Environment and Social Due Diligence Report. IND: India Infrastructure Project Financing Facility II GVK Deoli Kota Expressway Pvt. Ltd.

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1 Environment and Social Due Diligence Report July 2012 IND: India Infrastructure Project Financing Facility II GVK Deoli Kota Expressway Pvt. Ltd. Prepared by India Infrastructure Finance Company Limited for the Asian Development Bank This report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

2 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited IIFCL Due diligence Report on Environment and Social Safeguards Sub Project: Four laning of Km Deoli Kota Section of NH-12 from Km to junction of NH-76 on Kota Bypass in the state of Rajasthan on DBFOT Pattern under NHDP Phase III Sub-Project Developer: GVK Deoli Kota Expressway Pvt. Ltd. July

3 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited CONTENTS PROJECT BACKGROUND: SUB-PROJECT TITLE: SUB-PROJECT DESCRIPTION: CONCESSIONAIRE: EPC CONTRACTORS: INDEPENDENT CONSULTANT: LENDER S ENGINEER: STATUS OF SUB-PROJECT IMPLEMENTATION:... 7 DUE DILIGENCE ON ENVIRONMENTAL SAFEGUARDS AVAILABILITY OF EIA/EMP REPORTS: ENVIRONMENTAL SENSITIVITY AND DUE DILIGENCE: CATEGORIZATION OF SUB-PROJECT: STATUS OF REGULATORY CLEARANCES: PUBLIC CONSULTATION AND INFORMATION DISCLOSURE: ALTERNATIVE ANALYSIS: ENVIRONMENT AND SAFETY CLAUSES IN CONCESSION AGREEMENT: ENVIRONMENT AND SAFETY CLAUSES IN EPC CONTRACT: EMP IMPLEMENTATION BUDGET: ENVIRONMENT MANAGEMENT PLAN (EMP) IMPLEMENTATION: ENVIRONMENTAL MONITORING: INSTITUTIONAL FRAMEWORK FOR EMP IMPLEMENTATION: SITE VISIT: CONCLUSIONS AND RECOMMENDATION: DUE DILIGENCE ON SOCIAL SAFEGUARDS AVAILABILITY OF REPORTS: MINIMIZATION OF SOCIAL IMPACTS: PUBLIC CONSULTATION: LAND ACQUISITION IN THE SUB-PROJECT: RESETTLEMENT IMPACT IN THE SUB-PROJECT: IMPACT ON INDIGENOUS PEOPLE: COMPENSATION AND ENTITLEMENT: MONITORING AND EVALAUATION: INCOME RESTORATION MEASURES: COMMUNITY DEVELOPMENT ACTIVITIES: SITE VISIT OBSERVATION: CONCLUSION AND RECOMMENDATIONS: LIST OF FIGURES: FIGURE 1 : OVERALL IMPLEMENTATION FRAMEWORK FOR EMP IMPLEMENTATION..22 LIST OF TABLES: DUE DILIGENCE ON ENVIRONMENTAL SAFEGUARDS: TABLE 1: PROJECT SALIENT FEATURES.. 5 TABLE 2: FINANCIAL PROGRESS FOR THE PROJECT

4 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited TABLE 3: STATUS OF REGULATORY CLEARANCES OBTAINED.12 DUE DILIGENCE ON SOCIAL SAFEGUARDS: TABLE 4: COMPARISON OF LAND ACQUISITION REQUIREMENT DURING ALTERNATIVE ANALYSIS. 27 TABLE 5: STATUS OF LAND ACQUSITION...28 TABLE 6: PENDING LITIGATION CASES RELATED TO LAND ACQUISITION AND COMPENSATION TABLE 7: AFFECTED FAMILIES AS PER TYPE OF STRUCTURES 29 APPENDICES: Appendix I: EIA/EMP Report Appendix III: Forest Clearance related applications Appendix V: Approvals Appendix-VII : Concession Agreement Appendix II: Rajiv Gandhi Biosphere Reserve related communications Appendix IV: Pond Ash usage in project construction Appendix VI : Notices & MOM of Public Hearing Appendix VIII: EPC Contract Appendix IX: Environment Management plan- EPC Appendix XI: Safety plan for project site Appendix X: HSE Compliance status for Project site Appendix XII: Safety awareness & Health check-up activities Appendix XIII: EMP Compliance status Appendix XIV: Tunnel construction and Muck disposal plan Appendix XV: Environment Monitoring report Appendix XVI: Project Site Organogram Appendix XVII: Social Assessment Chapter of Detailed Project Report (DPR) Appendix XIX: Copy of ROW handing over letter Appendix XXI: Affected religious structures and their relocation status Appendix XVIII: Copy of 3D Notification Appendix XX: Copies of letter for relocation of religious structures and providing relocation land by Gram Panchayat Appendix XXII: Sample local labour employment sheet Photoplate I- Environmental Safeguards Observed during Site Visit Photoplate II- Social Safeguards Observed during Site Visit 3

5 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited Sub Project: Four laning of Km Deoli Kota Section of NH-12 from Km to junction of NH-76 on Kota Bypass in the state of Rajasthan on DBFOT Pattern under NHDP Phase III Due diligence Report on Environment and Social Safeguards 4

