RESETTLEMENT PLAN Supplementary Appendix to the Report...

RESETTLEMENT PLAN

Supplementary Appendix to the Report and Recommendation of the President

to the Board of Directors

on the

POWER GRID TRANSMISSION (SECTOR) PROJECT

in

INDIA

Ministry of Power Government of India

November 2004

This report was prepared by the Borrower

and is not an ADB document.

TABLE OF CONTENTS List of Abbreviations i Glossary ii Executive Summary iii Chapter 1: The Project 1 1.1 Project Description 1 1.2 Project Area 2 1.3 Project Impacts and Benefits 2 1.4 Measure to minimize the impact 3 1.5 Objective of Land Acquisition and Resettlement Plan 3 Chapter 2: Findings of the Socio-Economic Survey Data 4 2.1 The Project States 4 2.2 Description of Subprojects 5 2.2.1 Grid Strengthening TN I 5 2.2.2 Grid Strengthening TN II 5 2.2.3 New 400/220 Kv Arasur 6 2.2.4 Grid Strengthening TN, AP, and Union Territory of Pondicherry

6

2.2.5 New 400/220 Kv Pondichery 6 2.3 Socio-Economic Survey (SES) 7 2.4 Social Profile of the Aps 8 2.4.1: Educational Levels 8 2.4.2 Occupational Profile 8 2.4.3 Social Vulnerable 9 2.5 Land Acquistion 10 2.5.1: Loss of Land 10 2.5.2: Rehabilitation options 11 2.6 Summary of SES Findings and Response to the Project 11 Chapter 3: Resettlement Principles and Entitlement Matrix 13 3.1 Policy Framework 13 3.2 Resettlement Principles and Assistance 13 3.3 The Entitlement Matrix 14 3.4 LA Procedures and Payment of Compensation 17 Chapter 4: Stakeholders Participation and Consultation 18 4.1 Consultation during Project Preparation 18

4.2 Disclosure of RP 18 4.3 Plans for further Consultation and Community Participation during Project Implementation

19

Chapter 5: Implementation Framework and Budget 20 5.1 Executing Agency 20 5.2 A Social, Resettlement & Environment implementation Unit

20

5.3 Resettlement Field Offices and staff training 20 5.4 Grievance Redress Committee (GRC) 21 5.4.1 Functions 21 5.4.2 Operational Mechanisms 21 5.5 Budget 22 Chapter 6: Monitoring and Evaluation 24 6.1 Monitoring at the EA Level 6.1.1 Internal Monitoring

24 24

6.1.2 External or Independent Monitoring

24

Supplementary Appendix J

LIST OF ABBREVIATIONS

ADB Asian Development Bank AP Affected Person EA Executing Authority FGD Focus Group Discussion GOI Government of India GRC Grievance Redress Committee ISA Initial Social Assessment LA Land Acquisition M&E Monitoring and Evaluation RO Resettlement Officer RP Resettlement Plan R&R Resettlement and Rehabilitation SCs Schedule Castes SES Socio-Economic Survey TORs Terms of Reference UT Union Territory

Supplementary Appendix J

GLOSSARY Block An administrative sub-division within a district. Panchayat Elected Village Council/ the third tier of decentralized governance Sarpanch Elected head of the Gram Panchayat Tehsil A revenue sub-division, within a district Zila/District It is the first administrative division at the state level.

Supplementary Appendix J i

Executive Summary of the Resettlement Plan Description of the Project 1. The proposed Power Grid Transmission Project involves the grid strengthening plan in the southern regional grid of Tamil Nadu, Pondicherry and Andhra Pradesh covering the Regional as well as state grids of Andhra Pradesh, Karnataka, Tamil Nadu and Union Territory (U.T.) of Pondicherry. 2. In accordance with ADB’s procedure for sector lending, the core subprojects have been identified in the southern regional grid and involves setting up of five new sub stations in two states of Andhra Pradesh, Tamil Nadu and one in U.T. of Pondicherry. Table 1 elaborates the state wise core subprojects which are as follows:

Table 1: State wise details of Subprojects Sub Project. State/Union

Territory Name of the Substation Substation Location:

Village & District Grid Strengthening for TN –I

Tamil Nadu Setting up of new 400/220 kV at Triunelveli

Abishegapatti Village in Triunelveli District

Setting up of new 400/220 kV Karur/Pugalur

K. Paramatthi Village in Karur District

Grid strengthening for TN –II

Tamil Nadu

Setting up of new 400/220 kV Arasur

Karmatthapuram Village in Coimbatore District

Setting up of new 400/220 kV at Warangal

Oblapur Village in Warangal District

Grid strengthening for TN, AP, and Union Territory of Pondicherry

Andhra Pradesh & Pondicherry

Setting up of new 400/220 kV Pondicherry

Ramnatthapuram Village Pondicherry District

Project Area and Impacts 3. The core subproject area is predominantly rural and covers a total of five villages in the districts of Warangal, Triunelveli, Karur, Coimbatore and Pondicherry in states of Andhra Pradesh, Tamil Nadu and U.T. of Pondicherry. Agriculture continues to be the mainstay of these villages with the majority of households dependent upon agriculture and agricultural labour for livelihood. 4. The three core sub projects include five new substations envisaged under grid strengthening scheme for Ta mil Nadu and Andhra Pradesh and would involve fresh land acquisition for setting up of proposed substations. The land has been identified in each of the Project locations and the details of which is enumerated in Table 2.

Supplementary Appendix J ii

Table 2: The Sub-Project Impacts Sub Project. State/Union

Territory Name of the Substation

Village & District

Total number of affected households

Total Land loss (in acres)

Grid Strengthening for TN –I

Tamil Nadu 400/220 kV at Triunelveli


*41

69

400/220 kV Karur/Pugalur


9

31


Tamil Nadu

400/220 kV Arasur


7

27

400/220 kV at Warangal


10

35


Andhra Pradesh & Pondicherry 400/220 kV

Pondicherry Ramnatthapuram Village Pondicherry District

15

24

TOTAL 82 186 acres

*Estimated 41 families subject to verification census. 5. Based on the survey, it is estimated that a total of 186 acres of land would need to be acquired for the construction of the three core subprojects thereby affecting an estimated 82 households comprising of 42 titleholders and 40 households with users rights having no formal title. Out of the total 186 acre land to be acquired, 98 acres comprises of private land, the majority of which is cultivable agricultural land but currently not under cultivation due to inadequate rainfall and lack of irrigation facilities. The remaining 88 acres is government land, out of which 19 acres are barren and 69 acres belongs to Tamil Nadu Hindu Religious Endowment Board. These 69 acres of land was being used by an estimated 40 households of Abishegapatti Village (Triunelveli). In these 69 acres of land cultivation is not being carried out since 4/5 years, due to lack of adequate rain and irrigation facilities. These households will be entitled to rehabilitation assistance in shape of Income generating Scheme. 6. In addition to this, the land acquisition for substation construction in Karmatthapuram Village in Arasur (Tamil Nadu) could affect a small temple under a tree and partially affect a pond in the category of Common Property Resources. The pond is currently used for sanitation purposes by the villagers as a result people would lose access to community facilities. The land acquisition however, would not adversely affect any commercial or residential structures. Efforts have been made to minimize land acquisition and reduce resettlement impacts as much as possible at the initial design stage. 7. In keeping with the ADB policy on Involuntary Resettlement and POWERGRID’s Environmental and Social Policy & Procedures, technical design for these proposed five substations, was adjusted to avoid or to minimize impacts especially wherever possible homestead land and houses are completely avoided. Further field visits and public consultations helped in developing the measures towards minimizing negative social impacts. The setting up of these substations will not directly benefit the core subproject areas but would contribute towards ensuring an uninterrupted power supply in future thereby leading to over all development of the community.

