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 its Board of Governors, or the government they represent. ADB does not guarantee the accuracy of the data included in this presentation and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

STRENGTHENING AND USE OF COUNTRY SAFEGUARD SYSTEM S Y POWERGRID EXPERIENCE W

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POWERGRIDOVERVIEW
I Incorporatedon23rdOctober,1989 d 23 d O b 1989 Commercialoperationin199293 N ifi d C NotifiedCentralTransmissionUtility(CTU)oftheCountry lT i i U ili (CTU) f h C
AssetBase >Rs.60,000Crore R 60 000 C (US$12500m) ListedCompany Publicholding 30.58% POWERGRID

TurnOver FY201112 Rs.10,000Crore (US$2083m)

Consistently RatedExcellent R t d E ll t byGoI

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Carries50 % of countryspower t
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POWERGRIDOVERVIEW
TransmissionLines 92,000ckm. SubStations 150Nos.

TransformationCapacity T f i C i 114,000MVA

NationalGrid InterRegionalCapacity 28,000MW

TelecomNetwork >25,000km > 25,000 km

SystemAvailability >99.9% >99 9%

WorldLeaderinTransmissionTechnology
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WHATISUSEOFCOUNTRYSYSTEMS(UCS)?
Country (or Borrower) Systems refers to : Borrowers policies, laws, regulations, and formal procedures ( q (equivalence) and; ) ; Its institutional capacity, processes and performance (acceptability) in implementing its laws, regulations and procedures

OBJECTIVESAND USEFULNESSOFUCS
Empower borrower safeguard systems Enhance borrower capacity to implement own systems Facilitate donor harmonization of safeguards around borrower safeguard systems p y g y g y p pp Simplify lending by eliminating necessity for prior Bank approval of Environmental and Social Assessment Reports
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WHYPOWERGRIDASTRONGCANDIDATEFORUCS
Transmission Projects Environmentally clean and non Polluting; Yet
POWERGRID is the first PSU in Power Sector to develop Environmental and 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 funding ESPP is a dynamic and living document upgraded with the changes in social and environmental governance in the country and modified in the light of experiences gained with field implementation of POWERGRID projects
Contd..
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WHYPOWERGRIDASTRONGCANDIDATEFORUCS
ESPP also been reviewed by an independent committee comprising eminent environmentalists / Social scientists of international repute and representatives nominated by multilateral funding agencies POWERGRID is committed to the goal of sustainable development and conservation of nature through continually improving its management system and introducing state of the art and internationally proven technologies Recipient of Annual Green Award from World Bank Environment Sector Board 2006 for leadership towards sustainability in SouthEast Asia POWERGRIDs corporate structure provides an opportunity to apply sustainable management tools designed for corporate clients (e.g. by IFC and used by Equator Banks)
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PROCESSOFINTEGRATIONOFUCSINPOWERGRIDESPP
MAJORMILESTONES:
The World Bank started Use of Country (borrowers) Systems (UCS) to address Environment & Social safeguard issues as per Operational Policy 4.00 in March05 POWERGRIDs ESPP selected as the 1st candidate for UCS in India by the Bank as it is quite comprehensive and provides a sound basis for traditional Bank lending to the extent that it is consistent with the World Bank safeguard systems as well as GoI g y laws Oct07; The World Bank completed three major requirement of UCS like Equivalence, Acceptability and Gap Analysis exercise after desk review, interaction with POWERGRID, and site visit and issued a Safeguard Diagnostic Review (SDR) Sept08 Public/Stakeholders Consultation on SDR Nov08; Draft ESPP incorporating SDR observations Jan09 UCS compliant Final draft ESPP and its disclosure Feb09 Review by Independent ESPP Review Committee April09 Committee April 09 Approval by POWERGRID Board of Directors June09.
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MAJORREQUIREMENTSUNDERUCS
ENIRONMENT & SOCIAL ASSESSMENT ASSESSMENT: Environment & Social Assessment must for all its project irrespective of source of funding (Multilateral or Domestic) and preparation/disclosure of g ( ) p p Initial Environment Assessment Report (IEAR). 16 new projects have been studied and IEAR/IEER prepared from April 2009 December 2011 2009-December 2011.