6 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited PROJECT BACKGROUND: 1. SUB-PROJECT TITLE: 1. The Project involves four laning of Km Deoli -Kota Section of NH-12, from Km to junction of NH-76 on Kota Bypass in the state of Rajasthan on DBFOT Pattern under NHDP Phase III. 2. SUB-PROJECT DESCRIPTION: 2. The total length of the existing road is km which starts from Chainage Km (Ch 0.000) and ends at Junction of NH-76 on Kota Bypass (Ch ) of NH-12. The Project Highway traverses through 50 villages in three districts viz., Bhilwara (2), Bundi (46), and Kota (2) in Rajasthan State. 3. The proposed widening and strengthening work would mainly involve: (i) Widening the existing 2 lane carriageway to 4 lane dual carriageway with paved shoulder; (ii) Strengthening of existing pavement of main carriageway; (iii) Construction/widening of cross drainage structures, rehabilitation of structures, provision of new vehicular and pedestrian underpasses, retaining structures, RCC longitudinal drains, protection work, road furniture, bus bays, etc. The project salient features are given in Table 1. Table 1: Project Salient Features Particulars Project Road Length km Terrain Mainly plain terrain Median Width 4.5 m wide median in urban / rural areas as per site conditions. Carriageway The project stretch has four lane divided carriageway, of 7.0m. width with 4.5m raised median. 1.5 m. wide paved shoulders plus 1.5 m. wide earthen shoulder (Total 3.0 m. wide) for main carriageway Bypass 5 Major Bridges 4 Minor Bridges 20 Railway Over Bridge 1 HP Culverts 111 Box Culverts 41 Vehicular Underpass (VUP) 4 Pedestrian/Cattle underpass- PUP 3 Toll Plaza 1 Flyover 5 Tunnel (2 x 1.2 km) 1 Source: LIE s Monthly Progress Report, March 2012 Project Facilities: Further as part of the project, various project facilities shall be provided which will also put advantage to the environmental and safety safeguards of the project. The project facilities to be provided as part of the Concession Agreement include: 5

7 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited Toll plazas: Toll Plaza shall be provided at the location Km Roadside furniture: - Traffic Signs and Pavement Markings: Traffic signs and pavement markings shall include roadside signs, overhead signs; curve mounted signs and road marking along the project highway. - Concrete Crash Barrier, Metal beam crash barrier, Separators (MS railings) - Traffic Safety Devices wherever required - Boundary Stones - Hectometer / Kilometer Stones - Traffic Blinker Signal (L.E.D) at intersections Pedestrian facilities: The additional pedestrian facilities in the form of guard rails, footpath, lighting etc shall be provided in urban areas. Landscaping and tree plantation: Landscaping of the Project Highway is to be done on within ROW, but not limited to the Median, Grade Separated intersections, Entry and Exit ramps, At grade islands of intersection locations and Toll Plaza Area Truck lay-byes and Rest areas Bus-bays and bus shelters: 4 Bus-bays cum Bus Shelters on each side are required to be provided. Others - Cattle crossings - Development of site for wayside amenities - Traffic aid posts - Medical aid posts - Vehicle rescue posts - Telecom system 3. CONCESSIONAIRE: 4. NHAI has appointed M/s. GVK Deoli Kota Expressway Pvt. Ltd. as the concessionaire for this sub-project. The Concession Agreement was signed on 17th May 2010 between NHAI and M/s. GVK Deoli Kota Expressway Pvt. Ltd. 4. EPC CONTRACTORS: 5. M/s. GVK Deoli Kota Expressway Pvt. Ltd. has signed the EPC contract agreement with M/s GVK Projects & Technical Services Ltd. 5. INDEPENDENT CONSULTANT: 6. M/s. Scott Wilson India Pvt. Ltd. has been appointed as the independent consultant for the project. 6

8 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 6. LENDER S ENGINEER: 7. M/s. Frischmann Prabhu (India) Pvt. Ltd. has been appointed as Lender s Engineer for the project. 7. STATUS OF SUB-PROJECT IMPLEMENTATION: 8. Physical Progress: Physical Progress of work on ground as on March 2012 is 25.60%. 9. Financial Progress: The financial progress of the major works carried out at the site in the month of March 2012 is given in Table 2. Financial Progress for this month (Planned) Table 2: Financial Progress for the Project Financial Progress for this month (Achieved) % of Financial Progress Planned up to this month % of Financial Progress achieved up to this month (Lakhs) (Lakhs) % % Source: LIE s Monthly Progress Report, March

9 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited DUE DILIGENCE ON ENVIRONMENTAL SAFEGUARDS 8

