements for Provides the screening criteria of the
Environmental Clearance as listed in project as per the EIA notification 2006
the Environment Impact Assessment
Notification, MoEF, 2006 and various
amendments
Annex E–3 Comparative Assessment of Provides a detailed comparison of
Environmental Safeguard Process, Environmental Safeguard Procedures of
Procedures and Practices the World Bank, Asian Development Bank,
JBIC, KfW Development Bank and GOI
Annex E–4 Safeguard Requirements of the DFIs Provides the safeguard requirements of the
for Projects having significant DFIs for the projects having Environmental
Environmental Impacts Impacts
Annex E–5 Prohibited Investment Activities List of Provides the list of various prohibited
the DFIs investment activities of the DFIs
Annex E–6 Checklists of Documents that should Provides checklist of documents that need
be Submitted by Lead Banks/Sub- to be submitted by the lead banks / sub-
borrowers (SPVs) to IIFCL for Loan borrowers to IIFCL to facilitate
Application. environmental due-diligence on the project
Annex E–7 Summary of Key E&S Legislations in Lists the various environmental social
India legislation in India that need to be referred
to / complied with while undertaking
environmental and social due-diligence on
projects
Annex E–8 Environmental Rules and Notifications Provides the list and brief description of
Relevant to Infrastructure Projects environment rules and notification relevant
to Infrastructure projects in India
Annex E–9 Environmental Regulations and Provides environmental regulations, their
Obligations, and Areas of Applicability applicability at project site and the
at Project Sites obligation of project proponent under the
legislation.
Annex E–10 Prohibited Activities in CRZ (Coastal Provides various clauses of coastal
Regulation Zone Notification, 2011) regulation zone notification 1990 amended
in 2001
Annex E–11 EIA / SIA Review Checklist Provides a checklist of information that
should be examined while reviewing the
Environmental Impact Assessment studies.
Annex E–12 Outline for an Environmental Impact Provides outline for EIA report for
Assessment Report for a category A subprojects
subproject funded by DFI
Annex E-13 Checklist of Documentation Required Provides checklist of documents that need
For Preparation of ESDDR Under to be submitted by the sub-borrowers to
Takeout Finance Scheme IIFCL to facilitate environmental and social
due-diligence on the project
Annex E–14 Suggested Outline of Environmental Provides outline for environmental DDRs
Due Diligence Report for Subprojects for subprojects
Annex E–15 Suggested Scope for Periodic Provides scope for an periodic
Environmental and Social Monitoring environmental and social monitoring report
Report for Subprojects to be submitted for subprojects to be submitted by project
2
Annex No. Title of the Annex Remarks
by Borrowers proponent
Annex E–16 Audit Recording Sheet to report Provides the key milestones for which the
Implementation of Environmental environmental audit observations will be
Safeguard Systems at IIFCL (the form recorded as a part of annual audit by IIFCL
will continue for the project life)
Annex E-17 Outline for Periodic Environmental and Provides for outline for periodic
Social Performance Report for environmental and social performance
Subprojects report for subprojects
Annex E–18 TOR For Detailed Environmental Provides terms of reference for
Impact Assessment of High Impact environmental impact assessment of
Category Highway Sub-Projects highway projects that constitute a
significant part of IIFCL’s portfolio of
projects.
Annex E–19 Public Consultation Process Defined Provides the salient features of public
by MoEF’s EIA Notification, 2006 and hearing to be conducted for EIA clearance.
various amendments
Annex E–20 Public Consultation and Information Provides the detail mechanism for public
Disclosure Mechanism as per MoEF’s consultation and disclosure mechanism as
EIA Notification, 2006 and various per the EIA notification 2006
amendments
Annex E–21 Guidance on Incorporating the EMP Provides guideline for inclusion of EMP
into Contract Documents (in the case specifications in the contractor’s
of Highway projects) agreement.
DFI = development financial institution, DDR = due diligence report, E&S = environmental and social, ESDDR =
environmental and social due diligence report, IIFCL = India Infrastructure Finance Company Limited, JBIC = Japan
Bank for International Cooperation, KfW = Kreditstalt für Wiederaufbau, MoEF = Ministry of Environment and Forest,
SIA = Social Impact Assessment, TOR = terms of reference.
ANNEX E-1: OVERVIEW OF THE ENVIRONMENT IMPACT ASSESSMENT PROCESS OF
GOVERNMENT OF INDIA
A. Environment Impact Assessment (EIA) as a Planning and Management Tool
1. The EIA system is being implemented both as planning, management, and as regulatory
tool. To be effective as a planning and management tool, the EIA system should be
implemented at the earliest possible stage of project development. It allows the cost of
mitigating and positive impact enhancement measures to be incorporated in the total cost
analysis. The environmental objectives are made part of the project objective. This is an
improvement over that of the old way of looking at the overall cost of the project where
environmental costs are not included. The EIA as a planning and management tool is best used
by the project proponent. The internalization of the environment costs becomes imperative
when the project proponent knows that the ministry of Environment and Forests (MoEF) using
the EIA as a regulatory tool will impose conditions such that the cost of environmental protection
will be borne by the project proponent.
1. EIA as a Regulatory Tool
2. After the project is subjected to an EIA and the application for clearance is submitted
and approved, MoEF issues an environmental clearance (EC). The EC normally lists down a set
of conditions for it to be valid. These conditions stipulate under what conditions will the project
operate and clearance granted. In this way, the MoEF is able to regulate the operations of all
environmentally critical projects and projects within environmentally critical areas.
2. Operational Framework of the EIA System
3. The EIA process in India is made up of the following phases:
(i) screening
(ii) scoping and consideration of alternatives
(iii) baseline data collection
(iv) impact prediction
(v) assessment of alternatives, delineation of mitigation measures, and
environmental impact statement
(vi) public hearing
(vii) environment management plan
(viii) decision making
(ix) monitoring the clearance conditions
4. Each of these phases is explained below.
5. Screening. Screening is carried out to see whether a project requires EC as per the
statutory notifications. Screening criteria1 are based upon:
(i) scales of impact;
(ii) severity of impact; and
1
EIA Notification dated 14 September 2006 and further amendments.
(iii) location of development.2
6. All projects and activities are broadly categorized into two categories—category A and
category B, based on the spatial extent of potential impacts and potential impacts on human
health and natural and man-made resources.
7. In case of category B projects or activities, this stage will entail the scrutiny of an
application seeking prior EC by the concerned SEAC for determining whether or not the project
or activity requires further environmental studies for preparation of an EIA for its appraisal prior
to the grant of EC depending upon the nature and location specificity of the project. The projects
requiring an EIA report shall be termed category B1 and the remaining projects shall be termed
category B2 and will not require an EIA report. For categorization of projects into B1 or B2
except item 8 (b), the MoEF shall issue appropriate guidelines from time to time (Annex E-3).
8. A Project requires statutory EC only if the provisions of EIA notification and/or one or
more statutory notification mentioned in Table SAG.1 cover it.
Table 1: Siting Criteria Delineated by MOEF
1. As far as possible, prime agricultural land/forest land may not be converted
into an industrial site.
2. Land acquired should be at a minimum but sufficient to provide for a green belt
wherein the treated wastewater, if possible/suitable, could be utilized from
wastewater treatment systems.
3. Enough space may be provided for storing solid wastes. The space and the
waste can be made available for possible reuse in future.
4. Layout and form of the project must conform to the landscape of the area
without unduly affecting the scenic features of that place.
5. Associated township of the project, if any, to be created must provide for space
for phyto-graphic barrier between the project and the township and should take
into account predominant wind direction.
6. Coastal Areas: at least 1/2 kilometer (km) from the high tide line (within 0.5 km
of high tide line, specified activities as per coastal regulation zones notification,
1991 are permitted. The high tide line is to be delineated by the authorized
agency only).
7. Estuaries: At least 200 meters from the estuary boundaries.
8. Flood Plains of the Riverine systems: at least 500 meters from flood plain or
modified flood plain or by flood control systems.
9. Transport/Communication System: at least 500 meters from highway and
railway.
10. Major Settlements (with populations of 300,000) at least 25 km from the
projected growth boundary of the settlement.
9. The EIA notification also makes prior EC mandatory for all new projects listed in the
schedule, expansion, or modernization of existing projects or activities listed in the schedule,
and any change in the product mix in an existing manufacturing units included in the schedule
beyond the specified limit. The prior EC granted for a project or activity shall be valid for a
2
The site of a project (e.g., in ecologically sensitive areas) is an important factor which decides whether an EC is
required. Ecologically sensitive areas include coastal areas (protected by the CRZ Notification), forests (protected by
the Forest Conservation Act), various areas notified by MoEF as Ecologically Sensitive Zones (ESZs) areas from, for
example, Doon valley, Dahanu taluka, etc.) to wetlands, deserts, national parks, sanctuaries, corals, etc. (which are
not protected by any specific Notification). In case of industries, the Environmental Guidelines for Siting of Industry
(framed in 1985) and the Environment (Siting for Industrial Projects) Rules, 1999 (presently in draft form) have to
be complied.
period of 10 years in the case of river valley projects (item 1(c) of the schedule), project life as
estimated by EAC or SEAC subject to a maximum of 30 years for mining projects and 5 years in
the case of all other projects and activities. However, in the case of area development projects
and townships [item 8(b)], the validity period shall be limited only to such activities as may be
the responsibility of the applicant as a developer. This period of validity may be extended by the
regulatory authority concerned by a maximum period of 5 years provided an application is made
to the regulatory authority by the applicant within the validity period. To obtain this, the project
proponent has to furnish information in an environmental appraisal questionnaire issued by
MoEF.
10. Scoping. Scoping3 is a process of detailing the terms of reference of EIA. It refers to the
process by which the EAC/SEAC4 determine detailed and comprehensive terms of reference
(TOR) addressing all relevant environmental concerns for the preparation of an EIA report with
respect to the project or activity for which prior EC is sought.
11. The MoEF has published guidelines for different sectors which outline the significant
issues to be addressed in the EIA studies. Quantifiable impacts are to be assessed on the basis
of magnitude, prevalence, frequency and duration, and non-quantifiable impacts (such as
aesthetic or recreational value), significance is commonly determined through the socio-
economic criteria. After the areas where the project could have significant impact are identified,
the baseline status of these should be monitored and then the likely changes in these on
account of the construction and operation of the proposed project should be predicted.
12. Baseline data. Baseline data describes the existing environmental status of the
identified study area. The site-specific primary data should be monitored for the identified
parameters and supplemented by secondary data if available.
13. Impact prediction. Impact prediction is a way of “mapping” the environmental
consequences of the significant aspects of the project and its alternatives. Environmental impact
can never be predicted with absolute certainty and this is all the more reason to consider all
possible factors and take all possible precautions for reducing the degree of uncertainty.
14. The impacts that should be assessed have been shown in the following table (Table 2).
Table 2: Parameters for Assessment of Impacts
Impacts Parameters
Air changes in ambient levels and ground level concentrations due to total
emissions from point, line and area sources
effects on soils, materials, vegetation, and human health
Noise changes in ambient levels due to noise generated from equipment and
movement of vehicles
effect on fauna and human health
Water availability to competing users
changes in quality
sediment transport
ingress of saline water
3
All projects and activities listed as category B in Item 8(a) of the Schedule (construction/township/commercial
complexes/housing) shall not require scoping and will be appraised on the basis of Form 1/ Form 1A and the
conceptual plan and EIA report will be required for projects listed under 8(b).
4
The composition of the EAC will be as given in the EC notification dated 14 September 2006. The SEAC at the
state or the union territory level shall be constituted by the central government in consultation with the concerned
state government or the union territory administration with identical composition.
Impacts Parameters
Land changes in land use and drainage pattern
changes in land quality including effects of waste disposal
changes in shoreline/riverbank and their stability
Biological deforestation tree-cutting and shrinkage of animal habitat.
impact on fauna and flora (including aquatic species if any) due to
contaminants/pollutants
impact on rare and endangered species, endemic species, and migratory
path/route of animals.
impact on breeding and nesting grounds
Socio- impact on the local community including demographic changes.
Economic impact on economic status
impact on human health.
impact of increased traffic
3. Assessment of Alternatives, Delineation of Mitigation Measures and EIA
Report
15. For every project, possible alternatives should be identified and environmental attributes
compared. Alternatives should cover both project location and process technologies.
Alternatives should consider “no project” option also. Alternatives should then be ranked for
selection of the best environmental option for optimum economic benefits to the community at
large.
16. Once alternatives have been reviewed, a mitigation plan should be drawn up for the
selected option and is supplemented with an Environmental Management Plan (EMP) to guide
the proponent towards environmental improvements. The EMP is a crucial input to monitoring
the clearance conditions and therefore details of monitoring should be included in the EMP.
17. An EIA report should provide clear information to the decision-maker on the different
environmental scenarios without the project, with the project and with project alternatives.
Uncertainties should be clearly reflected in the EIA report.
(i) Public Consultation5
18. Law requires that the locally affected persons and other stakeholders must be informed
and consulted on a proposed development with a view to taking into account all the material
concerns in the project or activity design as appropriate.
19. Any one likely to be affected by the proposed project is entitled to have access to the
executive summary of the EIA. The affected persons may include:
(i) bonafide local residents,
5
The following categories of projects/activities are exempt from public consultation as notified by EC notification dated
14 September 2006: (i) modernization of irrigation projects (item 1(c) (ii) of the schedule); (ii) all projects or activities
located within industrial estates or parks (item 7(c) of the schedule) approved by the concerned authorities, and which
are not disallowed in such approvals; (iii) expansion of roads and highways (item 7 (f) of the schedule) which do not
involve any further acquisition of land; (iv) maintenance dredging provided the dredged material shall be disposed
within port limits; (v) all building or construction projects or area development projects (which do not contain any
category A projects and activities) and townships (item 8(a) and 8(b) in the schedule to the notification); (vi) all
category B2 projects and activities; and (e) all projects or activities concerning national defense and security or
involving other strategic considerations as determined by the central government.
(ii) local associations,
(iii) environmental groups active in the area, and
(iv) any other person located at the project site / sites of displacement.
20. They are to be given an opportunity to make oral/written suggestions to the
SPCB/regulatory agency.
(ii) Decision Making
21. The regulatory authority shall consider the recommendations of the EAC or SEAC
concerned and convey its decision to the applicant in the stipulated time from the receipt of the
recommendations of the EAC or SEAC concerned or in other words, within 105 days of the
receipt of the final EIA report, and where EIA is not required, within 105 days of the receipt of
the complete application with requisite documents.
22. The decision on EC is arrived at through a number of steps including evaluation of EIA
and EMP.
4. Monitoring the Clearance Conditions
23. It is mandatory for the project management to submit semi-annually, compliance reports
with respect to the stipulated prior EC terms and conditions in hard and soft copies to the
regulatory authority concerned, on 1st June and 1st December of each calendar year.
24. All such compliance reports submitted by the project management shall be public
documents. Copies of the same shall be given to any person on application to the concerned
regulatory authority. The latest such compliance report shall also be displayed on the website of
the concerned regulatory authority. Monitoring will enable the regulatory agency to review the
validity of predictions and the conditions of implementation of the EMP.
5. EIA Review
25. All project proposals requiring EA may be examined according to the following review
process.
26. Appraisal is the detailed scrutiny by the EAC or SEAC of the application and other
documents like the final EIA report, outcome of the public consultations including public hearing
proceedings submitted by the applicant to the regulatory authority concerned for grant of EC.
This appraisal shall be made by EAC or SEAC concerned in a transparent manner in a
proceeding to which the applicant shall be invited for furnishing necessary clarifications in
person or through an authorized representative. On conclusion of this proceeding, the EAC or
SEAC concerned shall make categorical recommendations to the regulatory authority
concerned either for grant of prior EC on stipulated terms and conditions, or rejection of the
application for prior EC, together with reasons for the same.
27. The appraisal of all projects or activities which are not required to undergo public
consultation or submit an EIA report, shall be carried out on the basis of the prescribed
application form 1 and form 1A as applicable, any other relevant validated information available
and the site visit wherever the same is considered as necessary by the EAC or SEAC
concerned.
Table 3: The Impact Assessment Agency
The Impact Assessment Agency (IAA) is the Union Ministry of Environment and
Forests (MoEF). EIA reports submitted along with the application for clearance are
evaluated and assessed by the IAA, and if deemed necessary, it may consult a
Committee of Experts.
Role of the IAA:
(i) the IAA will evaluate and assess the EIA report. In this process, the
project proponent will be given a chance to present his proposal
(where a proponent is required to obtain environmental clearance).
(ii) the IAA will also prepare a set of recommendations and conditions
for its implementation based on this assessment (if a project is
accepted).
(iii) the IAA will also be responsible for the environmental monitoring
process (during the implementation and operation of the project).
Earlier, the 1994 EIA Notification made it mandatory for the IAA, i.e., MoEF to
consult a Committee of Experts before granting environmental clearance to a
particular project. However, in its present amended form, the notification states that
the IAA may consult the Committee of experts if deemed necessary. The new
notification also leaves it to the discretion of the IAA to make complaint reports
publicly available, “subject to public interest.” Thus, the recent amendments are
resulting in the dilution of the law on EIAs.
A draft memorandum suggesting changes to the environmental clearance
procedures in India following the EIA Notification of 2006 recommends the creation
of an autonomous and decentralized EIA Authority under the Union Government
that has environment clearance granting powers.
As per this draft memorandum, an EIA Authority (EIAA) shall replace the
MoEF/SEIA structure specified by MoEF’s September 2006 EIA Notification. This
EIAA shall be an autonomous body with the same powers as the Election
Commission with concomitant accountability to discharge their duties with due
diligence and within timeframes defined by the EPA Act/ Rules, in particular,
regarding taking decisions on proposed projects/ facilities. It will have a
decentralized structure similar to that of the SEIAAs in the MoEF September 2006
EIA Notification. The link ministry for the EIAA shall be MoEF.
6. Clearance of Projects
28. The following projects or activities require prior EC from the concerned regulatory
authority, which shall hereinafter referred to be as the central government in the MoEF for
matters falling under category6 A in the schedule7 (Annex E-2) and at state level, the SEIAA8 for
matters falling under category B in the said schedule, before any construction work or
preparation of land by the project management except for securing the land, is started on the
project or activity:
6
All projects and activities are broadly categorized in to two categories –category A and category B, based on the
spatial extent of potential impacts and potential impacts on human health and natural and man made resources.
7
EC notification dated 14 September 2006.
8
A state level EIA authority hereinafter referred to as the SECA shall be constituted by the central government under
sub-section (3) of section 3 of the Environment (Protection) Act, 1986 comprising of three members including a
chairman and a member–secretary to be nominated by the state government or the union territory administration
concerned.
(i) all new projects or activities listed in the schedule to this notification;
(ii) expansion and modernization of existing projects or activities listed in the
schedule to this notification with addition of capacity beyond the limits
specified for the concerned sector, that is, projects or activities which
cross the threshold limits given in the schedule, after expansion or
modernization; and
(iii) any change in product mix in an existing manufacturing unit included in
schedule beyond the specified range.
7. Follow up and Monitoring Activities
29. It shall be mandatory for the project management to submit semi-annually, compliance
reports with respect to the stipulated prior EC terms and conditions in hard and soft copies to
the regulatory authority concerned, on 1st June and 1st December of each calendar year.
30. In respect of category A projects, it shall be mandatory for the project proponent to make
public the environmental clearance granted for their project along with the environmental
conditions and safeguards at their cost by prominently advertising it at least in two local
newspapers of the district or state where the project is located and in addition, this shall also be
displayed in the project proponent’s website permanently.
31. In respect of category B projects, irrespective of its clearance by MoEF/SEIAA, the
project proponent shall prominently advertise in the newspapers indicating that the project has
been accorded environment clearance and the details of MoEF website where it is displayed.
32. The MoEF and the state or UT Environmental Impact Assessment Authorities (SEIAAs),
as the case may be, shall also place the environmental clearance in the public domain on
government portal.
33. The copies of the environment clearance shall be submitted by the project proponents to
the heads of local bodies, Panchayats and municipal bodies in addition to the relevant offices of
the government who in turn has to display the same for 30 days from the date of receipt.
Further, copies of the environmental clearance shall be endorsed to the heads of local bodies,
Panchayats and Municipal Bodies in addition to the relevant offices of the government.
34. All such compliance reports submitted by the project management shall be public
documents. Copies of the same shall be given to any person on application to the concerned
regulatory authority. The latest such compliance report shall also be displayed on the website of
the concerned regulatory authority.
8. Penalty
35. Concealing factual data or submission of false, misleading data/reports, decisions or
recommendations would lead to the project being rejected. Approval, if granted earlier on the
basis of false data, would also be revoked. Misleading and wrong information will cover the
following:
(i) false information,
(ii) false data,
(iii) engineered reports,
(iv) concealing of factual data, or
(v) false recommendations or decisions.
ANNEX E-2: SPECIFIED REQUIREMENTS FOR ENVIRONMENTAL CLEARANCE AS
LISTED IN THE ENVIRONMENT IMPACT ASSESSMENT NOTIFICATION, MoEF, 2006 AND
FURTHER AMENDMENTS (IN JANUARY 2009, DECEMBER 2009, APRIL 2011, AND
JANUARY 2012)
1. The following projects or activities shall require prior environmental clearance from the
concerned regulatory authority, i.e. the central government in the MoEF for matters falling under
category A in the schedule (see below) and at state level the State Environment Impact
Assessment Authority (SEIAA) for matters falling under category B in the schedule, before any
construction work, or preparation of land by the project management except for securing the
land, is started on the project or activity:
(i) all new projects or activities listed in the Schedule to the notification;
(ii) expansion and modernization of existing projects or activities listed in the
schedule to the notification with addition of capacity beyond the limits specified
for the concerned sector, that is, projects or activities which cross the threshold
limits given in the Schedule, after expansion or modernization due to change in
process and or technology; and
(iii) any change in product-mix in an existing manufacturing unit included in the
schedule beyond the specified range.
Schedule–List of Projects/Activities Requiring Environmental Clearance
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
1a (i) Mining of minerals > 50 ha. of mining <50 ha> 5 ha of General condition
lease area in respect mining lease area in shall apply
of non-coal mine respect of non-coal
lease mine lease Note:
(i) Prior environmental
> 150 ha. of mining < 150 ha. > 5 ha of clearance is as well
lease area in respect mining lease area in required at the stage of
of coal mine lease respect of coal mine renewal of mine lease
lease for which application
Asbestos mining should be made up to
irrespective of one year prior to date
mining area of renewal.
(ii) Mineral prospecting
All projects is exempted.
(ii) Slurry
Pipelines(coal lignite
and other ores)
passing through
national
parks/sanctuaries/cor
al reefs, ecologically
sensitive areas
1b Offshore and onshore All projects Note: Exploration
oil and gas surveys
exploration, (not involving drilling)
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
development and are exempted provided
production the concession areas
have got previous
clearance for physical
survey
1c River valley projects (i) > 50 MW (i) < 50 MW >25 General condition shall
hydroelectric MW hydroelectric apply
power generation; power generation;
(ii) > 10,000 ha. of (ii) < 10,000 ha. of Note: Irrigation projects
culturable command culturable command not involving
area area submergence or
inter-state domain shall
be appraised by the
SEIAA as
category “B” projects.
1d Thermal power plants _> 500 MW < 500 MW General condition shall
(coal/lignite/naphtha (coal/lignite/naphtha apply
and gas based); ha and gas based);
_> 50 MW (pet coke <50 MW > 5MW Note:
diesel and all other (pet coke ,diesel and (i) Power plants up to
fuels including all other fuels 15MW based on
refinery residual oil including refinery biomass and
waste except residual oil waste using auxiliary fuel
biomass); except biomass) such as coal/ lignite/
_ >20 MW (based on <20MW>15MW petroleum products
biomass or (based on biomass up to 15% are
nonhazardous or non-hazardous exempted.
municipal municipal solid (ii) Power plants up to
solid waste as fuel) waste as fuel) 15MW based on non-
hazardous municipal
solid waste and using
auxiliary fuel such as
coal/lignite/petroleum
products up to 15% are
exempted.
(iii) Power plants using
waste heat boiler
without any auxiliary
fuel are exempted.
1e Nuclear power All projects
projects and
processing of nuclear
fuel
2 Primary processing
2a Coal washeries >1 million ton/annum <1million ton/annum General condition shall
throughput of coal throughput of coal apply (if located within
mining area the
proposal shall be
appraised together with
the mining proposal)
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
2b Mineral beneficiation >0.1million < 0.1million General condition shall
ton/annum ton/annum mineral apply (mining proposal
mineral throughput throughput with mineral
beneficiation shall be
appraised together for
grant of clearance)
3 Materials production
3a Metallurgical (i) Primary Sponge iron General condition shall
industries (ferrous and metallurgical manufacturing apply
non-ferrous) industry <200TPD
Note:
All projects Secondary (i) The recycling
metallurgical industrial units
(ii) Sponge iron processing industry registered under
manufacturing the HSM rules, are
>200TPD (i) All toxic exempted.
and heavy metal (ii) In case of
(iii) Secondary producing units secondary
metallurgical <20,000 tonnes metallurgical
processing industry /annum processing industrial
units, those projects
All toxic and heavy (ii) All other non–toxic involving operation of
metal producing secondary furnaces, only such as
units >20,000 metallurgical induction and electric
tonnes /annum processing arc furnace, submerged
industries>5,000 arc furnace and
tonnes/annum cupola with capacity
more than 30,000
tonnes per annum
(TPA) would require
environmental
clearance. Plant/units
other than power
plants (given against
entry no. 1(d) of the
schedule), based on
municipal solid waste
(non-hazardous)
are exempted.
3b Cement plants > 1.0 million <1.0 million General condition shall
tonnes/annum tonnes/annum apply
production capacity production capacity.
All stand-alone
grinding units
4 Materials processing
4a Petroleum refining All projects
industry
4b Coke oven plants >2,50,000 <2,50,000 and General conditions
tonnes/annum >25,000 shall apply
tonnes/annum
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
4c Asbestos milling and All projects
asbestos based
products
4d Chlor-alkali industry >300 TPD (i) All project General as well as
production irrespective of size, if specific conditions shall
capacity or a unit it is located in a apply
located outside the notified industrial
notified industrial area/estate; (ii) No new mercury cell
area/estate <300 tonnes per day based plants will be
(TPD) if located permitted and existing
outside a notified units converting to
industrial area/estate membrane cell
technology are
exempted from this
notification
4e Soda ash Industry All projects
4f Leather/skin/hide New projects All new or expansion General as well as
processing industry outside the industrial of projects located specific conditions shall
area or expansion of within a notified apply
existing units industrial area/estate
outside the industrial
area
5 Manufacturing/fabrication
5a Chemical All projects except single super
fertilizers single super phosphates
phosphates
5b Pesticides industry All units producing
and pesticide specific technical grade
intermediates pesticides
(excluding
formulations)
5c Petro-chemical All projects
complexes (industries
based on processing
of petroleum fractions
and natural gas and/or
reforming to
aromatics)
5d Manmade fibres Rayon Others General condition shall
manufacturing apply
5e Petrochemical based Located outside the Located in a notified General as well as
processing (processes notified industrial industrial area/estate specific conditions shall
other than cracking area/estate apply
and reformation and
not covered under the
complexes)
5f Synthetic organic Located outside the Located in a notified General as well as
chemicals industry notified industrial industrial area/estate specific conditions shall
(dyes and dye area/estate apply
intermediates; bulk
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
drugs and
intermediates
excluding drug
formulations;
synthetic rubbers;
basic organic
chemicals, other
synthetic organic
chemicals and
chemical
intermediates)
5g Distilleries (i) All molasses All cane juice/non- General condition shall
based distilleries molasses-based apply
distilleries
(ii) All cane juice/ <30 KLD
non-molasses based
distilleries >30 KLD
5h Integrated paint All projects General condition shall
industry Apply
5i Pulp and paper Pulp manufacturing Paper manufacturing General condition shall
industry excluding and pulp and paper industry without pulp apply
manufacturing of manufacturing manufacturing
paper from waste industry
paper and
manufacture of paper
from ready pulp
without bleaching
5j Sugar industry >5000 TCD cane General condition shall
crushing capacity apply
6 Service sectors
6a Oil and gas All projects
transportation pipe
line (crude and
refinery/petrochemical
products), passing
through national
parks/sanctuaries/
coral reefs/ecologically
sensitive areas
including LNG terminal
6b Isolated storage and All projects General condition shall
handling of hazardous apply
chemicals (as per
threshold planning
quantity indicated
in column 3 of
schedule 2 and 3 of
MSIHC Rules 1989
amended 2000)
7 Physical infrastructure including environmental services
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
7a Air ports All projects including Note: air strips, which
air strips which are do not involve
for commercial use. bunkering/refueling
facility and or air traffic
control, are exempted.
7b All ship breaking yards All projects
including ship breaking
units
7c Industrial If at least one Industrial estates General as well as
estates/parks/ industry in the housing at least one special conditions shall
complexes/areas, proposed category B industry apply
export processing industrial estate falls and area <500 ha.
zones (EPZs), special under the category Note:
economic zones A, entire industrial Industrial estates of (i) Industrial estate of
(SEZs), biotech parks, area shall be treated area>500 ha. and not area below 500 ha. and
leather complexes as category A, housing not housing any
irrespective of the any industry industry of category A
area. belonging to or B does not
category A or B. require clearance.
Industrial estates (ii) If the area is less
with area greater than 500 ha but
than 500 ha. and contains building and
housing at least one construction projects
category B industry. >20,000 sq.mtr. and or
development area
more than 50 ha, it will
be treated as activity as
listed at serial no.
8(a) or 8(b) in the
schedule as the case
may be.
7d Common hazardous All integrated All facilities having General condition shall
waste facilities having landfill only apply
treatment, storage and incineration
disposal and landfill or
facilities (TSDFs) incineration alone
7e Ports , harbours, >5 million TPA of < 5 million TPA of General condition shall
breakwaters, and cargo handling cargo handling Apply
dredging capacity (excluding capacity and/or
fishing harbours) ports/ harbours Note:
>10,000 (i) Capital dredging
TPA of fish handling inside and outside the
capacity ports or harbors and
channels are included.
(ii) Maintenance
dredging is exempt
provided it formed part
of the original proposal
for which Environment
Management Plan
Project or Activity Category with threshold limit Conditions if any
A B
Mining, extraction of natural resources and power generation
(for a specified production capacity)
(1) (2) (3) (4) (5)
(EMP) was prepared
and environmental
clearance obtained.
7f Highways (i) new national (i) all new state General condition shall
highways, and highways projects, Apply
(ii) expansion of and
national highways (ii) state highways Note: highways include
greater than 30 km, expansion projects in expressways
involving additional hilly terrain (above
right of way greater 1000m AMSL) and or
than 20m involving ecologically sensitive
land acquisition and areas.
passing through
more than one state.
7g Aerial ropeways (i) all projects All projects except General condition shall
located at altitude of those covered in apply
1000m and above, column 3.
and (ii) all projects
located in notified
ecologically sensitive
areas.
7h Common Effluent All projects General condition shall
Treatment Plants apply
(CETPs)
7i Common Municipal All projects General condition shall
Solid Waste apply
Management
Facility (CMSWMF)
8. Construction/Township/Commercial Complexes/Housing
8a Building and >50000 sq. m. and The built up or covered
construction <1,50,000 sq. m. of area on all the floors
projects built-up area put together including
basement(s) and other
service areas, which
are proposed in the
building/construction
projects.
8b Townships and Covering an area ++All projects under
area development >100 ha and / or built Item 8(b) shall be
projects up area >1,50,000 sq. appraised as category
m.++ B1
Notes:
General Condition (GC):
Any project or activity specified in category B will be treated as category A, if located in whole or in part within 10 km
from the boundary of: (i) protected areas notified under the Wild Life (Protection) Act, 1972; (ii) critically polluted
areas as notified by the Central Pollution Control Board from time-to-time; (iii) eco-sensitive areas as notified under
section 3 of the Environment (Protection) Act, 1986, such as Mahabaleshwar, Panchgani, Matheran, Pachmarhi
Dahanu, Doon Valley, and, (iv) inter-State boundaries and international boundaries.
Provided that the requirement regarding distance of 10 km of the inter-state boundaries can be reduced or completely
done away with by an agreement between the respective states or UTs sharing the common boundary in case the
activity does not fall within 10 km of the areas mentioned at item (i), (ii) and (iii) above.
Specific Condition (SC):
If any industrial estate/complex/export processing zone/ special economic zone/biotech park/leather complex with
homogeneous type of industries such as Items 4(d), 4(f), 5(e), 5(f), or those Industrial estates with pre-defined set of
activities (not necessarily homogeneous), obtains prior environmental clearance, individual industries including
proposed industrial housing within such estates/complexes will not be required to take prior environmental clearance,
so long as the terms and conditions for the industrial estate/complex are complied with. Such estates/complexes
must have a clearly identified management with the legal responsibility of ensuring adherence to the terms and
conditions of prior environmental clearance, and must indicate the authority to be held responsible for violation of the
same throughout the life of the complex/estate.
ANNEX E- 3: COMPARATIVE ASSESSMENT OF ENVIRONMENTAL SAFEGUARD PROCESS, PROCEDURES, AND PRACTICES
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
Purpose To evaluate potential To analyze, manage, and To ensure that Aims to ensure KfW The objective of EIA
environmental risks and plan to address environmental and social development is to foresee and
impacts in a projects’ area environmental impacts of aspects are considered financed projects address potential
of influence, project development policies, in all projects supported are appropriately environmental
alternatives, ways of strategies, programs, and by JBIC and appropriate analyzed and results problems/concerns at
improving project projects. measures are taken to of these analyses an early stage of
selection, siting, planning, prevent negative are taken into project planning and
design, and impacts and improve account during design.
implementation by positive impacts. project preparation
preventing, minimizing, or and decision EIA/EMP should
compensating of adverse making, assist planners and
environmental impacts and implementation, and government
enhancing positive operation. authorities in the
impacts. decision making
process by
identifying the key
impacts/issues and
formulating mitigation
measures.
Topics/scope Natural environment, Physical and biological Natural environment, Natural Physical and
human health and safety, environment, and social, human health (including environment, human biological
social aspects, trans- health, and economic occupational health), health, and safety environment and
boundary, and global conditions. quality of life, cultural and social issues. social, health, and
environmental aspects. assets, and related economic
1
social aspects in conditions.
particular, involuntary
resettlement. The impacts that
should be assessed
include air, noise,
land, water,
biological and socio-
1
EIA Notification, 2006 (MoEF, GOI). Available at: http://envfor.nic.in/legis/eia/so1533.pdf.
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
economic.
Project requiring EIA Any project with potential Any project with potential Any project with These projects are well
to cause significant cause significant adverse potential to cause defined in EIA
adverse impacts that are environmental impacts. significant adverse Notification (2006) as
sensitive, diverse, or impacts that are Schedule I. Criteria
unprecedented. Affect sensitive, diverse, or such as project type,
broad areas and cannot unprecedented. Affect size, and location are
easily be predicted, broad areas and cannot considered in
prevented, or mitigated. easily be predicted, stipulating EIA
prevented, or mitigated. requirements.
Legal requirements/ Must comply with national National and/or World Environmental laws and National standards Standards at national
standards applied and World Bank standards Bank standards standards of the host of the host country level are issued by
and take account of (whichever are the most national and local must be met. If Central Pollution
national and international stringent) must be met. government as well as these are lacking or Control Board
obligations and Alternative standards their environmental considered (CPCB). These
commitments. must be fully justified. policies and plans. inadequate, other standards are
international generally at par (and
standards e.g., from in cases even
WB, European stricter) than the
Union, and Germany international
shall be used. standards.
Emission (ambient
value) standards are Standards can be
primarily guiding. made stricter by
Emission standards State Pollution
are used Control Board based
complementarily. on location specific
considerations.
General responsibilities Borrower is responsible Borrower is responsible Project proponent/ Project proponent Responsibilities for
for ensuring that all EA for doing the EA in borrower is is responsible for preparing EIA are with
activities are carried out accordance with responsible for carrying out the project proponent.
in accordance with national and ADB’s EA ensuring that national and KfW MoEF and state
national and World Bank requirements. The environmental Development Bank departments of
requirements. Borrower borrower is also considerations, in EA requirements environment have
is also responsible for responsible for accordance with and presenting responsibility finalizing
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
ensuring that the EMP is implementing the national, local, and such information to TOR, review, and take
fully implemented and recommendations of JBIC requirements are KfW Development a decision on EC.
reported. the EA. undertaken and Bank. They must
reported to JBIC. They also monitor and
Bank will review and The ADB will screen the are also responsible report to KfW
agree screening project and is for reporting to JBIC Development Bank
category with borrower, responsible for ensuring how environmental environmental
review TOR of EIA that the EA report and social issues during
studies, review EIA meets the ADB’s considerations are project
report and EMP, and requirements and being monitored and implementation
require borrower to provides a sound basis managed during and operation as
submit monitoring for project processing project agreed to in
reports to Bank showing and implementation. implementation. contractual
compliance with national ADB will monitor obligations.
and World Bank implementation of JBIC will screen the
standards. World Bank agreed environmental project, disclose KfW Development
will also carry out review mitigation measures by environmental impact Bank will screen
missions to ensure borrower. information to the and categorize all
compliance with EMP. public via its website, projects, review
review the the environmental
environmental and assessment work
social impacts when carried out and
making its decision to monitor
approve funding and implementation of
will monitor/to follow contractual
up after a decision on conditions.
funding has been
made.
Timing EA should be initiated as EA activities begin as Environmental and Screening occurs “at Timing of EIA is
early as possible” in the soon as potential projects social considerations an early stage” in concurrent to project
project cycle. Note that for ADB financing are should be examined at project preparation. development.
category A EA reports identified. EA studies are the “earliest possible For financial
must be received at least carried out stage” in project cooperation
60 days before Board simultaneously with pre- planning. projects/programs
approval is due (and in feasibility and feasibility (including FI
some cases 120 days studies. EA activities projects), KfW
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
before). should also continue Development Bank
throughout the project explicitly requires
cycle, not a one-off that EIA should be
report. seen as an integral
part of the project
design procedure
and should influence
the project from its
preparation through
to its conclusion.
Screening
Screening process Each proposed project is Each proposed project is Each proposed project is Screening is carried Screening is done to
screened to determine scrutinized as to its type, screened to determine out by KfW based see whether a project
appropriate extent and location, the sensitivity, appropriate extent and on information requires EC as per the
type of EA. Projects are scale, nature, and type of EA. Projects are provided by project statutory notifications.
