26609 - Rain CDG

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Environmental & Social Review Summary

Project Number

26609

Company Name

RAIN CII CARBON (VIZAG) LIMITED

Date ESRS Disclosed

Nov 7, 2007

Country

India

Region

South Asia

Last Updated Date

Nov 30, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Dec 13, 2007
Signed : Dec 18, 2007
Invested : Jul 10, 2009

Sector

Other Petroleum and Coal Products

Industry

Manufacturing

Department

Regional Industry - MAS Asia & Pac

Project Description

Rain Calcining Limited (the company) is an export-oriented company located in Visakhapatnam, Andhra Pradesh, India that produces Calcined Petroleum Coke and generates power from its power generation facility using flue gases evolved during the calcination and combustion of green petroleum coke.

The proposed transaction involves providing an IFC Carbon Delivery Guarantee for Certified Emissions Reduction Credits (CERs) generated by Rain Calcining Limited. Calcined Petroleum Coke is a critical raw material in the manufacture of aluminum.

A significant benefit from this project is that the waste heat from the kiln is to be used to eliminate Rain’s dependence on fossil fuel for power generation, leading to CERs. In 2007, the CER project was registered with the Clean Development Mechanism Executive Board with an annual baseline CER generation estimated at 164,770.

Overview of IFC's Scope of Review

IFC has been following the environmental performance of Rain Calcining operations since 2004 through site visits and review of the annual monitoring reports submitted by the company. Key environmental, social, health and safety aspects of the company operations include:

- Environmental Management System (EMS) capability;
- Emissions to the environment (e.g. air and water, solid waste and toxic/hazardous materials management);
- Water management (quality, treatment, discharge, and reuse);
- Industrial hygiene, occupational health and safety, and fire safety management including training, personal protective equipment, and collection/monitoring of accident statistics, exposure to harmful vapors, and dust;
- Supply Chain issues, if any.

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 investment will have impacts which must be managed in a manner consistent with the following Performance Standards:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement
- PS4: Community Health, Safety and Security.

Environmental and Social Mitigation Measures

The sponsor has plans to ensure that the proposed project will upon implementation, comply with the environmental and social requirements - the host countries laws and regulations and the World Bank/IFC environment and social performance standards 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.

- Social and Environmental Assessment and Management Systems:

Land and natural environment:

Rain Calcining operations are neither located in protected areas nor in preserved national parks. For this neither project nor additional land will be acquired. The company is based in Vishakhapatnam in Andhra Pradesh, India with an installed CPC capacity of 600,000 tonnes per annum.

Environmental and Social Assessment:

Rain Calcining has programs in place to prevent and reduce emissions, wastewater, soil contamination, and solid waste. The company also has preventive maintenance and internal inspection programs to ensure procedures are duly followed.

Environmental, Health, and Safety (EHS) Management and Organization:

The company is ISO 14001 certified. The company has personnel dedicated to handle the EHS aspects of its operations to ensure the operations comply with the local EHS requirements and IFC requirements. In addition, as needed The company hires environmental consultants to conduct studies such as the EIAs required by the local authorities.

Training, monitoring, and reporting:

Training is given to all employees including contracted workers. In addition, the company has monitoring programs in place to asses its EHS performance. It monitors incidents/accidents, waste water discharge, air emissions, solid wastes generated, etc. Currently, the company is up-to-date with all local environmental requirements.

- Labor and Working Conditions:

Human Resources Policy and Management:

The company has Human Resources (HR) policy in place and a manager who handles all relevant aspects (i.e., employee competencies models, handle and resolve employees and contracted laborers grievances, programs to address training, promotion, insurance, salary and compensation, vacation, etc.).

Non-Discrimination and Equal Opportunity:

The company is an equal opportunity employer. Al hiring and promotions are merit-based.

Protecting the Workforce:

There is no child or forced labor at any of its operations. The company also ensures that the contract laborers are at least 18 years old. In addition to the compliance with in-country labor laws, the company provides additional benefits to its employees (i.e., family subsidies, educational support, etc.) The company has procedures for hiring and ensuring the safety of contractors and that they are covered with all social security requirements as per country labor laws.

Workers Organizations:

The company currently has 259 direct and 200 temporary employees. The company has no employees associated to a trade association. However, they are entitled to all the employees’ benefits as per Indian labor laws.