10 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 8. AVAILABILITY OF EIA/EMP REPORTS: 10. National Highway Authority of India (NHAI) through its consultant M/s Consulting Engineers Group Ltd. has prepared the Environmental Assessment and Environment Management Plan. A copy of the EIA/EMP report is given in Appendix-I. 9. ENVIRONMENTAL SENSITIVITY AND DUE DILIGENCE: 11. The environmental sensitivity of the Deoli-Kota section of NH-12 (starting from Deoli at Km 165/000 (Ch 0/000) to junction of NH-76 on Kota Bypass (Ch 83/042), covering a distance of km, has been assessed by reviewing the Environmental Assessment and Management Plan, prepared for the project. The project highway traverses through three districts viz., Bhilwara, Bundi and Kota. Deoli -Kota Section of National Highway-12 has been selected to be developed under NHDP-III. The objective of the project is to widen the existing 2 lanes highway into 4/6 lanes to meets the traffic needs for the future. 12. The sub-project was visited by the Environmental and Social safeguard specialists of IIFCL during 17 th -18 th of April 2012 for field verification of Environmental safeguards as reported in the EIA/EMP reports and consultation with the concessionaire. The whole stretch has been alienated in three sections for effective execution and proper control on executions, i.e. Package-I (Km to Km ), Package-II (Km to Km )-Tunnel Works, and Package-III (Km to Km ).The site visit photographs are given in Photoplate-I. The environmental sensitivity assessment is given below: Landuse along the project road is predominantly agricultural. However, a significant amount of industrial development is observed at Kota. The Bundi & Kota districts occupy important place in state s agriculture, which is the most important occupation. The project road mainly passes through plain terrain except hilly terrain in Bundi Ghat section. There is large size hillock on the right side and the Bundi Town is on the left side. The stretch of about 2 km is having winding alignment and some steep gradient. To avoid this stretch during widening, road bypass will be constructed at this location. As this section comprises hilly terrain also so tunnels (with twin tubes) have been proposed to be constructed beneath the hills for which work has not been started till date due to non-availability of forest land as the Stage-II Forest clearance is yet to receive from MoEF ; There is no declared Wildlife/Eco -sensitive area situated within 10 km of the project corridor but the project corridor may fall under proposed Rajiv Gandhi Biosphere Reserve which is an ambitious project connecting the major Sanctuaries and National Parks in the state through forest corridors. The Biosphere reserve is proposed to facilitate better movement of wild animals, including the tigers, over an area of 11,000 sq kms from Dholpur to Jhalawar and will pass through the adjoining Karauli, Sawai Madhopur, Kota, Bundi, 9

11 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited Chittorgarh and Baran districts. NHAI have received representation from Sh. Ramlal Jat, State Minister for Forests, Environment and Mining Dept., Govt. of Rajasthan regarding provisioning of Bypasses at various locations on NH- 12 keeping in view the proposed Rajiv Gandhi Biosphere Reserve(RGBR) for integrated development of forest area. As NH-12 is fragmenting the biosphere reserve at two locations in Bundi-Hindoli area and Kota Mukadara area. Regarding this Local Wildlife board and NHAI officials have surveyed and proposed construction of 7 underpasses at different locations. The final locations of underpasses are yet to finalize as on date. The documents/communications related to provisioning of underpasses in RGBR area has been attached as Appendix-II; There are no known rare, threatened or endangered flora and fauna species reported in the area close to the project highway,i.e. corridor of impact; There are two types of forests existing along project road, i.e. Protected forest and reserve forest. Protected forest is in form of strip plantations covered under protected forest category of the state forestry department. As informed by Concessionaire, the widening and up-gradation of this NH section involves diversion of Ha of forest land, out of which Ha of area belongs to Reserve forest and remaining Ha area is protected forest. The In-principle. Approval from MoEF has been conveyed on 10th of January, 2011 and further compliance to the conditions contained therein is also completed and submitted by concerned officials to MoEF. Declaration from each village sarpanch and secretary coming in the jurisdiction of forest land has also been submitted in respect of provisions of ST & OTFD (Recognition of Forest Rights) Act, 2006 before the final approval. Compliance to the MoEF final query (A certificate from the state Government Jila parishad & District collector), in respect of the said act has also been made on 23rd of Jan. 12. Now this issue is clear with all the requirements and Final Clearance is expected to receive shortly as informed by Concessionaire in our site visit. Details of all these communications has been attached as Appendix-III. As confirmed by Concessionaire and observed during site visit, construction work has not been started at forest area locations and it will be taken up only after the receipt of final forest clearance; For the diversion of Ha of forest land, compensatory afforestation will be taken over equivalent non forest land by the forest dept. at the cost of user agency for which necessary funds has been submitted with Compensatory Afforestation Fund Management & Planning Agency (CAMPA), Delhi. Details for the same are clearly mentioned in Letter of project director, NHAI which is written to the District Forest Officer, Bundi attached as part of Forest Clearance applications under Appendix-III. The cost provision for felling, and plantation of new saplings has been made; As informed by Concessionaire, Total 5930 nos. of tree cutting is involved as part of the project in Non-forest area. These trees have been grown on Govt. land by forest dept. for which tree cutting permission has been obtained by concessionaire from forest dept. Total Ha of Non-forest area will be 10

