The views in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or itsBoard of Governors, or the government they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts noresponsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

STRENGTHENING AND USE OF COUNTRY YSAFEGUARD SYSTEM S

WPOWERGRID EXPERIENCE

10 May, 2012 1

I d 23 d O b 1989

POWERGRID OVERVIEW

Incorporated on 23rd October, 1989

Commercial operation in 1992‐93 

N ifi d C l T i i U ili (CTU) f h C Notified Central Transmission Utility (CTU) of the Country

Asset BaseR 60 000 C

Listed Company

> Rs. 60,000 Crore(US$ 12500 m) Turn Over 

FY 2011‐12Public holding 

30.58%Rs. 10,000 Crore(US$ 2083 m)

POWERGRID

Consistently R t d E ll t

Carries 50 % of t ’

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Rated Excellentby GoI

country’s power

POWERGRID OVERVIEW

Transmission Lines 92,000 ckm.

Sub‐Stations 150 Nos.

T f i C iNational Grid 

Transformation Capacity 114,000 MVA

Inter‐Regional Capacity28,000 MW

System Availability >99 9%

Telecom Network > 25,000 km >99.9%> 25,000 km

10 May, 2012 3

World Leader in Transmission Technology

WHAT IS USE OF COUNTRY SYSTEMS (UCS)?

“Country (or ‘Borrower’) Systems” refers to :

Borrower’s policies, laws, regulations, and formal procedures(“equivalence”) and;( q ) ;

Its institutional capacity, processes and performance (“acceptability”)in implementing its laws, regulations and procedures

OBJECTIVES AND USEFULNESS OF UCS

Empower borrower safeguard systems

Enhance borrower capacity to implement own systems

Facilitate donor harmonization of safeguards around borrowersafeguard systems

Simplify lending by eliminating necessity for prior Bank approval of

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p y g y g y p ppEnvironmental and Social Assessment Reports

WHY POWERGRID A STRONG CANDIDATE FOR UCS

Transmission Projects ‐ Environmentally clean and non Polluting;

Yet

POWERGRID is the first PSU in Power Sector to develop Environmentaland Social Policy & Procedures (ESPP) in 1998

ESPP benchmarked to GOI law, WB and other donor (ADB, JBIC)safeguards and is based on broad stakeholder participation

ESPP applies to all POWERGRID projects irrespective of source of ESPP applies to all POWERGRID projects irrespective of source offunding

ESPP is a dynamic and living document upgraded with the changes insocial and environmental governance in the country and modified inthe light of experiences gained with field implementation ofPOWERGRID projects

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Contd……..

WHY POWERGRID A STRONG CANDIDATE FOR UCS

ESPP also been reviewed by an independent committee comprisingeminent environmentalists / Social scientists of international reputeand representatives nominated by multilateral funding agenciesand representatives nominated by multilateral funding agencies

POWERGRID is committed to the goal of sustainable developmentand conservation of nature through continually improving itsmanagement system and introducing state of the art andinternationally proven technologies

Recipient of Annual “Green Award” from World Bank Environment Recipient of Annual “Green Award” from World Bank EnvironmentSector Board 2006 for leadership towards sustainability in South‐EastAsia

POWERGRID’s corporate structure provides an opportunity to applysustainable management tools designed for corporate clients (e.g. byIFC and used by Equator Banks)

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IFC and used by Equator Banks)

PROCESS OF INTEGRATION OF UCS IN POWERGRID ESPP

MAJOR MILESTONES :

The World Bank started Use of Country (borrower’s) Systems (UCS) to addressEnvironment & Social safeguard issues as per Operational Policy 4.00 in March’05

POWERGRID’s ESPP selected as the 1st candidate for UCS in India by the Bank as it isquite comprehensive and provides a sound basis for traditional Bank lending to theextent that it is “consistent” with the World Bank safeguard systems as well as GoIg ylaws – Oct’07;

The World Bank completed three major requirement of UCS like Equivalence,Acceptability and Gap Analysis exercise after desk review, interaction withAcceptability and Gap Analysis exercise after desk review, interaction withPOWERGRID, and site visit and issued a Safeguard Diagnostic Review (SDR) –Sept’08

Public/Stakeholders Consultation on SDR – Nov’08;

Draft ESPP incorporating SDR observations – Jan’09

UCS compliant Final draft ESPP and its disclosure‐ Feb’09

Review by Independent ESPP Review Committee April’09

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Review by Independent ESPP Review Committee‐ April 09

Approval by POWERGRID Board of Directors – June’09.

