Environmental Due Diligence Report _________________________________________________________________________

Project Number: 48434-003 Grant Number: 0495-IND October 2018

IND: Visakhapatnam-Chennai Industrial Corridor

Development Program-Project 1

Procurement of e-Vehicles along with supporting

charging infrastructure including Operation &

Maintenance for a period of 5 years

Prepared by Greater Visakhapatnam Municipal Corporation, Government of Andhra Pradesh for the Asian Development Bank.

CURRENCY EQUIVALENTS

(as of 01 October 2018)

Currency Unit – Indian Rupees (INR) INR1.00 = $0.014

$1.00 = INR 72.71

ABBREVIATIONS

ADB – Asian Development Bank GVMC – Greater Visakhapatnam Municipal Corporation EC – Environmental Clearance EIA – environmental impact assessment IEE – initial environmental examination MoEFCC – Ministry of Environment and Forest, Climate Change PMSC – project management and supervision consultants PMU – program management unit PPTA – project preparatory technical assistance SPS – Safeguard Policy Statement

NOTES

(i) The fiscal year (FY) of the Government of India and its agencies ends on 31 March.

(ii) In this report, "$" refers to US dollars.

This Environmental Due Diligence 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. Your attention is directed to the “terms of use” section on ADB’s website.

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.

CONTENTS

I. INTRODUCTION 1

II. SUBPROJECT DESCRIPTION 1

III. SCREENING AND ASSESSMENT OF POTENTIAL IMPACTS, CATEGORIZATION 3

IV. KEY COMPONENTS AND IMPLEMENTATION SCHEDULE 3

V. POTENTIAL IMPACTS AND MITIGATION MEASURES 3

VI. APPLICABLE POLICY AND ENVIRONMENTAL REGULATIONS 4

VII. IMPLEMANTATION ARRANGEMENTS, MONITORING & REPORTING 5

VIII. GRIEVANCE REDRESS MECHANISM 5

IX. CONCLUSIONS & RECOMMENDATIONS 6

APPENDIXES

1. Picture of BRTs Corridor where e-Buses are Proposed

2. National Ambient Air Quality Standards

3. National Ambient Air Quality Standards in Respect of Noise

4. Vehicle Exhaust emission Norms

5. Monitoring Report Format for e-Vehicles Operations

I. INTRODUCTION

1. The Urban Climate Change Resilience Trust Fund (UCCRFT) Grant of $5 million has been provided under the Vishakhapatnam-Chennai Industrial Corridor Development Program (VCICDP) to support the Government of Andhra Pradesh (GoAP) for climate resilient and clean energy infrastructure development, and policy and institutional reforms to stimulate economic growth and employment generation. 2. VCICDP will help boost manufacturing sector growth along the Visakhapatnam Chennai Industrial Corridor (VCIC), which runs over 800 kilometers (km) from north to south covering almost the entire coastline of the state of Andhra Pradesh covering a population of 49.4 million and an area of 160,205 square kilometer (km2). The VCIC is part of the East Coast Economic Corridor, which is India’s first coastal economic corridor, and is poised to play a critical role in driving India’s new “Act East Policy” and “Make in India” initiatives. The “Act East Policy” is a proactive initiative focused on, among others, increasing the integration of the Indian economy with the dynamic global production networks of the Association of Southeast Asian Nations. VCICDP will complement the ongoing efforts of the GoAP to enhance manufacturing sector growth and create high quality jobs in the state of Andhra Pradesh. 3. Greater Visakhapatnam Municipal Corporation (GVMC) is a local body under the Ministry of Administration and Urban Development (MA&UD), GoAP with the responsibility of providing basic civic services like roads, water supply & sewerage, health & sanitation and storm water disposal for the Vishakhapatnam city. This is the biggest city in the state of Andhra Pradesh and GVMC has jurisdiction over an area of 534 km2. with a population1 of 17,30,320. 4. GVMC has taken initiatives to promote climate resilient measures and actions for climate change reduction in various activities of urban management in the city of Visakhapatnam. Installation of a 2-megawatts (MW) floating solar facility in Mudasarlova reservoir under Vishakhapatnam smart city project and 3 MW floating solar facility at Meghadrigedda reservoir under the UCCRTF grant of Asian Development Bank (ADB) is also under progress.