12 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited involved for tree cutting for which Compensatory Afforestation will be carried out on double of Non-forest area, i.e Ha of land for which Compensation amount has been deposited with Forest dept., Bundi. There are no archeological monuments and sites within corridor of impact for this project; There are some cultural properties as well as other Government properties/facilities within the RoW that are likely to be affected due to widening and upgradation of project road. As informed by the concessionaire, out of 45 religious structures likely to be affected, 25 structures have been properly relocated till date. Remaining structures are either in the process of relocation or work has not been started at those locations specially the structures which are falling in forest area for which final clearance is yet to receive ; Fly ash is utilized for construction of embankment in four laning of Deoli-Kota sector of NH-12 as Kota Super Thermal Power Station (KSTPS), Kota is situated near the project area. Around 5 lacs MT of pond ash has been indicated to be utilized in road embankment construction in this project. Permission obtained for use of fly ash from KSTPS in this matter has been obtained via Letter No. RVUNL/KSTPS/SE (CAM)/D-1071,dated 22/12/2011 which is attached as Appendix-IV. There are 4 major bridges, 20 minor bridges, 5 Flyovers, 1 ROB, Tunnel with twin tubes( 2 * 1.12 Km), 111 HP Culverts, 41 no. of Box culverts, 4 no. of Vehicular underpasses and 3 no. of Pedestrian/cattle underpasses are going to be constructed along the entire length of the project road ; Public consultations have been conducted during the environmental studies to disseminate the project information and to record the views/aspirations of the local people along this NH section in all the three districts (Bhilwara, Bundi and Kota). Public hearings were carried out on at Bisalpur Project Dak Bangla, Tonk Road,Deoli, on at District Collector Assembly Hall, Dist. Bundi and on 15/03/2010 at office of Tahsil Nayab, Mandana Tahsil, Kota District for the respective portion of the project ; Elaborate environmental management and monitoring programme has been suggested for this NH section; The concessionaire has undertaken the implementation of environment management measures as per agreed EMP including physical monitoring of environmental parameters during the construction stage of the project; As per EC Letter, a cost provision of INR 1.87 Crores has been proposed for Environment protection works during construction phase for this project; and Periodical environmental management and monitoring during the project implementation is being carried out by the concessionaire. 11

13 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 10. CATEGORIZATION OF SUB-PROJECT: 13. The sub-project can be classified as category B based upon ADB s EA requirements as per their Safeguard Policy Statement (2009). This classification is based on the review of the EA report and other available documents with respect to the environmental sensitivity due to project activities. 11. STATUS OF REGULATORY CLEARANCES: 14. It is required that the sub-project meets the requirements of appropriate Indian legislations by considering appropriate obligations and guidelines of Regulatory Authorities. The sub project should have necessary national and local environmental clearances as well as permits and approvals for project implementation and suitable environmental management plan has been applied. The statutory clearances required as part of the proposed widening and strengthening of NH-12 section between Deoli-Kota was assessed and current status of availability of such clearances are given in Table 3. Table 3: Status of Regulatory Clearances Obtained Sl. Clearances No. Required 1 Environmental Clearance 2 Forest Clearance Statutory Authority Ministry of Environment and Forests, New Delhi Ministry of Environment and Forests, New Delhi Current Status of Clearance MoEF has granted Environmental Clearance to this project on 3 rd December, 2010, Letter no. F. No /2009-IA.III Stage-I Forest Clearance vide Letter No. F. No. 8-75/2010-FC,dated 10 th January,2011 has already been obtained for diversion of Ha of forest land in Bundi (65.25 Ha= Ha of Protected forest area Ha of Reserve Forest Area) and Kota (3.94 Ha of Protected forest area) Districts. Compensatory Afforestation is required to be taken up by the forest department over equivalent non-forest land at the cost of project authority. Compliances to the conditions contained in Stage- I Forest Clearance Letter are already completed and submitted by concerned officials to MoEF and Final Forest Clearance is expected to receive shortly as communicated by project developer. 3 Tree felling Permissions for Roadside Trees Forest Department, Bundi District,Govt. of Rajasthan 12 Tree cutting permissions have already been obtained from Forest Department, Bundi for entire stretch of Roadside trees along the project highway falling in Bundi district.

14 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 4 Consent for Establishment Rajasthan State Pollution Control Board, Jhalana Doongri,Jaipur Consents have been received from Rajasthan State Pollution Control Board for construction work of the highway under section 25 of the water (prevention and control of pollution) Act, 1974, and under section 21 of Air (Prevention & Control of Pollution) Act, 1981 These consents are taken for establishment of plant sites at Package-I : Kalamal (V), Pench Ki Bawari,Tehsil- Hindoli, Bundi District (Consent File no. F(SCMG)/Bundi(Hindoli)/3(1)/ / /1185, date of issue: ,Validity: ), (i) Aggregate-1000 TPD (ii) Bitumen Mix-1000 TPD (iii) Concrete MIX-80 Cu.mt/day Package-I : Dhakani/Satur (V),Tehsil-Hindoli, Bundi District (Consent File no. F(SCMG)/Bundi(Hindoli)/3(1)/ / /222, date of issue: ,Validity: ), (i) Stone Aggregate-1000 TPD Package-I : Kalamal (V), Pench Ki Bawari,Tehsil- Hindoli, Bundi District (Consent File no. F(SCMG)/Bundi(Hindoli)/4(1)/ / /464, date of issue: ,Validity: ), (i) Aggregate-1000 TPD (ii) Concrete MIX-80 Cu.mt/day (iii) DG Set-500 KVA Package-II : Package-II comprises of Tunnel works where construction is not started due to non-availability of the final stage forest clearance. All the construction plant sites relevant permissions will be taken after the receipt of forest clearance. Package-III : Balapura (V), Tehsil-Bundi, Bundi District (Consent File no. F(SCMG)/Bundi(Bundi)/10(1)/ / /2024, date of issue: ,Validity: ), (i) Stone Aggregate-2000 TPD (ii) Wet Mix Macadam-1200 TPD Package-III : Aktasa (V), Tehsil-Bundi, Bundi District (Consent File no. F(MUID)/Bundi(Bundi)/1(1)/ / , date of issue: ,Validity: ), 13