MAJOR REQUIREMENTS UNDER UCS 

ENIRONMENT & SOCIAL ASSESSMENTENIRONMENT & SOCIAL ASSESSMENT:

Environment & Social Assessment must for all its project irrespective ofsource of funding (Multilateral or Domestic) and preparation/disclosure ofg ( ) p pInitial Environment Assessment Report (IEAR).

16 new projects have been studied and IEAR/IEER prepared fromApril 2009 December 2011April 2009-December 2011.

Social Assessment by Independent agency and preparation ofR h bilit ti A ti Pl (RAP) f P j t Aff t d P (PAP )Rehabilitation Action Plan (RAP) for Project Affected Persons (PAPs)

Social Assessment of 23 new substations undertaken by differentagencies and RAP prepared and implemented/under implementationg p p p pfrom April 2009 – December 2011.

Public Consultation at every stage of project execution

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A LAND ACQUISITION :

MAJOR REQUIREMENTS UNDER UCS A. LAND ACQUISITION :

Implementation of proposed New Land Acquisition Act, 2009deferred (GoI deferred it due to non availability of Parliamentapproval)

Now GoI introduced a comprehensive legislation on Land Acquisitionand R&R named Land Acquisition and R&R Act 2011 The Act is likelyand R&R named Land Acquisition and R&R Act, 2011. The Act is likelyto be notified in June/July,2012 after its adoption in Parliament.

B. FOREST CLEARANCE :

POWERGRID obtain forest clearance under Forest (Conservation) Act,1980 from MoEF, for projects involving diversion of forest land.

POWERGRID during the period starting 2009 to 2011 obtained in‐principle (stage‐I) forest clearance for 1765 ha. of forest and final(Stage‐II) forest clearance for 937 ha. of forest land in different states

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(Stage II) forest clearance for 937 ha. of forest land in different statesof country.

Contd………..

MAJOR REQUIREMENTS UNDER UCS 

DELAY IN APPROVAL ‐ Problem Area

Off late such Clearance are getting delayed on account of followingreasons:

Processing at State Government level.

Back referencing b State to the ser agenc Back referencing by State to the user agency.

(For clarification at any level case is referred back to utilitythrough proper channel)g p p )

Processing and forwarding by State to Central Government.

Compliance of FRA, 2006 Provisions; Compliance of FRA, 2006 Provisions;

Permission of Hon’ble Supreme Court if line passes throughNational Park/Sanctuary/Biosphere Zone.

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Internal Measures:

POWERGRID’S ACTIONS FOR EXPEDITING THE FOREST CLEARANCE 

Internal Measures:

• Development of comprehensive Environmental and Social Policy &Procedures (ESPP) to Optimise timeframe and timely action atappropriate stage of project cycle;

• Preponement of detailed survey in forest area to gain optimum timefor forest clearance;for forest clearance;

• Continuous follow up with forest authorities for expediting forestclearance.

External Measures/issues taken up with MoEF directly and throughMoP:

• Exemption /Relaxation under Scheduled Tribes and Other Traditional• Exemption /Relaxation under Scheduled Tribes and Other TraditionalForest Dwellers (Recognition of Forest Rights) (FRA) Act 2006 forTransmission projects;

10 May, 2012 1111

• Permission to start work after stage‐I approval;

• Enhancement of RMoEF powers for approval & Processing.

C. AVOIDANCE OF PROTECTED AREAS & BIO‐DIVERSITY CONSERVATION

POWERGRID’S  COMPLIANT TO UCS 

As per the basic principle of ESPP POWERGRID tries to avoid all protectedareas to the extent possible and if not possible due to location of project andterrain the specific impact studies are carried out by domain experts toterrain the specific impact studies are carried out by domain experts tosuggest measures to minimize adverse impact on wildlife/biodiversity of thearea.

A id Avoidance:

Avoided Great Indian Bustard Sanctuary completely in Solapur‐ Pune line;

Avoided Sariska Tiger reserve in Agra‐Sikar line .g g

Biodiversity Studies:

During the period such studies by Independent agency/experts carried out forfollowing project:

Mundra UMPP passing through the Wild Ass Sanctuary in Kutch area ofGujarat

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Durgapur – Jamshedpur line passing through Dalma Hills WildlifeSanctuary in Jharkhand

POWERGRID’S  COMPLIANT TO UCS 

D. SUSTAINABILITY REPORTING

POWERGRID the first PSU in Power Sector of thecountry who brought out its maiden SustainabilityReport for the FY 2008‐09 in March ’10 based on

( )Global Reporting Initiative (GRI) guidelines, .

