PROJECT

Projects

Environmental & Social Review Summary

Project Number

24880

Company Name

LANCO AMARKANTAK POWER PRIVATE LIMITED

Date ESRS Disclosed

Mar 16, 2007

Country

India

Region

South Asia

Last Updated Date

Nov 30, 2016

Environmental Category

A - Significant

Status

Completed

Previous Events

Approved : Jun 1, 2007
Signed : Jun 5, 2007
Invested : Nov 29, 2007

Sector

Coal - Thermal Power Generation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

Lanco Amarkantak Power Private Limited (LAPPL or the company) project involves the construction, operation and maintenance of a 600 MW (2 x 300 MW units henceforth called Unit 1 and Unit 2) coal based almost pit head thermal power plant near Patadi village in Korba district in the state of Chhattisgarh in India. The project also includes the construction of a 400 kV switchyard and a 32 km long 400 kV transmission line through which power will be evacuated from the project through a Loop-In-Loop-Out (LILO) arrangement with the 400 kV Korba-Seepat line of the regional grid maintained by Power Grid Corporation of India Limited (PGCIL); and construction of a raw water intake pump house on the banks of River Hasdeo and laying of about 4 km long buried raw water pipeline. The project will be implemented in two units of 300 MW each and will procure coal from the coal fields of South Eastern Coal Fields Limited (SECL) under a basket linkage agreement with SECL. The coal will be transported by rail from the mines and a 1.75 km long railway siding for coal receipt, is also proposed. IFC is proposing an equity investment in the project company.

Overview of IFC's Scope of Review

Lanco Amarkantak Power Private Limited (LAPPL or the company) is setting up a 2 x 300 MW coal based power plant near village Patadi in Korba District, in the state of Chhattisgarh, India. LAPPL and IFC are considering entering into a long term relationship through equity participation by IFC in LAPPL.

LAPPL had carried out a Comprehensive Environmental Impact Assessment (CEIA) for the period March 2004 to February 2005; conducted a public hearing for the project on August 25, 2004; was given environmental clearance dated November 19, 2004 by Ministry of Environment and Forests (MoEF), Government of India (GoI); and had obtained No Objection Certificate (NOC) and Consent to Establish (CTE) from Chhattisgarh Environment Conservation Board (CECB) dated March 10, 2005.

From this paragraph onward is an update, as of November 19, 2007, reflecting new information and events that have taken place in the past 8 month period. In addition a new document the Comprehensive Social Impact Assessment (CSIA) is attached:

During October/November 2006, the International Finance Corporation (IFC) undertook their appraisal of the Lanco Amarkantak Project as documented in the original Environmental and Social Review Summary, disclosed in March of 2007 at the InfoShop and locally. The first phase of the land acquisition process was already completed by that time. However, in keeping with LANCO Group’s corporate philosophy on stakeholder value creation and IFC’s Performance Standards (PS), LAPPL commissioned an independent, third party consultant, M/s. Development Management Consultants, Kolkata (DMC), to undertake a Comprehensive Social Impact Assessment (CSIA) in accordance with IFC Performance Standards. Before embarking on the full-fledged CSIA study, DMC carried out a rapid socio-economic impact assessment (RSIA) during the period December 2006 to February 2007, to identify key project impacts on project affected persons (PAPs) and develop interim mitigation measures, pending a comprehensive mitigation plan to be developed under the CSIA, which was attached to the March 2007 ESRS and disclosed at that time.

In Phase I, only the land required for the main plant (boiler, turbine-generator, etc.) and other facilities such as coal storage and handling system, ash handling plant, fuel oil, water storage and treatment systems, Unit 1 ash pond, etc. has been acquired. The land acquired also includes about 25 acres for the operators housing colony. The majority of the land required for developing a green belt is also part of the Phase I acquisition.

Phase II land acquisition will cover ash pond of Unit 2, railway siding, balance of the green belt, etc. The acquisition process has begun but is currently pending with the Industries Department, Government of Chhattisgarh. The CSIA does not cover these areas but would eventually be supplemented to cover the impacts due to the acquisition of the additional 200 acres and posted when completed on this web site and disclosed locally. While a substantial part of this land is government land, any acquisition from private land owners would be carried out in compliance with the LA Act provisions and State Government policies, guidelines and procedures and in accordance with IFC’s Performance Standards.

The Chhattisgarh Government provided the right of way/right of use for the corridor of land through which the pipeline bringing river water to the Plant and transmission line evacuating power from the power plant are routed. In these cases, no land acquisition is involved, although there will be some temporary disturbance during construction.