2
classified into one to four magnitude of potential classified into one to four proponent. All Screening criteria are
categories depending on environmental impacts categories depending on projects are based upon:
type, location, sensitivity, and the availability of type, location, sensitivity, screened based on (i) scales of impact,
and scale of project, and cost-effective mitigation and scale of project, and an OECD list of (ii) severity of
nature and magnitude of measures. nature and magnitude of projects for which impact, and
its environmental impacts. its environmental major impacts can (iii) location of
3
For dam and reservoir impacts. For dam and be expected development.
projects, the borrower reservoir projects, the (depending on type
must engage independent borrower must engage of project, resources
expert/s whose independent expert/s that will be
qualifications and TOR are whose qualifications and used/affected and
acceptable to the bank, TOR are acceptable to area to be affected)
2 th
In the EIA Notification dated 14 September 2006.
3
The site of a project (e.g. in ecologically sensitive areas) is an important factor which decides whether an EC is required. Ecologically sensitive areas include coastal areas
(protected by the CRZ Notification), forests (protected by the Forest Conservation Act), various areas notified by MOEF as Ecologically Sensitive Zones (ESZs) areas from, for
example, Doon valley, Dahanu taluka, etc.) to wetlands, deserts, national parks, sanctuaries, corals, etc. (which are not protected by any specific notification). In case of
industries, the Environmental Guidelines for Siting of Industry (framed in 1985) and the Environment (Siting for Industrial Projects) Rules, 1999 (presently in draft form) have
to be complied.
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
review the project the bank, review the and activities where
BEFORE screening. project BEFORE KfW support is
screening. prohibited as well as
opinion of internal
experts.
Screening tools Guidance is given on Environmental Guidance is given on Above mentioned Checklist and maps are
screening, area Screening Checklist screening, area OECD list of project used as screening tools
considered sensitive, etc. . considered sensitive, sensitivities and
Rapid Environment etc. actions considered
Assessment (REA) unacceptable on
Checklists. environmental
grounds and expert
Guidance is available opinions.
to help classify/screen
projects in the EA
guidelines.
Categories A: Likely to have A: Potential to have A: Likely to have Programmatic All projects and
significant adverse significant adverse significant adverse approach: activities are broadly
impacts that are environmental impacts. impacts that are screening either categorized in to two
sensitive, diverse, or sensitive, diverse, or results in projects categories–category A
unprecedented and may B: Some environmental unprecedented and that are and category B, based
affect a broad area. impact but less may affect a broad environmentally on the spatial extent of
significant than area. relevant (i.e., potential impacts and
B: Potential impacts are category A. further potential impacts on
less adverse than for B: Potential impacts investigation human health and
category A, they are site C: Unlikely to have are less adverse than needed or natural and man-made
specific, few if any are adverse environmental for category A, they projects are resources.
irreversible and in most impacts are site specific, few if rejected with this
cases, mitigatory any are irreversible concept) or are
measures can be FI: Involve investment and in most cases, environmentally
designed more readily through an FI. mitigatory measures irrelevant (no or
than for category A Financial intermediary can be designed more insignificant
projects. must apply an readily than for environmental
environmental category A projects. impacts are
C: Minimal or no management system expected and no
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
adverse environmental unless all subprojects C: Minimal or no particular
impacts. will result in adverse protective,
FI: May result in insignificant impacts. environmental supervisory,
adverse environmental Categorization can be impacts. and/or
impacts financed changed if necessary. compensatory
through a financial FI: May result in measures are
intermediary. adverse required).
environmental impacts
financed through a There is no formal
financial intermediary. categorization for
screening.
Categorization
takes place after
appraisal
according to
future action
needed during
implementation
and operation
(such action
comprise
measures of
mitigation,
monitoring, or
compensation)
Overriding criterion for Multiple component EA category is EA requirements apply Multiple component Not addressed nor
categorization projects are categorized determined by the to the whole project, not projects are applicable in EC
according to the category of its most just the parts financed by categorized
component with potentially environmentally sensitive FC funds e.g., according to the
most serious adverse components including rehabilitation or component with
effects. Dual categories direct and indirect expansion of existing potentially most
are not used. impacts. facilities. serious adverse
effects. Dual
categories are not
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
used.
EA activities as a result A: Requires detailed A: Requires EIA A: Requires detailed EA study is required
of screening assessment of impacts. assessment of only for those
B: Requires Initial impacts. screened as
B: Requires less Environmental “environmentally
detailed assessment Examination (IEE) and B: Require less relevant.”
than category A. if necessary an EIA detailed assessment “Irrelevant” projects
thereafter than category A. must check/monitor
C: Screening is required whether
and decision recorded. C: No EA required but C: Screening is environmentally
environmental required and decision relevant changes
FI: FI must carry out EA implications must be recorded. occur during
Procedures in reviewed and recorded. implementation and
accordance with OP FI: FI must carry out operation.
4.01. If subprojects are FI: must apply an EA Procedures in
of category A or B type, environmental accordance with OP
FI must demonstrate to management system 4.01. If subprojects
the Bank its acceptable to ADB to are of category A or B
commitment and ensure environmental type, FI must
capability to carrying out aspects of projects are demonstrate to the
necessary adequately considered. Bank its commitment
Environmental and capability to
Safeguard work. carrying out
necessary
environmental
safeguard work.
EA TOR and Methodology
Responsibilities for TOR For category A projects, For category A project, an No specifications are Responsibility for All project proposals
preparation and review a field visit by an initial fact finding mission given on who prepares preparation of TORs requiring EA may be
environmental specialist by the project preparation the TOR for an EA study for EIA studies rests examined according to
should be carried out to team (ADB) should or whether JBIC checks with the project the following review
prepare the scope, include review of and approves this. proponent but they process:
procedures, schedule, screening category and must be agreed with
and outline for the EA preparation of necessary KfW (this same rule (i) Appraisal is the
study. Project affected TOR for the EIA study. is applied for the detailed scrutiny by
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
persons and local NGOs For both category A and TOR of feasibility the EAC or SEAC of
should be consulted B projects, TOR must be studies). Specific the application and
before the TOR is discussed and agreed guidance is given on other documents like
finalized. with the National how TORs should be the final EIA report,
Environment Agency and prepared in the outcome of the
For all other projects, the borrower. Project Environmental public consultations
borrower must discuss affected persons and Handbook of MBZ including public
and agree EIA scope local NGOs must also be Vol. 1, section 0. hearing proceedings,
and TOR with the bank. consulted about the TOR submitted by the
World Bank will help in and their views/concerns applicant to the
drafting TOR as reflected before the TOR regulatory authority
necessary. is approved by the ADB. concerned for grant
of EC. This appraisal
shall be made by
EAC or SEAC
concerned in a
transparent manner
in a proceeding to
which the applicant
shall be invited for
furnishing necessary
clarifications in
person or through an
authorized
representative. On
conclusion of this
proceeding, the EAC
or SEAC concerned
shall make
categorical
recommendations to
the regulatory
authority concerned
either for grant of
prior EC on
stipulated terms and
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
conditions, or
rejection of the
application for prior
EC, together with
reasons for the
same.
(ii) The appraisal of
all projects or
activities which
are not required
to undergo public
consultation, or
submit an
Environment
Impact
Assessment
report, shall be
carried out on the
basis of the
prescribed
application form 1
and form 1A as
applicable, any
other relevant
validated
information
available and the
site visit wherever
the same is
considered as
necessary by the
EAC or SEAC
concerned.
4
Tools and methods to be Advice on pollution Some guidance on the Generic guidance is Guidance on tools, Scoping is a
4
All projects and activities listed as category B in Item 8 of the schedule (construction/township/commercial complexes/housing) shall not require scoping and will be
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
used abatement measures, approach to completing given on the underlying methods, and process of detailing
guidance on impact etc. EA studies is provided in principles which should standards are the terms of
are provided in World the ADB’s Environmental be adopted in preparing provided in BMZ’s reference of EIA. It
Bank Pollution Abatement Assessment Guidelines. EA studies. Analyses of Environmental refers to the process
Handbook and ADB follows standards environmental impacts Handbook. by which the
5
Environment Assessment and approach laid down must for example Reference is also EAC/SEAC
Sourcebook (and in the World Bank’s include an analysis of made to the World determine detailed
updates). Pollution Abatement costs and benefits in as Bank’s Industrial and comprehensive
Handbook. quantitative terms as Pollution Abatement TOR addressing all
possible. Handbook and the relevant
OECD DAC environmental
Guideline for concerns for the
Environment and Aid preparation of an EIA
No, 1 (on EIA). report with respect to
the project or activity
for which prior EC is
sought.
The MoEF has
published guidelines
for different sectors,
which outline the
significant issues to
be addressed in the
EIA studies.
Standards applied Emissions and Emissions and Environmental standards National and local National standards as
environmental quality environmental quality of host national and local environmental stipulated by CPCB.
standards as per standards as per World governments and also standards of the These standards can
Pollution Abatement Bank Pollution Abatement standards and/or good partner/recipient be tightened by SPCBs
Handbook and/or Handbook and/or national practice from country. Where depending on the
national standards standards whichever are international and specific standards sensitivity of the
whichever are the most the most stringent. regional organizations are not developed or location.
appraised on the basis of form 1/ form 1A and the conceptual plan.
5
The composition of the EAC will be as given in the EC Notification dt. 14th September 2006. The SEAC at the State or the Union territory level shall be constituted by the
Central Government in consultation with the concerned State Government or the Union territory Administration with identical composition
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
stringent. Alternative standards and Japan as are deemed
may be proposed but benchmarks. Any inappropriate, other
Alternative standards their application must be deviation from these international
may be proposed but fully justified. must be fully justified. standards
their application must be (European Union,
fully justified. Germany, World
Bank) should be
applied. Guidance
on standards is
given in Volume 3 of
BMZ’s
Environmental
Handbook.
EA Documentation
Contents Detailed guidance on Guidance on contents of JBIC suggests that the No report formats Contents of the report
contents of category A EA category A and B reports. following contents for a are prescribed for defined by MoEF and
reports. Should include category A EIA report category A EIA report is EA studies or EMPs maintained on its
chapters on: should contain: desirable: although a master website. The contents
(i) Executive summary (i) Project description (i) Executive format is are equivalent to those
(ii) Policy, legal, and (ii) Description of the summary recommended in the of MDBs
administrative environment (ii) Policy, legal, and Environmental
framework (iii) Anticipated administrative Handbook, Vol. 1,
(iii) Project description environmental framework Section 0. However,
(iv) Baseline data impacts and (iii) Project description there is a specific
(v) Environmental mitigation measures (iv) Baseline data format required for
impacts (iv) Alternatives (v) Environmental the project appraisal
(vi) Analysis of (v) Economic impacts report which KfW
alternatives assessment (vi) Analysis of Development Bank
(vii) Environmental (vi) Environmental alternatives must submit to the
Management Plan Management Plan (vii) Environmental German
(including mitigation including Institutional Management Plan Government. This
measures) requirements and (viii) Record of requires the
(viii) Appendices monitoring programs consultation following
(vii) Public consultation information:
and disclosure (i) Description of
(viii) Conclusion the project area
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
(ix) Category B IEE (environmental/
report (except ecological
projects deemed situation and
environmentally legal context)
sensitive) should (ii) Project
contain the same as description (of
category A but with relevance to
less detail, limited environment)
consideration of (iii) Identification
alternatives and and assessment
description of of environmental
institutional impacts and a
arrangements and description of
environmental mitigation,
monitoring plan monitoring, and
rather than an EMP. compensation
measures.
(iv) Summary on
whether project
is acceptable
and
classification of
project based on
impacts
predicted in the
EIA study
Responsibilities for Borrower is responsible for Borrower is responsible The borrower or related The project Responsibility of
preparation carrying out the EA. For for preparing the EIA parties must complete proponent/ investor preparation of EIA is
category A projects, reports for category A EIA reports for category is responsible for with the project
independent EA experts and IEE report for A projects. preparing EIA proponent
not affiliated with the category B projects. documentation for
project should be retained. local/national
Borrower must also approval of the
prepare EIA (SEIA) or project/activity.
summary IEE (SIEE) However, KfW
Development Bank
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
reports highlighting the will provide
main findings of the professional advice
EIA and IEE Reports. to its partner country
on environmental
issues and financial
assistance (similar
approach as for
feasibility studies).
Responsibilities for All EA studies are first The executing agency For category A and B Projects/ investment MoEF and state
review reviewed by borrower and and ADB review the draft projects, JBIC carries out activity must receive departments of
accepted by them. For EIA or IEE report to an environmental review formal environment have
category A projects of ensure that it meets ADB to ensure that its environmental responsibility for
highly risky or contentious requirements and procedures have been approval as required review. Review is
nature, borrower should provides sound basis for complied with. under national legal carried out by
also engage an advisory project processing and (i) For category A: systems in the appointing multi-
panel of independent, implementation. Borrowers and recipient country disciplinary and multi-
internationally recognized Consistent with the related parties must before KfW can institutional
specialists. The bank then environmental submit their locally approve the representatives
reviews the findings and requirements of the approved EIA report loan/investment. consisting
recommendations of the borrowing country, the to JBIC for review During research/academia,
EA to determine whether national environmental plus any other implementation and environmental NGOs,
they provide an adequate agency and project relevant reports (e.g., operation, KfW planners and
basis for decision-making. executing agency must resettlement plans together with the administrators.
If a borrower has already clear the EA and etc.). JBIC uses a project sponsor and
prepared EA studies prior summary reports before sector checklist tool relevant host
to the bank’s involvement, EIA, IEE, and summary to review these country ministries
the bank will review this reports (SEIA and SIEE) documents and the will review the
work for consistency are submitted to the bank project. environmental
against OP 4.01. If for disclosure. The views (ii) For category B: aspects of the
necessary, the bank may of the national similar checklist project and
then require additional environmental agency, approach is used determine whether
work including consultation the ADB, project based on available impacts have been
and disclosure. executing agency and information about the sufficiently
affected groups and local project—this may minimized.
NGOs on the draft EIA include EIA studies
should be incorporated but is not a
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
before formal submission mandatory
on the bank for requirement.
disclosure. (iii) For category C: no
environment review
is required beyond
screening.
(iv) For category FI:
JBIC will review the
FI to check whether
appropriate
environmental and
social considerations
required by JBIC are
ensured for projects.
Language EA reports submitted to For category A For category A projects, No mention is made English and summary
the bank must be in projects, the borrower EIA reports must be about language of in local language(s)
English, French, or must translate the written in official environmental during public hearing
Spanish and the executive SEIA into the local language or language safeguard activities.
summary in English. For language. widely used in the
disclosure purposes, country where the
summaries must also be No other specifications project is implemented.
prepared in the local are given on language When explaining
language of project projects to local
affected persons/local residents, written
NGOs. materials must be
provided in a language
and form
understandable to them.
Impact Mitigation
Principles of mitigation Preventative measures are No detail is given on Priority is given to No detail is given on For every project,
favored over mitigatory or preferred mitigation impact, prevention, and preferred mitigation possible alternatives
compensation measures. hierarchy. where this is not hierarchy. In should be identified and
possible, minimization principle, integrated environmental
and reduction of impacts approaches-where attributes compared.
must be considered possible are Alternatives should
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
next. Compensation preferred. Generally, cover both project
should be considered a the precautionary location and process
last resort. principle is the technologies.
overarching Alternatives should
concept. consider “no project”
option also. Alternatives
should then be ranked
for selection of the best
environmental option
for optimum economic
benefits to the
community at large.
Environmental Integral part of the EA EMPs must be prepared Environmental No specific mention Once alternatives
Management Plan study. Should be prepared for category A and Management Plans and is made to an EMP have been reviewed,
as part of category A EA environmentally sensitive Monitoring Plans must and its format, as a mitigation plan
study. Category B category B projects. Must be developed where necessary measures should be drawn up
projects, EA may result in outline specific mitigation appropriate (and are for appropriate for the selected
an EMP only. Consists of measures, environmental required for category A mitigation, option and is
full set of mitigation, monitoring requirements, projects) and should monitoring and supplemented with
monitoring, and and related institutional include the costs of compensation must an EMP to guide the
institutional measures to arrangements including implementing such plans be included in any proponent towards
be taken during budget requirements. and financial funds and EIA study as a environmental
implementation and Detailed guidance is methods to be used to standard element. improvements.
operation of the project. provided on contents. do this. Illustrative
guidance is given on The EMP would
what should be consist of all
monitored. mitigation measures
for each item wise
activity to be
undertaken during
the construction,
operation and the
entire life cycle to
minimize adverse
environmental
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
impacts as a result of
the activities of the
project. It would also
delineate the
environmental
monitoring plan for
compliance of
various
environmental
regulations. It will
state the steps to be
taken in case of
emergency such as
accidents at the site
including fire.
Consultation and Disclosure
Public consultation Borrower must consult Borrower must consult For category A Very little specific Requires that the
requirements with project affected with project affected projects, stakeholders information locally affected
groups and local NGOs groups and local NGOs such as local regarding public persons and other
about the project’s aspects for all category A and B residents must be consultation is stakeholders must be
and take their views into projects. Must be consulted during explicitly provided. informed and
account for all category A carried out as early as preparation of EIA However, KfW consulted on a
and B projects. For possible in the project after sufficient Development Bank proposed
category A projects, cycle so that views are information has been does require that development with a
consultation must happen taken into account in disclosed to them. information for and view to taking into
at least twice: project design and the interest of account all the
(i) Shortly after screening mitigation measures. Consultations must be people affected material concerns in
and before TOR for EA Consultation should recorded. (e.g., as represented the project or activity
study reports is continue into project Consultation should by local NGOs, design as
prepared. The borrower implementation to also continue if municipalities, or appropriate.
must also consult with identify and help necessary throughout cooperatives) must
these groups during address environmental preparation and be include in the Any one likely to be
project implementation. issues that arise. implementation of the planning and affected by the
(ii) During EA review by project. decision-making proposed project is
the Bank, special Category A projects, process where entitled to have
attention is paid to the possible e.g.,
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
nature of consultations consultation must JBIC considers it through public access to the
and the extent to which occur at least twice: highly desirable to participation or executive summary
views of affected (i) during early stage of engage stakeholders hearings. of the EIA.
persons and local EIA field work (the twice: during scoping
NGOs have been taken TOR for the EIA study of the EIA and when The affected persons
into account. should be disclosed to the draft report is may
and discussed with being prepared. include: bonafide
affected groups/local Where indigenous local residents; local
NGOs), and people may be associations;
(ii) when draft EIA report affected adversely, environmental
is available and before efforts must be made groups: active in the
the loan is appraised. to obtain the consent area; and any other
The public consultation of such peoples after person located at the
process must be they have been fully project site / sites of
described in the EIA informed. displacement
and IEE reports. They are to be given
JBIC may seek the an opportunity to
If an EIA report has opinion of concerned make oral/written
been completed before organizations and suggestions to the
ADB involvement, ADB stakeholders when SPCB/regulatory
will review the public reviewing projects. agency.
consultation and
disclosure carried out.
If it does not meet ADB
requirements, the
borrower must carry
out supplemental
activities which will
then be reported in
revised EA reports and
submitted to the bank.
Information disclosure To enable meaningful To facilitate meaningful JBIC will disclose No explicit An EIA report should
requirements consultation, the consultation with information as follows: requirement for provide clear
borrower must provide project affected groups information information to the
project-affected groups and local NGOs, the (i) On completion of disclosure is given decision-maker on the
screening, the as all information for different environmental
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
and local NGOs on all borrower must provide project name, an in the appraisal scenarios without the
category A and B information on the country, location, an report to the project, with the project
projects (proposed for project’s environmental outline and sector of responsible German and with project
IBRD and IDA financing) issues in a form and project, its screening Federal Ministry alternatives.
relevant material in a language(s) accessible category and (BMZ) has to be Uncertainties should be
timely manner in a form to those being reasons for this kept confidential. clearly reflected in the
6
and language consulted. For category classification. EIA report.
understandable and A EIA studies, the TOR (ii) For category A and
accessible to groups for such studies must B projects, status of
consulted. be disclosed to major documents on
affected persons and environmental and
For category A projects local NGOs and their social
and any separate views and concerns considerations by
category B report, the sought before the TOR borrowers related
borrower must provide is finalized. parties e.g., EIA
an initial summary of reports and
project activities and On completion of the environmental
potential impacts for EIA and IEE reports, permit certificates.
consultation before EA the borrower must EIA reports will be
preparation and a submit summary made available.
summary of EA reports (SEIA and (iii) Result of
conclusions on SIEE) to the bank for environmental
completion of the drat public disclosure via a reviews of project
EA. In addition, draft EA depository library after executing the
report must be made system and on the loan agreement
available at a public ADB website. The full (provided on JBIC
place accessible to EIA or IEE are also website).
project affected groups made available to (iv) For Category A
and local NGOs. The interested parties on projects, the
Bank will not consider request. Borrower or project
appraisal of the project For all category A proponent must
until this has been done. projects and category ensure that written
B projects deemed materials used to
explain the project to
6
The structure of the EIA report has been provided in the annexure to the EIA Notification (Appendix III). Available at: http://envfor.nic.in/legis/eia/so1533.pdf
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
World Bank requires environmentally local residents are
that the EIA be sensitive, the SEIA or provided in a
disclosed prior to the SIEE must be language and form
project appraisal disclosed to the public understandable to
mission and for a for 120 days before them. EIA reports
minimum of 60 days ADB’s Board of must then be made
(category A) or 30 days Directors considers the available in the
(category B) prior to the loan or before approval country and to the
date of board approval. of significant change in local residents
Note that for projects scope of project or where the project is
that have potentially subprojects. to be implemented.
significant They must be
environmental impacts, available at all times
the World Bank may for perusal by
require that the EIA or a project stakeholders
summary thereof be and copying must be
submitted to the US permitted. It is also
Executive Director 120 desirable that
days prior to board project proponent
approval. make monitoring
results available to
project stakeholders.
Implementation and Monitoring
Responsibilities ensuring The Borrower must report For category A and all Project proponent is The project It is mandatory for
implementation of EMP to the Bank on: environmentally sensitive responsible for proponent/ the project
(i) compliance with category B projects, the implementing investor is management to
measures agreed with borrower must submit environmental and responsible for submit half-yearly
the bank based on semi-annual reports on social considerations delivering regular compliance reports
findings of the EA the implementation of for the project. JBIC in project progress with respect to the
including EMPs as required in the principles confirms reports and stipulated prior EC
implementation of the loan agreement. ADB will through the borrower implementing any terms and conditions
EMP conduct an annual review that the project recommendations in hard and soft
(ii) status of mitigatory mission of environmental proponent is for environmental copies to the
measures aspects of the project. undertaking protection and regulatory authority
(iii) findings of monitoring commitments monitoring concerned, on 1
plans
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
associated with outlined in the EIA June and 1
The bank supervises the environmental and report and loan December of each
borrower to ensure that social consideration agreement. KfW calendar year.
procurement for category A and B Development
arrangements are projects. The Bank will agree All such compliance
consistent with the information necessary specific actions to reports submitted by
environmental for monitoring by JBIC be taken which the project
requirements set out in needs to be supplied will be management shall be
projects legal by the borrower and incorporated in public documents.
agreements. The bank related parties by contract Copies of the same
will carry out supervision appropriate means. If documentation. shall be given to any
missions incorporating JBIC judges that there person on application
suitable environmental is a need for KfW to the concerned
expertise. improvement in the Development regulatory authority.
situation with respect Bank will monitor The latest such
to environmental and the compliance report
social considerations, implementation of shall also be
it may ask the project such displayed on the web
proponent, through commitments site of the concerned
the borrower, to take receiving above regulatory authority.
appropriate action in mentioned
accordance with the monitoring Monitoring will
loan agreement. reports or any enable the regulatory
other agreed agency to review the
The project proponent means. In validity of predictions
is requested to principle, the and the conditions of
monitor: implementation of implementation of the
(i) whether any a Resettlement EMP.
situations that were Action Plan
previously (RAP) has to be
unforeseen arise completed before
(ii) to check the the start of
implementation and construction.
effectiveness of
mitigation
measures. It is
EA Process,
Procedure, and Asian Development KfW Development
Practices World Bank Bank JBIC Bank GOI EIA/EC System
desirable that such
results are made
available to
stakeholders.
ANNEX E-4: SAFEGUARD REQUIREMENTS OF THE DFIs FOR PROJECTS HAVING
SIGNIFICANT ENVIRONMENTAL IMPACTS
A. Introduction
1. Safeguard requirements hereunder outlines the requirements that borrowers/clients are
required to meet when delivering environmental safeguards for projects1 supported by the
development financial institutions (DFIs) (see footnote below)2. It discusses the objectives and
scope of application, and underscores the requirements for undertaking the environmental
assessment process. These requirements include assessing impacts, planning and managing
impact mitigations, preparing environmental assessment reports, disclosing information and
undertaking consultation, establishing a grievance mechanism, and monitoring and reporting.
The document also includes particular environmental safeguard requirements pertaining to
biodiversity conservation and sustainable management of natural resources, pollution
prevention and abatement, occupational and community health and safety, and conservation of
physical cultural resources. The applicability of particular requirements is established through
the environmental assessment process and compliance with the requirements is achieved
through implementation of environmental management plans agreed to by DFIs and the
borrower/client.
B. Objectives
2. The objectives are to ensure the environmental soundness and sustainability of projects,
and to support the integration of environmental considerations into the project decision-making
process.
C. Scope of Application
3. The requirements apply to all DFI-financed and/or DFI-administered sovereign and
nonsovereign projects, and their components regardless of the source of financing, including
investment projects funded by a loan; and/or a grant; and/or other means, such as equity and/or
guarantees (hereafter broadly referred to as projects).
D. Requirements
1. Environmental Assessment
4. Environmental assessment is a generic term used to describe a process of
environmental analysis and planning to address the environmental impacts and risks associated
with a project. At an early stage of project preparation, the borrower/client will identify potential
direct, indirect, cumulative, and induced environmental impacts on and risks to physical,
biological, socioeconomic, and physical cultural resources and determine their significance and
scope, in consultation with stakeholders, including affected persons and concerned
nongovernment organizations (NGOs). If potentially adverse environmental impacts and risks
are identified, the borrower/client will undertake an environmental assessment as early as
possible in the project cycle. For projects with potentially significant adverse impacts that are
1
In this attachment, the term "projects" refers to “subprojects”, and the term “borrower/client” refers to “lead bank or
subproject proponent”.
2
The safeguard requirements outlined here pertain to Asian Development Bank’s. Annex E-4 was derived from
Appendix 1 to the ADB Safeguard Policy Statement (2009). Other DFIs may also have similar requirements.
diverse, irreversible, or unprecedented, the borrower/client will examine alternatives to the
project’s location, design, technology, and components that would avoid, and, if avoidance is
not possible, minimize adverse environmental impacts and risks. The rationale for selecting the
particular project location, design, technology, and components will be properly documented,
including, cost-benefit analysis, taking environmental costs and benefits of the various
alternatives considered into account. The "no project" alternative will be also considered.
5. The assessment process will be based on current information, including an accurate
project description, and appropriate environmental and social baseline data. The environmental
assessment will consider all potential impacts and risks of the project on physical, biological,
socioeconomic (occupational health and safety, community health and safety, vulnerable groups
and gender issues), and impacts on livelihoods through environmental media and physical
cultural resources in an integrated way. The project’s potential environmental impacts and risks
will be reviewed against the requirements presented in this document and applicable laws and
regulations of the jurisdictions in which the project operates that pertain to environmental
matters, including host country obligations under international law.
6. Impacts and risks will be analyzed in the context of the project’s area of influence. This
area of influence encompasses (i) the primary project site(s) and related facilities that the
borrower/client (including its contractors) develops or controls, such as power transmission
corridors, pipelines, canals, tunnels, access roads, borrow pits and disposal areas, and
construction camps; (ii) associated facilities that are not funded as part of the project (funding
may be provided separately by the borrower/client or by third parties), and whose viability and
existence depend exclusively on the project and whose goods or services are essential for
successful operation of the project; (iii) areas and communities potentially affected by
cumulative impacts from further planned development of the project, other sources of similar
impacts in the geographical area, any existing project or condition, and other project-related
developments that are realistically defined at the time the assessment is undertaken; and (iv)
areas and communities potentially affected by impacts from unplanned but predictable
developments caused by the project that may occur later or at a different location. The area of
influence does not include potential impacts that might occur without the project or
independently of the project. Environmental impacts and risks will also be analyzed for all
relevant stages of the project cycle, including preconstruction, construction, operations,
decommissioning, and post closure activities such as rehabilitation or restoration.
7. The assessment will identify potential transboundary effects, such as air pollution,
increased use or contamination of international waterways, as well as global impacts, such as
emission of greenhouse gases and impacts on endangered species and habitats.
8. The environmental assessment will examine whether particular individuals and groups
may be differentially or disproportionately affected by the project’s potential adverse
environmental impacts because of their disadvantaged or vulnerable status, in particular, the
poor, women and children, and Indigenous Peoples. Where such individuals or groups are
identified, the environmental assessment will recommend targeted and differentiated measures
so that adverse environmental impacts do not fall disproportionately on them.
9. Depending on the significance of project impacts and risks, the assessment may
comprise a full-scale environmental impact assessment (EIA) for category A projects, an initial
environmental examination (IEE) or equivalent process for category B projects, or a desk
review. An EIA report includes the following major elements: (i) executive summary, (ii)
description of the project, (iii) description of the environment (with comprehensive baseline
data), (iv) anticipated environmental impacts and mitigation measures, (v) analysis of
alternatives, (vi) environmental management plan(s), (vii) consultation and information
disclosure, and (viii) conclusion and recommendations. An IEE, with its narrower scope, may be
conducted for projects with limited impacts that are few in number, generally site-specific,
largely reversible, and readily addressed through mitigation measures.
10. When the project involves existing activities or facilities, relevant external experts will
perform environmental audits to determine the existence of any areas where the project may
cause or is causing environmental risks or impacts. If the project does not foresee any new
major expansion, the audit constitutes the environmental assessment for the project. A typical
environmental audit report includes the following major elements: (i) executive summary; (ii)
facilities description, including both past and current activities; (iii) summary of national, local,
and any other applicable environmental laws, regulations, and standards; (iv) audit and site
investigation procedure; (v) findings and areas of concern; and (vi) corrective action plan that
provides the appropriate corrective actions for each area of concern, including costs and
schedule.
2. Environmental Planning and Management
11. The borrower/client will prepare an environmental management plan (EMP) that
addresses the potential impacts and risks identified by the environmental assessment. The EMP
will include the proposed mitigation measures, environmental monitoring and reporting
requirements, emergency response procedures, related institutional or organizational
arrangements, capacity development and training measures, implementation schedule, cost
estimates, and performance indicators. Where impacts and risks cannot be avoided or
prevented, mitigation measures and actions will be identified so that the project is designed,
constructed, and operated in compliance with applicable laws and regulations and meets the
requirements specified in this document. The level of detail and complexity of the environmental
planning documents and the priority of the identified measures and actions will be
commensurate with the project’s impacts and risks. Key considerations include mitigation of
potential adverse impacts to the level of “no significant harm to third parties”, the polluter pays
principle, the precautionary approach, and adaptive management.
12. If some residual impacts are likely to remain significant after mitigation, the EMP will also
include appropriate compensatory measures (offset) that aim to ensure that the project does not
cause significant net degradation to the environment. Such measures may relate, for instance,
to conservation of habitat and biodiversity, preservation of ambient conditions, and greenhouse
gas emissions. Monetary compensation in lieu of offset is acceptable in exceptional
circumstances, provided that the compensation is used to provide environmental benefits of the
same nature and is commensurate with the project’s residual impact.
13. The EMP will define expected outcomes as measurable events to the extent possible
and will include performance indicators or targets that can be tracked over defined periods. It
will be responsive to changes in project design, such as a major change in project location or
route, or in technology, unforeseen events, and monitoring results.
14. At times, a third party’s involvement will influence implementation of the EMP. A third
party may be, inter alia, a government agency, a contractor, or an operator of an associated
facility. When the third-party risk is high and the borrower/client has control or influence over the
actions and behavior of the third party, the borrower/client will collaborate with the third party to
achieve the outcome consistent with the requirements for the borrower/client. Specific actions
will be determined on a case-by-case basis.
15. The borrower/client will use qualified and experienced experts to prepare the
environmental assessment and the EMP. For highly complex and sensitive projects,
independent advisory panels of experts not affiliated with the project will be used during project
preparation and implementation.
3. Information Disclosure
16. The borrower/client will submit to ADB through IIFCL a draft full EIA (including the draft
EMP) or compliance audit report including a corrective action plan at least 120 days prior to
IIFCL Board consideration, for disclosure on ADB’s website:
17. The borrower/client will provide relevant environmental information, including information
from the EIA/EMP or compliance audit report including a corrective action plan in a timely
manner, in an accessible place and in a form and language(s) understandable to affected
persons and other stakeholders. For illiterate people, other suitable communication methods will
be used.
4. Consultation and Participation
18. The borrower/client will carry out meaningful consultation with affected persons and
other concerned stakeholders, including civil society, and facilitate their informed participation.
Meaningful consultation is a process that (i) begins early in the project preparation stage and is
carried out on an ongoing basis throughout the project cycle;3 (ii) provides timely disclosure of
relevant and adequate information that is understandable and readily accessible to affected
persons; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender
inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups;
and (v) enables the incorporation of all relevant views of affected persons and other
stakeholders into decision making, such as project design, mitigation measures, the sharing of
development benefits and opportunities, and implementation issues. Consultation will be carried
out in a manner commensurate with the impacts on affected communities. The consultation
process and its results are to be documented and reflected in the environmental assessment
report.
5. Grievance Redress Mechanism
19. The borrower/client will establish a mechanism to receive and facilitate resolution of
affected persons’ concerns, complaints, and grievances about the project’s environmental
performance. The grievance mechanism should be scaled to the risks and adverse impacts of
the project. It should address affected persons' concerns and complaints promptly, using an
understandable and transparent process that is gender responsive, culturally appropriate, and
readily accessible to all segments of the affected persons at no costs and without retribution.
The mechanism should not impede access to the country’s judicial or administrative remedies.
The affected persons will be appropriately informed about the mechanism.
6. Monitoring and Reporting
3
For environment category A projects, such consultations will necessarily include consultations at the early stage of
EIA field work and when the draft EIA report is available during project preparation, and before project appraisal.
20. The borrower/client will monitor and measure the progress of implementation of the
EMP. The extent of monitoring activities will be commensurate with the project’s risks and
impacts. In addition to recording information to track performance, the borrower/client will
undertake inspections to verify compliance with the EMP and progress toward the expected
outcomes. For projects likely to have significant adverse environmental impacts, the
borrower/client will retain qualified and experienced external experts or qualified NGOs to verify
its monitoring information. The borrower/client will document monitoring results, identify the
necessary corrective actions, and reflect them in a corrective action plan. The borrower/client
will implement these corrective actions and follow up on these actions to ensure their
effectiveness.
21. The borrower/client will prepare periodic monitoring reports that describe progress with
implementation of the EMP and compliance issues and corrective actions, if any. The
borrower/client will submit at least semiannual monitoring reports during construction for
projects likely to have significant adverse environmental impacts, and quarterly monitoring
reports for highly complex and sensitive projects. For projects likely to have significant adverse
environmental impacts during operation, reporting will continue at the minimum on an annual
basis. Such periodic reports will be posted in a location accessible to the public. Project budgets
will reflect the costs of monitoring and reporting requirements.
7. Unanticipated Environmental Impacts
22. Where unanticipated environmental impacts become apparent during project
implementation, the borrower/client will update the environmental assessment and EMP or
prepare a new environmental assessment and EMP to assess the potential impacts, evaluate
the alternatives, and outline mitigation measures and resources to address those impacts.
8. Biodiversity Conservation and Sustainable Natural Resource Management
23. The borrower/client will assess the significance of project impacts and risks on
biodiversity4 and natural resources as an integral part of the environmental assessment process
specified in paras 4–10. The assessment will focus on the major threats to biodiversity, which
include destruction of habitat and introduction of invasive alien species, and on the use of
natural resources in an unsustainable manner. The borrower/client will need to identify
measures to avoid, minimize, or mitigate potentially adverse impacts and risks and, as a last
resort, propose compensatory measures, such as biodiversity offsets, to achieve no net loss or
a net gain of the affected biodiversity.
a. Modified Habitats
24. In areas of modified habitat, where the natural habitat has apparently been altered, often
through the introduction of alien species of plants and animals, such as in agricultural areas, the
borrower/client will exercise care to minimize any further conversion or degradation of such
habitat, and will, depending on the nature and scale of the project, identify opportunities to
enhance habitat and protect and conserve biodiversity as part of project operations.
b. Natural Habitats
4
The variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic
ecosystems and the ecological complexes of which they are part; this includes diversity within species, between
species and of ecosystems.
25. In areas of natural habitat,5 the project will not significantly convert or degrade6 such
habitat, unless the following conditions are met:
(i) No alternatives are available.
(ii) A comprehensive analysis demonstrates that the overall benefits from the project
will substantially outweigh the project costs, including environmental costs.
(iii) Any conversion or degradation is appropriately mitigated.
26. Mitigation measures will be designed to achieve at least no net loss of biodiversity. They
may include a combination of actions, such as post project restoration of habitats, offset of
losses through the creation or effective conservation of ecologically comparable areas that are
managed for biodiversity while respecting the ongoing use of such biodiversity by Indigenous
Peoples or traditional communities, and compensation to direct users of biodiversity.
c. Critical Habitats
27. No project activity will be implemented in areas of critical habitat7 unless the following
requirements are met:
(i) There are no measurable adverse impacts, or likelihood of such, on the critical
habitat which could impair its high biodiversity value or the ability to function.
(ii) The project is not anticipated to lead to a reduction in the population of any
recognized endangered or critically endangered species8 or a loss in area of the
habitat concerned such that the persistence of a viable and representative host
ecosystem be compromised.
(iii) Any lesser impacts are mitigated in accordance with para. 27.
28. When the project involves activities in a critical habitat, the borrower/client will retain
qualified and experienced external experts to assist in conducting the assessment.
d. Legally Protected Areas
29. In circumstances where some project activities are located within a legally protected
5
Land and water areas where the biological communities are formed largely by native plant and animal species, and
where human activity has not essentially modified the area’s primary ecological functions.
6
Significant conversion or degradation is (i) the elimination or severe diminution of the integrity of a habitat caused
by a major, long-term change in land or water use; or (ii) the modification of a habitat that substantially reduces the
habitat’s ability to maintain viable populations of its nati ve species. Significant conversion may include, for
example, land clearing; replacement of natural vegetation (for example, by crops or tree plantations); permanent
flooding (by a reservoir for instance); drainage, dredging, filling, or canalization of wetlands; or surface mining.