POWERGRID publishing the Sustainability Report POWERGRID publishing the Sustainability Reporton biennial basis, the 2nd Sustainability Report forthe FY 2010‐11 would be published by May,2012.

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F. INSTITUTIONAL ARRANGEMNET

POWERGRID’S  COMPLIANT TO UCS 

F. INSTITUTIONAL ARRANGEMNET

Strengthening of Environment & Social Management Department ascommitted during the UCS process/discussion completed

Fi E i t l Offi it d i 2009 10 Five Environmental Officers recruited in 2009‐10;

Four posted in different regions and one at Corporate Office;

Two Social Officers were appointed through Campus interview from TataInstitution on Social Sciences Mumbai in May 2010Institution on Social Sciences, Mumbai, in May 2010.

Proposal for recruitment of 2‐3 more Social Officers under approval.

Following training programme in different regions organized to impart trainingg g p g g g p gon safeguard issues and ESPP implementation.

S.N Place Date Man days Covered1. NERTS (Shillong) 26th to 28th May’10 & 13thto14th June’11 1382. ERTS‐I (Ranchi) 28th to 30th June 2010 663. SRTS‐I (Hyderabad) 22nd to 24th July,2010 484. ERTS‐II(Kolkatta & B’swar) 13th to 15th Sept.’10 & 6th to 7th June’11 1025. WRTS‐I (Nagpur) 5th  to 6th October 2010 19

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6 WRTS‐II(Bhopal) 24th  to 25th June 2011 50TOTAL 423

SUGGESTIONS AND WAY  FORWARD 

COUNTRIES / ORGANIZATIONS:

To Ensure / Demonstrate complete Implementation of Major To Ensure / Demonstrate complete Implementation of Major Safeguards policy;

Enhance Capacity particularly on monitoring system / mechanism Enhance Capacity particularly on monitoring system / mechanism not only at Govt. level but to the organization level.

MULTILATERAL FUNDING AGENCIES:

Gradual Transition from generic to sector specific OM / OP / Guidelines for better understanding and Implementation;

To move towards more implementation orientated rather than Documentation oriented ?

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THANK YOUTHANK YOU

10 May, 2012 1616rks@powergridindia.com

10 May, 2012 1717

MoEF Requirement under FRA,2006 vide its circular dt.3.8.2009 for issuing forest clearance.

Provisions of FRA,2006

FOREST RIGHTS ACT, 2006 PROVISIONS VIS‐À‐VIS MOEF REQUIREMENT

Certificate from the State Government thatprocess for identification and settlement ofrights under the FRA completed;

C tifi t f th St t G t th t

The Act recognizes and vests the forestrights and occupation in forest land inforest dwelling Scheduled Tribes and othertraditional forest dwellers who have been

Certificate from the State Government thatproposals for diversion (with full details of theproject and its implications, in vernacular/locallanguages) placed before each concernedGram Sabha of forest dwellers who are eligible

residing in such forests for generations butwhose rights could not be recorded, andprovides for a framework for recording theforest rights so vested and the nature ofevidence required for such recognition andGram Sabha of forest dwellers, who are eligible

under the FRA; Certificate from each of the concerned Gram

Sabhas, indicating their consent to the

evidence required for such recognition andvesting in respect of forest land.

The District level Committee chaired byDistrict Collector or Deputy Commissionerh b i d f ll t d id dproposed diversion;

Certificate from the State Government thatdiscussions and decisions on proposal hadtaken place with a quorum of minimum 50% of

has been assigned full power to decide andadjudicate on all issues on claim anddisputes and issue certificates of claimsunder FRA,206.

members of the Gram Sabha present; Certificate from the State Government that the

rights of Primitive Tribal Groups and Pre-Agricultural Communities, where applicable,

MoEF not accepting the DC/DM certificateregarding non-availability of tribal / claimsunder FRA, 2006 and insist for gram sabharesolution with more than 50% attendance.

10 May, 2012 1818

g , pp ,have been specifically safeguarded;

10 May, 2012 1919

Proposal DFO/CF (WL) to Certification/

Recommendation ofSt. Govt. to put up the case to State Wildlife

Cumbersome procedure for Protected Areas Clearance

Submission after Survey

scrutinize proposal after site inspection

for formulation

Recommendation of Chief Wildlife Warden (CWW) & forwarding the same to St. Govt.