During the period from April to June 2007, the company’s consultants continued their work on the Comprehensive Social Impact Assessment and certain follow-up actions were taken by LAPPL with regard to interactions with the Project Affected Title-holders (PATs), other members of the Project Affected Households (PAHs), and communities in the Project Affected Villages (PAVs) in relation to their nominations for employment with the Project, community development activities, entitlement and rehabilitation, engagement, etc. The attached Comprehensive Social impact Assessment (CSIA) Report of October 2007 covers various components such as the existing social and economic conditions, Public Consultation and Disclosure Process (PCDP) and community engagement, evaluation of pre- and post- land acquisition incomes and livelihood options, identification and analysis of various impacts on the Project Affected People, mitigation measures comprising economic an Rehabilitation Action Plan a (RAP) and Community Development Plan (CDP), institutional mechanisms, action plans of the Company, and plans for evaluation of implementation of RAP and CDP. The main objectives of the study were to identify and mitigate potential social impacts and risks, meeting IFC’s Performance Standards and disclosure requirements, enhancing positive socio-economic outcomes of the Project, and strengthening community consultations and relations.

Conducting a socio-economic baseline survey is the first step in determining socio-economic status of affected persons and its objective is to monitor a PAP’s socio-economic conditions at different stages of resettlement. In the case of LAPPL, the host government had acquired the land and the acquisition process followed all the prevailing policy guidelines, norms and statutes both in regard to notifying the communities in advance, enumeration of assets, fixing of compensation and disbursing the compensation amounts to the affected households/persons. As per the National Policy on R&R (NPRR) 2003, a Social Impact Assessment (SIA) is required only when 500 or more households are physically displaced. Since this project did not involve physical displacement for acquisition of land, CSIDC did not undertake a SIA. In this context, a separate census or socio-economic baseline survey was not carried out for affected people and, as a result, the baseline information was not originally available and the date of issuance of Notice by the District Collector was taken as the cut-off date. The present survey completed by LAPPL covered all available PAPs in the four villages – Pahanda, Patadi, Saragbundia and Khoddle and an attempt has been made to understand and record the pre-land acquisition and post-land acquisition socio-economic status of the affected people. However, in view of the fact that the survey was undertaken nearly 18 months after the cut-off date, information pertaining to baseline conditions prior to the land acquisition needs to be taken with this caveat.

The total number of Project Affected Titleholders (PATs) is 302. Of these, 98 PATs have been rendered landless and another 10 PATs are left with unviable parcels post Land Acquisition (LA), 15 PATs have lost structures like open wells and bore wells and one PAT required to be physically resettled as a house structure was on the land acquired. Thirty-six (36) PATs are Scheduled Tribal (ST) households, of which 8 are women headed.

The maximum number (110) of Project Affected Households (PAHs) is from the Village Khoddle. On the other hand, the maximum extent of land acquired for the Project from a single village (73% of total village land) is from Saragbundia. The average family size of the respondent PAHs is 7 in Pahanda and Saragbundia while it is 9 in the other two PAVs. Patadi and Pahanda have slightly more than 40% Scheduled Tribes (ST) population whereas Khoddle with maximum number of PAHs, has only 2.5% ST population, and the ST population in Saragbundia is about 29%. Out of the 298 PAHs, only 36 belong to ST. Scheduled Tribes in this region are mainstreamed into the local community.

In addition to the public disclosure and consultation undertaken by the public authorities, in order to meet regulatory requirements for land acquisition and for obtaining environmental clearance, LAPPL officials met with the villagers from time to time to discuss the land acquisition processes, future development potential of the area and other benefits that the community would accrue. However, these were not documented during the initial days prior to the commencement of LA Process by the Revenue authorities. LAPPL has since facilitated quick access for the community members to the office of the Social Development Officer (SDO) of LAPPL. The Company has developed a comprehensive Public Consultation and Disclosure plan for continuing community engagement, which is laid out in the attached CSIA.

Prior to finalizing the Resettlement Action Plan (RAP) and Community Development Plan (CDP), community consultations (including focus group discussions) were conducted by the Consultants together with representatives of LAPPL (senior personnel from the corporate office, project office and the SDO have also taken part in these). In some villages like Patadi, elderly women participated along with men and they were vocal in voicing their opinions during these meetings.

LAPPL has made and disclosed to the PAHs two key commitments –

- provision of permanent employment to one family member of each PAT family or alternative means of income ensuring that the monthly income is equal or more than the statutory ‘Minimum Wage’ in the state, as per the policy of the state government and
- implementation of a Community Development Plan (CDP) which have been developed based on the public consultations and needs assessment carried out with the help of the independent Consultant for each of the four affected villages.

Some of the CDP activities have already been implemented in consultation with the villagers. Village Level Committees (VLCs) will be formed to facilitate implementation of Resettlement Action Plan (RAP) and future CDP activities. This will ensure participatory responsibility of communities and LAPPL. SDO has been profiled as the contact person and he has a thorough knowledge of the Resettlement and Rehabilitiation (R&R) issues, Performance Standards and LAPPL’s policies. Further, one senior level executive of LAPPL has been put in charge of the RAP and CDP activities of each village who supports and guides the SDO and provides the requisite link with the corporate office.