Occupational Health and Safety (H&S):

Rain Calcining has appropriate medical services for its employees. Regular medical check-ups for all own and part – time employees are periodically conducted. Uniforms and personnel protective equipment are provided to employees and required to be used at all times. The company has response equipment and trained personnel, available at all times, to handle fire/emergency response actions. The company’s occupational safety record is exemplary, with no lost time or fatal accidents in the last 4 years, of either company employees or contractors/subcontractors. The severity of infraction(s) and/or repeated violations can be cause for cancellation of the contract.

- Pollution Prevention and Abatement:

Raw Materials and Resource Consumption:

The company uses 90 kl of raw water for cooling purposes and to produce de-mineralized water to be used in the steam boiler. In addition, it also uses approximately 375 kl of sea water per hour for condenser cooling. The company used its treated water to irrigate the greenbelt around the plant site.

Air Emissions, Liquid Effluents, and Ambient Conditions:

The company monitors monthly its air emissions and demonstrates that they comply with the applicable local and IFC requirements through in-house, third party and local authorities monitoring. With this project, the company will significantly reduced the amount of green house gases and other pollutant generated for the production of its power needs.

Cooling water is drawn from the Bay, recycled and discharged back into the Bay. The wastewater from the cooling ponds is discharged to the ocean at normal temperature in accordance to the applicable local and IFC requirements. No other process wastewaters are generated in the process.

Solid and Hazardous Wastes:

The company has a solid waste management system by which it segregates, manages, stores, and disposes according to their characteristics. There are also systems in place to ensure a proper disposal of hazardous wastes including the sludge from the wastewater treatment plant. Fly ash from air pollution control devices is sold to local “cottage industry” brick manufacturers in a program established by the company.

Operational Safety:

The company has safety measures, in place, to control the overall safety of its operations. it also conducts maintenance programs and conducts safety audits. All non-conformities identified during the audits are rapidly addressed. It has systems in place to address operational risks including identification of critical risks; training on EHS policy, fire, spills, prevention, communication, contractors’ safety, assessment of contingency plans, etc.

Fire and Spill Prevention and Emergency Response:

The company has developed emergency response and contingency plans. Key elements of these plans include procedures for internal/external communications, response organizations/contacts, neighboring plants involved in the Mutual Aid plan. Prevention/response programs (i.e., trained fire/emergency response brigades available at all times, periodic emergency response drills, fire prevention/response equipment such as alarms, sprinklers, signals, hydrants, and extinguishers throughout the plant) are also in place.

Green House Gases (GHGs):

Rain Calcining consumes 100 % (6 MW) of the total energy consumption in the region in annual basis. It is anticipated that with this project, an estimated 825,000 tonnes of carbon dioxide equivalent will be eliminated in a period of five year. Assuming then a project’s life expectancy of 15 years, a total of of 2.5 million tonnes of carbon dioxide will be eliminated.

Protection of Cultural Property:

Rain Calcining operations are not located in areas of significant cultural value, such as archaeological sites.

Community Health, Safety and Security:

Rain Calcining operations are built to reduce negative risks to the nearby communities. In addition, the company has established maintenance and monitoring programs, EHS training for all its employees and conducts periodic emergency response drills. Grievances from the community are canalized through the organizational structures the local authorities have in place. Once received by the company, they are handled and resolve.

Transportation:

The raw materials are transported via truck. The company has systems in place to reduce risks from negative impacts during transportation of raw materials and products.

Product Stewardship:

Rain Calcining is committed to produce safe products, disclose the inherent risks in the use and handling of its products, and share the good environmental and safety practices it applies in its industrial site.

Stakeholder Engagement

Rain Calcining’s policy is to keep in close and open communications with local communities and authorities. The company supports projects to improve the quality of life in communities located within the area of influence of its operations. The company generates local employment and is committed to fill all unskilled employment positions with local persons and to use local suppliers of goods and services whenever possible.

The company also develops social programs including participating and sponsoring the International beach clean-up days at Visakhapatnam Beach, and a tree planting celebration during the World Environmental Day.

The company will make this environmental and social review summary available to the public in the following locations:

- The company’s plant: Scindia Road, Naval Base (P.O.); Visakhapatnam – 530 014 A.P. India
- District Library; Marritatnam; Visakhapatnam, A.P. India

**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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