7
Critical habitat is a subset of both natural and modified habitat that deserves particular attention. Critical habitat
includes areas with high biodiversity value, including habitat required for the survival of critically endangered or
endangered species; areas having special significance for endemic or restricted-range species; sites that are
critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of
individuals of congregatory species; areas with unique assemblages of species or that are associated with key
evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social,
economic, or cultural importance to local communities. Critical habitats include those areas either legally protected
or officially proposed for protection, such as areas that meet the criteria of the Word Conservation Union
classification, the Ramsar List of Wetlands of International Importance, and the United Nations Educational,
Scientific, and Cultural Organization’s world natural heritage sites.
8
As defined by the Word Conservation Union’s Red List of Threatened Species or as defined in any national
legislation.
area, in addition to the requirement specified in para. 28, the borrower/client will meet the
following requirements:
(i) Act in a manner consistent with defined protected area management plans.
(ii) Consult protected area sponsors and managers, local communities, and other
key stakeholders on the proposed project.
(iii) Implement additional programs, as appropriate, to promote and enhance the
conservation aims of the protected area.
e. Invasive Alien Species
30. The borrower/client will not intentionally introduce any new alien species (that is, species
not currently established in the country or region of the project) unless carried out in accordance
with the existing regulatory framework for such introduction, if such a framework is present, or
unless the introduction is subject to a risk assessment (as part of the environmental
assessment) to determine the potential for invasive behavior. Under no circumstances must
species known to be invasive be introduced into new environments. The borrower/client will
undertake assessment of the possibility of accidental or unintended introduction of such
invasive alien species and identify measures to minimize the potential for release.
f. Management and Use of Renewable Natural Resources
31. Renewable natural resources will be managed in a sustainable manner. Sustainable
resource management is management of the use, development, and protection of resources in
a way, or at a rate, that enables people and communities, including Indigenous Peoples, to
provide for their current social, economic, and cultural well-being while also sustaining the
potential of those resources to meet the reasonably foreseeable needs of future generations.
This includes safeguarding the life-supporting capacity of air, water, and soil ecosystems.
Where possible, the borrower/client will demonstrate the sustainable management of resources
through an appropriate system of independent certification.
9. Pollution Prevention and Abatement
32. During the design, construction, and operation of the project the borrower/client will
apply pollution prevention and control technologies and practices consistent with international
good practice, as reflected in internationally recognized standards such as the World Bank
Group’s Environment, Health and Safety Guidelines.9 These standards contain performance
levels and measures that are normally acceptable and applicable to projects. When host country
regulations differ from these levels and measures, the borrower/client will achieve whichever is
more stringent. If less stringent levels or measures are appropriate in view of specific project
circumstances, the borrower/client will provide full and detailed justification for any proposed
alternatives that are consistent with the requirements presented in this document.
a. Pollution Prevention, Resource Conservation, and Energy Efficiency
33. The borrower/client will avoid, or where avoidance is impossible, will minimize or control
the intensity or load of pollutant emission and discharge. In addition the borrower/client will
examine and incorporate in its operations resource conservation and energy efficiency
measures consistent with the principles of cleaner production. When the project has the
9
World Bank Group, 2007. Environmental, Health, and Safety General Guidelines. Washington, DC.
potential to constitute a significant source of emissions in an already degraded area, strategies
that help improve ambient conditions, such as evaluating alternative project locations and
considering emissions offsets, will be introduced.
b. Wastes
34. The borrower/client will avoid, or where avoidance is not possible, will minimize or
control the generation of hazardous and nonhazardous wastes and the release of hazardous
materials resulting from project activities. Where waste cannot be recovered or reused, it will be
treated, destroyed, and disposed of in an environmentally sound manner. If the generated waste
is considered hazardous, the client will explore reasonable alternatives for its environmentally
sound disposal considering the limitations applicable to its transboundary movement.10 When
waste disposal is conducted by third parties, the borrower/client will use contractors that are
reputable and legitimate enterprises licensed by the relevant regulatory agencies.
c. Hazardous Materials
35. The borrower/client will avoid the manufacture, trade, and use of hazardous substances
and materials subject to international bans or phaseouts because of their high toxicity to living
organisms, environmental persistence, potential for bioaccumulation, or potential for depletion of
the ozone layer11 and will consider the use of less hazardous substitutes for such chemicals and
materials.
d. Pesticide Use and Management
36. The environmental assessment will ascertain that any pest and/or vector management
activities related to the project are based on integrated pest management approaches and aim
to reduce reliance on synthetic chemical pesticides in agricultural and public health projects.
The borrower/client’s integrated pest/vector management program will entail coordinated use of
pest and environmental information along with available pest/vector control methods, including
cultural practices, biological, genetic and, as a last resort, chemical means to prevent
unacceptable levels of pest damage. The health and environmental risks associated with pest
management should be minimized with support, as needed, to institutional capacity
development, to help regulate and monitor the distribution and use of pesticides and enhance
the application of integrated pest management.
37. The borrower/client will not use products that fall in World Health Organization
Recommended Classification of Pesticides by Hazard Classes Ia (extremely hazardous) and Ib
(highly hazardous) or Class II (moderately hazardous), if the project host country lacks
restrictions on distribution and use of these chemicals, or if they are likely to be accessible to
personnel without proper training, equipment, and facilities to handle, store, apply and dispose
of these products properly. The borrower/client will handle, store, apply and dispose of
pesticides in accordance with international good practice such as the Food and Agricultural
Organization’s International Code of Conduct on the Distribution and Use of Pesticides.
e. Greenhouse Gas Emissions
10
Consistent with the objectives of the Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes.
11
Consistent with the objectives of the Stockholm Convention on Persistent Organic Pollutants and the Montreal
Protocol on Substances that Deplete the Ozone Layer.
38. The borrower/client will promote the reduction of project-related anthropogenic
greenhouse gas emissions in a manner appropriate to the nature and scale of project
operations and impacts. During the development or operation of projects that are expected to or
currently produce significant quantities of greenhouse gases,12 the borrower/client will quantify
direct emissions from the facilities within the physical project boundary and indirect emissions
associated with the off-site production of power used by the project. The borrower/client will
conduct quantification and monitoring of greenhouse gas emissions annually in accordance with
internationally recognized methodologies.13 In addition, the borrower/client will evaluate
technically and financially feasible and cost-effective options to reduce or offset project-related
greenhouse gas emissions during project design and operation, and pursue appropriate options.
10. Health and Safety
a. Occupational Health and Safety
39. The borrower/client will provide workers14 with a safe and healthy working environment,
taking into account risks inherent to the particular sector and specific classes of hazards in the
borrower’s/client’s work areas, including physical, chemical, biological, and radiological hazards.
The borrower/client will take steps to prevent accidents, injury, and disease arising from,
associated with, or occurring during the course of work by (i) identifying and minimizing, so far
as reasonably practicable, the causes of potential hazards to workers; (ii) providing preventive
and protective measures, including modification, substitution, or elimination of hazardous
conditions or substances; (iii) providing appropriate equipment to minimize risks and requiring
and enforcing its use; (iv) training workers and providing them with appropriate incentives to use
and comply with health and safety procedures and protective equipment; (v) documenting and
reporting occupational accidents, diseases, and incidents; and (vi) having emergency
prevention, preparedness, and response arrangements in place.
40. The borrower/client will apply preventive and protective measures consistent with
international good practice, as reflected in internationally recognized standards such as the
World Bank Group’s Environment, Health and Safety Guidelines (footnote 7).
b. Community Health and Safety
41. The borrower/client will identify and assess the risks to, and potential impacts on, the
safety of affected communities during the design, construction, operation, and decommissioning
of the project, and will establish preventive measures and plans to address them in a manner
commensurate with the identified risks and impacts. These measures will favor the prevention
or avoidance of risks and impacts over their minimization and reduction. Consideration will be
given to potential exposure to both accidental and natural hazards, especially where the
structural elements of the project are accessible to members of the affected community or
where their failure could result in injury to the community. The borrower/client will avoid or
12
Even though the significance of a project’s contribution to greenhouse gas emissions varies between industry
sectors, the significance threshold to be considered for these requirements is generally 100,000 tons of carbon
dioxide equivalent per year for the aggregate emissions of direct sources and indirect sources associated with
electricity purchased for own consumption.
13
Estimation methodologies are provided by the Intergovernmental Panel on Climate Change (IPCC), various
international organizations, and relevant host country agencies.
14
Including nonemployee workers engaged by the borrower/client through contractors or other intermediaries to work
on project sites or perform work directly related to the project’s core functions.
minimize the exacerbation of impacts caused by natural hazards, such as landslides or floods
that could result from land use changes due to project activities.
42. The borrower/client will inform affected communities of significant potential hazards in a
culturally appropriate manner. The borrower/client will be prepared to respond to accidental and
emergency situations. This preparation will include response planning document(s) that
addresses the training, resources, responsibilities, communications, procedures, and other
aspects required to respond effectively to emergencies associated with project hazards.
Appropriate information about emergency preparedness and response activities, resources, and
responsibilities will be disclosed to affected communities.
43. When structural elements or components, such as dams, tailings dams, or ash ponds,
are situated in high-risk locations and their failure or malfunction may threaten the safety of
communities, the borrower/client will engage qualified and experienced experts, separate from
those responsible for project design and construction, to conduct a review as early as possible
in project development and throughout project design, construction, and commissioning.
11. Physical Cultural Resources
44. The borrower/client is responsible for siting and designing the project to avoid significant
damage to physical cultural resources.15 Such resources likely to be affected by the project will
be identified, and qualified and experienced experts will assess the project’s potential impacts
on these resources using field-based surveys as an integral part of the environmental
assessment process specified in paras 4–10.
45. When a project may affect physical cultural resources, the borrower/client will consult
with affected communities who use, or have used them within living memory, for long-standing
cultural purposes to identify physical cultural resources of importance and to incorporate the
views of the affected communities on such resources into the borrower’s/client’s decision -
making process. Consultation will also involve relevant national or local regulatory agencies that
are entrusted with protecting physical cultural resources. The findings are disclosed as part of,
and in the same manner as, the environmental assessment report, except when such disclosure
would compromise or jeopardize the safety or integrity of the physical cultural resources.
46. When the project is likely to have adverse impacts on physical cultural resources, the
borrower/client will identify appropriate measures for avoiding or mitigating these impacts as
part of the environmental planning process specified in paras 12–16. These measures may
range from avoidance to full site protection to selective mitigation, including salvage and
documentation, in cases where a portion or all of the physical cultural resources may be lost.
47. When the proposed location of a project is in areas where physical cultural resources
are expected to be found as determined during the environmental assessment process, chance
finds procedures will be included in the EMP. Chance finds shall not be disturbed until an
assessment by a competent specialist is made and actions consistent with these requirements
are identified.
15
Defined as movable or immovable objects, sites, structures, groups of structures, and natural features and
landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural
significance. Physical cultural resources may be located in urban or rural settings and may be above or below
ground or under water. Their cultural interest may be at the local, provincial, national, or international level.
48. The project will not remove any physical cultural resources unless the following
conditions are met:
(i) No alternatives to removal are available.
(ii) The overall benefits of the project substantially outweigh the anticipated cultural
heritage loss from removal.
(iii) Any removal is conducted in accordance with relevant provisions of national
and/or local laws, regulations, and protected area management plans and
national obligations under international laws, and employs the best available
techniques.
ANNEX E-5: PROHIBITED INVESTMENT ACTIVITIES LIST OF THE DEVELOPMENT
FINANCIAL INSTITUTIONS
The following investment activities do not qualify for financing from DFIs (see
footnote below)1:
(i) production or activities involving harmful or exploitative forms of forced labor 2
or child labor;3
(ii) production of or trade in any product or activity deemed illegal under host
country laws or regulations or international conventions and agreements or
subject to international phaseouts or bans, such as (a) pharmaceuticals,4
pesticides, and herbicides,5 (b) ozone-depleting substances,6 (c)
polychlorinated biphenyls7 and other hazardous chemicals,8 (d) wildlife or
wildlife products regulated under the Convention on International Trade in
Endangered Species of Wild Fauna and Flora,9 and (e) transboundary trade
in waste or waste products;10
(iii) production of or trade in weapons and munitions, including paramilitary
materials;
(iv) production of or trade in alcoholic beverages, excluding beer and wine;11
(v) production of or trade in tobacco;10
(vi) gambling, casinos, and equivalent enterprises;10
(vii) production of or trade in radioactive materials,12 including nuclear reactors
and components thereof;
(viii) production of, trade in, or use of unbonded asbestos fibers;13
(ix) commercial logging operations or the purchase of logging equipment for use
in primary tropical moist forests or old-growth forests; and
(x) marine and coastal fishing practices, such as large-scale pelagic drift net
fishing and fine mesh net fishing, harmful to vulnerable and protected species
in large numbers and damaging to marine biodiversity and habitats.
1
The prohibited investment activities listed here pertains to Asian Development Bank. Other DFIs may have
there own list.
2
Forced labor means all work or services not voluntarily performed, that is, extracted from individuals under
threat of force or penalty.
3
Child labor means the employment of children whose age is below the host country’s statutory minimum age of
employment or employment of children in contravention of International Labor Organization Convention No.
138 “Minimum Age Convention” (www.ilo.org).
4
A list of pharmaceutical products subject to phaseouts or bans is available at http://www.who.int.
5
A list of pesticides and herbicides subject to phaseouts or bans is available at http://www.pic.int.
6
A list of the chemical compounds that react with and deplete stratospheric ozone resulting in the widely
publicized ozone holes is listed in the Montreal Protocol, together with target reduction and phaseout dates.
Information is available at http://www.unep.org/ozone/montreal.shtml.
7
A group of highly toxic chemicals, polychlorinated biphenyls are likely to be found in oil-filled electrical
transformers, capacitors, and switchgear dating from 1950 to 1985.
8
A list of hazardous chemicals is available at http://www.pic.int.
9
A list is available at http://www.cites.org.
10
As defined by the Basel Convention; see http://www.basel.int.
11
This does not apply to investee companies who are not substantially involved in these activities. Not
substantially involved means that the activity concerned is ancillary to a investee company’s primary
operations.
12
This does not apply to the purchase of medical equipment, quality control (measurement) equipment, and any
equipment for which ADB considers the radioactive source to be trivial and adequately shielded.
13
This does not apply to the purchase and use of bonded asbestos cement sheeting where the asbestos content
is less than 20%.
ANNEX E-6: CHECKLISTS OF ENVIRONMENT SAFEGUARDS DOCUMENTS THAT
SHOULD BE SUBMITTED BY LEAD BANKS/SUBBORROWERS (SPECIAL PURPOSE
VEHICLES) TO IIFCL FOR LOAN APPLICATION
I. Key Approvals/Consents
(i) Letter of Application made, Status and Approval letter (attached with
applicable conditions) from the Ministry of Environment and Forests
(MOEF)/State Department of Environment for Environmental Clearance.
(ii) Letter of Application made, Status and Approval letter (attached with
applicable conditions) from the Ministry of Environment and Forests
(MOEF)/State Department of Environment/State Coastal Regulation Zone
Authority for Clearance on Coastal Regulation Zone (CRZ).
(iii) Letter of Application made, Status and Approval letter (attached with
applicable conditions) from the Ministry of Environment and Forests
(MOEF)/State Department of Forests for Forest Clearance.
(iv) Letter of Application made. Status and Approval letter (attached with
applicable conditions) for Consent to Establish (CFE) and Consent to Operate
from concerned State/UT Pollution Control Board(s).
II. Key Documentation
(i) EIA report with Executive Summary, Environmental Management Plan,
Disaster Management Plan, with statement of budgets that have been
estimated and committed.
(ii) Record of Public Hearing (actual conduct as well as written comments
received) with a statement that summarizes suggestions incorporated in the
Environmental Management Plan (EMP) as a result of public hearing.
(iii) For projects already under implementation, Status on implementation of EMP,
budget spent out of allocated, institutional arrangements for monitoring and
review, records on environmental monitoring.
(iv) Enviro-legal statement on the project that states whether the project is under
any legal proceedings e.g. by State/Central Government or suffering from
Public Interest Litigation (PIL).
ANNEX E-7: SUMMARY OF KEY ENVIRONMENTAL AND SOCIAL LEGISLATIONS IN
INDIA
OPERATIONAL AGENCIES/KEY
NAME SCOPE AND OBJECTIVE PLAYERS
1. Water To provide for the prevention and control Central and State Pollution Control
(Prevention and of water pollution and enhancing the Boards
Control of quality of water
Pollution) Act,
1974, amended,
1988
2. Air (Prevention To provide for prevention, control and Central and State Pollution Control
and Control of abatement of air pollution Boards
Pollution) Act,
1981, amended,
1987
3. Indian Forest To consolidate acquisition of common State Government, Forest
Act, 1927 property such as forests Settlement Officers
4. Forest To halt India's rapid deforestation and Central Government
Conservation resulting environmental degradation
Act, 1980,
amended, 1988
5. Wildlife To protect wildlife Wildlife Advisory Boards, Central
Protection Act, Zoo Authorities
1972, amended,
1993
6. Environment To provide for the protection and Central Government, nodal agency
(Protection) Act, improvement of the environment under MoEF, can delegate powers, State
1986, amended, an umbrella legislation Departments of Environment
1991
7. Land Acquisition To set out rules for the acquisition of land Ministry of Rural Development
Act, 1894, by the Government (Department of Land Resources)
amended 1985
8. National To provide guidelines and for planning Ministry of Rural Development
Rehabilitation and implementation for the R&R (Department of Land Resources)
and component of the project
Resettlement
Policy (NRRP),
2007
9. Various To provide for planning the development Directorate of Town Panchayats
1
Panchayat Acts at district level and the roles and
responsibilities of Panchayats for
planning and implementing the project.
10. Various Labour law defines the rights and Central and State Governments
Labour Laws in obligations as workers, union members
India and employers in the workplace
1
For a State-wise Profile on Panchayats, refer to http://www.iespanchayat.net.in/database-panchayat-profile.htm
ANNEX E-8: ENVIRONMENTAL RULES AND NOTIFICATIONS
RELEVANT TO INFRASTRUCTURE PROJECTS1
1. The Central and State Governments have the authority to regulate any operation
relevant to infrastructure projects that are not in keeping with the following rules.
2. The Environment (Protection) Act, 1986, amended 1991. This Act is an umbrella
legislation providing a single focus in the country for the protection of environment and seeks
to plug the loopholes of earlier legislation relating to environment. Several sets of Rules
relating to various aspects of management of hazardous chemicals, wastes, micro-
organisms etc. have been notified under this Act. Some important points of this Act are
(i) The Central Government may also put restrictions on an area in which any
industry, operation or process or class of industries or operations shall not be
carried out. If they are to be carried out, they may be permitted with certain
safeguards.
(ii) Emissions and effluent standards with respect to 60-odd categories of
industries have been evolved and notified so far
(iii) The standards with respect to pollutants are to be achieved within a period of
one year from the date of their notification, especially by those industries
identified as highly polluting.
(iv) However, if a particular State Pollution Control Board (SPCB) / Union
Territory Pollution Control Committee (UTPCC)2 may so desire, it may reduce
the time limit and also specify more stringent standards with respect to a
specified category of industries within their jurisdiction. The SPCB however
cannot relax either the time limit or the standards.
(v) Those industries that require consent under the Water Act, Air Act or both, or
authorisation under the Hazardous Waste (Management and Handling)
Rules, 1989, are required to submit an environmental audit report to the
concerned SPCB/PCC on or before 30th September every year.
3. The Water (Prevention and Control of Pollution) Act, 1974, amended 1988. The
main provisions of this Act aim at prevention and control of water pollution as well as
restoration of water quality, through the establishment of SPCB. Some salient features of
this Act
(i) No persons shall knowingly cause or permit any poisonous, noxious or
polluting matter determined in accordance with such standards as may be laid
down by the SPCB to enter (whether directly or indirectly) into any stream or
well or sewer or on land
(ii) No person shall knowingly cause or permit to enter into any stream any other
matter which may tend, either directly or in combination with similar matters,
to impede the proper flow of the water of the stream in a matter leading or
likely to lead to a substantial aggravation of pollution due to other causes or of
its consequences
(iii) No person shall, without the previous consent of the SPCB:
(a) Establish or take any steps to establish any industry, operation or
process, or any treatment and disposal system or an extension or
addition thereto which is likely to discharge sewage or trade effluent
into a stream or well or sewer or on land (such discharge being
1
Adapted from: (1) Legislations on Environment, Forests, and Wildlife [Updated on 27/11/2006] at
http://envfor.nic.in/legis/legis.html#K (2) Environmental Procedures: Guidelines and Clearances . Available
at www.tidco.com/tn_policies/SIPB/enviro_clear.PDF
2
Hereafter referred to as “SPCB” only.
hereafter in this section referred to as discharge of sewage) or
(b) Bring into use any new or altered outlets for the discharge of sewage
or
(c) Begin to make any new discharge of sewage
4. An investor intending to set up an industry is required to apply in the prescribed form
to the SPCB concerned to obtain the consent to establish as well as the consent to operate
the industry after establishment. While granting the consent, the SPCB also stipulates
specific conditions relating to the temperature, volume, composition, rate and point of
discharge of emissions, effluents etc. The consent to operate an industry is granted for a
specific period after which the conditions stipulated at the time of granting consent are
reviewed by the SPCB. Even before the expiry of the consent period, the SPCB is
authorized to carry out random checks on any industry to check if the standards prescribed
are being complied with by the industry; in case the standards are not being met, the SPCB
is authorized to serve a notice to the concerned person.
5. The owner of a defaulting industry may be required to construct a sewage/effluent
treatment system. In the event of non-compliance of the standards, the SPCB may issue
directions for disconnecting electricity and water supply or any other services to the industry,
in extreme cases even to close down the unit.
6. Stringent penalties are prescribed in this Act for those who operate their industry
without the valid consent or in violation of consent conditions. Any person aggrieved by an
order of the SPCB in the above context may appeal to the Appellate Authority constituted by
the concerned State Government. As per the provisions under the Water Act and the Air Act,
all State Governments, are required to constitute Appellate Authorities for addressing the
appeals received against SPCB. While some State Governments have separate Appellate
Authorities under the two Acts, a single Appellate Authority may also exist in other states.
7. The Air (Prevention and Control of Pollution) Act, 1981, amended 1987. The
objective of the Air Act is to prevent, control and reduce air pollution including noise pollution
and to establish Boards at the States/UTs for this. Under the provisions of this Act, no
person shall establish or operate any industrial plant without the consent of the SPCB. For
obtaining consent to establish an industry, the investor has to apply to the SPCB in the
prescribed form accompanied by the prescribed fees. The Board is required to grant consent
within 4 months of receipt of the application. The consent would contain conditions relating
to specifications of pollution control equipment to be installed.
8. The other Provisions of the Act are similar to those of the Water Act, 1974.
9. The Public Liability Insurance Act, 1991, amended in 1992. This Act imposes on
the owner the liability to provide immediate relief with respect to death or injury to any person
or damage to any property resulting from an accident while handling any of the notified
hazardous chemicals. This relief has to be provided on `on fault' basis. To be able to meet
this liability, the owner handling hazardous chemicals has to take an insurance policy of an
amount equal to it's `paid up capital' or up to Rs.500 million, whichever is less. The policy
has to be renewed every year. New undertakings will have to take this policy before starting
their activity. For existing plants the policy was to be taken within one year of the Act coming
into force i.e. up to 31st March, 1992. The owner also has to pay an amount equal to its
annual premium to the Central Government's Environment Relief Fund (ERF). The
reimbursement of relief to the extent of Rs25,000 per person is admissible in case of fatal
accidents in addition to the reimbursement of medical expenses up to Rs12,500. The liability
of the insurer is limited to Rs50 million per accident up to Rs150 million per year or up to the
tenure of the policy. Any claims in excess of this liability will be paid from the ERF. In case
the award still exceeds, the remaining amount shall have to be met by the owner. The
payment under the Act is only for the immediate relief; owners shall have to provide the final
compensation, if any, arising out of legal proceedings.
10. The Environmental Impact Assessment Notification, 2006 and further
amendments in January 2009, December 2009, April 2011, January 2012. This
notification lays down specific project categories that require environmental clearance from
the from the Central Government or as the case may be, by the State Level Environment
Impact Assessment Authority, duly constituted by the Central Government, prior to
establishing an industrial unit (see “Specified Requirements for Environmental Clearance as
listed in the Environment Impact Assessment Notification, 2006, MoEF” in this document). It
also addresses the composition of Screening, Scoping and Appraisal Committees, stages
prior to environmental clearance, including public consultation and post-environmental
clearance monitoring as well as transferability of environmental clearance.
11. Forest Conservation Act, 1980 amended in 1988 was enacted to help conserve the
country's forests. It strictly restricts and regulates the de-reservation of forests or use of
forest land for non-forest purposes without the prior approval of Central Government. To this
end, the Act lays down the pre-requisites for the diversion of forest land for non-forest
purposes.
12. Forest Conservation Act, 1980 amended in 1988 was enacted to help conserve the
country's forests. It strictly restricts and regulates the de-reservation of forests or use of
forest land for non-forest purposes without the prior approval of Central Government. To this
end, the Act lays down the pre-requisites for the diversion of forest land for non-forest
purposes.
13. Forest Conservation Act, 1980 amended in 1988 was enacted to help conserve the
country's forests. It strictly restricts and regulates the de-reservation of forests or use of
forest land for non-forest purposes without the prior approval of Central Government. To this
end, the Act lays down the pre-requisites for the diversion of forest land for non-forest
purposes.
14. Environment (Siting for Industrial Projects) Rules, 1999. These are the various
environmental guidelines mandated by the MoEF for siting of industries. Topics addressed
include (i) prohibition for setting up of certain industries, (ii) establishment of new units with
certain conditions, (iii) restrictions on the units in Taj Trapezium and (iv) establishment of
new units around archaeological monuments.
15. Notifications concerning Ecosensitive Zones. The MoEF has prohibited and/or
restricted specified industrial activities in certain areas of the country. These zones are also
called ecosensitive zones and are listed below:
(i) Matheran and surrounding region
(ii) Mahabaleswar Panchgani region
(iii) Pachmarhi region
(iv) Taj Trapezium Zone
(v) Dahanu Taluka, District Thane, Maharashtra
(vi) Numaligarh, East of Kaziranga
(vii) Aravalli Range
(viii) Doon Valley (Uttar Pradesh)
(ix) Murud-Janjira, Raigadh District, Maharashtra
(x) Kalesar National Park,Yamunanagar district, Haryana
(xi) Kalesar Wildlife Sanctuary, Yamunanagar district, Haryana
(xii) Khol hi Raitan Wildlife Sanctuary,Panchkula District, Haryana
(xiii) Bir Shikargarh Wildlife Sanctuary, Panchkula District, Haryana
(xiv) Nahar Wildlife Sanctuary, Rewari District, Haryana
(xv) Chhilchhila Wildlife Sanctuary, Kurukshetra District, Haryana
(xvi) Abubsaher Wildlife Sanctuary, Sirsa District, Haryana
(xvii) Bhindawas Wildlife Sanctuary, Jhajjar District, Haryana
(xviii) Khaparwas Wildlife Sanctuary, Jhajjar District, Haryana
(xix) Mount Abu, Sirohi District, Rajasthan
(xx) Sultanpur National Park, Gurgaon District, Haryana
16. Notifications concerning Coastal Regulation Zones,2011. The notifications aim at
regulating activities in the CRZs. the Central Government, with a view to ensure livelihood
security to the fisher communities and other local communities, living in the coastal areas, to
conserve and protect coastal stretches, its unique environment and its marine area and to
promote development through sustainable manner based on scientific principles taking into
account the dangers of natural hazards in the coastal areas, sea level rise due to global
warming, does hereby, declare the coastal stretches of the country and the water area upto
its territorial water limit, excluding the islands of Andaman and Nicobar and Lakshadweep
and the marine areas surrounding these islands upto its territorial limit, as Coastal
Regulation Zone (hereinafter referred to as the CRZ) and restricts the setting up and
expansion of any industry, operations or processes and manufacture or handling or storage
or disposal of hazardous substances as specified in the Hazardous Substances (Handling,
Management and Transboundary Movement) Rules, 2009 in the aforesaid CRZ.
17. Noise Pollution (Control and Regulation) Rules, 2000, latest amended 2010. As
per these rules, the noise levels in any area/zone shall not exceed the ambient air quality
standards with respect to noise as specified in the Schedule.
18. The Environmental Audit Notification, 1992. This notification directs that an
environmental audit report be submitted yearly to the Pollution Control Board in cases where
consent is required under the Water/Air Act or authorisation under the Hazardous Wastes
(Management and Handling) rules. The notification requires that an Environmental
Statement for the financial year ending the 31st March be submitted to the concerned State
Pollution Control Board, on or before the 30th September of the same year.
19. Manufacture, Use, Import, Export and Storage of Hazardous Micro-Organisms
and Genetically Engineered Organism or Cell Rules, 1989, latest amended 2007. The
Department of Bio-Technology under the Ministry of Science and Technology is the nodal
agency for granting licences for manufacture, import and export of micro-organisms and
genetically engineered organisms. However, such licences are issued only after the proposal
is cleared from the environmental angle by the Ministry of Environment and Forests. For
according such clearances, the Ministry has notified the `Rules for the Manufacture, Use,
Import, Export and Storage of Hazardous Micro-organisms and Genetically Engineered
Organisms or Cells' in 1989 under the EPA, 1986.
20. The investor is required to submit an application in the prescribed proforma to the
Ministry of Environment and Forests. The Genetic Engineering Approval Committee (GEAC)
constituted by the MoEF examines the application form and makes recommendations.
21. All industries involving hazardous micro-organisms or genetically engineered
organisms, are required to constitute an Institutional Bio-Safety Committee (IBSC) to
oversee the planning and execution of various operations in a safe manner and to prepare
an on-site emergency plan to deal with any accident which may occur due to a hazardous
micro-organism.
22. These rules will apply to infrastructure projects such as those requiring
bioremediation of contaminated sites.
23. The Hazardous Wastes (Management , Handling and Transboundary
Movement) Rules, 2008 Notification, amended 2009. These rules lay down the
responsibility of the ‘occupier’ of the infrastructure project for the handling of wastes. The
occupier shall take all practical steps to ensure that such wastes are properly handled and
disposed of without any adverse effects which may result from such wastes. The occupier
shall also be responsible for proper collection, reception, treatment, storage and disposal of
these wastes either himself or through the operator of a facility. The rules also specify
criteria for the grant of authorizations for the handling of hazardous wastes, rules to be
followed during the packaging, labelling and transport of hazardous wastes, inventory of
disposal sites, generation and maintenance of records, accident reporting and follow-up.
24. The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989,
amended 2000. These rules apply to an industrial activity in which a hazardous chemical,
which satisfies any of the criteria laid down in the rules, and/or isolated storage in which
there is involved a threshold quantity of a hazardous chemical are involved. The occupier
(who has control of an industrial activity) has to provide evidence to show that he has
identified the major accident hazards and taken adequate steps to prevent such major
accidents and limit their consequences to persons and the environment and provide the
persons working on the site with the information, training and equipment including antidotes
necessary to ensure their safely. These rules also lay down the criteria for the notification of
major accidents, notification of sites and the updating the site notification following changes
in the threshold quantity, safety reports, and preparation of on-site and off-site emergency
plans by the occupier, as well as information disclosure.
25. The Biomedical Waste (Management and Handling) Rules, 1998, amended
2003. These rules apply to all projects which generate, collect, receive, store, transport,
treat, dispose, or handle bio medical waste in any form. They deal with the various
categories of biomedical waste, segregation, packaging, transportation, storage and disposal
of such waste.
26. Chemical Accidents (Emergency Planning, Preparedness and Response)
Rules, 1996. These rules concern chemical accidents - any accident involving a sudden or
unintended occurrence while handling any hazardous chemicals resulting in continuous,
intermittent or repeated exposure to death, or injury to, any person or damage to any
property. Schedules 2 and 3 of the Rules list the threshold quantities and names of the
various chemicals to which they are applicable.
27. The Batteries (Management and Handling) Rules, 2001,amended 2010. These
rules shall apply to every manufacturer, importer, re-conditioner, assembler, dealer, recycler,
auctioneer, consumer and bulk consumer involved in manufacture, processing, sale,
purchase and use of lead acid batteries or components thereof. The rules delineate the
responsibility of the consumer, (the category under which infrastructure project sites using
plants, equipment and vehicles would fall) namely that they must ensure that used batteries
are not disposed of in any manner other than depositing with a dealer, manufacturer,
importer, assembler, registered recycler, reconditioner or at designated collection centres.
