IFC requires that this document is made available through the World Bank InfoShop and to the locally affected community no less than 30 days prior to project consideration by the IFC Board of Directors. The Summary of Project Information (SPI) also provides details of where the ERS has been made available to the locally affected community. The SPI must be sent to World Bank InfoShop no less than 30 days prior to project consideration by the IFC Board of Directors.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result that can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical, environmental and social information submitted by the project sponsor, interviews with sponsor representatives, visits to project sites and to a sample of similar projects previously implemented by the sponsor’s partners (PGCIL). The following potential environment and social impacts of the project have been considered: - Acquisition and maintenance of transmission line right-of-way and its impact on: - human livelihoods, including physical resettlement; - sites of cultural significance; and iii) forests, other natural habitats and wildlife; - Siting and construction of towers, including the reclamation of construction sites, lay-down areas and access roads; - Public disclosure and consultation; - Worker health and safety; - The use of PCB-containing materials in the electrical transmission network; - Monitoring and management of both contractor and operator environmental health and safety performance.

The sponsor has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social requirements of the host country laws and regulations and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow. - Background – PGCIL was established in 1989 to facilitate the transfer of power between the states and regions of India in an effort to establish a national power grid. In 1997/98, it developed a set of policies and procedures for the identification, assessment and management of environmental and social concerns at both the organizational as well as project levels. The process of preparing this document included research on the legal and institutional framework of the Government of India, analysis of priority environmental and social issues in the power transmission sector and reference to the operational objectives of the World Bank and other multilateral agencies. The resulting corporate Environmental and Social Policy and Procedures (ESPP) represent PGCIL’s commitment to address environmental and social issues relating to its transmission projects. The proposed joint-venture company (JVC) intending to establish the transmission lines shall be committed to applying and adhering to PGCIL’s environmental and social policies and procedures to the extent applicable to the Project as a condition of IFC financing during all phases of project design, construction and operation. In preparation for the project, PGCIL’s Environment and Social Management Department has conducted its own screening and scoping study of the proposed project alignment and sub-station siting. Per PGCIL procedures, this study made reference to: - Survey of India topographical sheets to determine the alignment’s impact on population centers; - the Forest Atlas of India to determine the alignment’s impact on forest land, areas of ecological sensitivity and protected natural areas; and - consultations with the Archeological Survey of India to determine the alignment’s impact on sites of cultural significance. A physical survey of a sample number of sites was also undertaken as part of this scoping and screening study. The results of the survey indicate the following in relation to the potential environment and social issues listed above. - Acquisition of Transmission Line Right of Way – The transmission line and associated sub-stations are sited to avoid human population settlements. The construction of towers, sub-station infrastructure and the alignment of transmission lines associated with the project will not adversely affect human population settlements. There is no physical resettlement associated with the project and farmers whose lands are affected will be allowed to continue cultivation of affected lands after the completion of construction activities. In areas where the alignment traverses agricultural land, compensation will be paid to the owners for any crop damage incurred as a result of construction activities. A detailed accounting of the number of individuals affected and the amount of compensation required awaits a final assessment of the project’s alignment by the JVC. However, PGCIL’s policy is to consult affected individuals and the local revenue departments regarding the siting of towers and the established rates of compensation for any damage to crops, farm infrastructure (e.g., bunds, irrigation channels) and fruit trees. The project will have no impact on existing forest lands, with the exception of linear plantation parallel to roads and irrigation canals. These areas do not provide habitat for any endangered, threatened or rare species of flora or fauna. Clearance to undertake construction in these areas is required from the Forest Department with the provision that twice the area cleared must be planted elsewhere. The project will have no impact on archeological or other sites of cultural significance. - Construction Activities – The topography of the transmission line route is predominantly flat and construction sites are accessible by existing roads and tracks. PGCIL requires its contractors to follow prudent engineering practices to prevent soil erosion from tower footings. Its construction contracts include clauses requiring contractors to restore construction sites to their original condition in all its tendering documents. - Public Disclosure and Consultation – PGCIL regional and divisional staff undertake consultation with relevant government authorities and communities potentially affected by a substation or transmission line project during the project planning stage. Following the final selection of the substation site or transmission line routing, the same staff augmented by staff from the PGCIL’s Environment and Social Management Department, undertake negotiations of compensation packages with revenue authorities and individuals who will be directly affected by the Project. The JVC will follow the same procedures to the extent applicable to the Tala Transmission Line Project. - Worker Health and Safety – The JVC will suitably adopt PGCIL’s provisions for worker health and safety that are detailed in its Safety Regulations Manual, which is included in all tender documents. This manual describes the use of personal protective equipment and lays out procedures for on-the-job safety and first aid. Work and safety regulations, workmen’s compensation and insurance are adequately covered under the Election of Conditions of Contract, which is included in the tendering documents. In addition, PGCIL requires all its site staff to participate in fire fighting and safety training. - Elimination of PCBs – PGCIL is responsible for the installation of all transmission equipment related to the project. The JVC will be responsible for erection of transmission lines only. PGCIL environmental policies and procedures comply with World Bank Group guidelines that promote the elimination of PCBs. - Environment and Social Performance Monitoring and Management – During the construction period, a designated environmental and social officer(s) of the JVC will monitor the environmental and social management issues related to the project, and its compliance with IFC and other project lender requirements. The officer(s) will ensure that fair compensation is awarded to those individuals whose are affected by the project. Should the final routing of the transmission line result in the physical displacement of any individual, the team will ensure that appropriate resettlement and rehabilitation measures are implemented on their behalf with the assistance of experienced specialists and public advocacy groups. The officer(s) will also receive and address any grievances pertaining to the environmental or social impacts of the project. Contact details for the officer(s) will be published in local newspapers before the commencement of project construction. During construction, a designated officer(s) of the JVC will also monitor the contractors’ compliance with the environmental, health, safety and social provisions of the contract requirements. The officer(s) will report on a quarterly basis to the JVC management, and these reports will be made available to IFC and other project lenders. During the project’s operation and maintenance stage, the same officer(s) will document all complaints regarding public safety, environmental hazards, accidents, etc. This information will be utilized by the JVC for designing system improvements and implementing corrective measures to ensure appropriate environmental and social protection.

This ERS contains the full environmental and social documentation prepared for the project.

Accordingly, IFC concludes that the proposed project will meet the applicable World Bank/IFC environment and social policies and the environmental, health and safety guidelines upon successful implementation of the agreed mitigation measures.

IFC will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs) prepared for the project covering ongoing performance of project-specific environmental, health and safety and social activities. Periodic site supervision visits will also be conducted.