15 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 5. Quarry Approval and Borrow Area Permits 6. Chief Controller of Explosives (CCoE) Permission for Diesel Storage Dept. of Mines & Geology, Govt. of Rajasthan Petroleum and Explosives Safety Organisation, Ministry of Commerce and Industry, Govt. of India, Faridabad Office (i) Bitumen Mix (HMP)-160 TPH (ii) Concrete Mix (BMP)-30 Cu.mt/Hr. Quarry Permits/Licenses have been obtained for locations of Kaalamal, near Pench Ki Bawari village, and Balapura Village of Bundi district for carrying out road metal Quarrying. And Borrow area permissions are also obtained for different locations from Dept. of Geology and Mining, Rajasthan on short term basis. CCoE permissions for storage of Petroleum Class B (Diesel) at locations of Kalamal village, and Aktasa Village of Bundi district have been obtained from CCoE,North Circle, Faridabad. 7. Chief Controller of Explosives (CCoE) Permission for use of Explosives 8. Blasting Permission 9. Certificate of Registration under the Building and Other Construction Workers Act,1996 Petroleum and Explosives Safety Organisation, Ministry of Commerce and Industry, Govt. of India, Jaipur office Labour and Employment Ministry, Directorate of Mine Safety, Ajmer Circle Office of Assistant Labour Commissioner (Central), Ministry of Labour and Employment, Kota CCoE permissions have been obtained for possessing and use of Explosives in Mining lease site under Explosives Rules, Permission to carry out blasting operations in quarry used for the project section has been received from Director of Mine Safety, Ajmer Circle The establishment has been registered under the provisions of the Building and Other Construction Workers (Regulation of Employment and Condition of Service Act) Act, 1996 and rules made thereunder. 15. Copies of all relevant clearance, approvals and permits are given in Appendix-V. 14

16 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited 12. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE: 16. In keeping with the Govt. of India and MOEF guidelines, Public consultations were conducted, as part of EIA study in all the major settlements. The community consultations were held with households/shop owner, government officials, stakeholders and incorporation of various measures pertaining to environmental issues based on the responses from the people. 17. The process of public participation / consultations was taken up as an integral part of the project in accordance with EIA requirements. Stakeholders were identified to ensure as wide coverage as possible of the project area as follows: Heads of households likely to be impacted; Household members; Clusters of APs; Villagers; Village Panchayat Major project stakeholders, such as women, tribal and ethnic communities, road-user groups, health professionals, and others. As part of the consultation process, women were also given the opportunity to voice their views without the presence of men. 18. Public consultations in the project area were held at village and Panchayat level. The main objectives of the consultation program were to minimize negative impact in the project corridors and to make people aware of the road rehabilitation project. Different techniques of consultation with stakeholders were used during project preparation, viz., in-depth interviews, public meetings, group discussions etc. To understand the socio-economic profile of the society, questionnaires were designed and information was collected from the individuals on one-to-one basis. The consultations have also been carried out with special emphasis on the vulnerable and women groups. More details regarding actions taken with respect to issues raised up in the public consultations have been detailed under Chapter No. 9 for Public Consultation under EIA Report which is attached as Appendix-I. 19. Formal Public Hearings as part of Environment Clearance Process were conducted to disseminate the project information and to record the views/aspirations of the local people along this NH section in all the three districts (Bhilwara, Bundi and Kota). Public hearings were carried out on at Bisalpur Project Dak Bangla, Tonk Road,Deoli, on at District Collector Assembly Hall, Dist. Bundi and on 15/03/2010 at office of Tahsil Nayab, Mandana Tahsil, Kota District for the respective portion of the project. Copies of newspaper advertisements and minutes of public hearing proceedings are attached as Appendix-VI. 13. ALTERNATIVE ANALYSIS: 20. The analysis of alternatives is one of the most important exercises that needs to be carried out to find the least cost option with regards to socio-economic and environmental consequences to 15

17 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited each alternative and the cost attributed to it. The present proposal is strengthening and widening of the existing Highway section. Two major options have been studied with respect to the project, i.e. (i) Without Project Scenario, (ii) With Project Scenario. The alternative assessment is summarized here: 21. Without Project Scenario : The existing project road is a two lane national highway with paved and earthern shoulders width of 2.5m. Carrying high traffic volumes of upto 25,000 PCU s, the capacity of the present highway is insufficient for handling such volume of traffic and calls in for immediate improvements. The present highway is continuously dotted with settlements and the traffic flow is seriously affected by severe conflicts between the local traffic and the through traffic. This is further compounded by the various landuse conflicts, in terms of uncontrolled development along the highway and the encroachments onto the designated highway land (RoW). 22. The population growth, increase in traffic volumes and the economic development along the corridor would continue to occur and will further add to the already critical situation. The existing unsafe conditions and the adverse environmental consequences, in terms of environmental quality along the highway, would continue to worsen in the absence of proposed improvements. Therefore, no action alternative is neither a reasonable nor a prudent course of action for the proposed project, as it would amount to failure to initiate any further improvements and impede economic development. 23. With Project Scenario : The with project scenario, has been assessed to be economically viable and will alleviate the existing conditions. It would therefore, contribute to the development goals envisaged by the Government of India, and enhance the growth potential of the area. To avoid the large scale acquisition of land and properties, the project envisages the four laning of the highway within the existing ROW, but for the critical locations, bypasses and realignments have been proposed. It will not cause any major change in topography and soils, however, better road will reduce soil erosion and dust. 24. Along the settlement stretches with significant pedestrian traffic, sidewalks will be provided. Road safety will improve since all inadequacies of road will get corrected and overall safety of corridor will be significantly increased. Drainage will improve due to reconstruction of culverts/bridges with adequate hydraulics. Although trees present within ROW will be felled, however, through compensatory 1:3 will again improve the greenery of the area. Provision of bypasses around the major settlements will improve environmental quality within the urban/habituated areas due to lowered pollution levels and relieving of congestion. And on the other side, it will avoid loss of structures and resettlement & rehabilitation issues. This will also help in less no. of cutting of trees on both sides of road and provide more space for new plantation which will help in improvement of aesthetics. Appropriate road side amenities will be provided at various locations along the corridor. Proposed highway widening will result in lower vehicle operating costs associated with smoother riding surfaces and shorter travel times. 25. It is found on the basis of analysis that without project scenario will do more harm than the benefits in terms of the biological and socio-economic environment of the project region when 16