ANNEX E-9: ENVIRONMENTAL REGULATIONS AND OBLIGATIONS AND AREAS OF APPLICABILITY AT PROJECT SITES
Areas of
Applicability at
E&S Regulation Project Sites Obligations
The Water (Prevention Wastewater effluent As per Rule/Clause 20(3), provide PCB information sought by it for preventing or controlling
and Control of Pollution) from camp and pollution of water regarding the construction, installation, operation or the treatment and
Act, 1974, amended construction activities disposal systems of the factory (site)
1988
The Water (Prevention As per Rule/Clause 21(1), provide access to the PCB or any officer empowered by it for taking
and Control of Pollution) samples of water or effluents from the factory for analysis
Rules, 1975
As per Rule/Clause 23 (1) (C), allow entry to the PCB or any person empowered by it, at any
time, for the purpose of performing any of the entrusted functions, or for inspecting to ascertain
the provisions of the Act are being complied with, or for seizing any plant records, registers,
documents or any material object, in case there are reasons to believe that provisions of the
Act are being contravened
As per Rule/Clause 24 (1), do not knowingly discharge any effluent into the stream, sewer or
on land, of quality which is not conforming to the standards prescribed by the PCB
As per Rule/Clause 31(1), furnish information to the PCB and other designated agencies, of
any accidental or unforeseen event, in which effluents not conforming to the prescribed
standards are being discharged, or likely to be discharged into a stream or sewer or on land
As per Rule/Clause 33(A), comply with the directions issued in writing by the PCB, within the
specified time, as mentioned in the order. The directions may include, i) the closure, prohibition
or regulation of any industry, operation or process, or ii) the stoppage or regulation of supply of
electricity, water or any other service, and (iii) comply with the conditions as prescribed in the
"Consent to Establish" or "Consent to Operate" for discharge of effluents into a stream or
sewer or on land
As per Rule/Clause 25(1), obtain "Consent to establish" prior to taking any steps to establish
any industry, operation or process or any treatment and disposal system which is likely to
discharge effluents
Areas of
Applicability at
E&S Regulation Project Sites Obligations
As per Rule/Clause 26, (i) obtain "Consent to operate" prior to commencing operations of any
industry, or any treatment and disposal system which is likely to discharge effluents (ii) apply
for renewal of the consent to operate before the expiry of validity period, as specified in the
consent granted earlier, in the prescribed form and along with the prescribed fees
The Water (Prevention Consumption of water As per Section 3(2), 5(1) and Rules 3 & 4, pay water cess, as prescribed within the specified
and Control of Pollution) for camp and time as indicated in the assessment order, if the industry is included in the specified schedule
Cess Act, 1977, construction activities under the Act
amended 1992 and The
Water (Prevention and As per Section 4(1) and Rule 7, affix meters of the prescribed standards for water consumption
Control of Pollution) measurements at places specified by the PCB
Cess Amendment
Act,2003 As per Section 9(a) and Rule 7, provide access to PCB, at all reasonable times, for
The Water (Prevention implementing the provisions of the Act, including testing of the meters for their accuracy
and Control of Pollution)
Cess Rules, 1978 As per Section 10 and Rule 8, pay interest at the prescribed rates, in case of delay in paying
water cess
As per Section 11 and Rule 8, pay penalty for non-payment of cess, within the specified time,
not exceeding the amount of cess, in arrears, after being given a reasonable opportunity of
hearing
As per Section 3(2), 5(1) and Rule 4, (i) submit the "Water Cess Return" in the prescribed form
at specified intervals, to the PCB (ii) submit analytical report of the treated waste sample/s for
the assessment month along with the form of Cess return and claim the rebate of 25%
The Air (Prevention and Plants and equipment Comply with the conditions as prescribed in the "Consent to Establish" or "Consent to Operate"
Control of Pollution) Act, releasing emissions for emissions
1981, amended 1987
The Air (Prevention and As per Rule/Clause 21(1), obtain "Consent to establish" prior to taking any steps to establish
Control of Pollution) any industrial plant in an air pollution control area, which is likely to emit air pollutant(s)
Rules, 1982 As per Rule/Clause 21(1), obtain "Consent to operate" prior to commencing operations of any
The Air (Prevention and industrial plant which is likely to emit air pollutant(s) in an air pollution control area
Areas of
Applicability at
E&S Regulation Project Sites Obligations
Control of Pollution)
(Union Territories) As per Rule/Clause 21(2), apply for renewal of the consent to operate before the expiry of
Rules, 1983 validity period, as specified in the consent granted earlier, in the prescribed form and along
with the prescribed fees
As per Rule/Clause 21(5), comply with the conditions under this clause
As per Rule/Clause 22, no person operating any industrial plant, in any air pollution control
area shall discharge or cause or permit to be discharged the emission of any air pollutant in
excess of the standards laid down by the State Board under clause (g) of sub-section (1) of
section 17
As per Rule/Clause 23(1), furnish information to the PCB and other designated agencies, of
any accidental or unforeseen act or event in which emissions of air pollutant(s) occurred in
excess of the prescribed standards or are likely to occur
As per Rule/Clause 24(2), provide all facilities required by the PCB official for the purpose of
sampling
As per Rule/Clause 25, (i) allow entry to the PCB or any official empowered by it to the
industrial established, at all reasonable times, for the purposes of carrying out any of the
entrusted functions or for inspecting to ascertain that provisions of the Act are being complied
with or for seizing any equipment, plant, records, registers, documents or any other material
object if there are reasons to believe that provisions of the act are being contravened (ii) do not
discharge air pollutant (s) in excess of the standards prescribed standards by the PCB (iii)
provide the PCB any information to enable it to implement the provisions of the Act
The Environment Activities involving As per Section 7, Rule 3, prevent discharges or emissions of environmental pollutants in
(Protection) Act, 1986, raw material excess of the prescribed standards
amended 1991 consumption,
The Environment pollution discharge, As per Rule/Clause 8, handle hazardous substances in accordance with the procedures and
(Protection) Rules, 1986, and hazardous waste safeguards as prescribed by the respective authorities
various amendments and solid waste
Areas of
Applicability at
E&S Regulation Project Sites Obligations
generation As per Rule/Clause 9, furnish information to the prescribed agencies of any accidental or
unforeseen event in which environmental pollutant(s) not conforming to the prescribed
standards are being discharged, or are likely to be discharged, into the environment
As per Rule/Clause 10, allow entry and inspection by any person empowered by the Central
Government into the industrial establishment at all reasonable times, for the purpose of
performing any of the functions entrusted, or to ascertain compliance with the provisions of the
Act or for seizing of any equipment, plant registers, records or documents in case there are
reasons to believe that any provision of the Act is being contravened
As per Rule/Clause 10(2),11, allow Central Government or any official empowered by it, to
take samples of air, water, soil or any other substance from the industry for analysis
As per Rule/Clause 12, furnish of information to authorities and agencies in certain cases
As per Rule/Clause 14, (i) submit an " Environmental Statement" every year, before 30th
September, to the PCB, in case consent is required under the Water/Air Act or authorisation
under the Hazardous Wastes (Management and Handling) rules or both (ii) obtain prior
"Environmental Clearance from MoEF, in case of a new project or for modernisation/expansion
of the existing project, if it falls under the specified schedule, subject to certain conditions
The Environmental Audit
Notification, 1992
The Environmental
Standards Notification,
1993
Manufacture, Use, Activities involving
Import, Export and on-site
Storage of Hazardous bioremediation
Micro-Organisms and
Genetically Engineered
Organism or Cell Rules,
1989,latest amended
Areas of
Applicability at
E&S Regulation Project Sites Obligations
2007
The Public Liability Accidents on-site As per Rule/Clause 3(1), to provide relief, as specified, in case of death, or injury to any person
Insurance Act, (other than workman), or damage to property from an accident occurring while handling
1991,amended 1992 specified hazardous substances, on the principle of no fault
The Public Liability
Insurance Rules, As per Rule/Clause 4(2/2A), to draw insurance policies more than the paid-up capital of the
1991,amended 1993 undertaking, but less than Rs. 50 crores, before handling any hazardous substances
As per Rule/Clause 4(2C), pay additional amounts, as prescribed, to the insurer not exceeding
the amount of premium, as contribution to the Environmental Relief Fund to be established
under the Act
As per Rule/Clause 9, provide any information required by the Central Government or
agencies authorised by it, for ascertaining compliance with the provisions of the Act
As per Rule/Clause 10, allow entry and inspection of any person empowered by the Central
Government to the place where the industrial activity involving hazardous chemicals is being
carried out at all reasonable times, to ascertain compliance with the provisions of the Act
As per Rule/Clause 7, pay the amount of an award as specified by the collector in the
prescribed manner
As per Rule/Clause 7 (3) (C), within such period, deposit such amount in such manner as the
Collector may direct
As per Rule/Clause 7 (6), The owner against whom the award is made under sub-section (I)
fails to deposit the amount of such award within the period specified under sub-section (3),
such amount shall be recoverable from the owner, or as the case may be, the insurer as
arrears of land revenue or of public demand
As per Rule/Clause (12), comply with the directions issued in writing by the Central
Government, within the specified time, as mentioned in the order. The directions may include
Areas of
Applicability at
E&S Regulation Project Sites Obligations
a) Prohibition or regulation of handling of any hazardous substances, or b)Stoppage or
regulation of the supply of electricity, water or any other service
Gas Cylinder Rules,
1981,amended 2004
The National
Environmental Tribunal
Act, 1995
The Manufacture, Handling of hazardous As per Rule/Clause 4(2), identify major accident hazards related with industrial activity
Storage and Import of chemicals in involving hazardous chemicals, provide relevant information to persons liable to be affected by
Hazardous Chemicals construction activities a major accident, develop information in the form of a safety data sheet, label the specified
Rules, 1989, amended information on every container of hazardous chemical and follow specified procedures for
2000 importing hazardous chemicals
As per Rule/Clause 5, Occupier to furnish information required to notify the concerned
authorities of a major accident
As per Rule/Clause 7(1), furnish information regarding "Notification of sites" for industrial
activity involving hazardous chemicals to the concerned authority in the prescribed form at
least 3 months before commencing activity
As per Rule/Clause 10(1), submit "Safety Report" containing the prescribed information to the
concerned authority at least 3 months before making any modifications in compliance to
Schedule 8 of the Rules
As per Rule/Clause 11(1), send further information within the specified time, as mentioned in
the notice, if so desired, by the concerned authority relating to the "Safety Report"
As per Rule/Clause 13, prepare up-to-date on-site emergency plans, before commencing an
industrial activity involving hazardous chemicals
As per Rule/Clause 18(2), provide information on the intention of import of the hazardous
chemical to the respective authorities under Schedule 5 of the Rules
Areas of
Applicability at
E&S Regulation Project Sites Obligations
As per Rule/Clause 18(5), maintain records of imports of hazardous chemicals in the
prescribed form (Schedule 10)
As per Rule/Clause 18(6), carry out an independent safety audit with the help of an expert, not
associated with such industrial activities & forward a copy with his comments within 30 days to
that authority
As per Rules 10 to 12, (a) carry out an independent safety audit with the help of an expert, not
associated with such industrial activities & forward a copy with his comments within 30 days to
that authority (b) update safety audit report once a year by conducting a fresh safety audit (c)
conduct mockdrills once in six months and communicate compliance to the respective
authorities provided in Schedule 5 of the Rules (d) assist the District Collector in the
preparation of off-site emergency plans as per serial number 9 of this Schedule 5
The Hazardous Wastes As per Rule/Clause 4(1), ensure proper collection, reception, treatment, storage and disposal
(Management , Handling of hazardous wastes by the owner himself or through an operator of the facility for specified
and Transboundary hazardous wastes
Movement) Rules, 2008
Notification, amended As per Rule/Clause 4A, take adequate steps while handling hazardous waste to contain
2009 contaminants and prevent accidents and limit their consequences on human and the
environment and provide persons working on the site with information, training and equipment
necessary to ensure their safety
As per Rule/Clause 5, comply with the conditions specified in the authorisation granted for
handling of hazardous wastes
As per Rule/Clause 5(2), obtain "grant of authorisation" for handling hazardous wastes from
PCB after payment of fees Rs. 2500/-
As per Rule/Clause 5(6)(ii), apply for renewal of authorisation before expiry of the validity
period as specified in the authorisation granted in the prescribed form
As per Rule/Clause 5(8) (i) and 9 (2), submit annual returns by the Occupier in Form 4
Areas of
Applicability at
E&S Regulation Project Sites Obligations
As per Rule/Clause 5(8) (ii), submit documentary evidence on steps taken, wherever feasible,
for reduction in volume/ concentration of hazardous waste generated or recycled or reused
As per Rule/Clause 5(8) (iii), fulfill conditions prescribed in the authorization regarding
management in an Environmentally Sound Manner (ESM) of Wastes
As per Rule/Clause 7(2),ensure packaging, labelling and transportation of hazardous wastes in
accordance with the provisions of Motor Vehicles Act, 1988
As per Rule/Clause 7(3), all hazardous waste containers should be provided with a general
label as given in Form 8"
As per Rule/Clause 7(5), provide the transporter with six copies of the manifest as per the 7
colour codes of the manifest system
As per Rule/Clause 7(6), obtain NOC from SPCBs of the respective states involved in case of
any inter and intra state transport of hazardous wastes
As per Rule/Clause 7(7), provide the transporter with relevant information in Form 10 regarding
hazardous nature of the wastes and measures to be taken in case of an emergency
As per Rule/Clause 9(1), maintain records of operations generating hazardous waste in Form
3
As per Rule/Clause 10, report to the PCB any accident at site, or during transportation, while
handling hazardous wastes in the prescribed form
As per Rule/Clause 16, the occupier, transporter and operator of a facility shall be (i) liable for
damages caused to the environment resulting due to improper handling and disposal of
hazardous waste listed in schedule 1, 2 and 3 (2) shall be liable to reinstate or restore
damaged or destroyed elements of the environment (iii) shall be liable to pay a fine as levied
by the SPCB with the approval of the CPCB for any violation of the provisions under these
rules
Areas of
Applicability at
E&S Regulation Project Sites Obligations
Chemical Accidents
(Emergency Planning,
Preparedness and
Response) Rules, 1996
The Biomedical Waste On-site / construction As per Rule/Clause (4), ensure that biomedical waste is handled without any
(Management and camp clinics and first- adverse effect to human health and the environment
Handling) Rules, 1998, aid centres
amended 2003 As per Rule/Clause 5(1), dispose of biomedical waste in accordance with Schedule I and
Schedule V
Noise Pollution (Control Plants, equipment and (a) As per Rules/Clause 4(1), ensure that noise levels do not exceed those specified in
and Regulation) Rules, vehicles Schedule (b) follow the conditions stipulated in the letter of Consent by the SPCB (c) Monitor
2000, latest amended limits for day-time and night-time noise [day-time: 75 dB(A) Leq and night-time: 70 75 dB(A)
2010 Leq)]
The Batteries As per Rules/Clause 10(1), the user must ensure that used batteries are not disposed off in
(Management and any manner other than depositing with the dealer, manufacturer, importer, assembler,
Handling) Rules, 2001, registered recycler, reconditioner or at designated collection centres
amended 2010
Motor Vehicle Act, Light and heavy This Act should takes into account changes in the road transport technology, pattern of
1988,various motor vehicles passenger and freight movements, developments, of the road network in the country and
amendments particularly the improved techniques in the motor vehicles management.
ANNEX E-10: PROHIBITED ACTIVITIES IN CRZ
(COASTAL REGULATION ZONE NOTIFICATION, 2011)
(i) Setting up of new industries and expansion of existing industries except,
(a) those directly related to waterfront or directly needing foreshore facilities;
Explanation: The expression “foreshore facilities” means those activities
permissible under this notification and they require waterfront for their
operations such as ports and harbours, jetties, quays, wharves, erosion
control measures, breakwaters, pipelines, lighthouses, navigational safety
facilities, coastal police stations and the like.;
(b) projects of Department of Atomic Energy;
(c) facilities for generating power by non-conventional energy sources and
setting up of desalination plants in the areas not classified as CRZ-I(i) based
on an impact assessment study including social impacts;
(d) development of green field Airport already permitted only at Navi Mumbai;
and
(e) reconstruction, repair works of dwelling units of local communities including
fishers in accordance with local town and country planning regulations.
(ii) Manufacture or handling oil storage or disposal of hazardous substance as specified
in the notification of Ministry of Environment and Forests, No. S.O.594 (E), dated the
28th July 1989, S.O.No.966(E), dated the 27th November, 1989 and GSR 1037 (E),
dated the 5th December, 1989 except,
(a) transfer of hazardous substances from ships to ports, terminals and refineries
and vice versa; and
(b) facilities for receipt and storage of petroleum products and liquefied natural
gas as specified in Annexure-II appended to this notification and facilities for
regasification of Liquefied Natural Gas (hereinafter referred to as the LNG) in
the areas not classified as CRZ- I(i) subject to implementation of safety
regulations including guidelines issued by the Oil Industry Safety Directorate
in the Ministry of Petroleum and Natural Gas and guidelines issued by MoEF
and subject to further terms and conditions for implementation of ameliorative
and restorative measures in relation to environment as may be stipulated by
in MoEF. Provided that facilities for receipt and storage of fertilizers and raw
materials required for manufacture of fertilizers like ammonia, phosphoric
acid, sulphur, sulphuric acid, nitric acid and the like, shall be permitted within
the said zone in the areas not classified as CRZ-I(i).
(iii) Setting up and expansion of fish processing units including warehousing except
hatchery and natural fish drying in permitted areas:
(iv) Land reclamation, bunding or disturbing the natural course of seawater except those,
(a) required for setting up, construction or modernisation or expansion of
foreshore facilities like ports, harbours, jetties, wharves, quays, slipways,
bridges, sealink, road on stilts, and such as meant for defence and security
purpose and for other facilities that are essential for activities permissible
under the notification;
(b) measures for control of erosion, based on scientific including Environmental
Impact Assessment (hereinafter referred to as the EIA) studies;
(c) maintenance or clearing of waterways, channels and ports, based on EIA
studies; and
(d) measures to prevent sand bars, installation of tidal regulators, laying of storm
water drains or for structures for prevention of salinity ingress and freshwater
recharge based on carried out by any agency to be specified by MoEF.
(v) Setting up and expansion of units or mechanism for disposal of wastes and effluents
except facilities required for,
(a) discharging treated effluents into the water course with approval under the
Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974);
(b) storm water drains and ancillary structures for pumping; and
(c) treatment of waste and effluents arising from hotels, beach resorts and
human settlements located in CRZ areas other than CRZ-I and disposal of
treated wastes and effluents
(vi) Discharge of untreated waste and effluents from industries, cities or towns and other
human settlements. The concerned authorities shall implement schemes for phasing
out existing discharge of this nature, if any, within a time period not exceeding 2
years from the date of issue of this notification.
(vii) Dumping of city or town wastes including construction debris, industrial solid wastes,
fly ash for the purpose of land filling and the like and the concerned authority shall
implement schemes for phasing out any existing practice, if any, shall be phased out
within a period of one year from date of commencement of this notification.
Note: The MoEF will issue a separate instruction to the State Governments and Union
territory Administration in respect of preparation of Action Plans and their implementation as
also monitoring including the time schedule thereof, in respect of paras (v), (vi) and (vii).
(viii) Port and harbour projects in high eroding stretches of the coast, except those
projects classified as strategic and defence related in terms of EIA notification, 2006
identified by MoEF based on scientific studies and in consultation with the State
Government or the Union territory Administration.
(ix) Reclamation for commercial purposes such as shopping and housing complexes,
hotels and entertainment activities.
(x) Mining of sand, rocks and other sub-strata materials except,
(a) those rare minerals not available outside the CRZ area, and
(b) exploration and exploitation of oil and natural gas.
(xi) Drawl of groundwater and construction related thereto, within 200mts of HTL; except
the following:
(a) in the areas which are inhabited by the local communities and only for their
use, and
(b) in the area between 200mts-500mts zone t h e d r awl o f g roundwater shall
be permitted only when done manually through ordinary wells for drinking,
horticulture, agriculture and fisheries and where no other source of water is
available.
Note: Restrictions for such drawl may be imposed by the Authority designated by the State
Government and Union territory Administration in the areas affected by sea water intrusion.
(xi) Construction activities in CRZ-I except those specified in para 8 of this notification.
(xiii) Dressing or altering the sand dunes, hills, natural features including landscape
changes for beautification, recreation and other such purpose.
(xiv) Facilities required for patrolling and vigilance activities of marine/coastal police
stations.
ANNEX E-11: ENVIRONMENTAL IMPACT ASSESSMENT/SOCIAL IMPACT ASSESSMENT
REVIEW CHECKLIST
1. The checklist is organized in seven sections:
(i) Description of the project
(ii) Alternatives
(iii) Description of the environment likely to be affected by the project
(iv) Description of the likely significant effects of the project
(v) Description of mitigating measures
(vi) Non-technical summary
(vii) Quality of presentation
2. Within each section there are numbered review questions. For some questions notes are
provided to assist the reviewer.
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
SECTION 1: DESCRIPTION OF THE PROJECT
Objectives and physical characteristics of the project
1.1 Are the need for and objectives of the
project explained?
1.2 Is the programme for implementation of the
project described, detailing the estimated
length of time and start and finish dates for
construction, operation and
decommissioning? (this should include any
phases of different activity within the main
phases of the project, for example
extraction phases for mining operations)
1.3 Are all the main components of the project
described (see the Checklist of project
Activities in Procedure for Scoping)
1.4 Is the location of each project component
identified, using maps, plans and diagrams
as necessary?
1.5 Is the layout of the site (or sites) occupied
by the project described? (including ground
levels, buildings, other physical structures,
underground works, coastal works, storage
facilities, water features, planting, access
corridors, boundaries)
1.6 For linear projects, are the route corridor,
the vertical and horizontal alignment and
any tunneling and earthworks described?
1.7 Are the activities involved in construction of
the project all described?
1.8 Are the activities involved in operation of
the project all described?
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
1.9 Are the activities involved in
decommissioning the project all described?
(e.g. closure, dismantling, demolition,
clearance, site restoration, site re-use etc.)
1.10 Are any additional services required for the
project all described? (e.g. transport
access, water, sewerage, waste disposal,
electricity, telecoms) or developments (e.g.
roads, harbours, powerlines, pipelines)
1.11 Are any developments likely to occur as a
consequence of the project identified? (e.g.
new housing, roads, water or sewerage
infrastructure, aggregate extraction)
1.12 Are any existing activities which will alter or
cease as a consequence of the project
identified?
1.13 Are any other existing or planned
developments with which the project could
have cumulative effects identified?
Size of the project
1.14 Is the area of land occupied by each of the
permanent project components quantified
and shown on a scaled map? (including any
associated access arrangements,
landscaping and ancillary facilities)
1.15 Is the area of land required temporarily for
construction quantified and mapped?
1.16 Is the reinstatement and after use of land
occupied temporarily for operation of the
project described? (e.g. land used for
mining or quarrying)
1.17 Is the size of any structures or other works
developed as part of the project identified?
(e.g. the floor area and height of buildings,
the size of excavations, the area or height
of planting, the height of
structures such as embankments, bridges
of chimneys, the flow or depth of water)
1.18 Is the form and appearance of any
structures or other works developed as part
of the project described? (e.g. the type,
finish and colour of materials, architectural
design of buildings and structures, plant
species, ground surfaces, etc.)
1.19 For urban or similar development projects,
are the numbers and other characteristics
of new populations or business
communities described?
1.20 For projects involving the displacement of
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
people or businesses, are the numbers and
other characteristics of those displaced
described?
1.21 For new transport infrastructure or projects
generating substantial traffic flows, is the
type, volume, temporal pattern and
geographical distribution of new traffic
generated or diverted as a consequence of
the project described?
Production processes and resources used
1.22 Are all the processes involved in operating
the project described? (e.g. manufacturing
or engineering processes, primary raw
material production, agricultural or forestry
production methods, extraction processes)
1.23 Are the types and quantities of outputs
produced by the project described? (these
could be primary or manufactured products,
goods such as power
or water or services such as homes,
transport, retailing, recreation, education,
municipal services (water, waste, etc.)
1.24 Are the types and quantities of raw
materials and energy needed for
construction and operation discussed?
1.25 Are the E&S implications of the sourcing of
raw materials discussed?
1.26 Is efficiency in use of energy and raw
materials discussed?
1.27 Are any hazardous materials used, stored,
handled or produced by the project
identified and quantified?
· During construction
· During operation
· During decommissioning
1.28 Are the transport of raw materials to the
project and the number of traffic
movements involved discussed? (including
road, rail and sea
transport)
· During construction
· During operation
· During decommissioning
1.29 Is employment created or lost as a result of
the project discussed?
· During construction
· During operation
· During decommissioning
1.30 Are the access arrangements and the
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
number of traffic movements involved in
bringing workers and visitors to the project
estimated?
· During construction
· During operation
· During decommissioning
1.31 Is the housing and provision of services for
any temporary or permanent employees for
the project discussed? (relevant for projects
requiring migration of a substantial new
workforce into the area for either
construction or the long term)
Residues and emissions
1.32 Are the types and quantities of solid waste
generated by the project identified?
(including construction or demolition
wastes, surplus spoil, process wastes, by-
products, surplus or reject products,
hazardous wastes, household or
commercial wastes, agricultural or forestry
wastes, site clean-up wastes, mining
wastes,
decommissioning wastes)
· During construction
· During operation
· During decommissioning
1.33 Are the composition and toxicity or other
hazards of all solid wastes produced by the
project discussed?
1.34 Are the methods for collecting, storing,
treating, transporting and finally disposing
of these solid wastes described?
1.35 Are the locations for final disposal of all
solid wastes discussed?
1.36 Are the types and quantities of liquid
effluents generated by the project
identified? (including site drainage and run-
off, process wastes, cooling water, treated
effluents, sewage)
· During construction
· During operation
· During decommissioning
1.37 Are the composition and toxicity or other
hazards of all liquid effluents produced by
the project discussed?
1.38 Are the methods for collecting, storing,
treating, transporting and finally disposing
of these liquid effluents described?
1.39 Are the locations for final disposal of all
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
liquid effluents discussed?
1.40 Are the types and quantities of gaseous and
particulate emissions generated by the
project identified? (including process
emissions, fugitive emissions, emissions
from combustion of fossil fuels in stationary
and mobile plant, emissions from traffic,
dust from materials handling, odours)
· During construction
· During operation
· During decommissioning
1.41 Are the composition and toxicity or other
hazards of all emissions to air produce by
the project discussed?
1.42 Are the methods for collecting, treating and
finally discharging these emissions to air
described?
1.43 Are the locations for discharge of all
emissions to air identified and the
characteristics of the discharges identified?
(e.g. height of stack, velocity and
temperature of release)
1.44 Is the potential for resource recovery from
wastes and residues discussed? (including
re-use, recycling or energy recovery from
solid waste and liquid
effluents)
1.45 Are any sources of noise, heat, light or
electromagnetic radiation from the project
identified and quantified? (including
equipment, processes, construction works,
traffic, lighting, etc.)
1.46 Are the methods for estimating the
quantities and composition of all residues
and emissions identified and any difficulties
discussed?
1.47 Is the uncertainty attached to estimates of
residues and emissions discussed?
Risks of accidents and hazards
1.48 Are any risks associated with the project
discussed?
· Risks from handling of hazardous
materials
· Risks from spills fire, explosion
· Risks of traffic accidents
· Risks from breakdown or failure of
processes or facilities
· Risks from exposure of the project to
natural disasters (earthquake, flood,
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
landslip, etc.)
1.49 Are measures to prevent and respond to
accidents and abnormal events described?
(preventive measures, training, contingency
plans, emergency plans, etc.)
Any other questions on project description
SECTION 2: CONSIDERATION OF ALTERNATIVES
2.1 Is the process by which the
project was
developed described and are alternatives
considered during this process described?
(See guidance on types of alternatives
which may be relevant in Procedure for
Scoping)
2.2 Is the baseline situation in the ‘No project’
situation described?
2.3 Are the alternatives realistic and genuine
alternatives to the project?
2.4 Are the main reasons for choice of the
proposed project explained, including any
E&S reasons for the choice?
2.5 Are the main E&S effects of the alternatives
compared with those of the proposed
project?
Any other questions on consideration of alternatives
SECTION 3: DESCRIPTION OF ENVIRONMENT AND PEOPLE LIKELY TO BE AFFECTED BY
THE PROJECT
Aspects of the environment
3.1 Are the existing land uses of the land to be
occupied by the project and the surrounding
area described and are any people living on
or using the land identified? (including
residential, commercial, industrial,
agricultural, recreational and amenity land
uses and any buildings, structures or other
property)
3.2 Are the topography, geology and soils of
the land to be occupied by the project and
the surrounding area described?
3.3 Are any significant features of the
topography or geology of the area
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
described and are the conditions and use of
soils described? (including soil quality
stability and erosion, agricultural use and
agricultural land quality)
3.4 Are the fauna and flora and habitats of the
land to be occupied by the project and the
surrounding area described and illustrated
on appropriate maps?
3.5 Are species populations and characteristics
of habitats that may be affected by the
project described and are any designated or
protected species or areas defined?
3.6 Is the water environment of the area
described? (including running and static
surface waters, groundwater, estuaries,
coastal wasters and the sea and including
run off and drainage. Not relevant if water
environment will not be affected by the
project)
3.7 Are the hydrology, water quality and use of
any water resources that may be affected
by the project described? (including use for
water supply, fisheries, angling, bathing,
amenity, navigation,
effluent disposal)
3.8 Are local climatic and meteorological
conditions and existing air quality in the
area described? (not relevant if the
atmospheric environment will not be
affected by the project)
3.9 Is the existing noise climate described? (not
relevant if acoustic environment will not be
affected by the project)
3.10 Is the existing situation regarding light, heat
and electromagnetic radiation described?
(not relevant if these characteristics of the
environment will
not be affected by the project)
3.11 Are any material assets in the area that
may be affected by the project described?
(including buildings, other structures,
mineral resources, water resources)
3.12 Are any locations or features of
archaeological, historic, architectural or
other community or cultural importance in
the area that may be bisected the project
described, including any designated or
protected sites?
3.13 Is the landscape or townscape of the area
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
that may be affected by the project
described, including any designated or
protected landscapes and any important
views or viewpoints?
3.14 Are demographic, social and socio-
economic conditions (e.g. employment) in
the area described?
3.15 Are any future changes in any of the above
aspects of the environment that may occur
in the absence of the project, described?
(the so-called Moving Baseline or ‘No
project’ situation)
Data collection and survey methods
3.16 Has the study area been defined widely
enough to include all the area likely to be
significantly affected by the project?
3.17 Have all relevant national and local
agencies been contacted to collect
information on the baseline environment?
3.18 Have sources of data and information on
the existing environment (including social
issues) been adequately referenced?
3.19 Where surveys have been undertaken as
part of the E&S studies to characterize the
baseline environment are the methods
used, any difficulties encountered and any
uncertainties in the data described?
3.20 Were the methods used appropriate for the
purpose?
3.21 Are any important gaps in the data on the
existing environment (including social
issues) identified and the means used to
deal with these gaps during the assessment
explained?
3.22 If surveys would be required to adequately
characterise the baseline conditions but
they have not been practicable for any
reason, are the reasons explained and
proposals set out for the surveys to be
undertaken at a later stage?
Any other questions on description of the environment
SECTION 4: DESCRIPTION OF LIKELY SIGNIFICANT E&S EFFECTS OF THE PROJECT
Scoping of effects (See Procedure for Scoping)
4.1 Is the process by which the scope of the
E&S studies were defined described?
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
4.2 Is it evident that a systematic approach to
scoping was adopted?
4.3 Is it evident that full consultation was
carried out during scoping?
4.4 Are the comments and views of consultees
presented?
Prediction of direct effects
4.5 Are direct, primary effects on land uses,
people and property described and where
appropriate quantified?
4.6 Are direct, primary effects on geological
features and characteristics of soils
described and where appropriate
quantified?
4.7 Are direct, primary effects on fauna and
flora and habitats described and where
appropriate quantified?
4.8 Are direct, primary effects on the hydrology
and water quality of water features
described and where appropriate
quantified?
4.9 Are direct, primary effects on uses of the
water environment described and where
appropriate quantified?
4.10 Are direct, primary effects on air quality and
climatic conditions described and where
appropriate quantified?
4.11 Are direct, primary effects on the acoustic
environment (noise or vibration) described
and where appropriate quantified?
4.12 Are direct, primary effects on heat, light or
electromagnetic radiation described and
where appropriate quantified?
4.13 Are direct, primary effects on material
assets and depletion of non-renewable
natural resources (e.g. fossil fuels,
minerals) described?
4.14 Are direct, primary effects on locations or
features of cultural importance described?
4.15 Are direct, primary effects on the quality of
the landscape and on views and viewpoints
described and where appropriate
illustrated?
4.16 Are direct, primary effects on demography,
social and socio-economic condition in the
area described and where appropriate
quantified?
Prediction of secondary, temporary, short-term, permanent, long-term, accidental, indirect,
cumulative effects
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
4.17 Are secondary effects on any of the above
aspects of the environment caused by
primary effects on other aspects described
and where appropriate quantified? (e.g.
effects on fauna, flora or habitats caused by
soil, air or water pollution or noise; effects in
uses of water caused by changes in
hydrology or water quality; effects on
archaeological remains caused by
desiccation of soils)
4.18 Are temporary, short term effects caused
during construction or during time limited
phases of project operation or
decommissioning described?
4.19 Are permanent effects on the environment
caused by construction, operation or
decommissioning of the project described?
4.20 Are long term effects on the environment
caused over the lifetime of project
operations or caused by build up of
pollutants in the environment described?
4.21 Are effects which could result from
accidents, abnormal events or exposure of
the project to natural or man-made
disasters described and where appropriate
quantified?
4.22 Are effects on the environment caused by
activities ancillary to the main project
described? (ancillary activities are part of
the project but usually take place distant
from the main project location; e.g.
construction of access routes and
infrastructure, traffic movements, sourcing
of aggregates or other raw materials,
generation and supply of power, disposal of
effluents or wastes)
4.23 Are indirect effects on the environment
caused by consequential development
described? (consequential development is
other projects, not part of the main project,
stimulated to take place by implementation
of the project e.g. to provide new goods or
services needed for
the project, to house new populations or
businesses stimulated by the project)
4.24 Are cumulative effects on the environment
off the project together with other existing or
planned developments in the locality
described? (different future scenarios
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
including a worst case scenario should be
described)
4.25 Are the geographic extent, duration,
frequency, reversibility and probability of
occurrence of each effect identified as
appropriate?
Prediction of effects on human health and sustainable development issues
4.26 Are primary and secondary effects on
human health and welfare described and
where appropriate quantified? (e.g. health
effects caused by release of toxic
substances to the environment, health risks
arising from major hazards associated with
the project, effects caused by changes in
disease vectors caused by the project,
changes in living conditions, effects on
vulnerable groups)
4.27 Are impacts on issues such as biodiversity,
global climate change and sustainable
development discussed where appropriate?
Evaluation of the significance of effects (See Criteria for Evaluating Significance of Impacts in
Procedure for Scoping)
4.28 Is the significance or importance of each
predicted effect discussed in terms of its
compliance with legal requirement and the
number, importance and sensitivity of
people, resources or other receptors
affected?
4.29 Where effects are evaluated against legal
standards or requirements are appropriate
local, national or international standards
used and relevant guidance followed?
4.30 Are positive effects on the environment
described as well as negative effects?
4.31 Is the significance of each effect clearly
explained?
Impact assessment methods
4.32 Are methods used to predict effects
described and are the reasons for their
choice, any difficulties encountered and
uncertainties in the results discussed?
4.33 Where there is uncertainty about the
precise details of the project and its impact
on the environment are worst case
predictions described?
4.34 Where there have been difficulties in
compiling the data needed to predict or
evaluate effects are these difficulties
acknowledged and their implications for the
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
results discussed?
4.35 Is the basis for evaluating the significance
or importance of impacts clearly described?
4.36 Are impacts described on the basis that all
proposed mitigation has been
implemented? i.e. are residual impacts
described?
4.37 Is the level of treatment of each effect
appropriate to its importance for the
development consent decision? Does the
discussion focus on the key issues and
avoid irrelevant or unnecessary
information?
4.38 Is appropriate emphasis given to the most
severe, adverse effects of the project with
lesser emphasis given to less significant
effects
Any other questions relevant to description of E&S effects
SECTION 5: DESCRIPTION OF MITIGATION MEASURES
5.1 Where there are significant adverse effects
on any aspect of the environment is the
potential for mitigation of these effects
discussed?
5.2 Are any measures which the developer
proposes to implement to mitigate effects
clearly described and their effect on the
magnitude and significance of impacts
clearly explained?
5.3 If the effect of mitigation measures on the
magnitude and significance of impacts is
uncertain is this explained?
5.4 Is it clear whether the developer has made
a binding commitment to implement the
proposed mitigation or that the mitigation
measures are just suggestions or
recommendations?
5.5 Are the developer’s reasons for choosing
the proposed mitigation explained?
5.6 Are responsibilities for implementation of
mitigation including funding clearly defined?
5.7 Where mitigation of significant adverse
effects is not practicable or the developer
has chosen not to propose any mitigation
are the reasons for this clearly explained?
5.8 Is it evident that the EA/SA Team and the
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
developer have considered the full range of
possible approaches to mitigation including
measures to reduce or avoid impacts by
alternative strategies or locations, changes
to the project design and layout, changes to
methods and processes, “end of pipe”
treatment, changes to implementation plans
and management practices, measures to
repair or remedy impacts and measures to
compensate impacts?
5.9 Are arrangements proposed to monitor and
manage residual impacts?
5.10 Are any negative effects of the proposed
mitigation described?
Any other questions on mitigation measures
SECTION 6: NON-TECHNICAL SUMMARY
6.1 Does the EAR/SAR include a Non-
Technical summary?
6.2 Does the summary provide a concise but
comprehensive description of the project, its
environment, the effects of the project on
the environment and the proposed
mitigation?
6.3 Does the summary highlight any significant
uncertainties about the project and its E&S
effects?
6.4 Does the summary explain the development
consent process for the project and the role
of EA/SA in this process?
6.5 Does the summary provide an overview of
the approach to the assessment?
6.6 Is the summary written in non-technical
language, avoiding technical terms, detailed
data and scientific discussion?
6.7 Would it be comprehensible to a lay
member of the public?
Any other questions on non-technical summary
SECTION 7: QUALITY OF PRESENTATION
7.1 Is the EAR/SAR available in one or more
clearly defined documents?
7.2 Is the document(s) logically organized and
addressed?
Adequately
Relevant?
Any further
No. Review Question information needed?
clearly structured so that the reader can
locate information easily?
7.3 Is there a table of contents at the beginning
of the document(s)
7.4 Is there a clear description of the process
which has been followed?
7.5 Is the presentation comprehensive but
concise, avoiding irrelevant data and
information?
7.6 Does the presentation make effective use of
tables, figures, maps, photographs and
other graphics?
7.7 Does the presentation make effective use of
annexes or appendices to present detailed
data not essential to understanding the
main text?
7.8 Are all analyses and conclusions
adequately supported with data and
evidence?
7.9 Are all sources of data properly referenced?
7.10 Is consistent terminology used throughout
the document(s)?
7.11 Does it read as a single document with
cross referencing between sections used to
help the reader navigate through the
document(s)?
7.12 Is the presentation demonstrably fair and as
far as possible impartial and objective?
Any other questions on non-technical summary
Overall Appraisal of the EAR/SAR
No. Review Topic Grade Comment
1 Description of the project
2
Alternatives
3
Description of the environment likely to be affected by the
project
4
Description of the likely significant effects of the project
5
Description of mitigating measures
6
Non-technical summary
7
Quality of presentation
Overall assessment:
Comments:
ANNEX E-12: OUTLINE FOR AN ENVIRONMENTAL IMPACT ASSESSMENT REPORT FOR
CATEGORY A SUBPROJECTS FUNDED BY A DEVELOPMENT FINANCIAL INSTITUTION
1. An environmental assessment report is required for all environment category A and B
investments. Its level of detail and comprehensiveness is commensurate with the significance of
potential environmental impacts and risks. A typical EIA report contains the following major
elements, and an IEE may have a narrower scope depending on the nature of the investment.
The substantive aspects of this outline will guide the preparation of environmental impact
assessment reports, although not necessarily in the order shown.
A. Executive Summary
2. This section describes concisely the critical facts, significant findings, and recommended
actions.
B. Policy, Legal, and Administrative Framework
3. This section discusses the applicable safeguard requirements, including development
financial institutions (DFIs) (see footnote below)1 requirements and national laws, regulations
and standards on environment, health, safety, involuntary resettlement and land acquisition,
indigenous peoples, and physical cultural resources.
C. Description of the Subproject
4. This section describes the proposed investment; its major components; and its
geographic, ecological, social, and temporal context, including any associated facility required
by and for the investment (for example, access roads, power plants, water supply, quarries and
borrow pits, and spoil disposal). It normally includes drawings and maps showing the
investment’s layout and components, the investment site, and the investment's area of
influence.
D. Description of the Environment (Baseline Data)
5. This section describes relevant physical, biological, and socioeconomic conditions within
the study area. It also looks at current and proposed development activities within the
investment's area of influence, including those not directly connected to the investment. It
indicates the accuracy, reliability, and sources of the data.
E. Anticipated Environmental Impacts and Mitigation Measures
6. This section predicts and assesses the investment's likely positive and negative direct
and indirect impacts to physical, biological, socioeconomic (including occupational health and
safety, community health and safety, vulnerable groups and gender issues, and impacts on
livelihoods through environmental media, and physical cultural resources in the investment's
area of influence, in quantitative terms to the extent possible; identifies mitigation measures and
any residual negative impacts that cannot be mitigated; explores opportunities for enhancement;
identifies and estimates the extent and quality of available data, key data gaps, and
uncertainties associated with predictions and specifies topics that do not require further
attention; and examines global, trans-boundary, and cumulative impacts as appropriate.
1
The safeguard requirements outlined here pertains to ADB. Other DFIs also have similar requirements.
F. Analysis of Alternatives
7. This section examines alternatives to the proposed investment site, technology, design,
and operation—including the no investment alternative—in terms of their potential
environmental impacts; the feasibility of mitigating these impacts; their capital and recurrent
costs; their suitability under local conditions; and their institutional, training, and monitoring
requirements. It also states the basis for selecting the particular investment design proposed
and, justifies recommended emission levels and approaches to pollution prevention and
abatement.
G. Information Disclosure, Consultation, and Participation
8. This section:
(i) describes the process undertaken during investment design and preparation for
engaging stakeholders, including information disclosure and consultation with
affected persons and other stakeholders;
(ii) summarizes comments and concerns received from affected persons and other
stakeholders and how these comments have been addressed in investment
design and mitigation measures, with special attention paid to the needs and
concerns of vulnerable groups, including women, the poor, and Indigenous
Peoples; and
(iii) describes the planned information disclosure measures (including the type of
information to be disseminated and the method of dissemination) and the
process for carrying out consultation with affected persons and facilitating their
participation during investment implementation.
H. Grievance Redress Mechanism
9. This section describes the grievance redress framework (both informal and formal
channels), setting out the time frame and mechanisms for resolving complaints about
environmental performance.
I. Environmental Management Plan
10. This section deals with the set of mitigation and management measures to be taken
during investment implementation to avoid, reduce, mitigate, or compensate for adverse
environmental impacts (in that order of priority). It may include multiple management plans and
actions. It includes the following key components (with the level of detail commensurate with the
investment’s impacts and risks):
(i) Mitigation:
(a) identifies and summarizes anticipated significant adverse environmental
impacts and risks;
(b) describes each mitigation measure with technical details, including the
type of impact to which it relates and the conditions under which it is
required (for instance, continuously or in the event of contingencies),
together with designs, equipment descriptions, and operating procedures,
as appropriate; and
(c) provides links to any other mitigation plans (for example, for involuntary
resettlement, Indigenous Peoples, or emergency response) required for
the investment.
(ii) Monitoring:
(a) describes monitoring measures with technical details, including
parameters to be measured, methods to be used, sampling locations,
frequency of measurements, detection limits and definition of thresholds
that will signal the need for corrective actions; and
(b) describes monitoring and reporting procedures to ensure early detection
of conditions that necessitate particular mitigation measures and
document the progress and results of mitigation.
(iii) Implementation arrangements:
(a) specifies the implementation schedule showing phasing and coordination
with overall investment implementation;
(b) describes institutional or organizational arrangements, namely, who is
responsible for carrying out the mitigation and monitoring measures,
which may include one or more of the following additional topics to
strengthen environmental management capability: technical assistance
programs, training programs, procurement of equipment and supplies
related to environmental management and monitoring, and organizational
changes; and
(c) estimates capital and recurrent costs and describes sources of funds for
implementing the environmental management plan.
(iv) Performance indicators: describes the desired outcomes as measurable events
to the extent possible, such as performance indicators, targets, or acceptance
criteria that can be tracked over defined time periods.
J. Conclusion and Recommendation
11. This section provides the conclusions drawn from the assessment and provides
recommendations.