Supplementary Appendix J iii

Resettlement Principles and Policy Framework

8. The Resettlement Plan (RP) is guided by the Land Acquisition Amendment Act of 1984, and associated regulations, Asian Development Bank ADB’s Policy of Involuntary Resettlement (1995), ADB’s Handbook on Resettlement (1998), POWERGRID’s Environmental and Social Policy & Procedure (2004) and the entitlement benefits as listed in the National Policy on R&R, (Govt of India) as notified in February 2004.The primary objective of the RP is to identify impacts and to plan measures to mitigate various losses of the sub projects. Based on the inventory of losses, and entitlement matrix has been developed, which recognizes the type of losses. The matrix identifies the affected households/persons, their losses and defines compensation and entitlements (Table 3.)

Table 3: Entitlement Matrix

Type of Loss Application Definition of Affected

Households

Entitlement Details

1.Agricultural land by title owners

Land on the selected site for the project

Titleholders Affected People (AP) with traditional land rights

Compensation at replacement cost1 that will ensure the restoration to pre project level of social and economic status of AP.

a). Replacement land as per the law or cash compensation at replacement cost; Plus refund of transaction cost (land registration cost, stamps etc) incurred for replacement land. b). The replacement value will comprise of compensation to be paid by the competent authority and assistance by EA. c). APs with traditional title/occupancy rights will also be eligible for full compensation for land, plus the assistance by EA. d) Replacement land would be purchased within one year

2. Commercial land

Land on the selected site for the project

Titleholders APs with traditional land rights

Compensation at replacement value

a). Replacement land as per the law or Cash compensation at replacement value; b). The replacement value will comprise of compensation to be paid by the competent authority and assistance by EA. c). In addition, refund of transaction cost (land registration cost, stamps etc) incurred for replacement land. d) Replacement land would be purchased within one year

1 In accordance with ADB’s Policy on Involuntary Resettlement and Operational Manual Section F2/BP and F2/OP.

Supplementary Appendix J iv

3. Tenant/loss of access by share croppers/leaseholders

Affected by the project/agriculture plots on the project site.

Tenant/sharecropper/ leaseholder

Lump sum Cash compensation equivalent to the value of one standing crop.

4. Income from land through wages and loss of livelihood/occupation

Households affected by the project

Individual affected (traditional users)

Lump sum Alternative economic rehabilitation grant at the rate of Rs 3000 per eligible person on a lump sum basis or assistance as per POWERGRID’s Policy whichever is better.

5. Loss of crops and trees

Standing crops ,trees, on the project site

Owner/sharecropper/ Tenants affected

Compensation at replacement value as estimated by the concerned dept.

a) Advance notice to APs to harvest their crops b) Replacement value as assessed by forest department for timber, agricultural extension for crops and horticulture for perennial trees.

6. Additional Assistance to Vulnerable groups

Households affected by the project

Households categorized as vulnerable (BPL households, female-headed households, SC/STs, disabled/elderly

Lump sum assistance

Additional lump sum assistance of Rs. 2000 per household to vulnerable groups such as –female headed households, households with disabled family members, indigenous people etc.

7. Loss of Common Property Resources (CPR)

CPR affected by the Project

Affected Community

Replacement/Reconstruction

Replacement/Augmentation of CPR in consultation with the community.

Disclosure, Consultation and Grievance Redressal

9. During the social assessment phase the consultants team with EA staff conducted consultative meetings in the sub project areas with various stakeholders namely - village panchayat, panchayat members, men and women belonging to various socio-economic groups, farmers, affected persons, village administrative officer etc, with special emphasize on vulnerable groups. These meetings were used to get wider public input from both primary and secondary stakeholders. The EA will undertake information campaign and will publish brochures in local language summarizing the core subproject resettlement policy, entitlement matrix and implementation schedule. During the subprojects implementation, the RP for each subproject shall be made available to the affected people and community groups. 10. A Grievance Redressal Committee (GRC) will be set by Environment & Social Management dept. of POWERGRID in each of the sub project location to address all concerns and grievances of the local communities and APs. The GRC will be established before commencement of Project execution. The GRC will comprise of POWERGRID, representatives of local authorities, APs, village panchayat, well reputed person from health, education sectors, as mutually agreed with the local authorities and APs. This committee will address the project related grievances of the APs and will provide them a public forum to raise their concern or objections regarding the assistance. POWERGRID will be represented by a

Supplementary Appendix J v

senior official from Region/Corporate Centre. The GRC will be locally located and functional so as to ensure easy access to communities and APs. The EA will be responsible to disseminate information about the functional norms of the GRC. The GRC will meet at least twice in a year or as and when required. Institutional Arrangement and Budget 11. POWERGRID will be the Executing Agency (EA) for the Project. A Social, Resettlement and Environment Implementation Unit will be established for each subproject, headed by concerned head of the region (POWERGRID), which will be accountable and responsible for implementation of the RP. Each unit will have one or more designated Resettlement Officer depending on number of APs to implement the RP. These resettlement officers should be with field level experience of handling RP implementation and community based activities. The Unit will maintain all databases, will closely work with APs, target community and community based organizations (CBOs). 12. The Social, Resettlement and Environment Implementation Units will also be responsible for internal monitoring and will prepare progress reports on implementation of the RP. The implementation period of RP shall be a time bound activity and will be implemented and completed within 12 months, effective from the commencement of project execution. The livelihood restoration and income generation activity may continue to be implemented along with commencement of project execution.

13. The total estimated resettlement budget for core subprojects RP implementation is Rs.71,323,000. The estimate includes all the cost related to land acquisition, compensation, resettlement assistance, M&E, and administrative costs. The budget is based on field-level information and past experience in resettlement management. Monitoring and Evaluation 14. A generic, but detailed, EMP has been prepared that applies to all subprojects, and will be adapted to each subproject based on the specific anticipated impacts. Individual EMPs for future subprojects, similar to those for the core subprojects, will be prepared as part of individual IEEs. Any unanticipated consequence of the Project will be documented and mitigated based on the spirit of the principles agreed upon in the EMP framework. The EMP is formulated to minimize recurrent responsibilities and costs in circumstances where staff, expertise, and finances are limited. Some aspects of additional subproject design may require continuous monitoring. Table 4 presents the summary EMP. Estimated costs for mitigation and monitoring measures for the core subprojects are provided in Table 5.

Supplementary Appendix J vi

Table 4: Summary Environmental Management Plan

Environmental Monitoring Tasksa Implementation Responsibility

Implementation Schedule

Preconstruction Phase Audit project bidding documents to ensure EMP is included.

POWERGRID through project implementation unit

Prior to issue of bidding documents.

Monitor contractor’s detailed alignment survey to ensure relevant environmental mitigation measures in EMP have been included.

POWERGRID with assistance of project implementation unit

Prior to POWERGRID approval of contractor’s detailed alignment survey.

Audit detailed designs of substations to ensure standard environmental safeguards/mitigation measures (as identified in EMP) have been included.