A Grievance Redressal Cell has been formed at the project level (site office) and LAPPL plans to expand this cell by co-opting representatives from Village Level Committees. Routine grievances and those which can be resolved amicably will be settled at the village level within 2 or 3 days. Issues involving legal aspects and/or intervention or interface with the local or State government regulations, schemes and so on, will also be discussed with the aim to resolve in one or two weeks or refer to courts if required. LAPPL has informed the villagers that SDO is the contact point identified for receiving grievances and communicating the action taken to the people. The SDO is assisted by two more persons in LAPPL’s Grievance Cell and guided by senior level officials of LAPPL also.

Meetings and consultations already conducted have covered the disclosure of Community Development Plans. However, the disclosure of the Rehabilitation Action Plan (RAP) will be undertaken by LAPPL in meetings and consultations in the near future and with disclosure of the CSIA locally.

The objective of the RAP is to ensure that the socio-economic status of PAHs is maintained or improved. The desired improvement in income levels is especially relevant in affected people below the poverty line (BPL). However, it is also important that the level of assistance is equitable and does not cause resentment among other affected households due to perceived discrimination even if the rationale is correct according to the consultant’s analysis. Similarly, in the context of certain welfare and developmental schemes under implementation by the Government bodies, it is necessary to discuss the RAP with the relevant Government agencies and seek their consent and support.

The type of assistance depends on the extent and type of loss and economic and social vulnerability of the PATs. An Entitlement Matrix for the affected people has been prepared by the consultants by identifying the applicable category of losses, estimating the losses with inputs from the socio-economic survey and assessing the potential socio-economic impacts due to those losses. The level and mechanism of assistance that has been proposed to ensure that the income restoration/ enhancement objectives of RAP are achieved.

Employment in the project after giving necessary training will provide adequate income restoration to PATs/PAHs. Further, skill building training for income generating programmes (IGP) and extended support is envisaged during the beginning of the IGP to those with larger income deficit figures so that they can stabilize with the scheme over a period of 6 months. Seed money and monthly assistance are a part of the IGP and RAP schemes adopted by LAPPL. Vulnerable affected families such as tribal people, women headed families, elderly, and disabled people will be provided additional assistance compared to the other categories of affected people.

Elderly people who cannot take up work with the project or nominate any one since they live alone, will be provided regular income through fixed deposits in local banks. Those affected people left with unviable land will be assisted by the company purchasing the unviable portion of their land.

There is a Social Development Cell comprising senior executives of LAPPL at the Project location itself, which is playing an active role in implementing the resettlement and community development activities and guide and monitor the activities of the SDC. The implementation of CDP under the current plans will be a two year program, which has already begun in mid 2006. The RAP and CDP programs will also be overseen by senior management personnel at the Corporate Office of LAPPL.

Lanco Institute of General Humanitarian Trust (LIGHT) is an NGO serving the communities near the projects of the Lanco Group in different states in India. They are active in Korba area and are carrying out a number of community development projects in the villages near the Amarkantak Project. LIGHT will expand its scope to take up the RAP and CDP developed by LAPPL with the help of external consultants.

The approximate budget towards economic resettlement – RAP – is Indian Rupees (INR) 10 Million (appx. USD 250,000). Budget allocated towards implementation of CDP activities up to March 2008 is about INR 5 Million (appx. USD 125,000).

The following Sections are the original information posted in March 2007:

Review of this project consisted of:

- appraising technical, environmental and social information submitted by the company including the CEIA; RSIA;
- regulatory approvals; public hearing record notes;
- Engineering, Procurement and Construction (EPC) contract documents; and
- management system manuals.

The appraisal team also interviewed LAPPL’s corporate and project management, plant construction, environment, occupational health, safety, human resources and community relations professionals. Further, the appraisal included: a site visit to the company’s proposed power plant site near village Patadi in Korba District interactions with representatives of affected communities; and interactions with members of the project affected households (PAHs) from the four affected villages.

The CEIA and RSIA have been disclosed locally and also appended to this ESRS. Further, as and when the CSIA is completed, the ESRS will be updated to reflect the findings of the CSIA together with disclosure of the CSIA, Public Consultation and Disclosure Plan (PCDP), Community Development Plan (CDP), Livelihood Restoration Plan (LRP) and any other plans proposed under the CSIA.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Client Documentation

File Name Actions
Lanco Amarkantak CEIA - November 2005.pdf
Lanco Amarkantak ESAP - March 2007.pdf
Lanco Amarkantak RSIA - March 2007.pdf
LAPPL_CSIA October 07.pdf