ANNEX E-13: CHECKLIST OF DOCUMENTATION REQUIRED FOR PREPARATION OF
ENVIRONMENT AND SOCIAL SAFEGUARD DUE DILIGENCE REPORT UNDER
TAKEOUT FINANCE SCHEME
A. Environmental Safeguards Related Requirement
1. Environment safeguards related documents required for any post-COD project are as
follows (if available):
(i) copy of EIA-EMP report
(ii) copy of operation and maintenance agreement
(iii) copy of various clearances like (environmental clearance, forest clearance, CRZ
clearance, wildlife clearance, if applicable, tree cutting permission and NOC)
from various authorities like MoEF, SPCB, other state level regulatory authorities
etc. or status of applicable permits taken during pre-construction, construction
and operation phase
(iv) details of public hearing proceedings (minutes of public hearing and newspaper
cuttings of public hearing notification)
(v) six monthly compliance reports submitted to MoEF for compliance of EC letter
conditions
2. Status of post-construction phase activities:
(i) number of tree felling due to project, compensatory afforestation status, any gap
or improvement
(ii) rehabilitation of borrow areas
(iii) soil erosion control measures, embankment protection measures
(iv) redevelopment of quarry areas
(v) restoration of camp sites and plant sites
(vi) any enhancement of community assets
(vii) provision of any facility out of public demand
3. Safeguards compliance status during operation phase activities:
(i) compliance status of environment management plan during operation phase
(ii) Environmental Quality Monitoring Reports during operation phase
(iii) Institutional arrangement in place for implementation and monitoring of EMP;
(iv) Emergency Preparedness and Response Plan during Operation Phase
(v) Plantation Maintenance measures
(vi) Impact on sensitive receptors
(vii) Adequate Traffic Management Measures (in case of road projects)
(viii) Accident/Incident data report along with remedial measures
(ix) Health and Work Safety measures
(x) Community severance issues, if any
B. Social Safeguards Related Requirement
1. Document required: copy of SIA/RAP report, if available
2. Following details are required for social safeguards for the project (post COD):
(i) any pending litigation case of land acquisition;
(ii) any indigenous people/Tribal people affected due to project;
(iii) any compensation related issues;
(iv) any displacement of people;
(v) local employment generated during construction as well as operation phase;
(vi) any grievances pending and grievance redressal mechanism;
(vii) Details of any special effort taken by project developer or project facility
provided(like underpasses, service road etc.) due to public demand; and
(viii) CSR activities undertaken.
ANNEX E-14: SUGGESTED OUTLINE OF ENVIRONMENTAL DUE DILIGENCE REPORT
FOR SUBPROJECTS
I. Introduction
1. Investment description: investment title, type of investment, location and setting, amount,
size (production capacity, number of staff, etc.)
2. Environmental categorization and rationale
3. Applicable Environmental Requirements. See Section II B of [Name of Fund]’s ESMS )
II. Scope of Review and Methodology
1. Documents reviewed (e.g., environmental assessment reports, Environmental
Management Plans, or environmental compliance audit reports, copies of permits/licenses)
2. Methodology adopted (site visit, inspection report, etc.)
III. Compliance and liability (by relevant safeguard requirements applicable for the
specific investment, examine environmental issues and compliance)
1. Examine issues in terms of environmental, impacts, mitigation measures to address
these issues (or corrective action plan for existing facilities) and compliance status with
applicable ADB environmental safeguard requirements and national laws, regulations, and
standards:
(i) Environmental Safeguards
appropriate identification of major anticipated environmental impacts and
risks
adequacy of environmental assessment (for category A investments,
including the adequacy of alternative analysis)
compliance status with applicable requirements on (a) information
disclosure, (b) consultation with affected persons and other stakeholders,
(c) occupational and community health and safety, biodiversity
conservation and sustainable natural resource management, and physical
cultural resources
adequacy of mitigation measures and EMP (mitigation measures,
monitoring and reporting, institutional arrangement, budget), or corrective
action plan for existing facilities, if any
(ii) Adequacy of grievance redress mechanism arrangements
2. Recommend mitigation measures, or corrective action plans, if gaps are identified
3. For existing facilities including investments under construction, examine whether the
investee company paid pollution charges or fines/penalties for non-compliance in the last two
years in accordance with national laws, whether the investee company is exposed to potentially
significant liabilities, such as those arising from known or suspected land/groundwater
contamination, major accidents and incidents related to the company’s past or ongoing
operations, and state further actions required/planned by the investee, in particular actions to
address any non-compliance problems and liabilities. Also examine whether there are
complaints from the public or local communities on the investee company’s environmental
performance.
4. State any risk control or mitigation measures to be taken by the investment, such as
conditions, loan covenants or monitoring and reporting requirements
IV. Other investment specific issues, if any
V. Conclusion and Recommendations
ANNEX E-15: SUGGESTED SCOPE FOR PERIODIC ENVIRONMENTAL AND SOCIAL
MONITORING REPORT FOR SUBPROJECTS TO BE SUBMITTED BY BORROWERS
A. Investment Name and Summary Information
(i) Location
(ii) Scale/size/capacity
(iii) Reporting period covered by this monitoring report (month/year)
(iv) Specification of investment stage (design, construction, operation or closure
stage)
(v) Key developments and any major changes in investment location and design, if
any
B. Relevant Environmental Permits or Compliance Certificates
(i) Issued by government agency(ies) (include name of agency)
(ii) Issuance dates and duration of validity
(iii) Permit conditions and renewal requirements
(iv) Six-monthly report submitted to MoEF in compliance of the conditions of
Environment Clearance letter.
(v) Other standards and/or certificates (e.g., ISO 14000 Environmental Management
Systems and Standards)
(vi) Gazette Notifications for land acquisition
(vii) ROW land hand Over letter from NHAI(in case of highway projects)
C. Grievance Redress Mechanism
(i) Date established and description of organizational arrangements
(ii) Complaints, grievance, or protests received from local communities, recorded
dates and organizations involved, actions taken to resolve grievances; any
outstanding issues and proposed measures for resolution
D. Occupational and Community Health and Safety
(i) Training programs carried out
(ii) Incidents1 recorded, including date, scale of damage and injury2, if any;
authorities in charge of investigation/recording, and media or community
reactions, if any; action taken to respond to the incident; and any outstanding
issues and proposed measures
(iii) Analysis of major accidents or incidents during project implementation with
details of measures introduced to prevent recurrence
(iv) Other health and safety events or out-reach activities and implementation status
of health, safety, Environment Plan, copy of HSE Policy,
E. Environmental and Social Management Capacity
1
Including incidents that have caused damage on the environment or to human health, and/or attached attention of
outside parties (e.g., fire, explosion, chemical or oil spill, and pollution release).
2
Including fatalities, serious injures (requiring emergency treatment or hospitalization), lost time accidents (requiring
more than one day off work to recover), and incidents involving compensation claims.
(i) Number of staff, qualifications and experience in environmental
management and social management
(ii) Frequency of Environmental & Social monitoring/supervision/audit by subproject
team to the site
(iii) Awareness of (a) environmental issues, (b) health and safety, (c) national
environmental and social laws and regulations, and (d) applicable ADB’s
environmental and social safeguard requirements
(iv) Training programs carried out
(v) Assessment of environmental and social management capacity needs (including
planned capacity building programs)
F. Stakeholder Consultation
(i) Details of information disclosure and consultations, if any, with affected
persons, local communities, civil society groups, and other stakeholders during
implementation and operation phase
(ii) Details of approach/methodology on addressing the concerns and issues raised
at consultations
G. Compliance with Applicable Environmental Safeguard Requirements as Defined in
Section F of the EMS
Implementation of EMP/RAP/Emergency Preparedness and response Plan (citing changes in
the EMP/RAP, where warranted) at construction or operation phase, focusing on mitigation
measures and monitoring program. Attach copies of EMP compliance as well as Environmental
monitoring reports. If standards or thresholds are exceeded, specify the corrective actions
implemented or to be implemented. Adequacy of EMP/RAP budget and its expenditure status
as on date. Implementation status of RAP and utility shifting mentioning land acquisition status
and status of compensation payment to the affected people including encroachers & squatters,
total number of project affected people/families, number of affected ST families and the
additional assistance provided to them, details of the affected Public properties and initiatives
taken for their relocation/ compensation.
H. Other Information and Feedback
Please list any other information that may relate to environmental and social matters,
community initiatives within your company, positive media or NGO attention, training activities,
management system initiatives or cost savings through process efficiency, environment-friendly
and socially viable processes.
Name and Signature
Name: Date:
Position: Phone:
Signature: E-mail:
ANNEX E-16: AUDIT RECORDING SHEET TO REPORT IMPLEMENTATION OF
ENVIRONMENTAL SAFEGUARD SYSTEMS AT IIFCL
(The form will continue for the project life)
Reporting Period
A. SUB PROJECT BACKGROUND
INFORMATION
1. Name of Sub-Project:
2. Name of Concessionaire / SPV:
3. Name of Lead Bank and other Co-Lenders
4. Contact Details: ESMU / IIFCL
5. Location:
6. Sector / Sub-Sector:
7. Sub-loan: US$
8. Status of implementation:
9. What policies of DFI on safeguards cover
1
this subproject?
10. Safeguard category:
11. Were any environmental and social due
diligence undertaken by IIFCL?
12.Number of IIFCL safeguard site visits
13. Milestones Audited in Previous Years
14.Products Placed for Audit in the Current
Year
B. MEMO TO BOARD
1. What are the significant environmental and
social issues identified in Memo to Board?
2. Does the Memo adequately flag mandatory
requirements for environmental and social
compliance? Are all compliance conditions
fully met prior sending Memo to the Board?
C. ENGAGEMENT DOCUMENTS WITH LEAD
BANK / SPV
1. Any environmental assessment report
(including environmental management
plan), involuntary resettlement plan, or
Indigenous Peoples plan, or audit reports
reviewed
2. Is IIFCL's ESSF included as mandatory
requirement in legal documents?
3. Do the legal documents reflect EMP in an
implementable and verifiable form?
4. Are the EMP requirements adequately
covered in Concession Document /
Construction Agreement /O&M
Agreement/Subproject Developer
Agreement
5. Were the applicable environmental and
social safeguard requirements and their
implementation discussed with the
concessionaire?
Reporting Period
6. Were any conditions or covenants related to
environmental and social issues made along
with the sub loan (e.g. concession
document, construction agreement)?
7. Has the concessionaire/Lead Bank
implemented the Environmental
Management Plan (EMP), resettlement plan
(RP) or Indigenous Peoples Plan (IPP),
were applicable, before or during
construction and/or operation?
8. Does the subproject comply with the
applicable government requirements (e.g.,
environmental clearance was issued,
applicable permits and licenses issued,
etc.)?
9. Are all significant environmental issues
covered and well flagged in the EMP?
10. Was Public Hearing if applicable conducted
as per EIA Notification of MoEF?
11. Have outcomes of Public Hearing
appropriately reflected in the EMP?
12. Is the EMP adequately costed and reflected
so in the financial appraisal?
D. EMP IMPLEMENTATION
1. Is environmental and social monitoring
conducted as specified in the EMP/RP/IPP?
What are IIFCL’s observations on the
monitoring results?
2. Is the concessionaire/Lead Bank submitting
safeguard monitoring reports to IIFCL on a
regular basis?
3. For category A subprojects, were
safeguards-related documents such as EIA,
RP and IPP, or audit reports made publicly
available, in addition to posting on DFI’s
website?
4. Were there major accidents or incidents
during project implementation? What
measures were introduced to prevent
recurrence?
5. What key safeguard issues or complaints
from affected people were identified? What
were the recommendations for
improvement?
6. What are the outstanding safeguard
requirements for follow up or corrective
action plan (CAP) to be prepared by the
concessionaire or Lead Bank, if any?
7. Is the subproject compliant with applicable
national/local environmental requirements?
8. Is the subproject compliant with DFI’s
environmental assessment requirements?
Reporting Period
9. Has the Lead Bank / Subproject Developer
implemented all the EMP measures covered
in the contracts?
10. Has the agency for environmental
monitoring been appointed?
11. Observations on environmental monitoring,
interpretation and reporting:
12. Complaints received from the public were
resolved or needing follow-up action;
13. Deployment of staff to monitor
implementation of environmental mitigation
measures from the contractor,
concessionaire and NHAI.
14. Is the Lead Bank/Subproject Developer
submitting reports to IIFCL and other
lenders on a regular basis?
15. Observations on the EMP monitoring
mechanism
16. Are there any new environmental issues
identified during project implementation,
and/or after technical closure? If so, how are
these issues addressed?
17. Has the Lead Bank/Subproject Developer
taken note of the new issues and
implemented appropriate mitigation
measures
E Conclusion on environmental safeguard
compliance status of subproject
Summary of Environmental Safeguards Compliance in Matrix Format
Social
Safeguard Action
Compliance Compliance Required by
Environmental Status vis-à-vis Monitoring IIFCL to
Company Subproject Safeguard Due DFI Safeguard and Review Ensure
No. Name Name Diligence Policies by DFI Compliance
ANNEX E-17: OUTLINE FOR A PERIODIC ENVIRONMENTAL AND SOCIAL
PERFORMANCE REPORT FOR SUBPROJECTS
(INDICATIVE FORMAT)
Please provide responses to the questions below. Please include additional sheets or
attachments as required to provide details on questions that have been answered Yes. IIFCL is
required to submit the periodic performance report to DFIs (see footnote below)2. This format is
only for guidance and could be improved.
Name of Organization
Completed by (name):
Position in organization: D
a
t
e
:
Reporting period From:
A. Environmental and Social Management System (ESMS)
Policies & Processes Yes/No
Has your organization developed and If yes, please attach a copy of the ESMS to this
implemented an ESMS? report. Please indicate the date that the ESMS
was established.
If there is an ESMS already in place, have If yes, please provide a copy of the updates
there been any updates to the ESMS or including dates and reasons for the same.
policy and procedures adopted by your
organization during the reporting period?
Has senior management signed off on the If yes, please provide the date and internal
updated policy/procedure? communication indicating the same.
Has your organization appointed staff IF yes, please provide information on number of
tasked to implement the ESMS? staff and qualification (experience and education
backgroud) to implment the ESMS.
Please give details of any transactions
rejected due to environmetnal and/or social
concerns.
Please state any difficulties and/or
constraints related to the implementation of
the ESMS.
Please describe how you ensure that your
clients and their investments are operated
in compliance with the national laws and
regulations and applicable DFI’s safeguard
requirements.
Please give details of any material social
and environmental issues associated with
clients during the reporting period in
particular.
In case the existing ESMS is not fully Please provide information or cite recommendation
funcional, what are the action plan beining made by DFI’s review mission to improve the ESMS
implemented by your organization? and its implementation.
Capacity Yes/No
2
Reporting requirements outlined here pertained to ADB. Other DFIs also have similar requirements.
Please provide the name and contact Please describe the training or learning activities
information of the senior staff who has the the Environmental/Social Officer or Coordinator
overall responsibility for the implementation attended during the year.
of ESMS.
Please provide current staffing of other core Please describe the training provided to the
ESMS persons in the organization involved ESMS persons and other team members during
with ESMS implementation. the year.
What was the budget allocated to the ESMS Please provide budget details including staff
and its implementation during the year? costs and training as well as any actual costs.
Monitoring Y
e
s
/
N
o
Do you receive environmental and social If yes, please describe and provide supporting
monitoring reports from Lead documents including any social and environmental
Banks/Borrowers? considerations if applicable.
Do you check for ongoing compliance of If yes, please describe the process including any
your clients with national regulation and any social and environmental considerations if
other requirements? applicable.
Please describe how you monitor the clients Please describe and provide supporting documents
and their invesetments’ social and such as environmental and social monitoring reports
environmental performance. and please provide information on the number of
subprojects where a field visit was conducted by
staff to review aspects including social and
environmental issues.
Please provide details of any accidents/
litigation/complaints/regulatory notices and
fines:
- Any incidents of non-compliance with
the applicable Environmental and
Social Requirements
- Covenants/conditionalities imposed
by IIFCL to the client as a result of
any non-compliance
Reporting Y
e
s
/
N
o
Is there an internal process to report on If yes, please explain the process, reporting format
social and environmental issues to Senior and frequency and actions taken if any.
management?
Do you prepare any social and If yes, please provide copies of these reports.
environmental reports:
- For other multilateral agencies
- Other stakeholders
- E&S reporting in the Annual Report
- Sustainability reports
Activities on DFI’s Prohibited Investment Activities List
If any, please indicate the dollar percentage of loans or
investments out of your total outstanding exposure %
provided to clients who are substantially involved in
DFI’s Prohibited Investment Activities List (Refer to
Attachment 1).
If the percentage is not zero, please explain these
exposures and any steps having been taken to reduce
such exposure.
C. Subprojects Using DFI Funds
Please provide information about all new investments using DFI funds approved during this
reporting period.
Name of Subproject:
Location:
Sector:
Total loan from IIFCL/DFI (US$ mn):
Safeguard category: Environment:
(Annex E-3) Involuntary Resettlement:
Indigenous Peoples:
Were any environmental and social due diligence If yes, provide information on due diligence
undertaken and by your organization? activities, such as desk review of safeguard
documents, and field visit, and by whom.
Any environmental assessment report (including If yes, please provide the names of
environmental management plan), involuntary resettlement documents reviewed.
plan, or indigenous peoples plan, or audit reports reviewed
by your organization?
What were the main environmental, involuntary
resettlement and indigenous peoples issues associated
with this subproject that were identified through due
diligence conducted by your organization, and how were
the issues dealt with (i.e., outcome of due diligence)?
Did you discuss with the Lead Bank the applicable
environmental and social safeguard requirements and their
implementation?
For category A subproject, were safeguards related If yes, please provide website link and the
documents such as EIA, RP and IPP, or audit reports made date the documents were uploaded.
publicly available, in addition to posting on ADB’s website?
Were any conditions or covenants related to environmental If yes, please briefly describe.
and social issues made along with the investment?
Does the investment comply with applicable government
requirements?
Does the investment comply with applicable DFI safeguard
requirements?
ANNEX E-18: TERMS OF REFERENCE FOR DETAILED ENVIRONMENTAL IMPACT
ASSESSMENT OF HIGH IMPACT CATEGORY HIGHWAY SUB-PROJECTS1
I. General
1. Subproject environment assessment (EA) is the stage when more thorough
assessments are done. It includes carrying out detailed surveys, analysis of data, assessment
of impacts and corresponding mitigation and/or enhancement measures, and preparing various
reports that include the detailed EAR and Environment Management Plans (EMPs). The
consultants shall carry out the subproject EA based on the revised terms of reference (TOR)
which is the outcome of the scoping process (as described in the attachment “The Scoping
Process and Corresponding Outputs” in this index). The work plans and methods employed
shall be as per those described in the scoping report.
2. Baseline surveys. The consultants will (i) collect information from secondary sources
that are relevant to understanding the baseline, as well as design and mitigation of
enhancement measures, as pertaining to physical, biological and socio-cultural environments;
(ii) carry out site visits and investigations of all environmentally sensitive locations and
document them on base maps to identify conflict point with preliminary designs (including
verification of these from authentic sources of information, such as from revenue and forest
records, etc.); and (iii) prepare detailed specific maps showing details of candidate sites for
environmental enhancements.
3. Additional baseline surveys. The consultants shall collect information on the existing
environmental scenario from secondary sources, and identify gaps to be filled, relevant to the
environmental screening needs from primary surveys. The consultants shall survey the
environmentally sensitive locations on and along the sub-project road, as well as within the
subproject’s influence area. The consultants shall extensively use the video and other records of
the project road (carried out as part of engineering surveys). All regionally and nationally
recognized environmental resources and features within the subproject’s influence area shall be
clearly identified and studied in relation to the activities proposed. Typically, these will include
stretches with significant roadside trees, environmental and common property resources such
as forests, large water bodies, and major physical cultural properties. All these may be depicted
using a line diagram or a strip map.
4. All surveys will be carried out in compliance with Government of India’s
standards/guidelines/norms. Wherever such guidelines/norms are unavailable, the techniques,
tools and samples employed for the surveys shall conform to international practices. Whenever
directly relevant secondary data is available, these should be used, while indirectly relevant data
should be verified through primary survey. Environmental quality (air, water, and noise)
monitoring shall include an adequate number of samples, as established on a sampling
network, so as to provide a representative sample of the entire subproject corridor. Additional
sample data for sensitive environmental/ecological receptors, if any, shall be collected such as
to analyse and predict the possible impacts to a large degree and precision of acceptable
professional standards. Further, additional specialized surveys, such as biodiversity assessment
survey, and/or hydrological surveys shall be conducted, if and when recommended by
environmental scoping. It is recommended that environmental surveys be coordinated with
social and engineering surveys as far as practical.
1
Adapted from “Management of Environmental and Social Issues in Highway Projects in India” by the World Bank
5. The consultants shall also collect information on the various prevailing environmental
and forest laws/regulations so as to carry out the subproject EA in conformity with these.
6. Stakeholder consultation. The consultants shall undertake community consultation
sessions at the state, district, village and road-side community levels. The objective of these
sessions shall be to improve the subproject’s interventions with regard to environmental
management. At least two rounds of consultations shall be carried out–the first to seek views
from the stakeholders on environmental issues and ways that these could be resolved, and the
second to provide feedback to stakeholders that their views have been taken into account for
the sub-project (when the EMPs are nearly complete). Following this the final feedback received
shall be analysed, and the consultants shall determine how these shall be addressed in the
Final EMP and subproject designs. The consultants shall coordinate the entire consultation
programme with social and engineering consultants.
7. Environmental analysis of alternatives. As the overall highway alignments are final at
this stage, the environmental analysis of alternatives shall focus on location-specific issues
relating to cross-sections, materials and their sources from an environmental management
perspective. This analysis shall also cover comparisons in relation to siting, design, technology
selection, construction techniques and phasing, and operating and maintenance procedures.
8. Impact prediction and management. The consultants shall determine the potential
impacts due to the subproject through identification, analysis and evaluation on sensitive areas
(natural habitats, sites of historic, cultural, and conservation importance), urban settlements and
villages/agricultural areas. These should be classified as significant positive and negative
impacts, immediate and long-term impacts, and unavoidable and reversible impacts
9. For each impact predicted, feasible and cost-effective mitigation measures shall be
identified to reduce potentially significant averse environmental impacts to acceptable levels.
The capital and recurring costs of the measures, and the institutional training and monitoring
requirements to effectively implement these measures shall be determined. The consultants
shall explore and recommend environmental enhancements including roadside landscaping,
separation of non-motorized lanes in an aesthetically appealing manner, provision of pilgrimage
pathways, and development of cultural properties, and improving access along the corridor. At
this stage, it would be important to identify issues that cannot be dealt with during the subproject
preparation stage, but should be undertaken during the implementation stage.
10. Institutional arrangements to manage environmental impacts effectively. The
consultants shall identify institutional and organisational needs to implement the
recommendations of the subproject EA, and to propose steps to strengthen/expand them if
needed. This may extend to new agency functions, inter-sectoral arrangements, management
procedures and training, staffing, operation and maintenance, training and budgeting.
11. Training of staff. The consultants shall develop and implement a plan for training the
India Infrastructure Finance Company Limited (IIFCL) staff. This plan must specify types of
training, participants for each type, number of sessions, duration of each session and when they
should be conducted. At the end of the training, when the draft EMPs are ready, brief reports
shall be prepared on the training conducted and observations relevant for future training, if any.
12. Other assistance to be provided by the consultants. The consultants shall support
IIFCL to furnish any relevant information required for obtaining clearance from several state and
central government agencies. These may include (i) assistance in the submission of application
for clearance of reserved or protected forests to the Forest Department, (ii) completion of forms
and submission of the same for obtaining no-objection certificates (or NOCs) under the Water
and Air Acts from SPCBs, (iii) completion and submission of the MoEF questionnaire for
environmental appraisal of the subproject, (iv) assistance in presentation to the Wildlife Board of
the MoEF in obtaining clearance for the section of the corridor passing through wildlife reserves
or sanctuaries and other protected areas (if any), and (v) assistance in submission of any other
clearance requirements with regard to environmental components relevant to the subproject.
13. The consultants shall discuss and co-ordinate with the engineering and social
consultants, the findings and recommendations of the subproject EA in a continuous manner.
The consultants shall then prepare an EAR, which will be revised in consideration of the
comments of IIFCL and the concerned MDB (if any).
14. Environmental management plans. Based on the predicted environmental impacts,
separate EMPs, for each construction contract package, shall be prepared in such a manner
that they can be incorporated in the bidding/contract documents. The EMP shall be prepared to
fulfil all the requirements of the Government of India, and at the minimum, shall meet the
requirements of the concerned MDB. The EMP shall also include a list of design modifications
recommended by the subproject EA along with the road chainages.
15. Environmental mitigation and enhancement measures. The EMP shall describe
feasible and cost-effective measures to prevent or reduce significant negative impacts to
acceptable levels. Apart from mitigation of potential adverse impacts on environmental
components, the EMP shall identify opportunities that exist for enhancement of environmental
quality along the corridor. This shall include the enhancement of specific locations as water
bodies, enhancement of scenic areas along the corridor, etc. residual impacts from
environmental measures shall also be clearly identified. The EMP shall include specific or
sample plans for common road construction-related activities, such as the management and
redevelopment of quarries, borrow areas and construction camps, and good practice guides
related to construction and upkeep of plant and machinery. The EMP shall include detailed
specification, bill of quantities, execution drawings and contracting procedures for execution of
the environmental mitigation and enhancement measures suggested, separate for pre-
construction, construction and operation periods. Responsibilities for execution and supervision
of each of these mitigation and enhancement measures shall be specified in the EMP. A plan
for continued consultation to be conducted during the implementation stage of the subproject
shall also be prepared.
16. Capacity building and training. The EMP shall describe the implementation
arrangement for the subproject, especially the capacity building proposals including the staffing
of the environmental unit (as and when recommended) to implement the environmental
mitigation and enhancement measures. For each staff position recommended to be created,
detailed job responsibilities will be defined. Equipment and resources required for the
environmental unit shall be specified, and bill of quantities be prepared. A training plan and
schedule shall be prepared specifying the target groups (environmental unit, supervision
consultants, and contractors) for individual training programmes, the content and mode of
training.
17. Monitoring and Reporting. The EMP shall specify the environmental supervision,
monitoring and auditing requirements. The monitoring programme shall specify parameters,
reference standards, monitoring methods, frequency, duration, location, reporting
responsibilities, and any other necessary inputs (e.g. training). In addition, the programme will
specify what actions shall be taken and by whom in the event that the proposed mitigation
measures fail, either partially or totally, to achieve the level of environmental protection
expected. Customised formats for reporting on the progress of EMP activities to different
stakeholders shall be prepared and included in the EMPs.
18. Each EMP shall list all mandatory government clearance conditions and the status of
procuring the clearances. Additionally, the EMPs shall include as separate attachments, if
applicable, natural habitat plan and/or cultural properties plan, etc. to satisfy the requirements of
MDB (if any) policies.
19. Each EMP shall provide a summary description of where and how the recommendations
of EA and EMP are made part of the subproject’s design, construction schedule, and all contract
documents.
ANNEX E-19: PUBLIC CONSULTATION PROCESS DEFINED BY MINISTRY OF
ENVIRONMENT AND FOREST’S ENVIRONMENTAL IMPACT ASSESSMENT
NOTIFICATION, 2006 AND VARIOUS AMENDMENTS
1. The public consultation shall ordinarily have two components comprising of:
(i) A public hearing at the site or in its close proximity- district wise, to be carried out
in the manner prescribed in Annex E-18, for ascertaining concerns of local
affected persons
(ii) Obtain responses in writing from other concerned persons having a plausible
stake in the environmental aspects of the project or activity
2. The public hearing at, or in close proximity to, the site(s) in all cases shall be conducted
by the State Pollution Control Board (SPCB) or the Union territory Pollution Control Committee
(UTPCC) concerned in the specified manner and forward the proceedings to the regulatory
authority concerned within 45 (forty five) of a request to the effect from the applicant.
3. In case the State Pollution Control Board or the Union territory Pollution Control
Committee concerned does not undertake and complete the public hearing within the specified
period, and/or does not convey the proceedings of the public hearing within the prescribed
period directly to the regulatory authority concerned as above, the regulatory authority shall
engage another public agency or authority which is not subordinate to the regulatory authority,
to complete the process within a further period of forty five days.
4. If the public agency or authority nominated under the sub-paragraph (iii) above reports to
the regulatory authority concerned that owing to the local situation, it is not possible to conduct
the public hearing in a manner which will enable the views of the concerned local persons to be
freely expressed, it shall report the facts in detail to the concerned regulatory authority, which
may, after due consideration of the report and other reliable information that it may have, decide
that the public consultation in the case need not include the public hearing.
5. For obtaining responses in writing from other concerned persons having a plausible
stake in the environmental aspects of the project or activity, the concerned regulatory authority
and the State Pollution Control Board (SPCB) or the Union territory Pollution Control Committee
(UTPCC) shall invite responses from such concerned persons by placing on their website the
summary EIA report prepared in the format as specified in EIA Notification, 2006 and further
amendments by the applicant along with a copy of the application in the prescribed form, within
seven days of the receipt of a written request for arranging the public hearing. Confidential
information including non-disclosable or legally privileged information involving Intellectual
Property Right, source specified in the application shall not be placed on the web site. The
regulatory authority concerned may also use other appropriate media for ensuring wide publicity
about the project or activity. The regulatory authority shall, however, make available on a written
request from any concerned person the Draft EIA report for inspection at a notified place during
normal office hours till the date of the public hearing. All the responses received as part of this
public consultation process shall be forwarded to the applicant through the quickest available
means.
6. After completion of the public consultation, the applicant shall address all the material
environmental concerns expressed during this process, and make appropriate changes in the
draft EIA and EMP. The final EIA report, so prepared, shall be submitted by the applicant to the
concerned regulatory authority for appraisal. The applicant may alternatively submit a
supplementary report to draft EIA and EMP addressing all the concerns expressed during the
public consultation.
ANNEX E-20: PUBLIC CONSULTATION AND INFORMATION DISCLOSURE MECHANISM
AS PER MINISTRY OF ENVIRONMENT AND FOREST’S ENVIRONMENTAL IMPACT
ASSESSMENT NOTIFICATION, 2006 AND VARIOUS AMENDMENTS
1.0 The Public Hearing shall be arranged in a systematic, time bound and transparent
manner ensuring widest possible public participation at the project site(s) or in its close
proximity District -wise, by the concerned State Pollution Control Board (SPCB) or the Union
Territory Pollution Control Committee (UTPCC).
2.0 The Process.
The Applicant shall make a request through a simple letter to the Member Secretary of
the SPCB or Union Territory Pollution Control Committee, in whose jurisdiction the project is
located, to arrange the public hearing within the prescribed statutory period. In case the project
site is extending beyond a State or Union Territory, the public hearing is mandated in each State
or Union Territory in which the project is sited and the Applicant shall make separate requests to
each concerned SPCB or UTPCC for holding the public hearing as per this procedure.
The Applicant shall enclose with the letter of request, at least 10 hard copies and an
equivalent number of soft (electronic) copies of the draft EIA Report with the generic structure
as specified in EIA Notification, 2006 and further amendments including the Summary
Environment Impact Assessment report in English and in the official language of the state/ local
language, prepared strictly in accordance with the Terms of Reference communicated after
Scoping (Stage-2). Simultaneously the applicant shall arrange to forward copies, one hard and
one soft, of the above draft EIA Report along with the Summary EIA report to the Ministry of
Environment and Forests and to the following authorities or offices, within whose jurisdiction the
project will be located:
(a) District Magistrate/District Collector/ Deputy Commissioner/ s
(b) Zila Parishad or Municipal Corporation or Panchayats Union
(c) District Industries Office
(d) Urban Local Bodies (ULBs)/PRIs Concerned/ Development Authorities
(e) Concerned Regional Office of the Ministry of Environment and Forests
On receiving the draft Environmental Impact Assessment report, the abovementioned
authorities except the MoEF, shall arrange to widely publicize it within their respective
jurisdictions requesting the interested persons to send their comments to the concerned
regulatory authorities. They shall also make available the draft EIA Report for inspection
electronically or otherwise to the public during normal office hours till the Public Hearing is over.
The SPCB or UTPCC concerned shall also make similar arrangements for giving publicity about
the project within the State/Union Territory and make available the Summary of the draft
Environmental Impact Assessment report for inspection in select offices or public libraries or
panchayats etc. They shall also additionally make available a copy of the draft Environmental
Impact Assessment report to the above five authorities as mentioned.
3.0 Notice of Public Hearing
3.1 The Member-Secretary of the concerned SPCB or UTPCC shall finalize the date, time
and exact venue for the conduct of public hearing within 7(seven) days of the date of receipt of
the draft Environmental Impact Assessment report from the project proponent, and advertise the
same in one major National Daily and one Regional vernacular Daily. A minimum notice period
of 30(thirty) days shall be provided to the public for furnishing their Responses.
3.2 The advertisement shall also inform the public about the places or offices where the
public could access the draft Environmental Impact Assessment report and the Summary
Environmental Impact Assessment report before the public hearing. In places where the
newspapers do not reach, the Competent Authority should arrange to inform the local public
about the public hearing by other means such as by way of beating of drums as well as
advertisement /announcement on radio/television.
3.3 No postponement of the date, time, venue of the public hearing shall be undertaken,
unless some untoward emergency situation occurs and only on the recommendation of the
concerned District Magistrate the postponement shall be notified to the public through the same
National and Regional vernacular dailies and also prominently displayed at all the identified
offices by the concerned SPCB or Union Territory Pollution Control Committee.
3.4 In the above exceptional circumstances fresh date, time and venue for the public
consultation shall be decided by the Member –Secretary of the concerned SPCB or UTPCC
only in consultation with the District Magistrate/ Deputy Commissioner and notified afresh as
per procedure under 3.1 above.
4.0 Supervision and Presiding over the Hearing
4.1 The District Magistrate/District Collector/ Deputy Commissioner or his or her
representative not below the rank of an Additional District Magistrate assisted by a
representative of SPCB or UTPCC, shall supervise and preside over the entire public hearing
process.
5.0 Videography
5.1 The SPCB or UTPCC shall arrange to video film the entire proceedings. A copy of the
videotape or a CD shall be enclosed with the public hearing proceedings while forwarding it to
the Regulatory Authority concerned.
6.0 Proceedings
6.1 The attendance of all those who are present at the venue shall be noted and annexed
with the final proceedings.
6.2 There shall be no quorum required for attendance for starting the proceedings.
6.3 A representative of the applicant shall initiate the proceedings with a presentation on the
project and the Summary EIA report.
6.4 Persons present at the venue shall be granted the opportunity to seek information or
clarifications on the project from the Applicant. The summary of the public hearing proceedings
accurately reflecting all the views and concerns expressed shall be recorded by the
representative of the SPCB or UTPCC and read over to the audience at the end of the
proceedings explaining the contents in the local/ vernacular language and the agreed minutes
shall be signed by the District Magistrate/District Collector/ Deputy Commissioner or his or her
representative on the same day and forwarded to the SPCB/UTPCC concerned.
6.5 A Statement of the issues raised by the public and the comments of the Applicant shall
also be prepared in the local language or the official state language, as the case may be and in
English and annexed to the proceedings.
6.6 The proceedings of the public hearing shall be conspicuously displayed at the office of
the Panchyats within whose jurisdiction the project is located, office of the concerned Zila
Parishad, District Magistrate /District Collector/ Deputy Commissioner ,and the SPCB or
UTPCC. The SPCB or UTPCC shall also display the proceedings on its website for general
information. Comments, if any, on the proceedings which may be sent directly to the concerned
regulatory authorities and the Applicant concerned.1
7.0 Time Period for Completion of Public Hearing
7.1 The public hearing shall be completed within a period of 45 (forty five) days from date of
receipt of the request letter from the Applicant. Therefore the SPCB or UTPCC concerned shall
sent the public hearing proceedings to the concerned regulatory authority within 8(eight) days of
the completion of the public hearing .Simultaneously, a copy will also be provided to the project
proponent.The applicant may also directly forward a copy of the approved public hearing
proceedings to the regulatory authority concerned along with the final Environmental Impact
Assessment report or supplementary report to the draft EIA report prepared after the public
hearing and public consultations incorporating the concerns expressed in the public hearing
along with action plan and financial allocation, item-wise, to address those concerns.
7.2 If the SPCB or UTPCC fails to hold the public hearing within the stipulated 45 (forty five)
days, the Central Government in Ministry of Environment and Forests for category A project or
activity and the State Government or Union Territory Administration for category B project or
activity at the request of the SEIAA, or project proponent shall engage any other agency or
authority to complete the process, as per procedure laid down in this notification.
1
Note that the draft EIA report will be available to the locally affected persons prior to the Public Hearing. Thus,
citizens will not get to see the final EIA report (on the basis of which the decision on the project will be made)
ANNEX E-21: GUIDANCE ON INCORPORATING THE EMP INTO CONTRACT DOCUMENTS
(IN THE CASE OF HIGHWAY PROJECTS) 1
1. Environmental Requirements in the Pre-bid Document. The project implementing
agency, i.e. the State Public Works Departments (PWDs) or the National Highway Authority of
India (NHAI) issue the pre-bid documents to shortlist a few (usually six) contractors, based on
their expression of interest and capability. While details on environmental requirements are not
really needed at the pre-bid stage, it is useful to mention that the contractor’s environmental
management capability or experience is expected to be good.
2. Incorporating EMP in the Bid Document. The project implementing agency issues the
bid document to the pre-qualified contractors. There are two types of bid documents – for
International Competitive Bids (ICBs) and National Competitive Bids (NCBs). In MDB-financed
projects, these documents are prepared based on templates provided by the MDB. The ICB
documents are based on the FIDIC (acronym for International Institute of Consulting Engineers)
guidelines, while the NCB is closer to national contracting procedures, i.e. the Central PWD
contract documents in India. The bid documents contain separate volumes for instance, a
typical ICB document contains (i) general conditions of contract which is based on the FIDIC (ii)
technical specifications, which is based on the Ministry of Road Transport and Highways
(MoRTH) specifications in India for road and bridge works (iii) Bill of Quantities (iv) drawings.
The parts of the EMP must be included in the relevant locations of the bid documents in the
following manner.
(i) Mitigation/enhancement measures and monitoring requirements tables.
The cross-reference to these tables should be included in the “Conditions of
particular application” or COPA, which is part of the General Conditions of
Contract (e.g. Section IV, Item 19.1 of the ICB). As a standard practice, there is
overall reference to laws that have to be followed in this section / item. The
relevant laws need to be mentioned here. In addition, the adherence to the
mitigation / enhancement measures and monitoring requirement tables should be
included. The two tables will have t be added as annexes or the EMP (without
cost) as a whole must be attached. Either the annexes or the appropriate section
in the EMp should be cross-referenced in the description of this item.