Prior to POWERGRID approval of contractor’s detailed designs.

Construction Phase Regular monitoring and reporting of contractor’s compliance with contractual environmental mitigation measures.


Continuous throughout construction period.

Operation and Maintenance Phase Observations during routine maintenance inspections of substations and transmission lines right-of-way. Inspections will include monitoring implementation status of mitigation measures specified in the EMP.

POWERGRID As per POWERGRID inspection schedules

EMP = Environmental Management Plan, POWERGRID = Power Grid Corporation of India Limited. a Monitoring of issues related to compensation of landowners for land acquisition and loss of production, etc. are

addressed in the Resettlement Plan Source: Power Grid Corporation of India Limited.

Table 5: Summary of Estimated Costs for Environmental Management Plan Implementation of Core Subprojects

Item

Sub Item Total Cost

($) Monitoring activities As detailed under EMP 124,000 Mitigation measures As prescribed under EMP and IEE 1,400,000 Independent audit and monitoring agencies

As described above 44,000

Contingency 3% contingency 47,000 Total 1,615,000

EMP = environmental management plan, IEE = initial environmental examination. Source: Power Grid Corporation of India Limited.

Supplementary Appendix J Page 1 of 25

CHAPTER 1

THE PROJECT 1.1 Description of the Project

India’s power sector has expanded rapidly; power shortages and poor quality and reliability of supply severely constrain economic growth. As a result to ensure optimal utilization of energy resources, it is necessary to develop high capacity inter-regional links crisscrossing the regions as well as shifting of planning strategy from regional concept to national level, which would ultimately lead to formation of a strong national grid. In other words, an Integrated Resource Planning approach needs to be adopted for overall development of the power system so as to meet the growing demand with reliability and security. Thus, keeping these views in mind the Indian power sector is poised for development in a big way. With the Government’s mission of “Power For All By 2012” at an affordable cost, 100,000 MW of new generation capacity is envisaged by 2012 and to ensure reliable and secured delivery of power from generation projects to the end users, development of an adequate transmission system is required. In this background, the proposed Power Grid Transmission Project involves the grid strengthening plan in the southern regional grid Tamil Nadu, Pondicherry and Andhra Pradesh covering the Regional as well as state grids of Andhra Pradesh, Karnataka, Tamil Nadu and Union Territory (U.T.) of Pondicherry. In accordance with ADB’s procedure for sector lending, the core subprojects have been identified in the southern regional grid and involves setting up of five new sub stations in two states of Andhra Pradesh, Tamil Nadu and one U.T. of Pondicherry. Table 1 elaborates the state wise core subprojects which are as follows:

Table 1: State wise details of Subprojects

Sub Project. State/Union Territory

Name of the Substation Substation Location: Village & District

Grid Strengthening for TN –I






Tamil Nadu

Setting up of new 400/220 kV Arasur





Andhra Pradesh & Pondicherry Setting up of new 400/220

kV Pondicherry Ramnatthapuram Village Pondicherry District


1.2 Project Area The core subproject area is predominantly rural and covers a total of five villages in the districts of Warangal, Triunelveli, Karur, Coimbatore and Pondicherry in states of Andhra Pradesh, Tamil Nadu and Pondicherry. Agriculture continues to be the mainstay of these villages with the majority of households dependent upon agriculture and agricultural labour for livelihood. The three core sub projects include five new substations envisaged under grid strengthening scheme for Tamil Nadu and Andhra Pradesh and would involve fresh land acquisition for setting up of proposed substations. The land has been identified in each of the Project locations and the details of which is enumerated in Table 2.

Table 2: The Sub Project Impacts Sub Project. State/Union

Territory Name of the Substation

Village & District

Total number of affected

households

Total Land loss (in

acres) Grid Strengthening for TN –I

Tamil Nadu 400/220 kV at Triunelveli


*41

69

400/220 kV Karur/Pugalur


9

31


Tamil Nadu

400/220 kV Arasur


7

27

400/220 kV at Warangal


10

35


Andhra Pradesh & Pondicherry 400/220 kV

Pondicherry Ramnatthapuram Village Pondicherry District

15

24

TOTAL 82 186 acres

*Estimated 41 families subject to verification census. 1.3 Project Impacts & Benefits The purpose of this Project is to strengthen POWERGRID’S institutional framework and to enhance the economy and efficiency of intra- and inter-regional high capacity transmission development, including operation and maintenance services, without causing major environmental and social problems. Under this overall framework, the proposed sector Project focuses on strengthening and expansion of POWERGRID’s transmission systems to reduce


system losses and facilitate efficient utilization of existing and planned power plants. The proposed Project will supplement previous investments in the sector, and will:

a) remove existing bottlenecks to meet the growing power needs by introducing economic dispatch between neighboring regions and therefore optimization of the use of power plants;

b) improve transmission reliability, and system security;

c) reduce system losses which in turn will improve frequency and voltage levels, and

ultimately will reduce wear on electrical equipment, leading to more efficient use of resources and make more power available to increase the electrification outreach;

d) reduce overall spinning reserve requirements in the country once the current power

deficit are progressively reduced;

e) facilitate the National Market Development through open access to the transmission grid; and,

f) allow bulk transfers of electricity from power surplus to power deficit regions taking

account of intra-day and seasonal demand variations; and 1.4 Measures to minimize impact In keeping with the ADB policy on Involuntary Resettlement and POWERGRID’s Environmental and Social Policy & Procedures, technical design for these proposed five substations, was adjusted to avoid or to minimize impacts especially wherever possible homestead land and houses are completely avoided. Further field visits and public consultations helped in developing the measures towards minimizing negative social impacts. The setting up of these substations will not directly benefit the core subproject areas but would contribute towards ensuring an uninterrupted power supply in future thereby leading to over all development of the community. 1.5 Objective of the Resettlement Plan (RP) The Resettlement Plan (RP) is guided by the Land Acquisition Amendment Act of 1984, and associated regulations, Asian Development Bank ADB’s Policy of Involuntary Resettlement (1995), ADB’s Handbook on Resettlement (1998), POWERGRID’s Environmental and Social Policy & Procedures (2004) and the entitlement benefits as listed in the National Policy on R&R, (Govt of India) as notified in February 2004.The primary objective of the RP is to identify impacts and to plan measures to mitigate various losses of the subprojects. The RP is based on the general findings of the socioeconomic survey, field visits, and meetings with various project-affected persons in the subproject areas. The RP presents (i) type and extent of loss of assets, including land and houses; (ii) principles and legal framework applicable for mitigation of losses; (iii) entitlement matrix, based on the inventory of loss and (iii) budget, institutional framework for the implementation of the plan, including monitoring and evaluation.