II. SUBPROJECT DESCRIPTION

5. The objective of subproject is procurement of e-vehicles along with supporting charging infrastructure including operation & maintenance (O&M) for a period of 5 years. The procurement of e-vehicles will be done by the GVMC to substitute in-use vehicles for solid waste collection, buses and cars under use for operational purpose on a pilot basis. GVMC has proposed to introduce e-vehicles in its key operations. The following areas are being considered in the initial phase:

(i) Solid waste collection using E-Rickshaws;

(ii) E – Rickshaws for passenger movement at Beach road; and

(iii) Buses on BRTS on a pilot basis.

6. This will also serve as a demonstration phase for monitoring the operational performance and the accrued environmental benefits particularly relating to the greenhouse has (GHG) reductions and mitigation of high carbon pattern of growth through such

1 As per Census Year 2011.

2

sustainable transport initiatives. The project will also help in capacity building of local operators and charging stations.

Map 1: Greater Visakhapatnam Municipal Corporation

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III. SCREENING AND ASSESSMENT OF POTENTIAL IMPACTS, CATEGORIZATION

7. ADB requires the consideration of environmental issues in all aspects of the Bank’s operations, and the requirements for environmental assessment are described in ADB’s Safeguard Policy Statement (SPS), 2009. The proposed subproject is procurement of environment and climate friendly e-vehicles that will replace in-use petrol and diesel vehicles. The project will bring positive environmental and socioeconomic benefits because the e-vehicles will not generate any air or noise pollution and will replace gasoline powered cars, vans and buses that use lead acid batteries.

8. Categorization. Based on results of the review of subproject implications and ADB SPS, the subproject is classified as environmental Category C, i.e., the subproject is likely to have minimal or no adverse environmental impacts.

9. This due diligence report aims to (i) provide facts, findings, and recommended actions; (ii) present the national and local legal requirements and institutional framework within which the subproject will be implemented; (iii) review of the subproject’s likely positive and negative; and (iv) describe the monitoring measures and reporting procedures to included.

IV. KEY COMPONENTS AND IMPLEMENTATION SCHEDULE

Table 1: Key Components and Implementation Schedule

Part Item of Work No.s

1 Supply of E – Rickshaw for Beach road(Passengers) 10

2 Supply of E – Rickshaw for SW Collection 15

3 Supply of E - Bus 4

4 Construction of Battery Charging Stations. 5

5 O&M of E-Vehicles cum Charging Stations for Five Years. Implementation Schedule: The procurement work is likely to commence in June 2018 and be completed within 3 months of issuance of the Bids.

V. POTENTIAL IMPACTS AND MITIGATION MEASURES

9. Visakhapatnam City is one of the fastest growing Metropolitan of Andhra Pradesh and across India. With the expansion of City from 518 km2 to Currently 625 km2, the usage of vehicles is increasing day by day. The modal share of Visakhapatnam states that 18% bus usage whereas cars and 2-wheeler trips together contribute to 17% as per low-carbon mobility plan. Subsequently with change of land use and fast expansion of City, the modal share is moving toward individual vehicles rather than public transport. As per LCMP, carbon dioxide (CO2) emissions in Visakhapatnam shall increase from 5.3 million tons to 7 million tons in 2030.

10. The subproject is unlikely to cause any adverse impacts because it involves procurement of environment and climate friendly e-vehicles. The subproject will have positive impacts in terms of reducing GHG emissions from the replacement of petrol and diesel vehicles and setup and demonstration of electric vehicle charging facilities in the city of Visakhapatnam.