(ii) Modifications/additions to the technical specifications. Due to the
mitigation/enhancement measures included in the EMP, there may be (i)
additions/alterations required to the MoRTH specifications and (ii) some new
specifications. These are to be referred to in the section “Supplementary
Specifications” in the Technical Specifications Volume of the bid documents.
Generally, the MoRTH specifications are taken as followed and are not repeated
in the bid documents. The section on “Supplementary Specifications” should also
include additional technical specifications related to the EMP or should provide a
cross-reference to the specific section of the EMP.
(iii) Cost table. All the items in the EMP cost table relevant to the contractor have to
be referred to in the Bill of Quantities table, which is a separate volume of the bid
documents. It is to be noted that this table includes various tasks to be done by
the contractor under different categories. Against each task the contractor will
1
Adapted from Management of Environmental and Social Issues in Highway Projects in India by the World Bank.
The environmental requirements for a project implementing agency are included in the EMP. Of these
requirements, those related to the construction phase and the contractor have to be necessarily covered in the bid
and contract documents
have to indicate a unit rate while completing the bid documents.
(iv) Drawings: Due to the mitigation / enhancement measures included in the EMP,
(a) there may be changes required to the drawings (b) new drawings. All of these
are to be reflected in the bid documents under a separate Drawings Volume. If
the drawings are included in the EMP, then a cross-reference should be provided
in the Drawings Volume.
3. Developing the EMP to suit the bid/contract documents. As one of the intentions is
to integrate the EMP requirements in to the bid document / contract agreement, the EMP should
be developed keeping the following in mind.
(ii) Mitigation/enhancement measures table–description. In this table, the text
describing each measure should not include / repeat what is already covered
under the MoRTH technical specification which is being cross-referenced. The
text should be short and clear. The description must focus on the “what” and
“where” of the mitigation/enhancement measures, as the “how” has already been
covered under the specification.
(iii) Monitoring requirements table. There are certain monitoring requirements for
the contractor. While developing this table, those that apply to the contractor
must be clearly separated.
(iv) Technical specifications. The modifications to the MoRTH specifications and
additional specifications must be separately listed. These should be included as
Annexes in the EMP. They should be adequately detailed to avoid problems
(including those of interpretation) at the site.
(v) Drawings. The modifications to the drawings as well as additional drawings must
be included as annexes in the EMP. It is important to note that all such drawings
should be “execution drawings” detailed as per the requirement of the particular
item so as to execute at the site with adequate quality control and workmanship.
(Also, it is important to note that the quality of the Bill of Quantities or cost
estimate and technical specifications part of the contract document depends on
the degree of detailing in the drawings.
(vi) Cost table. The items pertaining to the contractor should be clearly separated
from those that are to be implemented by the project implementing agency,
supervision consultant or any other agency. The contractors’ cost table should
also not be attached to the bid / contract documents
(vii) Timing for finalising the EMP. It is best to finalise the EMP before finalising the
bid documents. This is required to fully reflect the sections of the EMP relevant to
the contractor in the bid documents and to ensure full integration
4. Other notes.
(i) Variation Orders. Once the completed bids have been received from
prospective contractors, the project implementing agency takes a decision based
on the costs and technical merit of the bids. Following the decision, the project
implementing agency and the contractor sign the completed bid documents. It
becomes the contract agreement thereafter. If issues have been missed in the
bid documents it cannot be amended at the time of signing the contract
agreement, unless there is a really strong justification for the same. If there is an
EMP cost item that is not reflected in the Bill of Quantities of the signed contract
agreement, the supervision consultant may issue a variation order. The
contractor will quote a rate and the task gets done. The issue of variation orders
is a standard practice and is generally used. However, the intent of good
contracting practices is to minimise variation orders.
LIST OF SOCIAL ANNEXES PERTAINING TO SOCIAL SAFEGUARD FRAMEWORK
(ANNEX S-1 TO S-13)
Annex No. Title of the Annex Remarks
Annex S–1 Paying Replacement Value Documents the procedure for estimating the
rehabilitation assistance by delineating the
process for estimation, replacement value of
lands and assets. This annex also emphasizes
the need to complete the rehabilitation
implementation works before physical
displacement of affected families.
Annex S–2 Sample Entitlements Matrix This annex is the key to ESF and delineates the
Format entitlement for various loss categorizes such as
agricultural land, homestead, residential,
commercial tenancy and entitlements to squatters
and allowance for loss of earnings, shifting of
belongings, crop and fruit bearing trees, negative
impact on schedule tribe families and common
property resources.
Annex S–3 Checklists of documents that Provides checklist of documents that need to be
should be submitted submitted by the lead banks / subborrowers to
By lead banks / subborrowers IIFCL to facilitate social due-diligence on the
(SPVs) to IIFCL for loan project
application
Annex S–4 Resettlement Screening Provides a checklist for seeking basic information
Checklist on IR / IP impacts to determine the
documentation and applicable procedures to
carryout social due-diligence
Annex S–5 Tribal Peoples Effects Screening Provides a checklist for seeking basic information
Checklist on IP impacts to determine the documentation
and applicable procedures to carryout social due-
diligence
Annex S–6 Scope of Resettlement Plan The Government of India procedures as well as
the social safeguard of DFIs allow for abridged
documentation, if the social impacts of the project
are not significant. This annex provides the area
of coverage of short resettlement plan applicable
for such project.
Annex S–7 Scope of Tribal Development Provides the details that need to be covered
Plan short tribal development plans with the IR
impacts at indigenous people are minor or
insignificant
Annex S–8 Review of Policy and Legal Reviews all national legislations and social
Framework safeguard policy and DFIs to provide quick
understanding and salient aspect of these
instruments.
Annex S–9 Checklist of Documentation Provides checklist of documents that need to be
required for preparation of Social submitted by the sub-borrowers to IIFCL to
Due Diligence Report under facilitate environmental and social due-diligence
Take out Finance Scheme on the project
Annex S–10 Suggested Outline of Social Due Provides outline for Social DDRs for subprojects
Diligence Report for Subprojects
Annex S–11 Draft TOR for an External Provides detailed terms of reference for external
Agency for Monitoring and agency for monitoring, evaluating, resettlement
Evaluation implementation plan.
Annex No. Title of the Annex Remarks
Annex S–12 Suggested Scope for an Annual Provides scope for an annual social monitoring
Social Monitoring Report for report for subprojects
Subprojects
Annex S-13 Audit Recording Sheet Provides the key milestones for which the social
Implementation of Social audit observations will be recorded as a part of
Safeguard Systems (the form will annual audit
continue for the project life)
DDR = due diligence report, DFIs = Development Financial Institutions, ESF = Environmental Safeguards
Framework, IIFCL = India Infrastructure Finance Company Limited, IP = indigenous people, IR = involuntary
resettlement, SPV = special purpose vehicle, TOR = terms of reference
ANNEX S-1: PAYING REPLACEMENT VALUE
A. Replacing What is Lost
1. If individuals or a community must lose all or part of their land, means of livelihood, or
social support systems so that a project might proceed, they will be compensated and assisted
to replace lost land, housing, infrastructure, resources, income sources, and services in cash or
kind so that their economic and social circumstances will be at least restored to the pre-project
level. If the residual of an asset taken is not economically viable, compensation and other
assistance are provided as for the entire asset. Non-land-based options may be used where
land is not the preferred option of the affected persons or where land of similar quality and
quantity is not available.
2. All compensation is based on the principle of replacement cost. Replacement cost
means the method of valuing assets to replace the loss at market value or its nearest equivalent
plus any transaction costs such as administrative charges, taxes, registration, and titling costs.
Where GOI regulations do not meet this standard, the replacement cost will be supplemented
as necessary. Replacement cost is based on market value before the project or dispossession,
whichever is higher. In the absence of functioning markets, a compensation structure is required
that enables affected persons to restore their livelihoods to levels at least equivalent to those
maintained at the time of dispossession, displacement, or restricted access. Replacement cost
of an affected asset is equivalent to the amount required to replace the asset in its existing
condition. The replacement cost of structures should be equal to the cost of
constructing/purchasing a new structure, without making any deductions for depreciation.
To assist in the determination of how “replacement cost” will be determined, the subborrower
will finance the formation of compensation committees, with due AP representation, to help the
relevant land acquisition agency arrive at the replacement price. If the statutory compensation is
lower than the replacement value, it is mandatory to pay the difference as a form of
“resettlement assistance” to each AP.
B. Land Acquisition and Concessioning Agency
3. Land acquisition for a public purpose or for a company is done by the state government
authorities as per the Land Acquisition Act. The required payment for such acquisition, known
as the 'circle rate,' is decided by the acquiring officer and district collector. Although the 'circle
rate' is expected to be the 'market value,' often it is not the case. Therefore, what is necessary is
to have a compensation committee which reviews the land market in the area and decides in
consultation with affected persons the current market value of land which is also the
replacement value of such land. If the circle rate is less than the replacement value, the
concessioning agency may also take suitable decision to pay the difference so that APs get the
market value (replacement value) of the land lost. This applies to structures, houses, and
commercial buildings.
4. As per the operational experience of IIFCL, Concessioning Authority follow the
applicable national guidelines while implementing the land acquisition and R&R activities.
C. Civil Works and Resettlement Assistance
5. The National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007) recognizes that
displacement and other project impacts make it difficult for affected families to continue their
livelihood. The policy proposes that a project provide each affected family ‘on replacement cost
basis’ agricultural land or cultivable wasteland, if government land is available for distribution.
This benefit would also be available to affected families who have, as a consequence of land
acquisition, been reduced to the status of marginal farmers.
6. In addition to receiving replacement value of all acquired property prior to physical
displacement and commencement of physical works of a project, each AP is entitled to
economic rehabilitation. A comprehensive economic rehabilitation plan, together with allocated
funds to implement it, should be ready before the project is approved. As economic
rehabilitation programs could take long period to complete, the project sponsor should make
necessary arrangements, and monitor and evaluate the adequacy and relevance of such
programs. As part of the economic rehabilitation programs, local skill development and income
generation programs should be examined and priority registration in such programs should be
given to APs.
ANNEX S-2: SAMPLE ENTITLEMENTS MATRIX FORMAT
1. The entitlement matrix provides guidance for compensation, resettlement, and
rehabilitation assistance planning. Lack of title/customary rights recognized under law will not be
a bar to entitlement. Hence, non-titled encroachers and squatters as well as indigenous or other
groups with customary rights over land or resources, if present in the project area, will be
eligible for compensation (the entitlement matrix provides additional elements to vulnerable
persons). However, people moving into the project area after the cut-off date are not entitled to
compensation and resettlement benefits. The entitlement matrix provides all possible categories
of losses to ensure that all resettlement impacts of all subproject components to be finalized
during design will be addressed.
2. The entitlement matrix below outlines various types of losses resulting from the
subprojects and provides for compensation and R&R packages. If during further processing of a
subproject and loan implementation additional resettlement impacts are identified, the
entitlement matrix will be updated by including provision of compensation and assistance for the
additional impacts as per the SSF by mutual consent between the subborrower and the Facility.
Type of Loss Unit of Entitlements
Entitlement
I. Agricultural land a) Titleholder (i) Compensation at replacement value
family (ii) Compensation for land will be paid as per Land
b) Family with Acquisition Act, 1894. If the replacement cost
customary land (determined as per this policy framework) is more
rights than the compensation, as determined by the
c) Authorized compensation committee in consultation with
encroacher/ Project Proponent /EA, then the difference is to be
squatter family paid by the subproject in the form of “resettlement
assistance.”
(iii) If the residual plot(s) is (are) not viable, i.e. less
than average land holding of the district, the
following options will be given to the AP.
The AP keeps the remaining land and the
compensation and assistance is paid to the
landowner for the land to be acquired.
Compensation and “resettlement assistance” are
given for the entire plot including residual plot, if
the owner of such land wishes that the project
authority should also acquire his residual plot.
The project authority will acquire the residual plot
so paid.
If AP is from vulnerable group, compensation for
the entire land will be by means of land-for-land if
so wished by AP and provided that the land of
equal or more productive value is available.
(iv) Fully physically displaced families (losing their
entire land) belonging to ST category (tribal) will be
provided with 2.5 acres of irrigated agricultural land
or 5 acres of non-irrigated agricultural land.
(v) Fully physically displaced families (losing their
entire land and residence) belonging to all other
categories except STs shall be provided two acres
of irrigated agricultural land or four acres of non-
irrigated agricultural land. In case of non-availability
Type of Loss Unit of Entitlements
Entitlement
of land, cash equivalent will be provided each of an
amount of Rs/acre of irrigated land and an amount
of Rs/acre of non-irrigated land which includes the
cost of reclamation.
(vi) All fees, stamp duties, taxes, and other charges, as
applicable under the relevant laws, incurred in the
relocation and rehabilitation process, are to be
borne by the subborrower.
(vii) Transitional allowance in Rs/month per displaced
family shall be provided on the vacation of
land/house for a period of one year from the date of
vacation as determined by the collector concerned.
II. Homestead land a) Titleholder/ (i) Compensation at replacement value
and assets owner residential (ii) Compensation for residential land will be paid as
(residential land land/structure per LA act. If replacement value for land and
and structure) b) Owner structure is more than the compensation
residential determined by the compensation committee in
land/structure consultation with Project Proponent/EA, then
with customary difference is to be paid by the subborrower in the
rights form of ”assistance.”
c) Authorized (iii) Replacement value for residential structure (part or
residential full), which will be calculated as per the prevailing
encroachers/ basic schedule of rates (BSR) without depreciation,
squatters subject to relevant ‘’quality standards’’ of BSR as
maintained by the government/authorized body.
(iv) Fully physically displaced family (losing its entire
residential land and/or structure) will be eligible for
assistance in the form of 0.10 acre of homestead
land in rehabilitation habitat or cash equivalent if
opting for self-relocation elsewhere.
(v) Fully physically displaced family (losing its entire
residential land and/or structure) will get house
building assistance in rupees which include cattle
shed. This will be admissible to all physically
displaced families whether settling in a resettlement
habitat or elsewhere.
(vi) In order to ensure timely vacation, an allowance in
Rs/month per displaced family shall be provided on
vacation of land/house for a period of one year
from the date of vacation as determined by the
collector concerned.
(vii) For construction of temporary shed, assistance in
rupees shall be provided to each physically
displaced family.
(viii) Transportation allowance in rupees or free
transportation to the resettlement habitat per
physically displaced family by the project authority.
(ix) Right to salvage material from demolished
structure/building.
(x) Project assisted relocation option will be provided
to fully physically displaced persons and those
whose residential structures becomes non-livable
as a result of subproject impacts and a relocation
site will be developed in consultation with these
Type of Loss Unit of Entitlements
Entitlement
affected households provided that such land is
available in the same locality. Basic amenities and
other necessary infrastructure at relocation sites
will be provided by the subborrower.
III. Homestead land a) Titleholder/ (i) Compensation at replacement value
and assets owner (ii) Compensation for commercial land will be paid as
(commercial commercial per LA act. If replacement cost for land and
land and land/structure structure is more than the compensation
structure) b) Owner determined by the compensation committee, then
commercial difference is to be paid by the subborrower in the
land/structure form of “resettlement assistance.”
with customary (iii) Replacement value for commercial structure (part
right or full), which will be calculated as per the
c) Authorized prevailing basic schedule of rates (BSR) without
commercial depreciation, subject to relevant ‘’quality standards’’
encroachers/squ of BSR as maintained by the
atters government/authorized body.
(iv) Fully physically displaced family (losing its entire
commercial land and/or structure) will be eligible for
assistance in the form of 0.10 acre of homestead
land in rehabilitation habitat or cash equivalent if
opting for self-relocation elsewhere.
(v) Fully physically displaced family (losing its entire
commercial land and/or structure) will get building
assistance in rupees which includes a cattle shed.
This will be admissible to all displaced families
whether settling in a resettlement habitat or
elsewhere.
(vi) In order to ensure timely vacation, a transitional
allowance in Rs/month per displaced family shall
be provided on vacation of land/structure for a
period of one year from the date of vacation as
determined by the collector concerned.
(vii) Transportation allowance in rupees or free
transportation to the resettlement habitat or their
new place of inhabitance shall be provided to each
displaced family by the project authority.
(viii) For re-establishment of business, assistance in
rupees shall be provided to each displaced family
by way of providing commercial structure.
(ix) Right to salvage material from demolished
structure.
(x) Project assisted relocation option will be provided
to fully displaced persons and those whose
commercial structures becomes non-livable as a
result of project impacts and a relocation site will be
developed in consultation with these affected
households provided that such land is available in
the same locality. Basic amenities and other
necessary infrastructure at relocation sites will be
provided by the sub-borrower.
IV. Residential a) Residential (i) The amount of deposit or advance payment paid by
tenancy tenant the tenant to the landlord and/or the remaining
amount at the time of expropriation. (This will be
Type of Loss Unit of Entitlements
Entitlement
deducted from the payment of assistance to the
landlord/owner).
(ii) A sum equal to 3 months rental in consideration of
the disruption caused.
(iii) Compensation for any structure that tenant has
erected on the property. (This will be deducted from
such payment to the landlord/owner).
(iv) For construction of temporary shed, assistance in
rupees shall be provided to each displaced family.
(v) Transportation allowance or free transportation to
the resettlement habitat or their new place of
inhabitance shall be provided to each displaced
family by the project authority.
V. Commercial b) Commercial (i) The amount of deposit or advance payment paid by
tenancy tenants the tenant to the landlord and/or the remaining
amount at the time of expropriation. (This will be
deducted from the payment of assistance to the
landlord/owner).
(ii) A sum equal to three months rental in consideration
of the disruption caused.
(iii) Compensation for any structure that tenant has
erected on the property. (This will be deducted from
such payment to the landlord/owner).
(iv) For construction of temporary shed, assistance in
rupees shall be provided to each displaced family.
(v) Transportation allowance or free transportation to
the resettlement habitat or their new place of
inhabitance shall be provided to each displaced
family by the project authority.
VI. Agricultural land a) Agricultural (i) Eligible to get ex-gratia equal to compensation
possessed by squatters belong admissible under the Land Acquisition Act, 1894,
squatters and to the vulnerable for a similar category of land to the extent of land
encroachers group under his/her physical possession up to a
maximum of one standard acre.
(ii) APs will be notified and given a time frame in which
they will be required to remove their assets and
harvest their crops.
(iii) Compensation for standing perennial and non-
perennial crops grown by the APs.
(iv) Right to salvage materials from the demolished
structure.
VII. Homestead land a) Squatters (i) Ex-gratia equal to compensation for land to
possessed by belong to the landless families as per LAA
squatters and vulnerable group (ii) R&R assistance:
encroachers Eligible to get ex-gratia, equal to compensation
for the similar category of homestead land,
against the encroached homestead land up to a
th
maximum of 1/10 of an acre in rural areas or
th
1/25 of an acre in urban areas.
APs will be notified and given a time in which
they will be required to remove their assets.
In order to ensure timely vacation, a transitional
allowance in Rs/month per displaced family shall
Type of Loss Unit of Entitlements
Entitlement
be provided on vacation of land/structure for a
period of one year from the date of vacation as
determined by the collector concerned.
For construction of temporary shed, assistance in
Rs shall be provided to each displaced family.
Transportation allowance in rupees or free
transportation to the resettlement habitat or their
new place of inhabitance shall be provided to
each displaced family by the project authority.
VIII. Residential and a) Squatters (i) Compensation for structure at replacement value
commercial belong to the (ii) Right to salvage materials from the demolished
structure by vulnerable group structure.
squatters and (iii) In order to ensure timely vacation, a transitional
encroachers allowance per month per displaced family shall be
provided on vacation of land/structure for a period
of one year from the date of vacation as
determined by the collector concerned.
(iv) For construction of temporary shed, assistance in
Rs shall be provided to each displaced family.
(v) Transportation allowance in Rs or free
transportation to the resettlement habitat or their
new place of inhabitance shall be provided to each
displaced family by the subborrower.
IX. Shifting a) Households Not eligible for compensation or “assistance.”
business— Ambulatory vendors who have been granted license for
mobile vendors operating will be considered as kiosk.
X. Kiosks a) Household “Assistance” in Rs for business disruption
XI. Loss of wage a) employee in (i) Individual employee/agricultural
earnings commercial laborer/sharecropper indirectly affected due to their
establishments employer being displaced will be assisted for their
b) agricultural economic rehabilitation in cash payment.
laborer/share- (ii) Assistance is to be paid on a case-by-case basis,
croppers/tenants as per the prevailing local wage rates for up to 100
days.
(iii) Employment priority for APs in the construction
work, if so desired by them.
(iv) Preference will be given to these APs in availing
other development program/schemes being
implemented by the government in the project area.
(v) Vocational training funded by subborrower would
be provided for upgrading of skills to the APs
belonging to vulnerable groups and losing their
commercial structures.
XII. Income from a) Titleholder family (i) Advance notice to APs to harvest their crops and
non-perennial losing fruits
crops and non- agricultural land (ii) In case of standing crops, cash compensation at
fruit bearing tree b) Eligible current market value
squatters and (iii) Grant for replacement of seeds for the next
encroachers season’s harvest towards loss of crops before
using land harvest in case of forced relocation.
(iv) Trees will be compensated as per prevailing rate of
Forest Department.
Type of Loss Unit of Entitlements
Entitlement
XIII. Perennial crops a) Titleholder family (i) Advance notice to APs to harvest their crops and
such as fruit losing fruits
bearing trees agricultural land (ii) Compensation for perennial crops and trees
b) Agricultural calculated as annual produce value for at least
squatters belong three seasons.
to vulnerable (iii) Grant for replacement of seeds for the next
group season’s harvest towards loss of crops before
harvest in case of forced relocation.
(iv) Trees will be compensated as per prevailing rate of
Forest Department.
XIV. Negative a) Families belong (i) While developing the resettlement plans, the
impacts on to ST category sociocultural norms of indigenous and primitive
scheduled tribe tribal groups will be respected.
family (ii) Each physically displaced family of indigenous
category shall be given preferential allotment of
land. Such arrangements will be spelled out in the
RP and/or TDP.
(iii) As far as practiceable, indigenous communities
should be resettled in a compact area close to their
natural habitat.
(iv) Indigenous displaced families involuntarily resettled
outside the district shall be given 25% higher R&R
benefits in monetary terms.
XV. Common a) Community Relocation: Either subproject or district administration
property shall take up construction at a new place as would be
resources determined in consultation with representatives of
affected persons/community.
XVI. Temporary a) Community Compensation:
impact during b) Household (i) The contractor shall bear the cost of any impact on
construction c) Individual crops’ adjacent land during construction.
include (ii) All temporary use of lands outside proposed site to
disruption of be through written approval of the landowner by
crops and contractor.
damage to (iii) Location of construction camps by contractors in
adjacent parcel consultation with EA and local people.
of land and other
assets
XVII. Unforeseen a) Community (i) Compensation as per this policy framework
impacts, if any b) Household (ii) R&R assistance as per this policy framework
c) Individual
ANNEX S-3: CHECKLISTS OF DOCUMENTS THAT SHOULD BE SUBMITTED
BY LEAD BANKS / SUBBORROWERS (SPVs) TO IIFCL FOR LOAN APPLICATION
I. Key Approvals/Consents
(i) Gazette Notification/3D Notification relating to Land Acquisition,
approvals/consents/permissions/MOU from the Government/Concessioning
Authority on behalf of the project proponent for the intention to land acquisition
for public purpose. Right of Way Hand Over letter from the Concessioning
Authority.
II. Key Documentation
(ii) RAP/SIA/TDP report with Executive Summary, Resettlement Action Plan with
statement of budgets that have been estimated and committed.
(iii) Status of land acquisition
(iv) Employment Generated for the local people/ project affected people. CSR policy
of the Project Authority as well as CSR activity adopted for the PAP and the
project affected area.
(v) Notice/Record/Minutes of Public Hearing (actual conduct as well as written
comments received) with a statement that summarizes suggestions incorporated
in the Environmental Management Plan (EMP), RAP as a result of public
hearing.
(vi) Any pending litigation-legal statement on the project that states whether the
project is under any legal proceedings e.g. by State/Central Government or
suffering from Public Interest Litigation (PIL).
(vii) Grievances Redressal Mechanism by the project authority.
ANNEX S-4: RESETTLEMENT SCREENING CHECKLIST
Indication of scope
(no. of affected
persons, land area,
Not land use, structures,
Impact Known Yes No etc.)
Is the prospective subproject company (PPC)
undertaking or likely to undertake any land
acquisition?
Is the PPC acquiring land through willing buyer to
willing seller transactions?
Does the PPC have any agreements or is it likely
to enter into agreements with the government for
provision of sites or land or rights to land?
Is any of the land used by the PPC (or likely to be
used by the PPC) compulsorily acquired?
Will any PPC activities involve restrictions of use
on adjoining land?
Are the sites for land acquisition known?
What is the ownership status of the land?
Are non-titled persons present?
Will tenants, lessees, share farmers, or other third
party users be affected?
Will there be loss of housing?
Will there be loss of crops, trees, and other fixed
assets?
Will there be loss of incomes and livelihoods?
Will access to facilities, services, or resources be
lost?
Will there be loss of businesses or enterprises?
Will any social or economic activities be affected
by land use related changes?
If involuntary resettlement impacts are expected:
Are local laws and regulations compatible with
DFI’s involuntary resettlement policy?
Will land be acquired through the government or
by the PPC?
Do PPC agreements with the government (if any)
specify involuntary resettlement will be conducted
in accordance with international standards?
Does the government executing agency/PPC
have sufficient skilled resources for resettlement
planning and implementation?
Are training and capacity building required prior to
resettlement planning and implementation?
ANNEX S-5: TRIBAL PEOPLES EFFECTS SCREENING CHECKLIST
Not Remarks or identified
Impact on Tribal Peoples Known Yes No problems, if any
Are there tribal groups present in project
locations?
Do they maintain distinctive customs or
economic activities that may make them
vulnerable to hardship?
Will the subproject restrict their economic
and social activity and make them
particularly vulnerable in the context of
project?
Will the subproject change their
1
socioeconomic and cultural integrity?
Will the subproject disrupt their community
life?
Will the subproject positively affect their
health, education, livelihood, or social
security status?
Will the subproject negatively affect their
health, education, livelihood, or social
security status?
Will the subproject alter or undermine the
recognition of their knowledge, preclude
customary behaviors, or undermine
customary institutions?
In case there is no disruption of tribal
community life as a whole, will there be loss
of housing, loss of land, crops, trees, and
other fixed assets owned or controlled by
individual tribal households?
1
That is, undermine their production systems and the maintenance and transmission of their cultural patterns.
ANNEX S-6: SCOPE OF RESETTLEMENT PLAN
A. Executive Summary This section provides a concise statement of project scope, key survey
findings, entitlements and recommended actions.
B. Project Description This section provides a general description of the project, discusses project
components that result in land acquisition, involuntary resettlement, or both
and identify the project area. It also describes the alternatives considered to
avoid or minimize resettlement. Include a table with quantified data and
provide a rationale for the final decision.
C. Scope of Land This section:
Acquisition and (i) discusses the project’s potential impacts, and includes maps of the areas or
Resettlement zone of impact of project components or activities;
(ii) describes the scope of land acquisition (provide maps) and explains why it
is necessary for the main investment project;
(iii) summarizes the key effects in terms of assets acquired and displaced
persons; and
(iv) provides details of any common property resources that will be acquired.
D. Methodology for This section outlines the methodology and tools adopted for:
Impact Assessment (i) resettlement screening
(ii) land acquisition planning
(iii) socioeconomic survey
(iv) census survey or inventory of assets and livelihood loss
(v) consultation with stakeholders
E. Socioeconomic This section outlines the results of the social impact assessment, the census
Information and survey, and other studies, with information and/or data disaggregated by
Profile gender, vulnerability, and other social groupings, including:
(i) define, identify, and enumerate the people and communities to be affected;
(ii) describe the likely impacts of land and asset acquisition on the people and
communities affected taking social, cultural, and economic parameters into
account;
(iii) discuss the project’s impacts on the poor, indigenous and/or ethnic
minorities, and other vulnerable groups; and
(iv) identify gender and resettlement impacts, and the socioeconomic situation,
impacts, needs, and priorities of women.
F. Stakeholders This section:
Consultation and (i) identifies project stakeholders, especially primary stakeholders;
Participation (ii) describes the consultation and participation mechanisms to be used during
the different stages of the project cycle;
(iii) summarizes the results of consultations with affected persons (including
host communities), and discusses how concerns raised and recommendations
made were addressed in the resettlement plan; and
(iv) describes the process for consultation with affected persons during project
implementation.
G. Legal Framework This section:
(i) describes national and local laws and regulations that apply to the project
and identify gaps between local laws and DFI's policy requirements; and
discuss how any gaps will be addressed.
(ii) describes the legal and policy commitments from the executing agency for
all types of displaced persons;
(iii) outlines the principles and methodologies used for determining valuations
and compensation rates at replacement cost for assets, incomes, and
livelihoods; and set out the compensation and assistance eligibility criteria and
how and when compensation and assistance will be provided.
(iv) describes the land acquisition process and prepare a schedule for meeting
key procedural requirements.
H. Entitlements, This section:
Assistance and (i) defines displaced persons’ entitlements and eligibility, and describes all
Benefits resettlement assistance measures (includes an entitlement matrix);
(ii) specifies all assistance to vulnerable groups, including women, and other
special groups; and.
(iii) outlines opportunities for affected persons to derive appropriate
development benefits from the project.
I. Relocation of This section:
Housing and (i) describes options for relocating housing and other structures, including
Settlements replacement housing, replacement cash compensation, and/or self-selection
(ensure that gender concerns and support to vulnerable groups are identified);
(ii) describes alternative relocation sites considered; community consultations
conducted; and justification for selected sites, including details about location,
environmental assessment of sites, and development needs;
(iii) provides timetables for site preparation and transfer;
(iv) describes the legal arrangements to regularize tenure and transfer titles to
resettled persons;
(v) outlines measures to assist displaced persons with their transfer and
establishment at new sites;
(vi) describes plans to provide civic infrastructure; and
(vii) explains how integration with host populations will be carried out.
J. Income Restoration This section:
and Rehabilitation (i) identifies livelihood risks and prepare disaggregated tables based on
demographic data and livelihood sources;
(ii) describes income restoration programs, including multiple options for
restoring all types of livelihoods (examples include project benefit sharing,
revenue sharing arrangements, joint stock for equity contributions such as
land, discuss sustainability and safety nets);
(iii) outlines measures to provide social safety net through social insurance
and/or project special funds;
(iv) describes special measures to support vulnerable groups;
(v) explains gender considerations; and
(vi) describes training programs.
K. Resettlement This section:
Budget and Financing (i) provides an itemized budget for all resettlement activities, including for the
Plan resettlement unit, staff training, monitoring, and preparation of resettlement
plans during loan implementation.
(ii) describes the flow of funds (the annual resettlement budget should show
the budget-scheduled expenditure for key items).
(iii) includes a justification for all assumptions made in calculating
compensation rates and other cost estimates (taking into account both
physical and cost contingencies), plus replacement costs.
(iv) includes information about the source of funding for the resettlement plan
budget.
L. Information This section:
Disclosure (i) describes the activities undertaken to disseminate project and resettlement
information during project design and preparation for engaging stakeholders;
(v) confirms disclosure of the draft resettlement plan to affected persons and
includes arrangements to disclose any subsequent plans; and
(vi) describes the planned information disclosure measures (including the type
of information to be disseminated and the method of dissemination) during
project implementation.
M. Grievance Redress This section describes mechanisms to receive and facilitate the resolution of
Mechanisms affected persons’ concerns and grievances. It explains how the procedures are
accessible to affected persons and gender sensitive.
N. Institutional This section:
Arrangements (i) describes institutional arrangement responsibilities and mechanisms for
carrying out the measures of the resettlement plan;
(ii) includes institutional capacity building program, including technical
assistance, if required;
(iii) describes role of NGOs, if involved, and organizations of affected persons
in resettlement planning and management; and
(iv) describes how women’s groups will be involved in resettlement planning
and management,
O. Implementation This section includes a detailed, time bound, implementation schedule for all
Schedule key resettlement and rehabilitation activities. The implementation schedule
should cover all aspects of resettlement activities synchronized with the project
schedule of civil works construction, and provide land acquisition process and
timeline.
P. Monitoring and This section describes the mechanisms and benchmarks appropriate to the
Reporting project for monitoring and evaluating the implementation of the resettlement
plan. It specifies arrangements for participation of affected persons in the
monitoring process. This section will also describe reporting procedures.
Guidance Note on Preparing a Resettlement Plan1
Executive Summary
An executive summary is a succinct note on the key aspects of the resettlement plan. Please
avoid details, data tables and a conclusion. But include the number of persons, households and
land area and structures affected, planned approach to pay replacement cost as compensation
for acquired land or provide land-for-land in lieu of cash compensation and relocation plans, if
applicable, together with the budget and statement of timeframe to complete it. Please also
state that no physical or economic displacement will take place under the project until all
affected persons are appropriately and adequately compensated for the losses that they
incurred. Please indicate that the resettlement plan is EA’s document f ormulated in consultation
with ADB and project- affected persons
1. Project Description
1.1 General description of the project, project components or subprojects
1.2 Identify the boundaries of the project areas and show them on a map. Describe
project alternatives considered to avoid or at least to minimize land acquisition, and
physical or economic displacement or both.
1.3 Indicate whether project-affected persons (APs) were consulted or at least
informed about the alternatives considered and summarized their views and
opinions regarding the chosen option.
1.4 Describe the main objectives of the Resettlement Plan.
2. Socioeconomic Conditions of Project Area and Affected Persons
2.1 Describe briefly project activities that would necessitate land acquisition,
displacement, and relocation – The write up should be supplemented by tables of
socioeconomic data derived from SIA. The data are to be distilled from the social
impact assessment, and not from national census data. Please present tabulated
data as summaries.
1
This Guidance note is based on ADB’s requirement. The scope of RAP requirements may vary depend ing on the
other DFI’s requirements.
2.2 Summarize resettlement impacts and risks arising from project, subproject or
component activities.
2.3 Include maps of the areas or zones of impact of project/subproject/components
2.4 Present a census or a ‘population record’ of all APs. Enumerate them according to
location where they live and project component/subproject. If RP is based on a
sample survey, please state the fact and indicate a census will be included in the
final RP before implementing it. Please note that the information contained in the
RP is tentative until a census of APs has been completed.
2.5 Include maps of population settlements, infrastructure, and natural resources such
as vegetation, water resources, and land use patterns, as applicable with brief
write-ups.
2.6 Please present gender disaggregated socio-economic data in data tables.
2.7 Indicate whether the project is based on a project feasibility study. If not, please do
not overload the RP with country census data (which are often out-dated). Such
general data has hardly any relevance to resettlement planning.
2.8 Indicated whether arrangements are in place to update the draft RP after detailed
technical/engineering designs are completed, and to submit it to ADB for review
and approval.
2.9 Indicate the cut-off date for compensation and other resettlement assistance, and if
applicable, indicate separate cut-off dates for each project component/subproject.
A statement on the cut-off date will be included in the RP.
2.10 Identify and record livelihoods at risk because of the lost and affected assets at the
household and community levels, and assets of affected commercial
establishments. Please pay attention to social, cultural, and economic impacts of
such losses on APs. Include details of project impacts on natural resources and
common property resources, if any and their implications. Check EIA/IEE of the
project, if available, for additional data and information or consult environmental
consultants for such data and information.
2.11 Please provide information on vulnerable groups or persons and communities who
need special assistance. Indicate project impacts, if any, on the poor, indigenous
people, ethnic minorities, and other vulnerable groups in project areas.
2.12 Gender impacts of the project - identify socio-economic conditions, impacts, needs,
and priorities of women and also the relationship between men and women in
economic, social and cultural spheres and how such relationship would impact on
vulnerability, income restoration and benefit sharing.
3. Policy and Legal Framework
This section is critical. Please include a review of the laws, regulations and guidelines
that apply to land acquisition and resettlement by paying special attention to country safeguard
systems, new laws and regulations.
3.1 National (or sub-national or state) land acquisition policies and legal frameworks
for land acquisition, relocation and income restoration are to be succinctly
presented. Compare them with ADB’s Involuntary Resettlement Policy principles
found in SPS 2009.
3.2 Please present measures to bridge the gaps between ADB and borrower’s land
acquisition/resettlement policies, preferably in a matrix.
3.3 Please avoid detailed discussion on draft policies and legal enactments on land
acquisition, relocation and income restoration. However, references to such legal
instruments are sometimes useful to indicate an EA’s orientation towards a
resettlement policy.
3.4 Principles and methods for determining land and other asset valuation and
compensation rates at replacement cost are to be enumerated. If there are several
methods, please indicate which one applies to the project. Please provide a
carefully arranged matrix of components of replacement cost. If replacement cost
cannot be reached, please indicate how the EA plans to meet this key requirement
–through resettlement assistance, bonuses, and incentives. Please do not gloss
over this critical requirement. Most of complaints from APs relate to this issue.
3.5 Calculation of replacement cost may vary from DMC to DMC and project to project.
The key ingredients of replacement cost are fair market value, transaction cost,
interest accrued, transitional and restoration costs and other applicable payments.
In calculating replacement cost of structures and dwellings, their depreciation will
not be taken into consideration. Please refrain from using ‘market value’ or
‘replacement value’ in place of ‘replacement cost.
3.6 Compensation and resettlement assistance eligibility criteria are to be outlined.
How and when cash compensation will be paid to APs is also to be explained.
Please indicate whether husband and wife would get cash compensation, joint
land deeds, and income and livelihood assistance. If not, what guarantees are
there to ensure that women would not become vulnerable impoverished?
3.7 Carefully worded statement in RP is required about compensation, resettlement
assistance, and relocation arrangements, if any, for tenants, leaseholders, wage
workers, informal dwellers, squatters and encroachers. Please explain what their
entitlements are and how they will be delivered to them in the context of the
country’s legal and administrative system. Prior agreement with EA is required in
writing regarding these entitlements. Please pay special attention to entitlements of
squatters, informal dwellers and informal employees in urban projects.
3.8 Discuss delays and key limitations envisaged in paying compensation. Please
elaborate what specific safeguards are arranged to ensure that APs will get their
entitlements before they are physically or economically displaced. In case of land-
for-land compensation, the readiness for allocating land at relocation sites and
details of resettlement assistance such as transport, basic facilities such as water
and power are to be listed in RP.
3.9 Outline project impacts on women. Indicate whether local policy and legal
framework is sufficient or not addressing such impacts. Also please outline what
mitigation measures have been developed in consultation with women to mitigate
any adverse impacts, if any, on them.
3.10 At the end of the section please present a list of land acquisition and resettlement
principles distilled from all laws, regulations, guidelines and SPS.