CHAPTER 2

FINDINGS OF SOCIO-ECONOMIC SURVEY This Chapter presents an overview of the Project area and an analysis of the project impacts based on the initial social assessment findings. The purpose of this analysis is to develop profiles of the people and communities getting affected by the project and to identify the nature and types of losses. 2.1 The Project States The Project area comprises of five districts in the two states of Andhra Pradesh, Tamil Nadu & and one in Union Territory (U.T.) Pondicherry. These states are amongst the better-off states in the country in terms of per capita income, economic growth, and human and social development. The state of Tamil Nadu (TN) is located in the southern part of India having an area of 1, 30,058 sq. kms, population of 6, 21, 10,839 as per Census 2001. The state of Andhra Pradesh (AP), on the other hand, is also located in the southern part of India having an area of 2, 76,754 sq. kms, with a total population of 7, 57, 27,000 as per Census 2001. There has been an improvement in living standards of people and a considerable reduction in population living the below poverty line in the states over the last decade. The remaining project area falls in the Union Territory of Pondicherry, which comprises of the total area of 480 Sq.km. including four regions viz. Pondicherry, Karaikal, Mahe and Yanam. It is also located in the southern part of India and having population of 9, 73,829 as per 2001 census. Table 3 presents some of the socio-demographic indicators of the project states vis-à-vis all-India statistics.

Table 3: Socio-Demographic Indicators of the Project states vis-à-vis India

State Population Density

Literacy

Year 2001 Total

Male

Female

Rural %

Urban %

Total %

Male %

Female %

Tamil Nadu 62,405,679

31,400,909

31,004,770

55.95

44.04 478 73.5% 82.4%

64.4

Andhra Pradesh

75727541

38286811

37440730

72.92

27.08 275 61.11 70.85

51.17

Pondicherry 973829 486705 487,124

33.43

66.57 2,029 81.49 88.89

74.13

All-India 1025251059

530422415

494828644

72.2 27.8 324 65.38 75.85

54.16

Source: Census of India 2001, Government of India


2.2 Description of the Subprojects The proposed POWERGRID Transmission Project includes the grid strengthening plan in the southern regional grid Tamil Nadu, Pondicherry and Andhra Pradesh covering the Regional as well as state grids of Andhra Pradesh, Tamil Nadu and Union Territory (U.T.) of Pondicherry. In accordance with ADB’s procedure for sector lending and guideline three core subprojects have been identified in the southern regional grid and involves setting up of five new sub stations in two states of Andhra Pradesh, Tamil Nadu and one U.T. of Pondicherry. Table 4 elaborates the core subproject details where substations are proposed.

Table 4: Details of the three proposed core subprojects Sub Project. State/Union

Territory Name of the Substation Substation Location:

Village & District Grid Strengthening for TN –I






Tamil Nadu

Setting up of new 400/220 kV Arasur/Coimbatore





Andhra Pradesh & Pondicherry Setting up of new 400/220

kV Pondicherry Ramnatthapuram Village Pondicherry District

2.2.1 Grid Strengthening for TN –I, Setting up of new 400/220 kV at Triunelveli The district Triunelveli is under Tamil Nadu and the site for substation is selected in Abishegapatti Village in the same District. The core subproject will involve setting up of new 400/220 kV substation in the village. The site is located along the Triunelveli-Tenkasi Road (NH-47) approximately 9 Km from Triunelveli city in Tamil Nadu. The total 69 acres of land would be required for the substation. The Abishekpatti village has a total population of about 1400 as per the census of 1991 with a literacy level of about 46.2 per cent. It may be noted that the male literacy rates are higher than that of the female in the district. The village has a predominantly agrarian economy with the main workforce primarily involved in agriculture and agricultural labour. 2.2.2 Grid Strengthening for TN –II, Setting of up of new 400/220 kV Karur

The land for another substation has been selected in the village K. Paramatthi (Pugalur) under Karur District, along the Trichi-Coimbatore Road (NH-67) approximately 16 Km from Karur town in the state of Tamil Nadu. The total 31 acres land would be acquired for the project.


The project village of K. Paramatthi has a population of about 10,000 as per the census of 1991 with a literacy rate of about 59 per cent. The male-female literacy is again lopsided in favor of men with male literacy rates more than double the female literacy levels. Agriculture again constitutes the mainstay of the village economy with no industries (small scale or medium) worth mentioning in the village. 2.2.3 Setting of up of new 400/220 kV Arasur The substation site is situated in the village Karmatthapuram (Arasur), in Coimbatore district along the Coimbatore-Salem Road (NH-47) approximately 30 Km from Coimbatore town in Tamil Nadu. The total 31acres land would be acquired for the proposed POWERGRID sub station which comprises both of govt. and privately owned land. Karumanthapatti village where the substation site has been identified along the NH, has a population of about 18,000 as per the census of 1991.The literacy level is about 65 per cent. It may be noted that the male literacy rates are far higher than that of the female literacy levels. The percentage of main workers in this village is about 45% who are mainly engaged in agriculture. There are no industries (small scale or medium) worth mentioning in the villages. 2.2.4 Grid strengthening for TN & AP, Setting of up of new 400/220 kV Warangal

The proposed substation site has been identified in the Oblapur Village in Warangal District, approximately 10 Km from Warangal town in Andhra Pradesh. The total 35 acres (14 ha.) land would be required for setting up of substation and the entire land is privately owned and agricultural land, out of which 22 &1/2( approximately) acres land belongs to the Oblapur village and remaining part is belonging to the Urugunda village in the district of Warangal. So, the Oblapur village will be mainly affected by the project.

The villages of Obalapur and Urugonda have a population of about 800 and 5000 respectively as per the census of 1991.The literacy levels are about 43.87 percent in Obalapur and 32 per cent in Urugonda. It may be noted that the male literacy rates are far higher than that of the female literacy levels in both the villages.

The percentage of main workers in Obalapur is about 52.17% while in Urugonda, it works out to be 40.5%. There are no industries (small scale or medium) worth mentioning in the village Obalapur whereas some household industries exist in Urugonda, employing about 800 people. The census data clearly show that the category of “main workers” constitute mainly cultivators and agricultural labour. 2.2.5 Setting of up of new 400/220 kV Pondicherry The land for another proposed sub station has been identified in the village Ramanatthapuram, about 14 Km from main Pondicherry town in the U.T. of Pondicherry. The district of Pondicherry comprises of a total population of 7,35, 004, with a population growth of 20.82% and density of population per sq.km. of 2,534 as per 2001 census. Here total 24 acres land would be required for the project. Ramanathapuram village has a population of about 1600 as per the census of 1991.The literacy level is estimated at 47 per cent. It may be noted that the male literacy rates are far higher than that of the female literacy levels. The percentage of main workers in Ramanathapuram is about 50%.There are no industries (small scale or medium) worth mentioning in both the village. The census data clearly show that the category of “main workers” constitute mainly cultivators and agricultural labour.


2.3 Socio- Economic Survey1 A socio-economic survey (SES) was conducted in the month of July August 2004 on the 5 proposed substations sites, which would acquire total 186 acres of land, in the five districts, Pondicherry, Coimbatore, Karur, Triunelveli and Warangal. The team comprised of the Social Development Specialist and three trained researchers. The objective of SES was to generate information on the socio-economic profile of the Project population in terms of information on their income levels, occupations, education levels, health conditions, poverty incidence etc. in addition, the survey also aimed at assessing the how the Project will improve benefits for local population as well as the potential adverse impacts of the Project. The SES covered a total 82 of households. Table 5 illustrates the package-wise number of sample households covered during the course of the SES.

