7756 - Asian Electronics Ltd. (AEL) (Multicompany with 8438 and 8439)

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Environmental & Social Review Summary

Project Number

7756

Company Name

Asian Electronics Ltd. (AEL)

Date ESRS Disclosed

Feb 5, 2010

Country

India

Region

South Asia

Last Updated Date

Dec 31, 2016

Environmental Category

B - Limited

Status

Completed

Previous Events

Approved : Jun 30, 1997
Signed : Aug 14, 1997
Invested : Aug 19, 1997

Sector

Engineering Services

Industry

Telecommunications and Technology

Department

WBG Digital and AI

Project Description

Environmental Review Summary (ERS)

Project Name India-Asian Electronics Limited (AEL)aa Note: This project was earlier proposed to be undertaken by a new AEL subsidiary by the name Asian Energy Management Ltd. The sponsors have decided to carry out the project under the parent company, namely Asian Electronics, Ltd.

Region Asia

Sector Power

Project No. 007756
April 18, 1997

1. The project aims to establish AEL as the first major Energy Services Company (ESCO) to deliver turnkey energy efficiency projects in India. Operations will be headquartered in Thane, Maharastra State. AEL’s proposed projects are expected to include installation of modern low tension and high tension capacitors and switched capacitor panels for power factor improvements (70%), distribution transformers (5%), efficient lighting (20%) and electronic energy meters (5%). Clients will be India’s State Electricity Boards and private industry, and the products will be supplied and serviced by AEL under lease and service contracts. IFC will provide both a loan and equity to AEL. IFC would also take small equity investments in two subsidiaries of AEL, namely Eurolight Electricity Pvt. Ltd. and Steurang Anlage Pvt. Ltd. AEL is an Indian manufacturing company which, together with its subsidiaries, produces equipment such as capacitors, florescent light tubes, distribution transformers, meters and other energy saving devices used by electric utilities and industrial plants.

2. This is a category B project according to IFC’s environmental review procedure because specific impacts may result which 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 and environmental information submitted by the project sponsor, and the technical appraisal and site review completed by IFC’s Technical and Environment Department staff. The following potential environmental, health and safety impacts of the project were analyzed:

· disposal of solid waste (obsolete equipment which may contain hazardous wastes, such as PCBs) displaced by energy efficient equipment installations;
· fire prevention and emergency response;
· employee exposure to noise, other physical agents, and hazardous materials; and
· environmental, health and safety performance of AEL’s existing operations.

The sponsor has presented plans to address these issues and demonstrate the proposed project will comply with applicable governmental and World Bank requirements. The information provided about how these potential impacts are addressed in the development of the project is summarized in the paragraphs that follow.

3. The energy efficiency products in the form of capacitors, meters, tube lights, starters and distribution transformers that the company will install on the customers systems on a lease basis do not contain or involve the use of any hazardous materials. However, these improved products may displace existing equipment or materials on the customer systems, e.g., existing transformers may contain PCBs. AEL’s responsibility is only to install the new products after existing obsolete equipment is removed by the customer. The customers have full responsibility for removal, transportation, and disposal of all existing equipment and materials, including any hazardous materials that are contained in obsolete equipment.

4. AEL’s operations will include assembly and warehousing of new products from purchased components, installation of new equipment and periodic maintenance and equipment replacement. Assembly and warehousing will take place in dedicated space within AEL’s existing facilities, and local service centers are expected to be set up proximate to each major customer. AEL equipment removed from service will be returned to AEL or the respective manufacturers for rebuilding or recycling. Only small quantities of liquid and solid waste are expected to be produced, which will be disposed of in accordance with local requirements. AEL employees will receive appropriate training for equipment installation and maintenance and will be provided with equipment for protection from electrical shock, noise and other physical agents.

5. AEL and its subsidiaries operate four plants, including the 20,000 m2 main manufacturing facility at Nasik, a smaller (1,500 m2) manufacturing plant at Tarapur, and small assembly plants at Hyderabad (1,500 m2), and Silvassa (1,000 m2). AEL provided additional site-specific information regarding the environmental, health and safety performance of these existing operations, including such items as size of site, type of land use, age of facility, method of sewage disposal, description of prior use of each site before construction of the facility, description of any known site contamination (such as contaminated soil or groundwater, buried wastes) from past or present site uses, and description of handling and recycling/disposal procedures for hazardous materials. These were reviewed and found acceptable to IFC.

6. Based on its review of available information regarding potential environmental impacts and proposed mitigation measures, IFC concludes that the proposed project is being designed to meet Government of India requirements, and World Bank policies, and environmental, health and safety guidelines.

7. IFC will monitor ongoing compliance by AEL and its subsidiaries with World Bank policies and guidelines during the life of the project by evaluating monitoring reports submitted annually to IFC by the sponsor and by conducting periodic site reviews during project supervision.

L:\CIND1\SETHI\INDIA\AEM\AEL.ERS
April 22, 1997 9:40 AM

Environmental and Social Mitigation Measures

Broad Community Support

**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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