4. Scope of Land Acquisition and Relocation
Land acquisition
4.1 Describe the scope of land acquisition (use maps) - why private, government,
communal land is necessary for the project/subproject/component.
4.2 Describe alternative options considered and/or mechanisms established to
minimize land acquisition. Explain why the proposed acquisition of land is
unavoidable. Briefly state the impact of land acquisition on APs and their
communities.
4.3 Describe the consultation process with agencies responsible for land acquisition
and resettlement and with APs on land acquisition.
4.4 Explain envisaged obstacles such as delays in compensation payments, and the
nature of tenure of land to be acquired (urban/rural; cultivated/uncultivated land).
Broad time frames for such acquisition.
4.5 Provide details of government land, already acquired land (in anticipation of the
project), and common properties that are affected (a table of data is useful).
Relocation Planning
4.6 Indicate whether self-relocation is an option for APs – any special incentives?
4.7 The magnitude of resettlement requirements – number of households to be
resettled and a list of resettlement sites – their adequacy and suitability.
4.8 Indicate whether land has already been identified for resettlement sites or under
consideration or negotiations; time frame for allocation of land parcels to APs.
4.10 Description of the alternative relocation sites considered. Indicate whether the APs
were consulted. Please include details on location, quality of site, and development
needs. Indicate whether an environmental assessment was conducted at the
relocation site.
4.11 Distance from original land and communities to resettlement sites. Would
relocation generate socio-cultural and economic difficulties for APs? Pay special
attention to vulnerable groups including women.
4.12 Specific responsibility for relocation site development – infrastructure, land deeds
and land development.
4.13 Measures to prevent land speculation or influx of ineligible persons at selected
relocation sites.
4.14 Please indicate timetables for site preparation and transfer. Arrangements to assist
transfer and reestablishment of lives at relocation sites.
4.15 Legal arrangements to regularize tenure and transferring titles to resettlers.
4.16 Please outline plans for housing, infrastructure, and social and community
services.
4.17 Describe special measures to address gender-related issues and special
considerations for vulnerable groups at sites – security, access to employment.
4.18 Measures for planned integration of APs with host communities and plans to
provide comparable services to host populations.
4.19 Measures to mitigate resettlement impacts on the host community – outline
programs that would benefit both APs and the host community which in turn foster
prospects for social integration.
4.20 Discuss briefly likely environmental impacts of the resettlement process.
Environmental risks identification and arrangements for environmental
management and monitoring (Please refer to EIA/IEE and EMP).
5. Information Dissemination, Consultation, and Disclosure Requirements
5.1 Describe the activities undertaken to disseminate information on the project and
participation mechanisms to support the consultation processes. This applies to all
project stakeholders including APs, host communities, NGOs, local government
and authorities. Such consultations could be combined with environment and
indigenous peoples consultations for efficiency and better understanding of project
impacts.
5.2 Outline consultation and information disclosure program in different stages of the
project cycle.
5.3 Identify and describe stakeholders who will engage in consultations.
5.4 Describe the institutional setup and financial provisions that will be provided for
continuing consultation throughout the project cycle. Outline the potential roles of
non-government organizations (NGOs), women’s groups and community-based
organizations (CBOs) in information dissemination and consultation processes.
5.5 Indicate a timetable of disclosing the draft resettlement plan to all APs, and
arrangement for disclosing updated and final resettlement plan, based on detailed
design surveys.
5.6 State the arrangements to post draft and final RP on EA and ADB websites.
6. Entitlements, Assistance and Benefits
6.1 Define each key entitlement and eligibility – unit of entitlement: person, household,
or community; losses and their corresponding entitlements; eligibility criteria for
compensation, resettlement and income restoration assistance; final value for the
property and assets acquired from APs; Identify gender-specific requirements,
titling, compensation and other rehabilitation assistance payments, land transfer-
related expenses, special assistance to vulnerable households.
6.2 Prepare an entitlement matrix based on the impact of the project and eligibility
policies (see annex 1 for the suggested format)
6.3 Cluster each type of APs in the entitlement matrix for clarity. For example, list all
entitlements such as replacement cost, housing, income restoration/improvement
support to land titleholders followed by other categories such as share-croppers,
land leaseholders, squatters.
6.4 Identify the responsibilities and present a firmed up schedule for compensation
payments and provision of resettlement entitlements. Indicate who is responsible
for delivering entitlements to APs.
6.5 Indicate the mode of compensation: land-for –land, cash-for-land, combination of
the two, or negotiated settlement or land pooling. Justify the mode and indicate
whether the mode of compensation has been discussed with APs and borrower.
6.6 Indicate institutional/legal issues pertaining to the entitlements and how these have
been addressed (in brief)
6.7 Carefully check the entitlements listed in the entitlement matrix could be met by the
resettlement budget and timeframe of RP.
7. Income and Livelihood Rehabilitation
7.1 Describe how consultations already held and will be held with APs, CBOs and
NGOs regarding income restoration planning and implementation.
7.2 Outline proposed income restoration programs. Please provide multiple options to
restore and improve all types of livelihoods and income sources.
7.3 Discuss the appropriateness and sustainability of proposed income
restoration/improvement programs
7.4 List employment creation plans, including provisions for income substitution,
retraining, self-employment and pensions, where required. Please make sure to
check with EA the feasibility and budget of such plans before including in RP.
7.5 Business relocation and restoration plan, including income substitution, where
required. Please check with EA before including in RP.
7.6 Indicate possibilities in hiring APs at project sites. How to prioritize AP interests, if
possible. (This should be based on discussion already held with project authorities)
7.7 Explain special measures, if any, to improve livelihood and income sources of
disadvantaged and vulnerable households.
7.8 Outline special measures, if any, to provide skill training and income generation
opportunities for women.
8. Institutional Framework
8.1 Please use diagrams to summarize the institutional framework for implementing
RP. This framework should be linked with the project implementation framework.
The link should be shown in the diagrams.
8.2 Describe responsibilities of PMU, PIU, and Resettlement/safeguard Cells in
implementing RP.
8.3 Indicate which agency/NGO will maintain a database of APs, inventories of assets,
the progress in payment of compensation.
8.4 Detail the roles and responsibilities of organizations who will monitor resettlement
activities.
8.5 Assess the institutional capacity of the organizations and agencies linked with
implementing RP.
8.6 Assess (in brief) the availability of logistics, finance, staff and other necessary
facilities for RP implementation.
8.7 Role of NGOs, if involved, and organizations of affected persons in resettlement
planning and management. Discuss the involvement of women’s groups in
resettlement planning, management and operations, and income generation.
8.8 Arrangements, if any, to hire female staff by the resettlement agency/cell to work
with and assist women APs in resettlement activities, including planning and
implementation of income restoration programs.
9. Grievance Redress Mechanisms
Please examine whether GRMs are required for the implementation of environment and
indigenous peoples plans. It is always a good practice to establish one GRM for all safeguards. If
the project team decides to establish a separate GRM for RP, the following information is required
in the RP. The GRM should be scaled to reflect the level of project impacts. Sufficient attention is
to be paid to its transparency especially in the appointment of GRM members, easy to follow
procedures, using of vernacular for the benefit of all APs, and gender responsive. At least 20% of
GRM membership should be held by women APs.
9.1 Description of the grievance redress mechanism or framework (informal and formal
channels) that will be put in place by the project.
9.2 Provide a detailed diagram of the GRM process.
9.3 Please describe how GRM would feed information to EA to share with internal and
external monitors.
9.4 Briefly describe time frame and mechanisms for resolution of complaints about
resettlement.
9.5 Indicate the appeal procedures.
9.6 How to coordinate with other environment and IP GRMs, if any, to reduce
duplication and time consumption in dispute resolution.
9.7 Arrangements to inform APs about the GRM.
10. Resettlement Budget & Financing Plan
10.1 Itemize budget for each resettlement activity. All items including GRM, monitoring
(internal and external), consultation, host community participation are to be
included as budget items with sufficient allocations after consultation with EA/IA
and APs.
10.2 Justify assumptions regarding calculating compensation rates and other cost
estimates (taking into account both physical and cost contingencies), and
replacement cost.
10.3 Include information about the source of funding of the RP budget.
10.4 Include a detailed compensation payment plan and a schedule. Please make sure
the plan and the schedule synchronize with the project’s schedule of construction
of civil works.
10.5 All cost of compensation, relocation, and livelihood rehabilitation will be considered
project costs. If the borrower plans to include resettlement costs in the project loan,
special arrangements are to be included in RRP with a dedicated budget. This
needs prior approval of ADB management.
11. Implementation Schedule
11.1 Please provide an implementation schedule covering all aspects of resettlement
activities including land acquisition, compensation payment, relocation and
rehabilitation. The schedule should indicate how the resettlement activities are
linked to the implementation of the overall project.
11.2 Time bound actions for projected activities to ensure that APs are compensated
and assisted before award of civil works contracts or similar milestone, ensuring as
a minimum that affected people will be provided with entitlements, such as land
and asset compensation and transfer allowances, prior to their displacement
11.3 Resettlement Supervision Milestones included and updated regularly. Please see
Appendix 2.
11.4 Please verify implementation schedule against loan covenants to avoid
inconsistencies.
12. Monitoring & Reporting
Please do not include complicated monitoring system for small-scale resettlement plans.
The monitoring framework should commensurate with the significance of resettlement impacts
of a project, subproject or a project component. A budget for monitoring and reporting should be
first agreed with EA.
Internal Monitoring:
12.1 Outline arrangements to monitor resettlement implementation, including impacts
on women
12.2 State the strategy to monitor the impacts of land losses and resettlement for a
reasonable period after all the resettlement and development activities have been
completed.
12.3 A list of key monitoring indicators and their sub-indicators (these are to be
developed in consultation with EA/IA to ensure their suitability, applicability and
budgetary allocations
12.4 Reporting arrangements to ADB, EA and IAs
12.5 TOR for monitors, if the project hires internal monitors
12.6 Web posting at EA, IA, ADB – responsibility and time frame
External Monitoring
12.7 Arrangements for hiring an external monitor.
12.8 TOR of the external monitor (as an annex to RP)
12.9 Reporting plan – timetable of submission of reports – six monthly
12.10 Specific arrangement to facilitate APs’ participation in external monitoring.
12.11 A list of key monitoring indicators
12.12 Reporting arrangement to ADB, EA and IAs.
12.13 TOR for external monitors. If an independent advisory panel (for a complex and
sensitive project) is to be appointed, please prepare a TOR for the resettlement
expert.
12.14 Web posting at EA and ADB–responsibility and time frame
ANNEX S-7: SCOPE OF TRIBAL DEVELOPMENT PLAN
Executive Summary
I. Background and context
a. The project and project components
b. Relevant state legal framework
c. Baseline data of tribal peoples in the project area
i. maps of the area of project influence and the areas inhabited by tribal peoples
ii. brief analysis of the social structure and income sources of project affected tribal
peoples
iii. information on relevant cultural practices and patterns
iv. relationship of tribal peoples to other local/national groups
d. Key positive project effects on tribal peoples
e. Key negative project effects on tribal peoples
II. Development and/or mitigating activities
a. Describe details of development (e.g. benefits-sharing) activities
b. Describe details of mitigating activities
III. Strategy for tribal peoples participation
a. Describe mechanism for participation by tribal peoples in planning, implementation,
monitoring, and reporting
b. Describe procedures for a project-related grievance procedure
IV. IV. Institutional arrangements - implementing agency (IA)
a. Identify main tasks and responsibilities in planning, managing, and monitoring
development and/or mitigating activities
b. Identify role of NGOs or tribal peoples organizations in implementing the development
and/or mitigating activities
V. Budget and financing
a. Identify development and/or mitigating activity costs (including contingency funds) and
funding resources
b. Provide detailed cost estimates for planned activities and investments, such estimates
should be broken down into unit costs by project year and linked to a financing plan
VI. Supervision/Implementation
a. Specify arrangements for supervision of TDP, e.g. annual reports, inspections
VII. Monitoring
a. Prepare a plan for internal and independent monitoring of the targets of the major
development and/or mitigating activities related to tribal peoples
Note on Tribal Development Plan Preparation1
(Based on ADB Indigenous peoples Safeguard Policy)
Titles/Labels
1. Indigenous peoples are labeled variously in different DMCs as ‘tribes’, ‘tribal people’,
‘peoples’, ‘scheduled tribes’, ‘primitive tribes’, ‘cultural minorities’, and ‘ethnic minorities’. Please
be careful to use the local official labels such as tribal, tribal peoples, janajathi, and ethnic
minorities instead of ‘indigenous peoples’ in TDPs to refer to them.
1
This Guidance note is based on ADB’s requirement. The scope of TDP may vary depending on the other DFI’s
requirements.
Triggers of Indigenous Peoples Policy
2. A lot of preparatory work precedes the formulation of a Tribal Development Plan (TDP).
In case a proposed project is probable to impact on tribal peoples, the most important task at
the initial phase of project planning is to determine whether these communities are tribal
peoples or not. The second task is to determine whether or not their presence in the proposed
project area would trigger safeguard policy requirements applicable to tribal peoples. Generally,
if their ancestral domain, specific dialect, control over some natural resources, and religio-
cultural identity with a specific location are not affected, the project team might consider the
desirability of considering them as a vulnerable group which would give them guaranteed and
specific project benefits.
3. Unlike involuntary resettlement and environment safeguard policies, tribal peoples
safeguard policy gets triggered by positive and adverse project impacts. Therefore, the project
team or consultants should determine, based on the information and data available, whether or
not the project-affected population triggers the tribal peoples safeguard requirements. The
widespread notions that if tribal peoples are ‘mainstreamed’ it is not necessary to formulate a
TDP is incorrect. The phrase ‘mainstreamed’ does not convey any information about tribal
peoples, as even after the so called mainstreaming they continue to be tribal peoples (TP). If the
phrase means that TP are not different from others in economic status, still TDP has to be
prepared as their vulnerabilities arise from social and political arenas in addition to economic
arena. In countries such as India, TP are entitled to special recognition and support regardless
of their current economic status, because the Constitution recognizes them as vulnerable
communities who need constitutional safeguards. In such a situation, a project will have an TDP
or a special action plan built into another social action plan such as resettlement plan or
community action plan to ensure that the project’s adverse impacts on them are avoided or at
least minimized, and that they will have equal opportunities to benefit from the project.
Need for an TP Expert
4. The project should engage qualified and experienced indigenous experts to advice on
the above complex issues at the outset. A wrong decision regarding the identity and rights of a
TP would exclude a vulnerable category of people from receiving project benefits. The selection
of a qualified and experience TP expert is the responsibility of the project proponent in
consultation with safeguard specialist of ESMU of IIFCL. If a project has significant TP impacts,
please consider the possibility of retaining the TP specialist at planning and implementation
phases of the project.
Social Impact Assessment
5. A key weakness in an TDP is its poor socioeconomic database. Often national or
regional TP census data and information are used as a substitute for findings of a SIA. This
creates difficulties in determining whether the presence of TP triggers the TP safeguards, and
the need for seeking free, prior, informed consent of affected TP. These issues re-emphasize
the importance of hiring a qualified and experienced expert to plan and conduct the SIA.
Possibility of formulating a combined SIA for IR and TP should also be considered, if the
majority of PAPs are TP who lose land and other property to the project. A resettlement plan
holds some legal validity, especially when it is a part of an EIA.
6. In India, tribal groups characterized by vulnerability are ranked according to their poverty
and constitutional rights. For example, tribal peoples are categorized into scheduled and non-
scheduled tribes; similar categorization is applied to castes – scheduled and non-scheduled.
Occasionally, ‘primitive tribes’ is found in literature especially in Kerala state. As vulnerability is
the key characteristic of indigenous peoples, the team should get an expert opinion on how to
disentangle such mixed social groups for the SIA and TDP. It is necessary to assess and
validate which TP groups will trigger TP safeguard principles and to state in the SIA.
7. A key set of questions in SIA is (a) whether the proposed project would have any impact
on land use/ownership, cultural heritage of communities and indigenous knowledge such as
medicinal plants, and natural resources found in the areas where TP live. Some of these
anticipated impacts may require FPIC exercises to seek broad community support for the
project. The ideal time to hold FPIC exercise, if required, is during the SIA.
8. Data and information collected through questionnaires, focus group discussions,
consultations, and unstructured interviews should be analyzed and presented in tabular form
with necessary explanations in the main text of TDP. Detailed data tables are to be included as
an annex of TDP. The reader of TDP should be able to understand the scope of the project, its
impacts on TPs and others, and the geographical boundaries of such impacts.
Consultations, Participation and Information Disclosure
9. Generally consultation and participation of TP in the formulation of an TDP do not get
sufficient attention during the formulation of an TDP. Just to talk to TP and to collect their
socioeconomic information would not satisfy these requirements. Although preliminary
consultations can be done during SIA, consultations and SIA are two distinct planning activities,
although some overlap could be expected. It is desirable to combine consultations on
environment and resettlement with TP consultations.
10. All consultations with TP are supposed to be ‘meaningful’ consultations. The process of
meaningful consultations has several characteristics which fieldworkers who conduct SIA should
know of: (1) it is a process which continues throughout the project cycle – not a few ad hoc
meetings with TP; (2) disclosure of relevant project information to all TP; (3) consultation are to
be conducted in a friendly and accommodative style without intimidation or coercion; (4)
consultations should be gender-sensitive, inclusive, and responsive to needs of all
disadvantaged groups; and (5) consultations should generate sufficient data, information and
views and recommendations from TP which would facilitate knowing, sharing and incorporating
their views, aspirations and concerns in planning and implementing the project.
Free, Prior, Informed Consent (FPIC)
11. FPIC is a cluster of concepts each of which has a specific meaning. Please know the
correct meaning of the concepts. ‘Free’ means dedicated discussions with TP without any
coercion or intimidation or promises. ‘Prior’ means consultations before the selection of the
location of a project or before determining a project proposal as final. Having selected a project
site and then to consult people will not facilitate FPIC seeking exercises. This is especially
important because if the majority says ‘no’ to a project during FPIC, ADB will not fund it.
‘Consent’ is an agreement. This is known as ‘broad community support’. The Policy says that
broad community support may exist even if some individuals or groups object to the project
activities. This is a matter for TP specialist to determine. Please note that the World Bank use
the last letter of FPIC, that is, ‘C’ to mean ‘consultation’. But at ADB, the focus is on ‘consent’.
There is a big difference between the two. The World Bank is now trying to embrace ‘consent’.
12. Three key factors could trigger the need for FPIC: physical displacement of indigenous
peoples is the most common factor. If displacement and relocation are components of a
proposed project, it is necessary to obtain FPIC of affected TP. Please check whether or not
such acquired land fall into the category of ancestral domain of the peoples. Sometimes, TP live
and earn their livelihood on state land or private lands of others. Such lands are not ancestral
lands. This is somewhat vague and difficult to determine in a community. For example, when a
commercial company plans to produce a drug using a plant found in the area which is being
used by communities as a remedy for an illness, it should obtain TP’s consent.
13. If FPIC is required, the team should determine the methodology of conducting FPIC,
cost and resources requirements. With FPIC, a project processing phase could get longer. This
possibility should be considered at the stage of selecting an area for a project.
14. A key problem in conducting FPIC is how to choose a sample of TP. It is difficult to
select a representative sample from scattered and somewhat reluctant/shy tribal or indigenous
peoples. A cost effective way of choosing respondents for interviews, consultation and consent-
seeking is to look for tribal/indigenous community level organizations/agencies in the project
area. If leaders or representatives of such organizations are identified, the process of FPIC
could be done consulting a sample of such leaders. If the number of such leaders is small, all of
them could be invited for FPIC exercise. Please make sure to provide them with transport and
food when invited for FPIC exercises. There should be a budget for this purpose in PPTA or
consultation program.
15. FPIC is a complicated process which needs careful planning and note taking. The note
takers of recorder(s) should be impartial and trained in note taking and summarizing
complicated statements made by respondents. Debates and disagreement are part of the
process – this means the ability to listen and to extract the meaning of seemingly contradictory
and meaningless statements and arguments.
16. Usually full consensus for a proposed project cannot be reached through FPIC process.
Therefore, ADB look for a broad community support for the project. This is decision of TP expert
not the borrower/client.
17. At the end of FPIC exercise, the borrower will submit full documentation of the
discussions and decisions to ADB for review. ADB can conduct its own investigation in order to
assure itself of the existence of broad community support for the project among TP. ADB find
such documentation is at best fragmentary and incomplete. The documentation submitted to
ADB for review should be complete, comprehensively written with a short analysis of data and
information. ADB will use the documentation to form its own opinion and to conduct further
investigations.
Project Benefits to Indigenous Peoples
18. ADB recognizes TP’s vulnerability in development process. It therefore wants to ensure
that TP have opportunities to participate in and benefit equally from projects that affect them. A
key objective of an TDP is to identify such opportunities and make them into realities; otherwise,
there is a very high probability that non-TP population would usurp project benefits from
vulnerable, marginalized, and often illiterate TP.
19. A comprehensive SIA and results of FPIC exercise (if applied) together with the project
proposal indicate how the project could benefit affected TP and what obstacles are to be
overcome. The TDP should elaborate the benefits that TP are supposed to receive from the
project and what actions are necessary to ensure that they could reap them. Usually this key
section is missing in many TDP. A cursory statement on benefits is found in categorization
forms which are often not based on field findings. Project benefits should be tangible. For
example, a hydropower project could provide electricity to an affected TP community. Electricity
would help children to study more hours after school. Electricity would certainly impact on
gender relations and employment patterns as well.
20. Project benefits that accrue to TP in a project area should culturally be appropriate and
gender responsive. This is difficult to achieve unless a thorough knowledge of local culture and
social organization is acquired. ‘Culturally appropriate’ means location-specific social and
cultural values who would sustain the community; they certainly not offend the community or
disintegrate it. Such values are to be elicited through consultations with affected TP. Gender
relationships may vary from community to community. They should also be carefully examined
before recommending activities that could bring benefits to TP. Sometimes women hold key
sacred items/symbols such as sacred rice in a farming TP community. If their farming land is
acquired for a project, women not only lose the custody of the sacred rice, but also their top
position in the social hierarchy.
Mitigation Measures
21. An important aspect of making a project beneficial to TP is to mitigate any adverse
impacts that cannot be fully avoided. In case of TP, such measures are more related to
environmental planning than to resettlement or social development. A project that will have
impacts on TP’s fishing in a river or hunting in a forest should view such resources as natural
resources over which TP have rights which are recognized by the international law. It is much
easier to provide safeguards to such interests and rights of TP in an EIA than in a resettlement
plan. It is helpful if a detailed analysis and a set of recommendations are included in the EIA and
a summary in the TDP. This is a good example of the possibility of integrating environmental
safeguard policy requirements with social safeguard requirements instead of juxtaposing them.
22. In a TDP, a key mitigative measure would be how to resettle physically displaced TP. In
this scenario, the critical requirement is obtaining TP’s consent. When consent is obtained and
recorded, it is necessary to find land where they could be resettled. Their resettlement requires
a higher threshold of preparation. They cannot be paid cash compensation and expected to find
new land. They are too vulnerable to do so. They do not know the land market and have weak
links with local administration. Normally they would like to continue their traditional or customary
livelihoods. It is the responsibility of the borrower/client to ensure that adequate, good quality
replacement lands are provided to them. Unless such land is found before the displacement, the
project should proceed further. On the other hand, if TP are happy to receive cash
compensation and self-relocate, an independent committee should verify their majority decision
and provide adequate cash compensation promptly. Ideally willing buyer-willing seller mode of
land acquisition could be used. But this is possible only when TP do not claim over the project
land as their ancestral domain.
23. Mitigative measures take two forms: community or group measures, and individual
measures. In TP communities, customary laws govern most of community resources under the
general umbrella of ‘ancestral domain’. This means even if an individual were willing to sell his
land to a project, the community as a whole has a right to stop the individual. This community
right is a general legal norm in India (please see the Forest Rights Act of 2006).
24. A key function of FPIC is to determine community rights and individual rights when land
is acquired for a project and to work out how to distribute compensation and other benefits
among affected TP.
Institutional Arrangements
25. TDP will outline who will implement it and who will provide budget and financial
assistance. In some projects, a distinction between Central Government and states/local
authorities is relevant regarding TP issues and budgetary allocations. A clear demarcation of
functions of different authorities and agencies are to be elaborated in TDP.
26. TDP will indicate whether TP organizations, NGOs and CBOs would participate in
implementing it. TORs of each category will be listed as an annex to TDP. In a complex and
significant project, TOR of panel of experts will also be included in the annex.
27. During the formulation of a TDP, it is necessary to check whether or not a separate cell
within PIU is required to attend to TP issues. If required, a TOR and a budget for an TP
specialist at PIU are to be included.
28. An itemized budget for all activities, compensation, rehabilitation, personnel, and
monitoring will be in TDP. If TDP is combined with a resettlement plan, cost of compensation,
relocation and rehabilitation of affected TPs will be distinguished from other budgetary items.
Capacity Building
29. It is necessary to probe the Constitution, local legal systems, regulations and court
decisions pertaining to TP’s rights, duties and identity and recognized control over some
territories. This is a specialist’s job. The TP expert should prepare a dossier of such laws and
regulations and use it to review the potential project impacts on TP, how to mitigate them, and
ensure TP get project benefit.
30. When domestic laws are silent on or against the classification of a population into TP
and non-TP, the project team with the assistance of TP expert should develop some guidelines
on TP issues of the project which could later be developed into regulations or laws. Thus TDP
contributes to the development of country safeguard system for TP safeguards.
31. The consultants should look for TP organizations at the local, regional and national level
to discuss, understand and report on TP groups, their interests and rights and their key
characteristics that distinguish them from other communities. Such reports in short term
facilitate project activities pertaining to TP, and in long-term build up institutional capacity of
borrowers/client to identify TP and to plan projects to benefit them.
Grievance Redress Mechanism
32. The establishment of one grievance redress mechanism for environment, resettlement
and indigenous peoples safeguard issues is the ideal. However, if TP issues are significant and
complex, a separate GRM could be establish to deal with TP issues only.
33. During consultations and exercises on FPIC-seeking, the consultants/safeguard
specialist of the project team should discuss with TP the nature and the level(s) of grievance
redress mechanism and the manner in which redress is ensured.
34. The project team should seek the advice of TP expert and the views of TP
representatives on GRM before finalizing the GRM structure and organization.
35. The rules and structure of the GRM have to be included in TDP. In case one GRM is
established for environment and social safeguards, the rules and organizational structure of the
GRM pertaining to each safeguard area is to be listed in TDP.
Monitoring
36. The degree of monitoring of TDP implementation will commensurate with the complexity
and significance of project impacts on TP. Detailed and costly monitoring system should not be
established unless the need for such a system is first examined and agreed with the
borrower/client.
37. TDP will list primary and secondary monitoring indicators and describe the monitoring
structure and how it links with other monitoring programs of the project proponent. It will also
discuss the degree of participation of TP representatives, frequency of monitoring reporting, and
web posting.
38. In a project with complex and significant TP issues, a panel of experts will do its external
monitoring. The frequency of meetings, reporting, key issues the panel will monitor and it
membership are to be included in TP. A monitoring budget is to be included in TDP and it
should be reflected in the overall project budget.
ANNEX S-8: INVOLUNTARY RESETTLEMENT AND TRIBAL PEOPLES SAFEGUARDS–
GOVERNMENT OF INDIA POLICY AND LEGAL FRAMEWORK
A. National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007)
1. The National Rehabilitation and Resettlement Policy, 2007 (NRRP-2007) was adopted
by the Government of India in 31st October, 2007 to address development-induced resettlement
issues. The policy provides for the basic minimum requirements, and all projects leading to
involuntary displacement of people must address the rehabilitation and resettlement issues
comprehensively. The State Governments, Public Sector Undertakings or agencies, and other
requiring bodies shall be at liberty to put in place greater benefit levels than those prescribed in
the NRRP-2009. The principles of this policy may also apply to the rehabilitation and
resettlement of persons involuntarily displaced permanently due to any other reason. The
objectives of the National Rehabilitation and Resettlement Policy are as follows:
(i) to minimize displacement and to promote, as far as possible, non-displacing or
least-displacing alternatives;
(ii) to ensure adequate rehabilitation package and expeditious implementation of the
rehabilitation process with the active participation of the affected families;
(iii) to ensure that special care is taken for protecting the rights of the weaker
sections of society, especially members of the Scheduled Castes and Scheduled
Tribes, and to create obligations on the State for their treatment with concern and
sensitivity;
(iv) to provide a better standard of living, making concerted efforts for providing
sustainable income to the affected families;
(v) to integrate rehabilitation concerns into the development planning and
implementation process; and
(vi) where displacement is on account of land acquisition, to facilitate harmonious
relationship between the requiring body and affected families through mutual
cooperation.
B. Land Acquisition Act (LAA), 1894
2. The Act provides a framework for facilitation of land acquisition within the country. The
Act enables the state to acquire private lands for public purposes. The Act ensures that no
person is deprived of land except under the Act and entitles the landowner/APs to a hearing
before acquisition. The salient features of the Act are given below.
(i) Land identified for the purposes of a project is placed under Section 4 of the LAA.
This constitutes notification. Objections must be made within 50 days to the DC.
(ii) The land is then placed under Section 6 of the LAA. This is a declaration that the
government intends to acquire the land. The DC is directed to take steps for the
acquisition and the land is placed under Section 9. Interested parties are then
invited to state their interest in the land and the price. Under Section 11, the DC
shall make an award within one year of the date of publication of the
declarations. Otherwise, the acquisition proceedings shall lapse.
(iii) In case of disagreement on the price awarded, within six weeks of award, the
parties (under Section 18) can request the DC to refer the matter to the courts to
make a final ruling on the amount of compensation.
(iv) Once the land has been placed under Section 4, no further sales or transfers are
allowed. However, since the time lag between Sections 4 and the others
following it is about 3 years, land transfers are not uncommon.
(v) Compensation for land and improvements (such as houses, wells, trees, etc.) is
paid in cash by the project authorities to the state government, which in turn
compensates landowners.
(vi) The price to be paid for the acquisition of agricultural land is based on sale prices
recorded in the district registrar’s office averaged over the three years preceding
notification under Section 4. The compensation is paid after the area is acquired,
actual payment by the state taking about 2 or 3 years. An additional 30% is
added to the award as well as an escalation of 12% per year from the date of
notification to the final placement under Section 9, an additional 9% per annum is
paid for the first year and 15% for subsequent years.
C. Involuntary Resettlement Polies of DFIs (ADB IR Policy is indicative of other DFIs’
IR policies)
3. The three important elements of the IR policy are (i) compensation to replace lost
assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation
sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at
least the same level of well-being with the project as without it. Some or all of the elements may
be present in a project involving IR.
4. See Annex S-6 on guidance for formulating a Resettlement Plan.
D. Scheduled Caste and Scheduled Tribes (Prevention of Atrocities Act), 1989
5. This Act prevents the commission of offences of atrocities against members of the
Scheduled Tribes and Castes and provides for a special court for the trial of offences against
SCs and STs. It also provides for the relief and rehabilitation of victims of such offences.
E. Panchayat Extension to Scheduled Areas Act (PESA), 1996
6. Panchayat Extension to Scheduled Areas Act was passed in 1996. The act is meant to
enable tribal society to assume control over their resources and development. The provisions of
the 73rd Amendment, with some modifications, were extended to the tribal areas under
Schedule V in the States of Andhra Pradesh, Bihar, Gujarat, Himachal Pradesh, Maharashtra,
Madhya Pradesh, Orissa, and Rajasthan.
F. The National green Tribunal Act, 2010
7. An Act to provide for the establishment of a National Green tribunal for the effective and
expeditious disposal of cases relation to environmental protection and conservation of forests
and other natural resources including enforcement of any legal right relating to environment and
giving relief and compensation for damages to persons and property and for matters therewith
or incidental thereto.
G. Tribal Peoples Safeguard Policies of DFIs (ADB’s Indigenous Peoples (IP) Policy
is indicative of other Lenders’ IP Policies)
8. Policy ensures that projects affecting tribal (indigenous) peoples are (i) consistent with
the needs and aspirations of affected TP; (ii) compatible in substance and structure with
affected TP culture and social and economic institutions; (iii) conceived, planned, and
implemented with the informed participation of affected communities; (iv) equitable in terms of
development efforts and impact; and (v) not imposing the negative effects of development on IP
without appropriate and acceptable compensation.
9. Please see Annex S-7 for detail guidance on how to prepare a TDP.
ANNEX S-9: CHECKLIST OF DOCUMENTATION REQUIRED FOR PREPARATION OF
SDDR UNDER TAKEOUT FINANCE SCHEME
Documents required:
Copies of
Social impact Assessment
Resettlement Action Plan/Resettlement Plan
Tribal Development Plan, if available
Following details are also required:
Any pending litigation regarding land acquisition Any tribal peoples affected due to
project;
Any Compensation related issues;
Any physical displacement of people;
Local Employment generated during construction as well as operation phase;
Any grievances pending and grievance redressal mechanism;
Details of any special effort taken by project developer or project facility provided (like
underpasses, service road etc.) due to public demand ;
CSR activities undertaken.
ANNEX S-10: SUGGESTED OUTLINE OF SOCIAL DUE DILIGENCE REPORT FOR
SUBPROJECTS
Introduction
1. Investment description: investment title, type of investment, location and setting, amount,
size (production capacity, number of staff)
2. Social categorization and rationale
3. Applicable Social Requirements. (Policies applicable for SIA/RAP/TDP)
Scope of Review and Methodology
1. Documents reviewed (e.g. Resettlement Action Plan, Tribal Development Plan , or social
Compliance Audit Reports, copies of gazette notifications)
2. Methodologies used (Site visits, inspection report, etc.)
Compliance and liability (by relevant safeguard requirements applicable for the specific
investment, examine social issues and compliance)
1. Examine issues in terms of Social concerns, involuntary resettlement and
indigenous/Tribal peoples impacts, mitigation measures to address these issues (or corrective
action plan for existing facilities) and compliance status with applicable DFIs social safeguard
requirements and national laws, regulations, and standards:
(i) Social Safeguards
appropriate identification of major anticipated Social impacts and
risks
adequacy of Social assessment (for category A investments,
including the adequacy of alternative analysis)
compliance status with applicable requirements on (i) information
disclosure, (ii) consultation with affected persons and other
stakeholders, (iii) occupational and community health and safety,
employment generation and sustainable livelihood generation
management, and common property resources
adequacy of mitigation measures (mitigation measures,
monitoring and reporting, institutional arrangement, R&R budget
and status of the budgeted amount
(ii) Involuntary Resettlement Safeguards
appropriate identification of major anticipated involuntary
resettlement impacts and risks (including both physical
displacement and economic displacement)
adequacy of assessment of social impacts, information disclosure
and consultation with affected persons and other stakeholders
adequacy of compensation and benefits for displaced persons
adequacy of resettlement plan (measures to enhance or restore
the livelihoods of displaced persons, monitoring and reporting,
institutional arrangement, budget), or corrective action plan for
existing facilities, if any
private sector responsibilities under government-manages
resettlement
(iii) Indigenous/Tribal Peoples Safeguards
appropriate identification of major anticipated impacts on
Indigenous/tribal Peoples (including potential impacts on
traditional or customary lands under use; relocation of
Indigenous/tribal Peoples from traditional and customary lands,
and impacts on cultural property resources)
adequacy of information disclosure and meaningful consultation
with affected people
broad community support, where applicable
adequacy of measures to avoid adverse impacts
adequacy of Indigenous/tribal Peoples plan (benefit sharing,
measures to mitigate and minimize adverse impacts, monitoring
and reporting, institutional arrangement, budget), or corrective
action plan for existing facilities, if any
(iv) Adequacy of grievance redress mechanism arrangements
2. Recommend mitigation measures, or corrective action plans, if gaps are identified
3. State any risk control or mitigation measures to be taken by the investment, such as
conditions, loan covenants or monitoring and reporting requirements
Other investment specific issues, if any
Conclusion and Recommendations
ANNEX S-11: DRAFT TOR FOR AN EXTERNAL AGENCY FOR MONITORING AND
REPORTING
A. Objective/Purpose of the Assignment
1. Monitoring is an integral part of both the resettlement process and of a Tribal
Development Plan (TDP). The agency will be involved in ongoing monitoring of resettlement
implementation and/or of a TDP. The objectives of external monitoring and reporting are to
review implementation and assess the (i) achievement of resettlement and/or TDP objectives,
(ii) changes in living standards and livelihoods and restoration of economic and social base of
the APs, (iii) the effectiveness, impact, and sustainability of entitlements, and (iv) need for
further mitigating measures, if any. External monitoring and reporting should also enable the
executing agency to make timely decisions on corrective measures needed to implement
resettlement and/or the TDP effectively and learn strategic lessons for future policy formulation
and planning.
B. Qualifications
2. The selected organization should be of high professional standing and have a strong
track record in the field of social development, resettlement, and tribal development. It should
also have a proven record in project monitoring and be able to demonstrate adequate
resources.
C. Scope of Work
3. The major tasks expected from the external monitoring are
(i) Review and verify internal monitoring systems and findings.
(ii) Conduct independent investigations of project implementation, including PIUs,
local offices, and consultations with village leaders, NGOs, and affected persons,
especially women and vulnerable groups.
(iii) Prepare independent reports based on monitoring visits.
(iv) Suggest major recommendations for remedial actions.
(v) Identify lessons learned.
(vi) Maintain database of independent surveys.
(vii) Suggest remedial actions with time-based outputs.
(viii) Certify compliance with requirements of RP and/or TDP.
(ix) Share the major lessons from the process both in terms of success and failure.
D. Detailed Tasks
4. Prior to commencement, prepare a monitoring plan giving details on
(i) Aim and scope of monitoring system
Setting up the objectives of monitoring
Defining the monitoring system and monitoring cycle
Defining the scope of monitoring
(ii) Monitoring strategy. The general approach to be used to monitor activities and
results ensuring participation of all stakeholders, especially women and
vulnerable groups.
(iii) Project results. A summary of the major project activities, expected results, and
the indicators to be used to monitor the progress and achievement of results.
(iv) Defining and selecting indicators
Identify key indicators to be monitored
Indicators for each stage of project implementation
Gender-disaggregated indicators
Select only those which are simple, specific, and verifiable
(v) Collection and Analysis of Data
Method of data collection
Sampling (20% of affected persons)
Analysis
(vi) Verify the internal monitoring process and reporting by executing agency (EA)
through field visits and independent investigations.
(vii) Assess the extent to which the resettlement plan and/or TDP is being followed
and objectives being met.