Table 5: Village wise List of houses covered during SES

Village

No. of Households covered in the SES

(in numbers )

No. of Households covered in the SES

(in % ) Oblapur 10 12.19% Ramanatthapuram 15 18.29% Abishegapatti 41* 50% K. Paramatthi 9 10.98% Karmatthapuram 7 8.54% Total 82 100% Source: SES * Estimated number subject to census verification

During the course of the survey, the team used multiple methods like, discussions with village leaders, Panchayat representative, village people, focus group discussions (FGD’s) and individual survey for collection of field-based data. The survey collected a wide range of data including demography, religion, social stratification, education, occupation, income, expenditure patterns, household assets, tenure/ownership etc. A copy of the survey schedule administered during the SES is attached as Annexure I. A selected set of socio-economic information is presented in the following sections to establish a profile of the affected people and communities.

As part of the sampling exercise, it was ensured that responses from both APs and Non-APs were elicited in the SES. The following table indicates the number of APs and Non-APs interviewed during the SES on all 5 sites of those proposed substations.

Table 6: Site wise APs and Non APs

District No.of AP respondents

No.of Non-AP respondents

Pondicherry 9 12 Coimbatore 5 57 Karur 7 43 Trinelveli 7 33 Warangal 11 44 Total 39 189

1 SES data presented is based on sample survey conducted by consultant appointed by ADB. The assessment is

based on sample survey and may get revised subsequently based on POWERGRID engaged consultant (IIMB)’s SES report before taking possession of land from land acquisition officer (LAO) of respective St. Govt.


2.4 Socio- Economic Profile of the APs

The survey covered a large proportion of the households being adversely affected by the Project construction. The following section presents the socio-economic profile as well as losses incurred by these households: -

2.4.1 Educational Levels of the APs

The survey covered 39 Affected Persons in the project area. Table 7 it can be reveals that a significant 35.89% of the total APs are illiterate with only 25.64% of them having education qualification up to primary level. Accordingly it can be derived that 64.11% of the total APs are literate which is slightly lesser than the national figure of 65.20% while the difference from the project district average of 69.47% is quite wide.

Table 7: Educational Levels of the APs

Educational Levels Total

DISTRICT illiterate primary middle high school

senior secondary school graduate

post graduate

Pondicherry 2 0 0 4 0 1 2 9 Coimbatore 3 0 1 1 0 0 0 5 Karur 2 4 0 1 0 0 0 7 Triunelveli 1 3 0 2 1 0 0 7 Warangal 6 3 1 0 0 1 0 11 Total 14 10 2 8 1 2 2 39

Source: SES data

2.4.2. Occupational Pattern According to the survey the main source of income of the affected persons is agriculture (53.84%). The other substantial portion (25.64%) of APs is engaged in labour sector. Besides these two major occupations, the remaining APs are engaged in household industry, business and other service.


Table: 8 Occupational Pattern of the APs

Main Occupation Total

DISTRICT Agriculture

Agricultural /nonagricultural

Labor Trade/

Business Profession

House hold

industry Govt

service

Pondicherry 4 2 0 2 0 1 9 Coimbatore 3 0 0 0 2 0 5 Karur 6 0 1 0 0 0 7 Triunelveli 1 6 0 0 0 0 7 Warangal 7 2 1 1 0 0 11 Total 21 10 2 3 2 1 39

Source: SES data

2.4.3 Social Vulnerability of APs Table 9 informs that the project area includes a total of vulnerable 16 APs of which 11 (28.20%) belong to the below poverty line group, 1 household is headed by a woman household where as 4 households fall under the more than one vulnerability category. The districts of Triunelveli and Warangal has 10.26% and 12.82% APs living below poverty line, respectively. However, it is worth while to mention here that the Warangal district have 28.20% of APs in the entire project site.

Table 9: Social vulnerabilities of APs

Vulnerability

DISTRICT

Women headed house hold

Below poverty line

more than one

NA/DK/Nr

Total

Pondicherry 0 0 0 9 9 Coimbatore 0 2 0 3 5 Karur 0 0 0 7 7 Triunelveli 0 4 3 0 7 Warangal 1 5 1 4 11 Total 1 11 4 23 39

Source: SES data

2.5 Land Acquisition 2.5.1 Loss of Land During the survey, perceptions of APs were also assessed with regard to the Project and its impact on them. It is important to note here that in terms of project related negative impacts, the majority of the affected population (92.30%) will loose their land due to land acquisition involved in the project. A total of 186 acres of land will be acquired by the project. Among the project districts, Warangal has more number of house holds (11) suffering loss of land.


Table 10: Loss of Land of APs

Types of loss DISTRICT Land more than one

Total

Pondicherry 7 2 9 Coimbatore 5 0 5 Karur 6 1 7 Triunelveli 7 0 7 Warangal 11 0 11 Total 36 3 39 Source: SES data

In Pondicherry District 12.82% households will loose more than 70% of their land and 5.12% households are loosing more than 25% and 50% land respectively. In Coimbatore 5.12% households will loose more than 70% of their land. In Karur 15.38% households will loose their land more than 70% of their land by this project. In Triunelveli 17.94% households will loose more than 70% of their land by this project. In the district of Warangal 12.82% households will loose their agricultural land for the project purpose.

Table 11: District wise percentage loss of land and assets by the APs Loss of land in %

DISTRICT Less than 25% 26-50% 51-75% 76-100% NR/NA

Total

Pondicherry 0 2 2 5 0 9 Coimbatore 0 2 1 2 0 5 Karur 0 1 0 6 0 7 Triunelveli 0 0 0 7 0 7 Warangal 1 3 1 5 1 11 Total 1 8 4 25 1 39

Source: SES data .

2.5.2 Rehabilitation Option The following table (Table 12) presents the rehabilitation option for mitigation of their land losses as suggested by the APs. The majority of the affected persons demanded cash compensation (74.35%) as per the prevalent replacement rate as the majority of land is located along the highway therefore of higher value. A small number of AP’s (5.12%) also suggested the land-for-land compensation option. Both the choices have been taken into consideration while designing compensation as assistance packages in the RP. However, 12.82% of the APs rejected the idea of giving up their lands in exchange for anything.


Table 12: Rehabilitation option of the APs

Compensation

DISTRICT

Land for land Cash

Don’t want to sell the

land

NA/DK/ NR

Total

Pondicherry 2 3 4 0 9 Coimbatore 1 3 1 0 5 karur 0 7 0 0 7 Triunelveli 0 7 0 0 7 Warangal 0 9 0 2 11 Total 3 29 5 2 39

Source: SES data

2.6 Summary of SES Findings and Response to the Project Based on the survey, it is estimated that a total of 186 acres of land would need to be acquired for the construction of the three core subprojects thereby affecting an estimated 82 households comprising of 42 titleholders and 40 households with users rights having no formal title. Out of the total 186 acre land to be acquired, 98 acres comprises of private land, the majority of which is cultivable agricultural land but currently not under cultivation due to inadequate rainfall and lack of irrigation facilities. The remaining 88 acres is government land and out of which 19 acres are barren and 69 acres belongs to Tamil Nadu Hindu Religious Endowment Board. These 69 acres of land was being used by an estimated 40 households of Abishegapatti Village (Triunelveli) for cultivation. In these 69 acres of land cultivation is not being carried out since 4/5 years, hence there is negligible affect on their livelihood. These households will be entitled to rehabilitation assistance in shape of Income generating Scheme. In addition to this, the land acquisition for substation construction in Karmatthapuram Village in Arasur (Tamil Nadu) could affect a small temple under a tree and partially affect a pond in the category of Common Property Resources. The pond is currently used for sanitation purposes by the villagers as a result people would lose access to community facilities. The land acquisition however, would not adversely affect any commercial or residential structures. Efforts have been made to minimize land acquisition and reduce resettlement impacts as much as possible at the initial design stage. During the SES, a significant portion of the respondents (56.53%) were of the opinion that the Project would enormously benefit them in economic as well as social terms and will have no adverse impact. However, 18.56% of the respondents regarded the loss of land which is the major negative impact of the Project construction.