Advisory Board (SWLAB-Chairperson Hon’ble CM)

for recommendation to Standing Committee of

NBWL at MoEF

Standing Committee of NBWL Meeting to

Site inspection by Members, if required

Approval byNo Objection

Certificate (NOC)NBWL Meeting to consider the proposal

(Held Quarterly)

Or Recommendation by Committee for further

approval of Hon’ble Minister, E & F.

Approval by

Minister, E & F

Certificate (NOC) issue by Wildlife

Wing of MoEF/GoI

Parallel Activity

Filing of Interlocutory Application (IA) in

WP (C) 202 of 1996SC hearing for

further listing with

CEC hearing & Recommendation

to Hon’ble

SC hearing/ Permission accord

subject to depositing

Deposit & Start Work

if non forest or

y

WP (C) - 202 of 1996 with SC for

permission to work in Wildlife Sanctuary

(WLS)

further listing with reference to CEC

to Hon ble Supreme Court

subject to depositing 5% cost of project within Sanctuary

Proceed for forest clearance if forest

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NBWL / Hon’ble SC Clearance takes more than 1 ½ years

Ministry of Environment and Forests

(Forest Conservation Division)( o est Co se at o s o )

Forest Advisory Committee Meeting held on July 12th, 2011 Agenda No.7: Exemption/relaxation under Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 for Transmission projects (File No. 11-214/2011-FC)

After detailed examination of the proposal received from the Ministry ofP th FAC b d th t t i i li d t lt tPower, the FAC observed that transmission lines do not result on permanentloss of forest land. The para 2.1.(vii) 3 of the FC Act guidelines also exemptsthe transmission line and such other projects where linear diversion of forestland in several villages are involved from the requirement of obtaining ag q gresolution of the Aam Sabha of Gram Panchayat/Local Body of the areaendorsing the proposal that the project is in the interest of people living inand around the proposed forest land. FAC recommended that Ministry mayafter consulting the Ministry of Tribal Affairs may exempt the transmissionafter consulting the Ministry of Tribal Affairs may exempt the transmissionprojects from obtaining the consent of Gram Sabha as has been stipulated bythis Ministry in its circular letter No. 11-9/1998-FC (pt.) dated 03.08.2009.

MoEF forwarded above recommendation to MoTA for their concurrence on

10 May, 2012 2121

MoEF forwarded above recommendation to MoTA for their concurrence on28th July, 2011. MoTA response awaited.

Acceptability Assessment Analysis for POWERGRID SDR

Analysis of GOI institutional framework to implement applicable legislation:   MoEF, Ministry of Rural Affairs, Ministry of Tribal Affairs, State and District level counterparts

Assessment of POWERGRID’s institutional capacity and procedures to implement ESPP: Management structure, staffing and training

Review of POWERGRID’s Environmental and Social Management System (per IFC PS 1) andReview of POWERGRID s Environmental and Social Management System (per IFC PS 1) and Public Disclosure Procedures 

Qualitative Assessment of POWERGRID Outputs:  IEARs, FEAR, RAPs for Power Systems III‐IV

Review of Project Performance:  World Bank and other donor (ADB)‐funded projects (Power Systems II‐IV):  ICRs, ISRs and site visits to Bank and non‐donor funded projects

Discussion and Agreement on Gap‐Filling measures to Attain Full Acceptability TBD

10 May, 2012 22Source World Bank

Stakeholders Consultation on SDR

10 May, 2012 23

10 May, 2012 24

Regional & National Consultation on ESPP

10 May, 2012 25

PUBLIC CONSULTATIONPUBLIC CONSULTATION

10 May, 2012 26

Environment & Social Policy StatementEnvironment & Social Policy Statement

““POWERGRID is committed to the goal of sustainable development andconservation of nature and natural resources. While continuallyimproving its management systems accessing specialist knowledgeimproving its management systems, accessing specialist knowledgeand introducing state of the art and internationally proventechnologies, POWERGRID strictly follows the basic principles ofAvoidance, Minimization and Mitigation in dealing with environmentaland social issues. Where necessary, Restoration and Enhancement isalso undertaken .”

First Power Utility in World accredited with a Publicly AvailableSpecification (PAS), 2006 based Integrated Management System (IMS)by British Standards Institution (BSI) on

– ISO: 14001 for Environment Management,– ISO: 9001 for Quality Management and – OHSAS: 18001 for Occupational Health & Safety. p y– Social Accountability : 8000-2001