Institutional arrangements
Adequacy of the Management Information System
Payment of compensation, adequacy of budget, and timeliness of
payment
Land readjustments
Consultation and information dissemination
Preparation and adequacy of resettlement sites
House construction
Provision of employment, its adequacy, and income levels
Training
Gender impacts
Rehabilitation of vulnerable groups
Infrastructure repair, relocation, or replacement
Enterprise relocation, compensation, and its adequacy
Transition allowances
(viii) Monitor the different stages of the project with specific and need-based
framework.
(ix) Monitor the quality, effectiveness, efficiency, and sustainability of the
resettlement and/or TDP efforts.
(x) Monitor the process undertaken by subborrower for implementing resettlement
and/or TDP and develop a framework for process monitoring.
(xi) Highlight the major problems being faced and limitations of implementing the RP
and/or TDP and identify corrective measures needed to implement resettlement
and/or the TDP effectively.
E. Methodology
(i) Study the baseline data on income and expenditure, occupational and livelihood
patterns, arrangements for use of common property, social organization,
leadership patterns, community organizations, and cultural parameters from the
available reports.
(ii) Identify an appropriate set of indicators for gathering and analyzing information
on resettlement and/or TDP impacts, the indicators shall include but not be
limited to issues such as payment of compensation, relocation, and resettlement
assistance, delivery of entitlement packages, restoration of income, and living
standards, level of satisfaction by the affected persons, and the quality of
resettlement operations.
(iii) Review results of internal monitoring and verify claims through random checking
at the field level to assess whether resettlement and/or TDP objectives have
been generally met. Involve the affected persons and community groups in
assessing the impact of resettlement for monitoring and reporting purposes.
(iv) Conduct both individual and community level impact analysis through the use of
formal and informal surveys, key informant interviews, focus group discussions,
community public meetings, and in-depth case studies of affected persons from
various social classes (e.g. scheduled caste, scheduled tribes, other backward
castes) to assess the impact of resettlement.
(v) Identify the strengths and weaknesses of the resettlement and/or TDP objectives
and approaches, implementation strategies, including institutional issues, and
provides suggestions for improvements in future DFI-funded resettlement
planning and implementation.
F. Reporting Requirements
(i) Monitoring Plan
(ii) Quarterly reports for large-scale projects reducing over time
(iii) A baseline survey data report prior to commencement
(iv) A semi-annual or annual report during resettlement implementation
(v) Annual monitoring reports for at least two years or until resettlement has been
declared successfully completed, if there is no TDP
(vi) Final Monitoring Report
ANNEX S-12: SUGGESTED SCOPE FOR AN ANNUAL SOCIAL MONITORING REPORT
FOR SUBPROJECTS
A. Investment Name and Summary Information
(i) Location
(ii) Scale/size/capacity
(iii) Reporting period covered by this monitoring report (month/year)
(iv) Specification of investment stage (design, construction, operation or closure
stage)
(v) Key developments and any major changes in investment location and design, if
any
B. Relevant Social Safeguards documents
(i) Issued by government agency(ies) (include name of agency)
(ii) Issuance dates and duration of validity
(iii) Gazette Notifications for land acquisition
(iv) ROW land hand Over letter from NHAI(in case of highway projects)
C. Grievance Redress Mechanism
(i) Date established and description of organizational arrangements
(ii) Complaints, grievance, or protests received from local communities, recorded
dates and organizations involved, actions taken to resolve grievances; any
outstanding issues and proposed measures for resolution
D. Social Management Capacity
(i) Number of staff, qualifications and experience in social management
(ii) Frequency of Social monitoring/supervision/audit by subproject team to the site
(iii) Awareness of: (i) national environmental and social laws and regulations, and (ii)
applicable DFIs’ social safeguard requirements
(iv) Training programs carried out
(v) Assessment of social management capacity needs (including planned capacity
building programs)
E. Stakeholder Consultation
(i) Details of information disclosure and consultations, if any, with affected
persons, local communities, civil society groups, and other stakeholders during
implementation and operation phase
(ii) Details of approach/methodology on addressing the concerns and issues raised
at consultations
F. Compliance with Social Safeguard Requirements
Total number of project affected persons/households, number of affected ST families
and additional assistance provided to them; details of the affected public properties, and
initiatives taken for their relocation/ compensation.
Implementation status of the RAP at the construction and/or operations phases of the
subproject. Special attention is to be paid to mitigation measures and their monitoring programs.
Adequacy of RAP’s budget in meeting compensation and resettlement assistance programs;
current expenditure status of resettlement. Status of compensation payment to affected persons
including to encroachers and squatters.
G. Other Information and Feedback
Please list any other information that may relate to social matters, community initiatives
within your company, positive media or NGO attention, training activities, management system
initiatives or cost savings through process efficiency and socially viable processes.
Name and Signature
Name: Date:
Position: Phone:
Signature: E-mail:
ANNEX S-13: ANNUAL SOCIAL AUDIT RECORDING SHEET ON THE APPLICATION OF
THE SOCIAL SAFEGUARD SYSTEM
(THE FORM WILL CONTINUE FOR THE PROJECT LIFE)
Reporting Period
A. SUB PROJECT BACKGROUND INFORMATION
1. Name of the Sub-Project:
2. Name of Concessionaire / SPV: and address with contact
numbers
3. Name of Lead Bank and other Co-Lenders with Telephone
numbers
4. Contact Details: ESMU / IIFCL with Tel numbers
5. Location of the Subproject:
6. Sector / Sub-Sector as per DFIs’ Guidelines:
7. Subloan (US$ mn):
8. Status of Subproject Implementation:
9. What are the applicable DFIs’ safeguard policies in case of
this subproject?1
10. Safeguard impact categories:
11. Has IIFCL conducted any environmental and social due
diligence on the subproject?
12. Number of safeguard site visits completed by IIFCL
Safeguard Team
13. History of Previous Annual Audits
14. Products Placed for Audit in the Current Year
C. ENGAGEMENT DOCUMENTS WITH LEAD BANK/SPV
1. Institutional Arrangements
1a. Financing and budget,
Are the provisions adequate, timely? Do they address the
concerns/issues adequately?
1b Has the Environmental and Social Safeguards Management
Unit at IIFCL been staffed and trained adequately regarding
involuntary resettlement and Indigenous Peoples safeguards
matters?
2. Resettlement Planning based on Detailed Design
2a Has the RP been revised following detailed design and
detailed measurement survey?
2b Have the compensation rates been disclosed and/or updated
in the RP?
3. Indigenous Peoples Planning based on Detailed Design
3a Has Indigenous Peoples Plan been updated / finalized?
3b Is there a budget for implementing mitigation actions, if any,
and to distribute beneficial measures, if any, to Indigenous
Peoples provided?
3c Whether above measures implemented with the participation
of affected Indigenous Peoples?
1
Subprojects approved under LN 2404-IND (approved on 20 Dec. 2007), LN 2509-IND (approved on 24 Feb. 2009),
LN 2586-IND (approved on 27 Nov. 2009) are required to comply with the Environment Policy 2002, Policy on
Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). Subprojects approved under LN 2717-
IND (approved on 7 Dec. 2010) are required to comply with ADB Safeguard Policy Statement 2009.
3d Whether Indigenous Peoples participate in monitoring the
project and IPP activities?
4. Consultations, Disclosure and Grievance Redress
4a Have the affected persons been consulted and discussions
properly documented?
4b Was the RP or updated RP disclosed to the affected
persons? Made available in local language? Disclosed in
DFIs or other websites?
4c Were meaningful consultations with affected Indigenous
Peoples communities conducted and the process and
outcomes documented?
4d Did a Grievance Redress Committee/Mechanism
established? Is it functioning?
4e What were the main social, involuntary resettlement and
Indigenous Peoples issues associated with this subproject
that were identified through due diligence conducted by
IIFCL, and how were the issues dealt with (i.e., outcome of
due diligence)?
5. Compensation, Relocation and Rehabilitation
5a Has cash compensation paid to APs at replacement cost?
5b Were physically displaced persons relocated? Has project
authorities identified relocation sites? Any houses at
relocation sites constructed for the physically displaced?
5c In case of Indigenous Peoples, are there resettlement options
which are culturally-appropriate? Are there any relocation
sites for them? In choosing such sites did affected
Indigenous Peoples consulted to know whether they consider
such sites as appropriate.
5d Was there a detailed income restoration or livelihood
development plan with a budget and time frame as part of the
resettlement plan? What is the current status of its
implementation?
5e Are income restoration and livelihood development activities
culturally appropriate in case of affected Indigenous Peoples
communities?
6. Monitoring and Reporting
6a Does the subproject have quantitative and qualitative
indicators to monitor the performance of social safeguards
identified? Have they been monitored regularly?
6b Is there an external monitor of the social safeguards of the
subproject? Has the expert regularly monitor safeguard
compliance?
6c Has Monitoring reporting done on agreed frequency?
D Conclusion on social safeguard compliance
status of subproject
Names of audit team members:
Reviewed by:
Date of subproject audit:
Date of Submission
Summary of Social Safeguards Compliance in Matrix Format
A. Social Safeguard
Compliance Social
Status vis-à- Safeguard
vis DFIs’ Compliance Action Required
Company Subproject Social Safeguard Safeguard Monitoring and by IIFCL to Ensure
No. Name Name Due Diligence Policies Review by DFIs’ Compliance
LIST OF ANNEXES PERTAINING TO GENERAL SECTION
Annex G-1 Terms of Reference for Environment Provides terms of reference for undertaking
and Social Assessment environmental and social assessment
Annex G-2 Outline Terms of Reference for Project Provides the terms of reference for Project
Management Consultant – I Management Consultant–1 that will work
closely with internal staff of IIFCL.
Annex G-3 Outline Terms of Reference for Project Provides the terms of reference for Project
Management Consultant – II Management Consultant–II that will be an
external expert and will provide specialized
inputs to IIFCL.
Annex G-4 Outline Training Programme for Lead Provides outline for training program that is
Banks / Sub-borrowers on IIFCL’s proposed to familiarize lead banks,
EMS subborrowers with the requirements of
ESSF of IIFCL.
ESSF = Environment and Social Safeguard Framework, IIFCL = India Infrastructure Finance Company Limited
ANNEX G-1: TERMS OF REFERENCE FOR ENVIRONMENT AND SOCIAL ASSESSMENT
1. The consultant shall under take the detailed environmental and social assessment in
accordance with the standards set by the Government of India / State Government for
infrastructure construction subprojects and the environmental and social safeguard
requirements of the DFI funding the subproject.
A. Environmental Impact Assessment
2. Environment impact assessment or initial environment examination be carried out in
accordance to the applicable laws/rules/guidelines set out by appropriate body/organization (for
e.g. the Government of India, State Government and/or concerned DFI).
3. The consultant should carry out preliminary environmental screening to assess the direct
and induced impacts due to the Project.
4. The consultant shall ensure to document baseline conditions relevant to the Project with
the objective to establish the benchmarks.
5. For projects with potential for significant adverse environmental impacts, the consultant
shall take into account the safeguard requirements of the concerned DFI (Annex E-4).
6. The consultant shall assess the potential significant impacts and identify the mitigative
measures to address these impacts adequately.
7. The consultant shall do the analysis of alternatives incorporating environmental
concerns. This should include with and without scenario and modification incorporated in the
proposed Project due to environment considerations.
8. The consultant shall give special attention to the environmental enhancement measures
in the Project for the following:
(i) Cultural property enhancement along the highways
(ii) Bus bays and bus shelters including review of their location
(iii) Highway side landscape and enhancement of the road junctions
(iv) Enhancement of highway side water bodies
(v) Redevelopment of the borrow areas located on public land
9. For projects with potential for significant adverse environmental impacts, the consultant
will prepare an EIA following the format in Annex E-11 if DFI funding is involved otherwise EIA
format will be as specified by GoI’s EIA Notification..
10. The consultant shall prepare the Bill of Quantities (BOQ) and technical specifications for
all its items of work in such a way that these may be readily integrated to the construction
contracts.
11. The consultant shall establish a suitable monitoring network with regard to air, water and
noise pollution. The consultant will also provide additional inputs in the areas of performance
indicators and monitoring mechanisms for environmental components during construction and
operational phase of the Project.
12. The consultant shall provide the cost of mitigation measures and ensure that
environmental related staffing, training and institutional requirements are budgeted in Project
cost.
13. The consultant shall prepare the application forms and obtain forestry and environmental
clearances from the respective authorities including the SPCBs and the MoEF on behalf of
CLIENT.
14. The consultant will make presentation, if required, in defending the Project to the MoEF
Infrastructure Committee.
15. The consultant shall identify and plan for plantation of the suitable trees along the
existing highway in accordance with Indian Road Congress (IRC) guidelines.
16. The consultant shall assist in providing appropriate input in preparation of relevant
environment and social sections of the Project.
B. Social Impact Assessment
17. The consultant would conduct base line social-economic and census survey to assess
the impacts on the people, properties and loss of livelihood. The social-economic survey will
establish the benchmark for monitoring of R&R activities.
18. A social assessment is conducted for the entire Project to identify mechanisms to
improve Project designs to meet the needs of different stakeholders. A summary of
stakeholders discussions, issue raised and how the Project design was developed to meet
stakeholders need would be prepared.
19. The consultant shall prepare Land Acquisition Plan on revenue map and assist CLIENT
in acquisition of land under various Acts.
20. The consultant would prepare Resettlement and Rehabilitation Plan, assess feasibility
and effectiveness of income restoration strategies and suitability and availability to relocation
sites as per guidelines provided in the National Policy on Resettlement and Rehabilitation
(2003). All untitled occupants are recorded at the initial stages and identify cards will be issued
to ensure there is no further influx of people into the Project area. All consultations with affected
persons (to include list of participants) should be fully documented and records made available
to CLIENT.
21. Assessment of the impact of the Project on the poor and vulnerable groups along the
Project road corridor shall be based on:
(i) The identified impacts, developing entitlement matrix for the Project Affected
Families
(ii) Assessment on social issues such as indigenous people, gender, HIV/AIDS,
labour including child labour
(iii) Implementation budgets, sources and timing of funding and schedule of tasks
(iv) Responsibility of tasks, institutional arrangements and personnel for delivering
entitlement and plans to build institutional capacity
(v) Internal and external Monitoring plans, key monitoring indicators and grievance
redressal mechanism
(vi) Incorporating any other suggestions of the CLIENT, till the acceptance of the
reports by the CLIENT
C. Reporting Requirements of EIA
22. The consultant would prepare the stand-alone reports as per the guidelines provided by
the Government of India/State Government, with contents as per the following:
(ii) Executive Summary
(iii) Description of the Project
(iv) Environmental setting of the Project
(v) Identification and categorization of the potential impacts (during pre-construction,
construction and operation periods)
(vi) The public consultation process
(vii) Policy, legal and administrative framework: This would include mechanisms at
the states and national level for operational policies. This would also include a
description of the organizational and implementation mechanism recommended
for this Project
(viii) Typical plan or specific designs for all additional environmental items as
described in the scope of work
(ix) Incorporating any other as per the suggestions of the CLIENT, till the acceptance
of the reports by the CLIENT
(x) EMP Reports for each Contract Package based on uniform methodology and
processes. The consultant will also ensure that the EMP has all the elements for
it to be a legal document. The EMP reports would include the following:
(xi) Brief description of the Project, purpose of the EMP, commitments on
incorporating environmental considerations in the design, construction and
operations phases of the Project and institutional arrangements for implementing
the EMP
(xii) A detailed EMP for construction and operational phases with recourse to the
mitigation measures for all adverse impacts
(xiii) Detailed plans for highway-side tree plantation (as part of the compensatory
afforestation component)
(xiv) Environmental enhancement measures would be incorporated. Enhancement
measures would include items described in the scope of work and shall be
complete with plans, designs, BOQ and technical specifications
(xv) Environmental monitoring plans during and after construction including scaling
add measurement techniques for the performance indicators selected for
monitoring
(xvi) The EMP should be amendable to be included in the contract documents for the
works
(xvii) Incorporating any other as per the suggestions of the CLIENT, till the acceptance
of the reports by the CLIENT
D. Reporting requirements of RAP
(i) Analysis on the Resettlement Action Plan should be conducted based on the
National Policy on Resettlement and Rehabilitation (2003). Content of the report
should cover:
(ii) Executive Summary
(iii) Description of Project
(iv) Objectives of the Project
(v) The need for resettlement in the Project and evaluation of measures to minimize
resettlement
(vi) Definition of Project Affected persons and the eligibility criteria
(vii) Description and results of public consultation and plans for continued
participation of Project s
(viii) Census and survey results-number affected, how are they affected and what
impacts will they experience
(ix) Legal and entitlement policy framework-support principles for different categories
of impact
(x) Arrangements for monitoring and evaluation (internal and external)
(xi) Implementation schedule for resettlement which is linked to the civil works
contract
(xii) A matrix of scheduled activities linked to land acquisition procedures to indicate
clearly what steps and actions will be taken at different stages and the time frame
(xiii) The payment of compensation and resettlement during the acquisition process
(xiv) An itemized budget (replacement value for all assets) and unit costs for different
assets
ANNEX G-2: OUTLINE TERMS OF REFERENCE FOR PROJECT MANAGEMENT
CONSULTANT–I
1. PMC-I will provide core support to ESMU of IIFCL in operation of the ESF.
2. PMC-I will be identified through competitive bidding. PMC-I will need to have at least 10
years of experience as an organization in Environmental and Social Assessment (ESA),
especially on obtaining Environmental Clearance (EC), should have worked on ESA of projects
that have received international donor funding and has resident team that has core ESA
competencies.
3. PMC-I will provide one full time environmental and one full time social assessment
specialist to IIFCL. In addition, PMC-I will support ESMU/IIFCL by providing Field ESA
specialists and ESA Training specialists on needs basis.
4. The full time as well as Field Assessment Environmental Specialist will be masters in
Environmental Science/Engineering/Planning with at least 5 years of experience. Previous
experience in preparing EIAs and obtaining EC at Centre and State levels for infrastructure
projects will be essential.
5. The full time as well as Field Assessment Social specialists will have a Masters in Social
Development and allied areas with at least 5 years of experience in the preparation of
Resettlement Action Plans (RAP) and Indigenous Peoples Development Plans (IPDP).
6. The Training Specialists will have at least a Masters qualification in ESA with 10 years of
experience in practicing ESA with at least 3 years of experience on conducting training
programmes in ESA.
7. The full time two specialists will work at IIFCL and report to Head, ESMU. Through the
two full time specialists, following services will be rendered by PMC-I to ESMU/IIFCL.
Task 1: Conduct compliance review – The specialists will review project
documentation received from Lead Bank/SPV; check applicability of all
applicable national, state and local environmental and social policies and
regulatory requirements; donor requirements – especially on the process to be
followed and identify gaps if any for action at the end of Lead Bank/SPV.
Task 2: Check adequacy and effectiveness of EMPs/RAPs/IPDPs – The
specialists will review the EMPs/RAPs/IPDPs and check their adequacy and
effectiveness in mitigating adverse environmental and social issues,
appropriateness of the budget and robustness of the institutional mechanism for
implementation and monitoring. Make suggestions if there are deficiencies to the
Lead Bank/SPV.
Task 3: Develop conditions as loan covenants that stipulate requirements or
outcomes of EMP/RAP/IPDPs.
Task 4: Prepare Memo for Board on the basis of Tasks 1, 2, and 3.
Task 5: Prepare sector specific checklists, guidelines, monitoring and reporting
formats to strengthen ESF. These guidelines will make use of materials
developed by GOI and MDBs (Annex E-15, E-16, E-17, E-18, and E-20 illustrate
such guidance materials of relevance to Lead Banks/SPVs. PMC-I will build a
compendium to this effect and provide to the Lead Banks/SPVs).
Task 6: Coordinate with Field Environmental and Social Specialists for
assessment, monitoring and review as required. These Field Specialists will be
provided by PMC-I through its pool of resources. The full time ESA specialists
will recommend to the Head, ESMU need to deploy Field Environmental and
Social Specialists based on information requirements, interest on independent
checking, project sensitivity, time pressures etc.
Task 7: Coordinate with Lead Banks/SPVs to provide support to independent
environmental and social auditors (PMC-II) for preparing IIFCL’s Annual
Environmental and Social report. The specialists will work closely with the Lead
Banks/SPVs as well as the auditors to ensure that required information is
compiled and provided in a timely manner.
Task 8: Prepare progress and performance reports for the various donors.
Annex E-22 provides a guideline.
Task 9: Coordinate with the Training Specialists to provide guidance to the Lead
Banks/SPVs on project processing under ESF/Social Management System. The
specialists will identify training needs and work closely with Training Specialists
provided by PMC-I to conduct training programmes at Lead Bank/SPV on a
regular basis, conduct evaluation of the training programmes and prepare
reports.
Task 10: Update ESF/Social Management System based on operational
experience.
8. Fees to PMC-I will be paid for the provision of full time staff (two ESA specialists) and
towards need based usage of other staff (Field and Training Specialists) on agreed daily rates.
ESMU/IIFCL will provide the office space, office support such as computers, stationary and
communication facilities. All field travel for work will be reimbursed following the norms as
applicable at IIFCL.
9. In case of any dissatisfaction on the services and qualifications of the full time or part
time staff, PMC-I will be obligated to do requisite replacement.
ANNEX G-3: OUTLINE TERMS OF REFERENCE FOR PROJECT MANAGEMENT
CONSULTANT–II
1. PMC-II will be responsible to conduct annual environmental and social audit of IIFCL’s
ESF.
2. PMC-II will be identified through competitive bidding. PMC-II will need to have at least 10
years of experience as an organization in Environmental and Social Assessment (ESA),
especially on obtaining Environmental Clearance (EC), should have worked on ESA of projects
that have received international donor funding and has resident team that has core ESA
competencies.
3. PMC-II will provide one senior environmental and one senior social assessment
specialist for conducting annual environmental and social audit.
4. The Senior Environmental Specialist will be masters in Environmental Science/
Engineering/ Planning with at least 10 years of experience. Previous experience in
reviewing/auditing EIAs and obtaining EC at Centre and State levels for infrastructure projects
will be essential.
5. The Senior Social specialists will have a Masters in Social Development and allied areas
with at least 10 years of experience in the preparation/assessment of Resettlement Action Plans
(RAP) and Indigenous Peoples Development Plans (IPDP).
6. These two specialists will work closely with specialists provided by PMC-I during the
planning, conduct and closure of the annual environmental and social audit.
7. The audit will check whether the procedures as stipulated in the ESF have been
followed, whether the outcomes (e.g. reports) have been satisfactory, whether the decisions
taken were appropriate and whether the actions recommended were taken in full and on timely
basis.
8. The tasks to be completed shall be as follows.
Task 1: Verify whether the procedures as per the ESF have been followed at
ESMU/IIFCL for all sub-projects that have been appraised and financed.
Task 2: Design audit recording sheet for sub-projects in consultation with
ESMU/IIFCL that would meet IIFCL’s as well as donor requirements. See Annex
E-20 as a sample. Provide the format to ESMU/IIFCL to compile data on all sub-
projects that are appraised and financed.
Task 3: Analyze data compiled by ESMU/IIFCL following the audit recording
sheet. Request additional information if needed to complete assessment
Task 4: Develop audit programme by identifying projects that will be assessed
through data alone and through field visits as per the approach outlined in Figure
6 of ESF document.
Task 4: Conduct field visits as per the agreed audit programme. Complete audit
recording sheets by adding field observations
Task 5: Prepare report for ESMU/IIFCL with suitable appendices, summarizing
observations, corrective actions needed as relevant for each sub-project that is
audited, make suggestions for improvements at ESMU/IIFCL as well as at Lead
Banks/SPVs and recommend updation in the ESF where appropriate
9. Fees to PMC-II will be paid on lump sum basis for providing the above service,
ESMU/IIFCL will provide the data, do required coordination with Lead Banks/SPVs, provide
office space, office support such as computers, stationary and communication facilities. All field
travel for work will be reimbursed following the norms as applicable at IIFCL.
ANNEX G-4: OUTLINE TRAINING PROGRAMME FOR LEAD BANKS/SPVs ON IIFCL’S
ESSF
Day 1:
Morning session
Environmental and Social Issues in Infrastructure Projects
(two presentations)
Discussions
Afternoon session
Overview of Environmental and Social Policies and Regulatory Framework in India
(two presentations)
Discussions
Day 2:
Morning session
IIFCL’s Environmental and Social Management System (ESMS) – Policy, Procedures and
Benefits
(two presentations)
Discussions
Afternoon session
Case studies on Subprojects that have followed IIFCL’s ESMS
Discussions
ANNEX G-5
ADDENDUM TO THE ESSF.
Environmental & Social Safeguards Management
for World Bank Financed Sub-Projects
1. Background. The purpose of this note is to summarize the process of proposed due
diligence process at IIFCL for determining the eligibility of sub-projects for the World Bank
financing under the on-going line of credit and also describe the proposed supervision and
monitoring arrangements of those sub-projects.
2. Environment and Social Safeguards Framework (ESSF). IIFCL has adopted an
ESSF in 2008 and updated this in 201362 to deal with the environment and social impacts in
those sub-projects financed by the multi- lateral agencies. The provisions and procedures
described in this ESSF (2013) along with the provisions of World Bank Safeguard policies will
apply while determining the eligibility of sub-projects. The Operation Manual describes the
process to be followed in implementation of ESSF provisions. The due diligence process
proposed in this note is an addendum to OM against the above background.
3. Proposed due Diligence Process: The current process of determining the eligibility of
sub-project on case by case basis with the prior review through due diligence process by the
World Bank will be replaced with delegation of due diligence process to IIFCL for all categories
B and C type of project under the Restructured project – as described in this note. In rare case
of category A projects posed to the World Bank financing, the current process of due diligence
through the World Bank prior review will continue.
4. Incentive to Developers. In order to mainstream the process of integrating environment
and social impacts in project preparation and implementation by the developers, IIFCL has
introduced a unique incentive scheme of providing rebate of twenty-five basis points in the
applicable interest rates to sub-projects that qualify on environmental and social safeguards
compliance with ESSF and the World Bank policy provisions. In the restructured project both
direct financing and take out financing will be included. The process of ESDD for both
categories is described below.
5. Direct Financing. IIFCL has taken the responsibility for institutionalizing an appropriate
mechanism for review and clearance of due diligence reports, followed by an action plan for
mitigation of identified impacts. Under this category, sub-projects that will be given preference
for financing by IIFCL are the ones which are at a very early stage of implementation or where
the financial closure has not yet happened. IIFCL uses the checklist to categorize the sub-
projects based on their level of environmental and social impacts (for details please see
Appendix I). Based on the categorization, only those sub-projects categorized as B and C will
be covered under IIFCL’s due diligence process.
62
Also in 2010.
6. The GOI’s screening criteria for infrastructure development projects do not entail
obtaining environmental clearances for water supply and sewerage projects, solar energy, wind
power, electrical transmission line, smaller/strengthening road development projects and
telecommunication lines under the provisions of EIA Notification,2006 including relevant
amendments in subsequent years. As a result, such projects do not require an environmental
impact assessment. The environmental safeguard policies of World Bank, however, require
environmental assessment for any physical infrastructure project, if it is expected to generate
any kind of adverse environmental impacts. Therefore projects belonging to above mentioned
sectors also require appropriate environmental planning instruments. In case of direct financing
of sub-projects where EIA not mandatory, ESDD shall be focused on identifying applicable
environmental impacts and ensure measures for such impacts are adequately addressed.
7. As a first step in determining the eligibility of sub-projects for World Bank financing, the
Environment and Social Due Diligence (ESDD) reports will be prepared by IIFCL
staff/consultants and/or also external consultants based on the available documents / reports,
field visit findings and direct interaction with concerned stakeholders as needed63. In case of
any sub-projects under review, are implemented in the designated tribal areas, and no
consultation has been conducted with tribal people then the Developer will hold consultations
with the tribal groups to record their views towards the projects and propose measures to
enhance the positive benefits of the project to them under their CSR initiatives. The ESDD will
be reviewed by the Head of Environmental and Social Management Unit (ESMU). Based on the
review findings, IIFCL will hold consultations with the Developer to prepare an action plan by
them to propose appropriate mitigation measures for those impacts where no mitigation
measures are proposed or proposed measures are in-adequate, in line with the Bank's
operational policy provisions. Relevant checklists and provisions from the ESSF would be used
while preparing the ESDD and action plans. The ESSF and the Annexures to ESSF includes the
check lists and details of applicable entitlements and actions to be used while preparing ESSD
and actions plans. The final ESDD and action plan will be approved by Chief General Manager.
As appropriate, the implementation will be linked to the remaining disbursements to ensure that
the agreed actions are implemented within the agreed time table.. The action plan in local
language will be shared with local people at those places which are easily accessible to local
people. IIFCL will involve the World Bank Team in the ESDD process for its first set of sub-
projects (Madhya Pradesh Road strengthening Projects), which will serve as basis for
subsequent ESDDs by IIFCL.
8. Sub-Projects Under Take-out Financing (TFS).The take-out financing will deal with
sub-projects which are at post-construction/operational phase. As assistance under TFS is
sanctioned only after minimum of one year after the start of the commercial operation date
(COD), it is expected that safeguard issues as per applicable state, national
guidelines/regulations would have been addressed by then. The Take out will be restricted to
Highway and Port Terminal sectors. If projects in any other sectors are proposed, then it will
63
The level of due of due diligence will vary according to nature and magnitude of safeguards impacts of sub-projects under
review. If there are very few impacts, such as for road strengthening, solar or transmission sub-projects, then the level of due
diligence will be proportionately simpler.
discussed with the World Bank and agree the process to be followed for those projects in other
sectors. For takeout, the IIFCL will conduct an Environmental and Social Due Diligence (ESDD)
study through an independent consultant initially to assess any environment and social related
risks applicable during operation phase. The preparation of ESDD will be based on the publicly
available documents, discussions with the developer, local community and other stakeholders.
The Environmental and Social Due Diligence (ESDD) Report will confirm (from information
available in public domain and based upon documents made available by the O&M project
team) that:
The sub-project is in compliance with applicable national social and
environmental laws;
No significant reputational risks for either the IIFCL or the World Bank;
No significant outstanding legal or legacy issues pending;
Social and environmental plans have been implemented during the construction
phase of sub-projects as per national policies on safeguards; and,
The ESDD will also confirm whether any safeguard covenants or issues
identified as part of appraisal process are implemented.
9. Some of the important environmental safeguards information that will be covered in the
report is:
a) Record: the status of applicable environmental regulatory clearance obtained
as on date; and the compliance and/or compliance reporting with the
regulatory clearance conditions
b) Review the sub-project EIAs including compliance of clearance conditions,
and address residual environmental impacts of significance, specifically
related to community/common property resources, natural habitats, and
cultural properties etc. The ESDD for Take Out shall focus on impacts during
operation phase of the sub-project, in addition to point (a) above.
10. Some of the important social safeguards information that will be covered in the report is:
Magnitude of land acquisition and resettlement impacts in the project;
a) Outcome of Resettlement and Tribal Development Plan implementation, if
applicable;
b) Outstanding grievance and complaints, if any;
c) Any court reference cases on land acquisition matters and pending
compensation payments ; and
d) Summary of consultations held in affected villages and with other stakeholders
during construction phase, if available and based on this, assessment of
Implementation status of outcomes of public hearings/consultations;
11. Apart from addressing environmental and social safeguards issues, IIFCL will pursue
with the Developer for the preparation and implementation of a "Community Development Plan"
to meet the pressing and priority basic amenity needs of the villagers in the project area under
their CSR initiatives.. IIFCL will involve the World Bank Team in the process of carrying out of
ESSD for the first two sub-projects (one each in Highway and Port Terminal) and these two sub-
projects will be prior reviewed by the World Bank which will serve as basis for subsequent
ESSDs by IIFCL. An indicative checklist on environmental and social safeguards for preparing
ESDD report is presented in Appendix II.
12. Disclosure: The final approved ESDDs, action plans and community Development
Plans prepared as part of determining the eligibility of the World Bank financing will be disclosed
in the respective websites of Developers and IIFCL. In case of “Category A” projects, the due
diligence reports along with action plans will also be disclosed in the Bank's Info Shop.
13. Supervision and Monitoring. IIFCL Environment and Social Unit include a Head, 2
staff and 2 consultants. All these 5 members will involve in the due diligence process and
supervision of the implementation of action plans and Community Development Plans. External
consultant’s services will be used as necessary. The developers will submit progress reports on
the implementation of agreed plans and any other issues that may emerge during the
implementation on a frequency defined in the ESDD, but no less than six monthly. IIFCL will
undertake field visits to a sample of relevant sub-projects at least once in 6 months to review the
progress on the ground. In addition, Annual audits will be undertaken as needed to review all
sub-projects accepted for World Bank financing to review the process followed for
categorization, quality and adequacy of due diligence and supervisions of implementation. Any
comments observed in the annual audit will be addressed through remedial measures. IIFCL
will provide updates on the ESDD and implementation of action plans as part of its periodic
progress reporting to the World Bank.
Appendix I
A. Indicative Categorization Criteria for the Sub-Projects - Environmental
Impacts
Sl. Environmental Categorization of Projects
No. Factors
Category A Category B Category C Remarks
1. Impact on Project site falls Significant Minimal impact Magnitude
Notified eco- within or on the distance from or no impact on of impacts
sensitive boundary of eco-sensitive eco-sensitive is directly
area/eco- notified eco- area i.e. no area linked with
sensitive sensitive zone/area significant type of
zones/wildlife impacts on eco- project
migratory sensitive area activity.
zones due to project
operations (in line
with the
provisions in EIA
notification)
2. Impact on Presence of Do not require Minimal impact
important archeologically any mandatory or no impact on
archaeological important sites clearance. important
sites/ cultural within corridor of archaeological do
heritage sites impact and No significant /historically
possibility of impacts; and/or monuments
impacts due to temporary
project operations mitigable impacts
due to project
operations
3. Cumulative Contribution to Insignificant No contribution
environmental cumulative contribution to to cumulative
impacts environmental cumulative environmental
impacts environmental impacts
impacts
4. Impact on Forest diversion of Limited forest Minimal impacts Notified
forest land very rich diversion in linear or no forest Protected
biodiversity areas projects /involving diversion forests will
covering large area small area, which also be
at one place and/or do not impact considered
forest diversion overall health of
Sl. Environmental Categorization of Projects
No. Factors
Category A Category B Category C Remarks
which would affect the forest
health of the forest
or severe wildlife
crossings
5. Impacts on Long term, Short term, No or low
local irreversible and temporary low impacts on local
environment high level impacts level impacts but environment
(air, water, on local mitigable impacts
land, flora & environment
fauna etc.)
6. Scale of tree- Very large-scale Medium-scale Minimal impacts
felling tree felling covering tree felling e.g. in or small-scale
large area at one linear projects / tree felling or no
place; or activities covering small tree felling
affective sacred area at one place
groves
7. Impacts on Long-term, Short-term No impact on
water bodies significant and temporary and water bodies
irreversible impacts mitigable impacts
on water bodies/
aquatic ecosystem
or significant
reclamation of
water bodies
B. Indicative Categorization Criteria for the Sub-Projects - Social Impacts
Sl. Social Impacts Categorization of Projects
No.
Category A Category B Category C
1. Impact on Land Major impact on Minor/ temporary No private
and physical private land impact on private land land
assets Major impact on Impact on less fertile/ acquisition
fertile/irrigated barren private and thus no
agricultural land agricultural land R&R issues
Involves physical Negligible and involved.
Sl. Social Impacts Categorization of Projects
No.
Category A Category B Category C
displacement and isolated cases of Impact on
loss of livelihoods displacements. government
land only
2. Impact on Majority of affected Only few affected No such issue
livelihood people becoming people becoming involved
small and marginal marginal and small
farmers in case of farmers/ in case of
land acquisition land acquisition and
loss of livihoods are
not significant.
3. Impact on tribal Large section of Minor adverse impact No adverse
community tribal community on tribal families impact on
adversely affected Project in Tribal area tribal
Projects are can ensure the community
implementation in positive benefits to
Tribal and impacts tribal community.
on their systems
Appendix II
Checklist for preparation of Environmental and Social Due Diligence Report (ESDDR)
under Takeout Finance Schemes
I. Environmental Safeguards Compliance Status during Operation Phase Activities:
(xi) Status of applicable permits/clearances during operation phase
(xii) EHS(Environment, Health and Safety) related clauses in O&M agreement
(xiii) Compliance status of Environment Management Measures/Plan during Operation
Phase
(xiv) Institutional arrangement in place for implementation and monitoring of EMP;
(xv) Emergency Preparedness and Response Plan during Operation Phase
(xvi) Status of Plantation and or compensatory plantation; and current arrangements for
maintenance and replacement of casualties
(xvii) Adequate Traffic Management and Road Safety Measures (in case of road projects)
(xviii) Accident/Incident data report along with remedial measures
(xix) Health and work safety measures
(xx) Community severance issues, if any
(xxi) Outcomes of implementation status of public hearing proceedings, if applicable and
available
Status of post-construction phase activities can be included in ESDDR depending upon
applicability with regard to project activities during construction phase which are given below:
II. Status of Post-construction Phase Activities:
(viii) Compensatory Afforestation status,
(ix) Rehabilitation of borrow areas status
(x) Soil erosion control measures
(xi) Embankment protection measures
(xii) Redevelopment of quarry Areas, if owned by project developer
(xiii) Restoration of camp sites and plant sites
(xiv) Any enhancement of community assets
(xv) Provision of any facility out of public demand
Status of Environmental Safeguards related compliance/documentation applicable during Pre-
construction/Construction Phase can only be provided in ESDDR if information is available with
Operation phase Project Team which is as follows:
III. Environment Safeguards related Documents applicable during pre-construction/
construction stage of any Post-COD Project are as follows:
1. Copy of EIA-EMP Report
2. HSE related clauses in contract documents i.e. Concession/EPC Agreement
3. Copy of various clearances like (Environmental clearance, forest clearance, CRZ
Clearance, wildlife clearance, if applicable, Tree-cutting Permission and NOC from
various authorities like SPCB and other state level regulatory authorities etc., or status of
applicable permits taken during pre-construction and construction Phase, whichever is
available
4. Details of Public hearing proceedings (Minutes of public hearing and newspaper cuttings
of public hearing notification)
5. Six Monthly compliance reports submitted to MoEF for compliance of Environmental
Clearance (EC) Letter’s conditions
IV. Social Safeguards information:
Land acquisition and Resettlement details and its implementation status;
Any pending litigation, court cases, complaints, implementation actions, etc.
Details of Local Employment generated during construction phase and operation
phase and any further plans for employment generation ;
any outstanding implementation actions as originally proposed by the
concessioning authority/developer, including those raised during the public
hearings, as case may be
Identity of any residual implementation actions;
Details of any special effort taken by concessionaire or any project facility
provided (like underpasses, service road in case of road projects) on public
demand; and,
CSR activities undertaken by the concessionaire during the construction and
operation phase