According to the SES data, 21.09% of the respondents consider the perceived socio-economic benefits of the Project in terms of increase in income and employment opportunities, improvement in accessibility to socio-economic services , increase in, irrigation facilities and agriculture production with an over all social and economic development.


CHAPTER 3

RESETTLEMENT PRINCIPLES AND ENTITLEMENT MATRIX The objective of this chapter is to discuss the key national, state and project-specific resettlement policies and legal issues involved in the process of land acquisition and compensation. This chapter further seeks to provide an outline of the policy and procedure for land acquisition and compensation payments.

3.1 Policy Framework – Review of National Policy and ADB Requirements In India, compensation for land acquisition (LA) and resettlement assistance for project-affected people until very recently was generally governed by the Land Acquisition Act (1894), which has been amended from time to time. However, since the LA Act does not cover project-affected persons without titles or ownership records such as encroachers nor requires minimizing project impacts through alternative options, a National Policy on R&R, has been notified in February 2004 by the GOI to address these issues.

In addition, Asian Development Bank ADB’s Policy of Involuntary Resettlement (1995), ADB’s Handbook on Resettlement (1998), POWERGRID’s ESPP (2004) are the guiding policies to identify impacts and to plan measures to mitigate various losses of the sub projects. Based on the inventory of losses, and entitlement matrix has been developed, which recognizes the type of losses. The matrix identifies the affected households/persons, their losses and defines compensation and entitlements.

The ADB/ POWERGRID policy requires to (i) avoid or minimize impacts where possible; (ii) consultation with the affected people in project planning and implementation; (iii) payments of compensation for acquired assets at the replacement value; (iv) resettlement assistance to affected persons, including non-titled persons; and (iv) special attention to vulnerable people/groups.

3.2 Resettlement Principles & Assistance The primary objective of the RP is to identify impacts of the core subprojects and to plan measures to mitigate various losses in terms of (i) assessment of loss and identification of affected persons (APs), (ii) assessment of compensation and valuation, and compensation entitlements so as to adopt a resettlement policy framework that complies with ADB/POWERGRID policy and standards. Based on the adopted principles, APs in this project will be eligible for the following compensation and assistance:

(i) In cases where land is acquired for the subproject construction, affected households will be eligible for replacement land or cash compensation based on replacement value;

(ii) APs will be paid cash compensation for loss of standing crops or trees;


(iii) Compensation for loss of structures and/or frontage (both residential and commercial) and other immovable assets will be paid cash (without deduction of depreciated value);

(iv) APs will be paid cash allowance for loss of income/workdays, if applicable;

(v) Additional cash assistance will be given to vulnerable groups;

(vi) Replacement or augmentation of Common Property Resources (CPR) affected by the subproject construction.

Further, the compensation measures and assistance will be guided by principles such as (i) minimize land acquisition where required; (ii) avoid and/or minimize displacement and disruption during the construction of the subproject (iii) disclosure and consultation with affected people and other stakeholders; (iv) special attention to disadvantaged and vulnerable people/groups; and (v) appropriate grievance redressal and monitoring of the implementation by suitably qualified independent agency.

3.3 The Entitlement Matrix Based on the inventory of losses, an Entitlement Matrix has been developed, which recognizes all types of losses including loss of access by tenants/sharecroppers due to acquisition of agricultural land. The matrix also identifies the affected households/persons, their losses and defines compensation & entitlements (Table 13). As per the matrix, the affected people will not only receive cash compensation for land and other assets at the replacement price in accordance with ADB’s Policy on Involuntary Resettlement and Operational Manual Section F2/BP and F2/OP and POWERGRID’s ESPP’04, that will ensure the restoration to pre project level of social and economic status of AP, but also other assistance like shifting or moving allowance, and, income restoration allowance, and additional assistance to vulnerable groups to help the subproject affected persons to restore their lives and livelihoods in post- resettlement phase.


Table 13: Entitlement Matrix

Type of Loss

Application Definition of Affected

Households

Entitlement Details

1. Agricultural land by title owners

Land on the selected site for the Project

Titleholders and people affected who have traditional land rights

Compensation at replacement cost1 that will ensure the restoration to pre project level of social and economic status of those affected

(i) Replacement land as per the law or cash compensation at replacement cost; plus refund of transaction cost (land registration cost, stamps, etc.) incurred for replacement land

(ii) Replacement value comprises compensation to be paid by the competent authority and assistance by Power Grid Corporation of India Limited (POWERGRID )

(iii) People with traditional title/occupancy rights eligible for full compensation for land and assistance by POWERGRID

(iv) Replacement land to be purchased within 1 year

2. Commercial land

Land on the selected site for the Project

Titleholders and people affected who have traditional land rights

Compensation at replacement value

(i) Replacement land as per the law or cash compensation at replacement value

(ii) Replacement value comprises compensation to be paid by the competent authority and assistance by POWERGRID

(iii) Transaction costs (land registration cost, stamps etc) incurred for replacement land to be refunded

(iv) Replacement land to be purchased within 1 year

1 In accordance with ADB’s Policy on Involuntary Resettlement and Operational Manual Section F2/BP and F2/OP.

Continued on next page


Type of Loss

Application Definition of Affected

Households

Entitlement Details

3. Tenant/loss of access by share croppers/leaseholders

Affected by the Project/ agriculture plots on the Project site.

Tenant/ share cropper/ leaseholder

Lump sum Cash compensation equivalent to the value of one seasonal crop

4. Income from land through wages and loss of livelihood/ occupation

Households affected by the Project

Individual affected (traditional users)

Lump sum Alternative economic rehabilitation grant at the rate of Rs3,000 per eligible person on a lump sum basis or assistance as per POWERGRID’s policy, whichever is better

5. Loss of crops and trees

Standing crops ,trees, on the project site

Owner/ sharecropper/ tenants affected

Compensation at replacement value as estimated by the concerned dept.

(i) Advance notice to people affected to harvest their crops

(ii) Replacement value as assessed by forest department for timber, agricultural extension for crops, and horticulture for perennial trees.

6. Additional assistance to vulnerable groups

Households affected by the Project

Households categorized as vulnerable (below poverty line) households, female-headed households, scheduled castes/tribes, disabled/elderly

Lump sum assistance Additional lump sum assistance of Rs2,000 per household to vulnerable groups such as households headed by women or with disabled family members, indigenous people, etc.

7. Loss of common property resources

Common property resources affected by the Project

Affected community

Reconstruction of common property resources

Reconstruction of common property resources in consultation with the community.

POWERGRID = Power Grid Corporation of India Limited, Rs = Indian rupees. Source: Power Grid Corporation of India Limited.


3.4 LA Procedures and payments of Compensation The land acquisition will be carried out according to the Land Acquisition Act (1894). The process of land acquisition according to the LA Act is enumerated below: - STAGE- I:

• Publication of a preliminary notification by the government that land in a particular locality is

needed or may be needed for a public purpose or for a company. s.4 (1).