Social Assessment by Independent agency and preparation of Rehabilitation Action Plan R h bilit ti A ti Pl (RAP) f P j t Aff t d P for Project Affected Persons (PAP ) (PAPs) Social Assessment of 23 new substations undertaken by different agencies and RAP prepared and implemented/under implementation g p p p p from April 2009 December 2011. Public Consultation at every stage of project execution

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MAJORREQUIREMENTSUNDERUCS
A. A LAND ACQUISITION : Implementation of proposed New Land Acquisition Act, 2009 deferred (GoI deferred it due to non availability of Parliament approval) Now GoI introduced a comprehensive legislation on Land Acquisition and R&R named Land Acquisition and R&R Act 2011 The Act is likely Act, 2011. to 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 (stageI) forest clearance for 1765 ha. of forest and final (Stage II) (StageII) forest clearance for 937 ha. of forest land in different states of country.
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MAJORREQUIREMENTSUNDERUCS
DELAY IN APPROVAL Problem Area Off late such Clearance are getting delayed on account of following reasons: Processing at State Government level. Back referencing b State to the user agenc by ser agency. (For clarification at any level case is referred back to utility g p p ) through proper channel) Processing and forwarding by State to Central Government. Compliance of FRA, 2006 Provisions; Permission of Honble Supreme Court if line passes through National Park/Sanctuary/Biosphere Zone.
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POWERGRIDSACTIONSFOREXPEDITINGTHEFORESTCLEARANCE
Internal Measures: Development of comprehensive Environmental and Social Policy & Procedures (ESPP) to Optimise timeframe and timely action at appropriate stage of project cycle; Preponement of detailed survey in forest area to gain optimum time for forest clearance; Continuous follow up with forest authorities for expediting forest clearance. External Measures/issues taken up with MoEF directly and through MoP: Exemption /Relaxation under Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) (FRA) Act 2006 for Transmission projects; Permission to start work after stageI approval;
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Enhancement of RMoEF powers for approval & Processing.

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POWERGRIDSCOMPLIANTTOUCS
C. AVOIDANCE OF PROTECTED AREAS & BIODIVERSITY CONSERVATION As per the basic principle of ESPP POWERGRID tries to avoid all protected areas to the extent possible and if not possible due to location of project and terrain the specific impact studies are carried out by domain experts to suggest measures to minimize adverse impact on wildlife/biodiversity of the area. A id Avoidance: Avoided Great Indian Bustard Sanctuary completely in Solapur Pune line; Avoided Sariska Tiger reserve in AgraSikar line . g g Biodiversity Studies: During the period such studies by Independent agency/experts carried out for following project: Mundra UMPP passing through the Wild Ass Sanctuary in Kutch area of Gujarat Durgapur Jamshedpur line passing through Dalma Hills Wildlife Sanctuary in Jharkhand 10May,2012 12

POWERGRIDSCOMPLIANTTOUCS
D. SUSTAINABILITY REPORTING POWERGRID the first PSU in Power Sector of the country who brought out its maiden Sustainability Report for the FY 200809 in March 10 based on Global Reporting Initiative ( ) guidelines, . (GRI) POWERGRID publishing the Sustainability Report on biennial basis, the 2nd Sustainability Report for the FY 201011 would be published by May,2012.

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POWERGRIDSCOMPLIANTTOUCS
F. INSTITUTIONAL ARRANGEMNET Strengthening of Environment & Social Management Department as committed during the UCS process/discussion completed Fi E i Five Environmental Offi t l Officers recruited i 2009 10 it d in 200910; Four posted in different regions and one at Corporate Office; Two Social Officers were appointed through Campus interview from Tata Institution on Social Sciences Mumbai in May 2010 Sciences, Mumbai, 2010. Proposal for recruitment of 23 more Social Officers under approval. Following training programme in different regions organized to impart training g gp g g g p g on safeguard issues and ESPP implementation.
Place NERTS(Shillong) ERTSI(Ranchi) SRTSI(Hyderabad) ERTSII(Kolkatta &Bswar) WRTSI(Nagpur) WRTSII(Bhopal) TOTAL Date 26th to28th May10&13thto14th June11 28th to30th June2010 22nd to24th July,2010 13th to15th Sept.10&6th to7th June11 5thto6th October2010 24thto25th June2011 MandaysCovered 138 66 48 102 19 50 423
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S.N 1. 2. 3. 4. 5. 6

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SUGGESTIONS ANDWAYFORWARD
COUNTRIES / ORGANIZATIONS: To Ensure / Demonstrate complete Implementation of Major Safeguards policy; 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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THANKYOU THANK YOU

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rks@powergridindia.com

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FORESTRIGHTSACT,2006PROVISIONSVISVISMOEFREQUIREMENT
MoEF Requirement under FRA,2006 vide its circular dt.3.8.2009 for issuing forest clearance. Provisions of FRA,2006 The Act recognizes and vests the forest rights and occupation in forest land in forest dwelling Scheduled Tribes and other traditional forest dwellers who have been residing in such forests for generations but whose rights could not be recorded, and provides for a framework for recording the forest rights so vested and the nature of evidence required for such recognition and vesting in respect of forest land. The District level Committee chaired by District Collector or Deputy Commissioner has been assigned f ll power t d id and h b i d full to decide d adjudicate on all issues on claim and disputes and issue certificates of claims under FRA,206. MoEF not accepting the DC/DM certificate regarding non-availability of tribal / claims under FRA, 2006 and insist for gram sabha resolution with more than 50% attendance.

