25545 - Idea Cellular

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Environmental & Social Review Summary

Project Number

25545

Company Name

VODAFONE IDEA LIMITED

Date ESRS Disclosed

Feb 19, 2008

Country

India

Region

South Asia

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Mar 20, 2008
Signed : Jun 26, 2008
Invested : Dec 29, 2008

Sector

Mobile Telephony

Industry

Telecommunications and Technology

Department

TMT, Venture Capital & Funds

Project Description

Idea Cellular is a pure-play GSM mobile telecommunications provider. Idea counted 21 million subscribers as of December 2007. The company’s network currently extends across 11 of India’s 23 telecommunications services areas and Idea intends to launch operations in two new circles, Mumbai and Bihar, in the coming months. Idea’s national market share is 9%, making it the fifth largest mobile operator in India.

Overview of IFC's Scope of Review

The review of this project consisted of appraising technical, environmental and social information submitted by Idea, and a visit by IFC investment staff to the project site, to meet with Idea management and to have a first-hand look at operational activities.

E & S Project Categorization and Applicable Standard

While all Performance Standards (PS) are applicable to this investment, IFC’s environmental and social due diligence indicates that the principal Performance Standards to be applied to this investment are PS1: Social and Environmental Assessment and Management Systems and PS2: Labor and Working Conditions. A condition of IFC’s investment will be that Idea’s operations shall consider all relevant social and environmental risks and impacts, including issues covered in all IFC Performance Standards.

This project involves the upgrade and expansion of a cellular network, with construction and maintenance of cellular tower sites and construction and maintenance of office buildings, and warehouses. The key issues associated with the project are implementation of a policy and procedures for environmental, health, safety, and social management; and labor and working conditions, including employee and contractor occupational health and safety. The nature of the company’s operations is such that no major adverse environmental or social impacts are expected to result from the project, and that it will be possible to avoid or mitigate any limited adverse impacts that might result. As a result, it has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects.

Environmental and Social Mitigation Measures

To ensure compliance with applicable laws and other applicable standards, Idea has some policy and procedures in place for environmental, health, safety, and social management. Idea has provided IFC with information on key risks and impacts, to ensure that the proposed project will upon implementation of the specific agreed measures comply with the environmental and social requirements:

- applicable host country laws and regulations,
- IFC Performance Standards, and
- IFC environmental, health and safety guidelines.

This information is summarized as follows:

- Environmental, Health, Safety and Social Management

Idea has in place some policy and procedures for managing functions such as right-of-way alignment, ambient noise, solid and liquid wastes, hazardous materials, and record-keeping and reporting. As a condition of IFC’s investment, Idea has agreed to develop a formal and integrated Environmental and Social Management System (ESMS) to IFC’s satisfaction. This ESMS shall include policies and procedures to manage all relevant functions, including any functions that are outsourced, and all relevant functions covered in PS2 through PS8, such as impacts from any armed security personnel, issues of biodiversity conservation and sustainable natural resource management that may arise particularly in rural operations, or possible physical or economic displacement resulting from development of new facilities. Idea will ensure prior disclosure of the development of new tower sites to local communities, as site conditions warrant.

- Labor and Working Conditions:

Idea has confirmed that it complies with all applicable Government of India labor laws and regulations. The company has agreed to implement an employee recruitment and selection policy and procedures satisfactory to IFC, including a procedure to ensure that no employee is below the legal employment age. This policies and procedures shall promote the fair treatment, non-discrimination and equal opportunity of workers. Idea shall make commercially reasonable efforts to ensure that no contractors’ employee who performs work related to core functions of Idea for a substantial duration is below the legal employment age. Idea will ensure that all of its employees are provided with appropriate personal protective equipment and health and safety training for the type of work in which they are engaged.

Idea shall make commercially reasonable efforts to ensure that contractors’ employees who perform work related to core functions of Idea for a substantial duration shall be provided a safe and healthy work environment, including appropriate training, protective clothing and equipment. For all of its offices, operational sites, and switching centers, appropriate measures for life and fire safety will be included in Idea’s policy and procedures.

Stakeholder Engagement

Idea recognizes the importance of community engagement. For acquisition of tower sites, Idea consults with relevant municipalities or local village councils, obtain required authorizations, and comply with national environmental codes. For all aspects of community engagement, Idea has agreed to develop to IFC’s satisfaction any further procedures needed to comply with IFC Performance Standards, including disclosure of relevant facts to community members regarding proposed new sites, and provision for handling and resolving complaints or grievances received from community members regarding any tower site.

**Information on IFC's Policy and Performance Standards on Environmental and Social Sustainability can be found at www.ifc.org/sustainability

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Environmental and Social Review Summary (ESRS) is prepared by IFC to disclose its findings and recommendations related to environmental and social considerations regarding potential investments. Its purpose is to enhance the transparency of IFC's activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this ESRS is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein.
It is distributed in advance of IFC Board of Directors' consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following ESRS is disclosed in accordance with IFC's Access to Information Policy (AIP).

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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Environmental & Social Review Summary

Project Description

Overview of IFC's Scope of Review

E & S Project Categorization and Applicable Standard

Identified Applicable Performance Standards

Environmental and Social Categorization and Rationale

Environmental and Social Mitigation Measures

Environmental and Social Mitigation Measures

Stakeholder Engagement

Stakeholder Engagement

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