• Entry of authorised officers on such land for the purpose of survey and ascertaining whether it is suitable for the purpose in view s.4 (2).

• Filing of objections to the acquisition by persons interested and enquiry by collector. s.5-a.

STAGE-II:

• Declaration of intended acquisition by government s.6(i)

• Collector to take order from the government for acquisition and land to be marked

out, measured and planned. Sections 7&8.

Stage-III:

• Public notice and individual notices to persons interested for claims/ compensation. s.9.

• Enquiry into claims & award by the collector. s.11.

• Taking possession of the land by the collector. s.16 • Reference to court. s. 18-28

• Payment of compensation. s.31-34


CHAPTER 4

STAKEHOLDER PARTICIPATION AND CONSULTATION

4.1 Consultation during Project Preparation

Involvement of the affected people is vital in planning and implementing an action plan, to get their views and to ensure their acceptance of the actions planned under the project. During the social assessment phase, six consultative meetings were held along the stretches with the affected families and other stakeholders including, village Sarpanch, gram panchayat members, heads of households, and women’s groups. These meetings were used to get wider public input from both the primary and secondary stakeholders.

Table 14: Methods employed during the course of Consultations

Stakeholders Method

Affected People Individual interviews, field level observations, transect walk

Village Sarpanch (local elected representatives)

Discussion/ (individual interview)

Women’s groups Focus group discussions

Other vulnerable groups (SC, ST, OBC, Disabled and

Children)

Focus group discussions

4.2 Disclosure of RP

The draft/summary RP will be disclosed by the EA and project implementation agencies to the affected households and other stakeholders for review and comments on the policy in general and adequacy of the mitigation measures in particular. The RP will be translated into the local language(s) and will be placed at various public offices, places such as tehsil and district offices, schools, panchayat office and concerned officials and local dignitaries. The EA will submit RP prior to the loan negotiation. The summary of RP will be disclosed on the ADB website.

The collection of comments will take place after one month of the disclosure of the RP, followed by the compilation of the comments and responses received. Subsequently, the EA will organize further public consultation meetings and workshop of all the stakeholders to share the views of public on the Plan for all possible clarifications. The EA will be responsible for at least one workshop at each state level. The feedback from the workshop and recommendations will be reviewed and incorporated in the revised and final RP. The consultation process will continue throughout the project implementation period.


4.3 Plan for further Consultation and Community Participation during Project Implementation

The effectiveness of the action-plan (RP) is directly related to the degree of continuing involvement of those affected by the project. Several additional rounds of consultations with APs will form part of the project implementation. Consultations during LA Plan implementation will involve agreements on land acquisition, compensation and assistance for land acquisition. The consultation process will continue through out the project implementation.

The following set of activities will be undertaken for effective implementation of the Plan:

• EA will conduct information dissemination sessions in the project area, solicit the help of the local community/ leaders, and encourage the participation of the AP’s in the Plan implementation.

• During the implementation of RP, EA will organize public meetings, and will appraise the communities about the progress in the implementation of project works, including awareness regarding safety issues, particularly in villages to be affected by road construction.

• The EA will organize public meetings to inform the community about the payment and assistance paid to the community. Regular update of the program of resettlement component of the project will be placed for public display at the Project offices.

Finally, EA through the field implementation unit will maintain an ongoing interaction with APs to identify problems and undertake remedial measures. The EA will also ensure that APs are involved in various local committees such as Grievance Redress Committee (GRC).


CHAPTER 5

IMPLEMENTATION FRAMEWORK AND BUDGET 5.1 Executing Agency POWERGRID will be the Executing Agency (EA) for the Project. A Social, Resettlement and Environment Implementation Unit will be established for each subproject, headed by concerned head of the region (POWERGRID), which will be accountable and responsible for implementation of the RP. Each unit will have one or more designated Resettlement Officer depending on number of APs to implement the RP. These resettlement officers should be with field level experience of handling RP implementation and community based activities. The Unit will maintain all databases, will closely work with APs, target community and community based organizations (CBOs). The Social, Resettlement and Environment Implementation Units will also be responsible for internal monitoring and will prepare progress reports on implementation of the RP. The implementation period of RP shall be a time bound activity and will be implemented and completed within 12 months, effective from the commencement of Project execution. The livelihood restoration and income generation activity may continue to be implemented along with commencement of project execution.

5.2 A Social, Resettlement and Environment Implementation Unit Project Implementation Unit

A Social, Resettlement and Environment Implementation Unit headed by a head of the region, will be established for each subproject, and will be responsible for the overall execution of the project. A designated as Resettlement Officer (RO), will be responsible for the subproject RP implementation and will report to the region head on the day-to-day activities of resettlement implementation.

The RO will be responsible to carry the following task concerning resettlement of the project:

• Overall responsibility of implementation of R&R activities of LA Plan; • Responsible for land acquisition and R&R activities in the field; • Ensure availability of budget for R&R activities; • Liaison with district administration for support for land acquisition and implementation of

R&R; and • Participate in the district level committees.

5.3 Resettlement Officers and Staff Training

The ROs will undergo a weeklong orientation and training in resettlement management. The training activities will focus on issues concerning (i) principles and procedures of land acquisition; (ii) public consultation and participation; (iii) entitlements and compensation disbursement mechanisms; (iv) Grievance redressal and (v) monitoring of resettlement operation.


The ROs will work closely with the District Collector to expedite the payments of compensation for land acquisition and assistance to APs. 5.4 Grievance Redress Committee A Grievance Redressal Committee (GRC) will be set by Environment & Social Management Unit of POWERGRID in each of the sub project location to address all concerns and grievances of the local communities and APs. The GRC will be established before the commencement of Project execution. The GRC will comprise of POWERGRID, representatives of local authorities, APs, village panchayat, well reputed person from health, education sectors, as mutually agreed with the local authorities and APs. This committee will address the project related grievances of the APs and will provide them a public forum to raise their concern or objections regarding the assistance. POWERGRID will be represented by a senior official from Region/Corporate Centre. The GRC will be locally located and functional so as to ensure easy access to communities and APs. The EA will be responsible to disseminate information about the functional norms of the GRC.

5.4.1 Functions of GRC

The functions of the GRC will be:

• To provide support for the APs on problems RP implementation; • To record the grievances of the APs, categorize and prioritize the grievances that needs

to be resolved by the Committee; • To inform Unit of serious cases within an appropriate time frame; and • To report to the aggrieved parties about the development regarding their grievance and

decisions of the Project authorities. 5.4.2 Operational Mechanisms of GRC

It is proposed that GRC will meet at least twice in a year or as and when required. The committee will look into the grievances of the people and will assign the responsibilities to implement the decisions of the committee. The claims will be reviewed and resolved within three weeks from the date of submission to the committee.

The various queries, complaints and problems that are likely to be generated among the APs and that might require mitigation, include the following: -

(i) APs not enlisted; (ii) Losses not identified correctly; (iii) Assistance inadequate or not as per entitlement matrix; (iv) Delay in disbursement of assistance;

Through public consultations, the APs will be informed that they have a right to grievance redress.

5.5 Budget EA will further ensure that resettlement budgets are delivered on time to the office of the competent authority for timely disbursement. The project authority will provide the entire fund for land acquisition and resettlement. The affected people will receive compensation and other assistance prior to relocation and as well as land acquisition. The fund will be released through


the office of the competent authority for acquired properties and other additional assistance will be paid by the Executing Agency. The following table comprises of the cost estimates for the RP implementation. The total estimated project budget for subprojects is Rs. 71,323,000. The estimate includes all the cost related to land acquisition, compensation, resettlement assistance, M&E, and administrative costs. The budget is based on field-level information and past experience in resettlement management.