18 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited compared to with project scenario. Hence the with project scenario with minor reversible impacts is an acceptable option for the project section. 14. ENVIRONMENT AND SAFETY CLAUSES IN CONCESSION AGREEMENT: 26. As per article 5 under obligations of Concessionaire in concession agreement, the concessionaire shall comply with all applicable laws and applicable permits (including renewals as required) in the performance of its obligations under this agreement. Subject to the provisions of Clauses and 5.1.2, the Concessionaire shall discharge its obligations in accordance with Good Industry Practice and as a reasonable and prudent person. It is also mentioned that Concessionaire shall ensure and procure that its contractors comply with all applicable permits and applicable laws in the performance by them of any of the Concessionaire s obligations under this agreement. Concession agreement for this project is attached as Appendix-VII. Safety requirements are given under Article 18 in which it is specified that the Concessionaire shall comply with the provisions of this agreement, applicable laws and applicable permits and conform to good industry practices for securing the safety of the users. In particular, the Concessionaire shall develop, implement and administer a surveillance and safety programme for providing a safe environment on or about the project highway, and shall comply with the safety requirements set forth in Schedule-L. 27. Compliance for obtaining applicable permits under applicable laws has also been specified in Schedule -E of Concession agreement. As per the schedule- L of CA safety requirements apply to all phases of construction, operation and maintenance with emphasis on identification of factors associated with accidents, consideration of the same, and implementation of appropriate remedial measures. The concessionaire shall abide with applicable laws and applicable permits, manual for safety in road design, issued by MORTH, relevant standards/guidelines of IRC relating to safety In accordance with the provisions of CA and good industry practices relating to safety of users. NHAI shall appoint an experienced and qualified firm or organization as a safety consultant for the project for carrying out safety audit of the project highway in accordance with the safety requirements. The Safety Consultant shall employ a team comprising, without limitation, one road safety expert and one traffic planner to undertake safety audit of the Project Highway. 15. ENVIRONMENT AND SAFETY CLAUSES IN EPC CONTRACT: 28. GVK Deoli Kota Expressway Private Limited (GVK DKEPL) has awarded the EPC works for this project to GVK Projects and Technical Services Limited. The entire project stretch has been divided in three stretches. For Package I, EPC works will be undertaken by GVK PTSL and EPC works for Package-II (Tunnel works) and Package-III has been further sub-contracted by GVK PTSL to UANMAX Infra Ltd. and P.B.A. Infrastructure Limited, respectively. The EPC Contract for this project and details of special provisions in the scope of EPC Contractors related to Muck management generated by tunnel excavation has been attached as Appendix- VIII. As per EPC Contract, under article-5 for obligations and undertakings, sub-heading 5.1.1, 17

19 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited the EPC Contractor will comply with all applicable permits and applicable laws in the performance of the contractor s obligations under this contract, will obtain at its cost, all the requisite clearances and permits required under the Applicable laws for execution of Construction Works including approvals for felling of trees and as per 11.4 of the Concession Agreement. Without prejudice to the foregoing, the contractor shall within such period specified by the concessionaire, obtain all applicable permits specified in Schedule E of the Concession Agreement, unconditionally or if subject to the conditions then all such conditions shall have been satisfied in full and ensure that such applicable permits are in full force and effect during the entire Concession Period. 29. The contractor shall assist the Authority in obtaining all clearances and permits under the Applicable Laws relating to environmental protection and conservation from the Ministry of Environment and Forests, shall take all precautions for the prevention of accidents on or about the site and provide all reasonable assistance and emergency medical aid to accident victims. It is agreed that the contractor shall at all times be responsible for ensuring safe operation of the project Highway during the construction period. Under section 7.22 for Safety Requirements, The Contractor shall comply with the provisions of the Concession Agreement, the financing documents, the Applicable Laws and Applicable Permits and conform to the Good Industry Practices for securing the safety of every individual at the site. Within fifteen days from the effective date, the contractor shall develop, implement and administer a surveillance and safety programme for providing a safe environment on or about the project and for the safe execution of the construction works and shall comply with the safety requirements set forth in Schedule-L of the Concession Agreement and the Financing Documents ( Safety Requirements ). The contractor shall provide to the Concessionaire s Representative details of his safety plans and procedure for the works. 30. Under sub-section 7.23 for Protection of the Environment, the Contractor shall comply with all the terms specified in the Concession Agreement and the Financing Documents towards complying with the environmental norms and take all necessary and appropriate steps to protect the environment (both on and off the site) and to limit damage and nuisance to people and property resulting from pollution, noise and other results of its execution of the construction Works. The Contractor shall ensure that air emissions, surface discharges and effluent from the Site shall not exceed the values prescribed by Applicable Laws. Further, the Contractor shall, if required, assist the Authority in taking all necessary clearances, approvals, Applicable Permits etc. pertaining to environment protection and conservation of site. Under sub-section 7.25 and 7.26, details of removal of Hazardous Materials from site and clearance of site for keeping the site in a neat and clean condition and in conformity with the Applicable Laws and Applicable Permits. Under sub-section 7.30 for Contractor s Personnel and Labor, its agreed that the Contractor shall obtain all relevant labor registrations and comply with all the Applicable Laws including labour laws (such as Workmen s Compensation Act, Minimum Wages Act, Contract Labour (Employment and Regulation) Act, Workers Welfare Cess and so on) applying to his labour, employees etc., and shall duly pay them and afford to them all their legal rights. Under the sub-heading 7.33 for sub-contractors, its agreed that any sub-contracting in terms of this clause 7.33, shall not relieve or discharge the contractor from any of its liabilities or obligations 18