Certificate from the State Government that process for identification and settlement of rights under the FRA completed; C tifi t f Certificate from th St t G the State Government th t t that proposals for diversion (with full details of the project and its implications, in vernacular/local languages) placed before each concerned Gram Sabha of forest dwellers who are eligible dwellers, under the FRA; Certificate from each of the concerned Gram Sabhas, indicating their consent to the proposed diversion; Certificate from the State Government that discussions and decisions on proposal had taken place with a quorum of minimum 50% of members of the Gram Sabha present; Certificate from the State Government that the rights of Primitive Tribal Groups and PreAgricultural Communities, where applicable, g , pp , have been specifically safeguarded;
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Cumbersome procedure for Protected Areas Clearance

Proposal Submission after Survey DFO/CF (WL) to scrutinize proposal after site inspection for formulation Certification/ Recommendation of Chief Wildlife Warden (CWW) & forwarding the same to St. Govt. St. Govt. to put up the case to State Wildlife Advisory Board (SWLABChairperson Honble CM) for recommendation to Standing Committee of NBWL at MoEF

Standing Committee of NBWL Meeting to consider the proposal (Held Quarterly) Parallel Activity y

Site inspection by Members, if required Or Recommendation by Committee for further approval of Honble Minister, E & F. Approval by Minister, E & F

No Objection Certificate (NOC) issue by Wildlife Wing of MoEF/GoI

Filing of Interlocutory Application (IA) in WP (C) - 202 of 1996 with SC for permission to work in Wildlife Sanctuary (WLS)

SC hearing for further listing with reference to CEC

CEC hearing & Recommendation to Honble Hon ble Supreme Court

SC hearing/ Permission accord subject to depositing 5% cost of project within Sanctuary

Deposit & Start Work if non forest or Proceed for forest clearance if forest

NBWL / Honble SC Clearance takes more than 1 years

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Ministry of Environment and Forests ( o est Co se at o (Forest Conservation Division) so ) 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 of Power, th FAC observed th t t P the b d that transmission li i i lines d not result on permanent do t lt t loss of forest land. The para 2.1.(vii) 3 of the FC Act guidelines also exempts the transmission line and such other projects where linear diversion of forest land in several villages are involved from the requirement of obtaining a g q g resolution of the Aam Sabha of Gram Panchayat/Local Body of the area endorsing the proposal that the project is in the interest of people living in and around the proposed forest land. FAC recommended that Ministry may after consulting the Ministry of Tribal Affairs may exempt the transmission projects from obtaining the consent of Gram Sabha as has been stipulated by this 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 28th July, 2011. MoTA response awaited.
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Acceptability Assessment Analysis for POWERGRID SDR

AnalysisofGOIinstitutionalframeworktoimplementapplicablelegislation:MoEF,Ministry ofRuralAffairs,MinistryofTribalAffairs,StateandDistrictlevelcounterparts

AssessmentofPOWERGRIDsinstitutionalcapacityandprocedurestoimplementESPP: Managementstructure,staffingandtraining ReviewofPOWERGRID sEnvironmentalandSocialManagementSystem(perIFCPS1)and Review of POWERGRIDs Environmental and Social Management System (per IFC PS 1) and PublicDisclosureProcedures QualitativeAssessmentofPOWERGRIDOutputs:IEARs,FEAR,RAPsforPowerSystemsIIIIV

ReviewofProjectPerformance:WorldBankandotherdonor(ADB)fundedprojects(Power SystemsIIIV):ICRs,ISRsandsitevisitstoBankandnondonorfundedprojects

DiscussionandAgreementonGapFillingmeasurestoAttainFullAcceptability

TBD
Source World Bank 22

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Stakeholders Consultation on SDR

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Regional & National Consultation on ESPP

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PUBLIC CONSULTATION

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Environment & Social Policy Statement

POWERGRID is committed to the goal of sustainable development and conservation of nature and natural resources. While continually improving its management systems accessing specialist knowledge systems, and introducing state of the art and internationally proven technologies, POWERGRID strictly follows the basic principles of Avoidance, Minimization and Mitigation in dealing with environmental and social issues. Where necessary, Restoration and Enhancement is also undertaken . First Power Utility in World accredited with a Publicly Available Specification (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