Table 15 .Resettlement Budget and Cost Estimates

Item Unit Rates Quantity Compensation (in Rs. 100,000)

*A: Compensation for Acquisition of Private & Govt. land

1 Land for the Substation ** 186 acres Rs.527.00

2 Variation on value 15% of 1 Rs.79.5

Sub Total Rs. 606.5 ‘B’ R&R costs R&R Costs (in Rs. 100,000) 1. Assistance

Assistance to Project affected families including vulnerable groups(2 HHs) & 40 families

29.46

2 Other Development work

related to community of Sub-projects

45.0

3 Common Property Resources (CPR) – One small Temple &

a pond (part)

@ Rs 50,000

for Temple @ Rs.

1,00,000 For Pond

Rs1.5

Sub Total Rs.75.56 C: Support Implementation of RP

1 External monitoring agency

to oversee RP implementation, if needed.

- - 5.0

2 Independent Monitoring and Evaluation Agency

- - 5.0

Sub Total 10.0 D Contingency 3% of A & B 20.77 TOTAL Rs.713.23

‘**’ Land rate varies from state to state/village to village and citing of locations.


CHAPTER 6

MONITORING AND EVALUATION

6.1 Monitoring at the EA Level

The monitoring mechanism will have a two-tier system at the EA level – Internal Monitoring and External Monitoring, if rquired.

6.1.1 Internal Monitoring

The resettlement officers designated by the EA will be responsible for the internal monitoring of the Project. The Resettlement officer shall monitor and review the progress of RP implementation and will prepare biannual reports, which will be submitted, to the POWERGRID and ADB. The Resettlement Officer will review the status of the RP implementation in the light of targets, budget and duration that had been laid down in the plan. The vital tasks during monitoring will include:

§ Review and verification of the monitoring reports prepared by the SRC § Status of land acquisition and payments on land compensation § Assessment of the disbursement of compensation procedure § Appraisal of the grievance procedure § APs reaction/ satisfaction with the entitlements, compensation etc.

6.1.2 External or Independent Monitoring, if required An independent monitor, who may be an expert individual or a firm, from a research or academic institution, will be engaged by the EA, in consultation with ADB for undertaking external monitoring of the entire project. The monitoring agency will be hired within two months of commencement of RP/RAP implementation. The monitor shall report on six monthly basis directly to EA and EA in turn report the same to ADB and determine whether resettlement plan as framed has been achieved, more importantly whether livelihoods and living standards have been restored and suggest suitable recommendations for improvement

A sample Terms of Reference (TORS) to engage an external monitor, if required is enclosed as Annexure I. The key tasks during external monitoring will include:

• Review and verify the internal monitoring reports prepared by Unit; • Review of socio-economic baseline census information of pre-displaced persons; • Identification and selection of impact indicators; • Impact assessment through formal and informal surveys with the affected persons; • Consultation with APs, officials, community leaders for preparing review report;

The following should be considered as the basis for indicators in monitoring and evaluation of the project: (i) socio-economic conditions of the APs in the post-resettlement period; (ii)


communication and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; (iii) changes in housing and income levels; (iv) rehabilitation of informal settlers; (v) valuation of property; (vi) grievance procedures; (vii) disbursement of compensation; and (viii) level of satisfaction of APs in the post resettlement period.

Reporting Requirement: The independent monitor will submit a six monthly review to POWERGRID and ADB and determine whether resettlement plans as framed have been achieved, more importantly whether livelihoods and living standards have been restored/enhanced and suggest suitable recommendations for improvement.


ANNEXURE I

Draft Terms of Reference for External Monitoring and Evaluation

I. Background India’s power sector has expanded rapidly; power shortages and poor quality and reliability of supply severely constrain economic growth. As a result to ensure optimal utilization of energy resources, it is necessary to develop high capacity inter-regional links crisscrossing the regions as well as shifting of planning strategy from regional concept to national level, which would ultimately lead to formation of a strong national grid. In other words, an Integrated Resource Planning approach needs to be adopted for overall development of the power system so as to meet the growing demand with reliability and security. Thus, keeping these views in mind the Indian power sector is poised for development in a big way. With the Government’s mission of “Power For All By 2012” at an affordable cost, 100,000 MW of new generation capacity is envisaged by 2012 and to ensure reliable and secured delivery of power from generation projects to the end users, development of an adequate transmission system is required. In this background, the proposed POWERGRID Transmission Project includes the grid strengthening plan in the southern regional grid Tamil Nadu, Pondicherry and Andhra Pradesh covering the Regional as well as state grids of Andhra Pradesh, Karnataka, Tamil Nadu and Union Territory (U.T.) of Pondicherry. In accordance with ADB’s procedure for sector lending, the core subprojects have been identified in the southern regional grid and involves setting up of five new sub stations in two states of Andhra Pradesh, Tamil Nadu and one U.T. of Pondicherry The main purpose of the project is to strengthen POWERGRID’s institutional framework and to enhance the economy and efficiency of intra- and inter-regional high capacity transmission development, including operation and maintenance services, without causing major environmental and social problems. Under this overall framework, the proposed sector Project focuses on strengthening and expansion of POWERGRID’s transmission systems to reduce system losses and facilitate efficient utilization of existing and planned power plants

The RP includes a provision for monitoring and evaluation of the implementation of the plan by an external monitor, if required. Therefore, POWERGRID, which is the Executing Agency (EA) for this project, may require services of a reputed agency for monitoring and evaluation of RP implementation.

II. Scope of work- General q To review and verify the progress in resettlement implementation as outlined in the RP; q To assess whether resettlement objectives, particularly livelihoods and living standards

of the Affected Persons (APs) have been restored or enhanced; q To assess resettlement efficiency, effectiveness, impact and sustainability, drawing both

on policies and practices and to suggest any corrective measures, if necessary.

III. Scope of work- Specific


An Independent monitoring agency will be involved in ongoing monitoring of the resettlement efforts by the EA. The major tasks expected from the external monitor are: 1. Review results of internal monitoring and verify claims through random checking at the field level to assess whether land acquisition/resettlement objectives have been generally met. Involve the affected people and community groups in assessing the impact of land acquisition for monitoring and evaluation purposes.

2. Identify the strengths and weaknesses of the land acquisition/resettlement objectives and approaches, implementation strategies. 4. To review and verify the progress in land acquisition/resettlement implementation of subprojects on a sample basis and prepare bi-annual reports for POWERGRID and ADB.

IV. Time Frame and Reporting

The independent monitoring agency will be responsible for overall monitoring, and will submit biannual review directly to Executing Agency (EA) and EA in turn report the same to ADB and determine whether resettlement Plans as framed have been achieved, more importantly whether livelihoods and living standards have been restored/ enhanced and suggest suitable recommendations for improvement.

V. Qualifications The monitoring agency will have significant experience in resettlement policy analysis. Further, work experience and familiarity with all aspects of resettlement operations would be desirable. Candidates with degrees in anthropology, sociology, and development studies will be preferred.

RESETTLEMENT PLAN Supplementary Appendix to the Report...

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