20 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited under this contract and the contractor shall be responsible for the acts, defaults and neglects of all the Sub-Contractors and their agents, servants or workmen. 16. EMP IMPLEMENTATION BUDGET: 31. As part of the project, detailed EMP measures have been undertaken including a budget of 1.87 Crores (as given in EIA Report) during construction and operation phase for implementing the same. The EMP budget exclusively includes the following measures: Environmental Training; Environmental Quality Monitoring during construction and operation Phase; Compensatory Afforestation; Road side Tree plantation and maintenance during Construction & Operation Phase; Safety signs and safety provisions at construction sites Water sprinkling and cover for vehicles transporting construction material during construction; Environmental Measures in the construction camps; Environmental Enhancement Measures during construction and operation phase 17. ENVIRONMENT MANAGEMENT PLAN (EMP) IMPLEMENTATION: 32. The environmental management plan as appeared in EIA report is given in Appendix-I, which describes the proposed mitigation measures that would be adopted during the construction and operation stages of the project. Environment Management Plan adopted by EPC Contractor has been attached as Appendix-IX CONCESSIONAIRE AND EPC CONTRACTOR S HSE PLAN: 33. The Concessionaire as well as EPC contractor has developed Environment Operation Control Procedures for managing the HSE issues at construction sites for Deoli-Kota Expressway project. This document works as a guidance manual for implementing good industry practices w.r.t. environmental management, worker safety and accident/hazard prevention at work site. EPC Contractor submits regular reports with Concessionaire regarding compliance to Health, Safety & Environment Aspects which are further submitted by Concessionaire to Independent Consultant appointed by NHAI. HSE Compliance Status reports have been attached as Appendix-X. 34. The EPC Contractor has also developed project site Safety Plan for construction stage. This document covers Health and Safety related aspects at construction site. For monitoring of these aspects, Safety and Health Operation Control Procedures has been developed which also included Accident/Incident Investigation procedures and reporting formats. Risk Assessment Procedures, reporting formats and risk rating criteria are also included in this document. 35. Under Enclosure-J of Safety Plan, Emergency Response Protocol describes categorization of different emergency events and decision making responsibilities during each event. Rescue 19

21 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited and medical aid services are described which includes provisioning of different emergency services like ambulance services, fire tender services, emergency equipment facilities etc. The emergency procedures are given which shows the involvement of different parties/ agencies and decision levels. Contact numbers for different emergency response services and project staff are also given under Emergency Preparedness and Response Plan. Safety Plan has been attached as Appendix-XI. As reported by concessionaire, Regular Traffic safety awareness programs and Health checkup activities are being conducted along the highway. Some photographs provided by Concessionaire for recent safety awareness and health checkup camp activities are enclosed in Appendix-XII EMP COMPLIANCE STATUS: 36. Concessionaire through its EPC Contractor is complying with environmental protection measures as outlined in EIA-EMP report and also complying to the conditions issued by different authorities in their clearances/consents during construction stage for this project. Status of Environmental Management Plan compliance by Concessionaire has been attached as Appendix XIII. As per Lender s Independent Engineer Monthly Progress Report of March 2012, its reported that Constant efforts are made to ensure the safety of the traffic moving on existing highway. Sufficient sign boards are provided with the provisions of delineator and reflective tapes on it all along the existing highway. Night visibility has also been improved by white washing the gunny bags, parapet walls of existing structures and clearing of bushes hindering the invisibility at curves and bypasses. Clear instructions have been communicated to ensure adequate safety arrangements on site and ensure use of PPE.s and safety accessories while working on site. Efforts are made on a regular basis to protect the environment. Methods proposed in the manual are implemented on ground so as environmental hazards can be eliminated to the extent possible. Monitoring of environmental parameters was conducted during this quarter and reports submitted to IE/NHAI in March, Tunnel Excavation and Muck Disposal Plan: M/s. UANMAX Infra Ltd. has been awarded the work of construction of tunnel between Km to Km The work of tunneling will be carried out simultaneously from both Kota end and Deoli end. During the construction of tunnel, the Muck will be generated both from Open Cut as well as Tunnel. Its expected that approximate quantity of 4,00,000 MT of muck/boulders will be generated which will be disposed off to suitable location without damaging the Existing Forest in the area. Layout diagram for muck disposal plan has been attached as Appendix-XIV.As the stage-ii forest clearance is pending as on date so Blasting permission and Consent to Operate for Batching plant in Package-II will be taken after receipt of FC as informed by Concessionaire during site visit. 18. ENVIRONMENTAL MONITORING: 38. Monitoring of environmental quality during construction and during operation reflects the success of implementation of the mitigation measures and it also provides a chance to review the suggested measure and improve upon the measures. The environmental monitoring is primarily the responsibility of the EPC contractor. EPC Contractor- GVK Projects and Technical 20

22 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited Services Limited (GVK PTSL) has outsourced the job of environmental monitoring to an Environmental Laboratory namely M/s. Nakshtra Enviro Services at Jaipur. The Environmental Monitoring reports for project sites are enclosed as Appendix-XV. As per EIA report, Frequency of ambient air quality, noise level monitoring, and water quality & soil quality monitoring will be thrice in a year. As per the reports attached, the levels of environmental quality parameters are within the permissible limits as per Indian standards, at most of the locations. 19. INSTITUTIONAL FRAMEWORK FOR EMP IMPLEMENTATION: 39. The project institutional framework as given in the project EMP indicates that the overall implementation responsibility of the EMP lies with the Project Implementation Unit (PIU); Project Director at PIU is supported by the Environment Officer of NHAI. NHAI has appointed the safety consultant for carrying out safety audit of the project highway in accordance with the safety requirement and shall take all other actions necessary for securing compliance with safety requirements. During execution of works, the concessionaire & EPC contractors have taken reasonable steps to protect the environment on and off the site and avoid damage or nuisance to persons or to property of the public or other resulting from pollution, noise or other causes arising as a consequence of their method of operation. Environment & Safety Plans has also been submitted by EPC Contractor to Concessionaire and there is regular reporting mechanism established for periodic compliance status between concessionaire and EPC Contractor. Further, these periodic monitoring reports are submitted by Concessionaire to Team Leader of Independent Engineer appointed by NHAI. From the concessionaire end, the Chief Project Manager through his Environmental Officer and package wise HSE Engineers of the contractor take care of the implementation of the Environment, Safety and labor related aspects. Chief Project manager of EPC Contractor is responsible for implementing the EMP during all phases of construction and ensures that all subcontractors are aware of and comply with the EMP. The monitoring of environmental aspects being implemented by the contractor is regularly monitored by Concessionaire s Environment cum Safety Expert who visits the site to monitor the compliance of EMP implementation. HSE Organogram for SPV and EPC Contractor has been attached as Appendix-XVI. The institutional arrangement made for the project implementation is given in Figure 1. 21

23 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Private Limited Figure 1: Overall Implementation Framework for EMP Implementation MoEF, Regional Office Project Director (NHAI) Chief Project Manager (Concessionaire) Project Manager Team Leader (Contractor) (Independent Engineer / Consultant) State Pollution Control Board Environmental Officer (SHAI) Environmental Officer (Concessionaire) Environmental Expert (Independent Engineer / Consultant) Environmental Officer (Contractor) Direct Indirect 22

24 Environment and Social Due Diligence Report GVK Deoli Kota Expressway Pvt. Ltd. 20. SITE VISIT: 40. A site visit was undertaken by IIFCL s Environmental and Social Safeguard specialists during 17 th -18 th of April, 2012 to review the implementation of the project environmental safeguards. During the site visit it has been observed that: Regular water sprinkling is being done in high dust generation areas like road construction sites and crushing operation areas. At construction plant sites, crushers have been provided with wind breaking walls and water sprinkler at the start of crushing operation in crusher equipment and Hot Mix Plants have been provided with Bag House filter. As the construction work is in early stage so Road side and median drainage work has not been started till date. Most of the tree cutting has been completed on road side except forest area for which Stage-II Forest Clearance is pending. Topsoil stockpiling has also been practiced during soil excavation activities for this project. Due to early stage of construction, median plantation work has not been started but tree plantation has been done at construction site offices. Proper traffic diversions and appropriate signages are being provided at the site to prevent any disruption to the highway traffic. Workers are being provided with the required safety gears to be worn during execution of work. Necessary barricading and safety precautions for deep excavations are also being ensured. Work safety signages have been provided throughout the project highway and also at Construction site offices. Labour camps are not provided as the labours have been hired from nearby villages throughout the road stretch. But EPC Contractor has provided accommodation facility to its own staff. Staff accommodation facility at camp site has been provided with adequate drinking water, mess and sanitation facilities. Provision of soak pits have been made. Periodic Environmental quality monitoring has been carried out throughout the road stretch at selected locations during construction phase. Sample copy for the same has been provided. Emergency patrolling vehicle has been provided and tie up has been done with local hospital for emergency ambulance facility. Community facilities along the project site has been provided by project developer like Cement concrete road in Sathur village at Chainage Km. 197, sports ground near camp pench ki bawadi at Chainage Km , boundary wall for Ashram chatrawas near village pench ki bawadi, development of village approach roads leading to kalamal quarry area, Entry & exit road to Hindoli police station, organizing blood donation camp. etc. All of these facilities were observed during site visit. 23

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