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VI. APPLICABLE POLICY AND ENVIRONMENTAL REGULATIONS

11. The Andhra Pradesh government is set to come out with a comprehensive electric vehicle policy to encourage electric mobility in the State. The State is set to host a meeting of electric vehicle, battery manufacturers, technology providers and public-sector departments to chart out a plan that will encourage usage of e-vehicles. The meeting is also aimed at charting out a road map for the roll out of e-vehicles. 12. As a part of this drive, the State Government and Energy Efficiency Services Ltd (EESL) have inked an agreement to invest ₹10,500 crore over the next five years to deploy about one lakh electric cars. The Energy department, GoAP will prepare a comprehensive action plan to lease and use electric vehicles. GVMC will comply with the Policy requirements as and when they are applicable. 13. For the proposed subproject, since this is a simple procurement, the specific environmental requirements will not apply to GVMC, however, the supplier and O&M provider for e-vehicles and charging stations / vehicle workshop, will need to comply with the following regulations. GVMC will be monitoring on a regular basis and report compliance to ADB.

Table 2: Applicable Environmental Requirements for the Subproject Law Description

Policy

GoAP Policy on evehicles

Under Finalization. Policy requirements to be complied with as and when applicable.

Acts and rules

EIA Notification Specifies requirements for EIA and environmental clearance

Water (Prevention and Control of Pollution) Act of 1974, Rules of 1975, andamendments

The O&M provider for the charging station to review the applicable requirements and provide details in monitoring report.

Air (Prevention and Control of Pollution) Act of 1981, Rules of 1982 andamendments.

The O&M provider for the charging station to review the applicable requirements and provide details in monitoring report.

EIA = environmental impact assessment, O&M = operations and maintenance.

Table 3: Applicable Environmental Requirements for the Subproject

Law Description

Policy

Environment (Protection) Act, 1986and CPCB Environmental Standards.

Emissions and discharges from the facilities (Charging stations / vehicle workshop) to be created or refurbished or augmented shall comply with the notified standards notified.

Noise Pollution (Regulation and Control) Rules, 2002amended up to 2010.

The O&M provider for the charging station to review the applicable requirements and provide details in monitoring report.

Municipal Solid Wastes Management Rules, 2016

Rules to manage municipal solid waste generated; provides rules for segregation, storage, collection, processing and disposal.

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Law Description

Hazardous and Other Wastes (Management and Trans boundary Movement) Rules, 2016

Applicable to Waste Batteries / Recycling of Batteries According to the Rules, hazardous wastes are wastes having constituents specified in Schedule II of the Rules if their concentration is equal to or more than the limit indicated in the said schedule.

Manufacture, Storage, and Import of Hazardous Chemical Rules, 1989

Defines hazardous chemicals stipulates rules, procedures to manufacture, storage and import of hazardous chemicals requires permission, authorization from various agencies if the total storage exceeds specified quantity; requires emergency management plan

O&M = operations and maintenance.

VII. IMPLEMANTATION ARRANGEMENTS, MONITORING &

REPORTING

14. GVMC will be responsible for implementing the subproject and the Project management and supervision consultant (PMSC) will provide any support as required in implementation of subproject under VCICDP. The GVMC will procure e-vehicles as per GVMC and ADB procurement requirements.

15. Monitoring and Reporting. The project management unit (PMU), GVMC and PMSC will be responsible for monitoring. GVMC will provide the information during subproject implementation and operation as per the Monitoring Plan given as Appendix V. The PMSC through GVMC will submit semiannual monitoring reports to PMU, which will review and then submit to ADB. ADB will review and post the environmental monitoring reports on its website.

VIII. GRIEVANCE REDRESS MECHANISM

16. A grievance redress mechanism has been established to assist the affected persons in resolving their queries and complaints. Project implementation unit (PIU) level Grievance Redress Committee (GRC) is most important mechanism for grievance redress and it is anticipated that most, if not all grievances, would be settled by the GRC at the earliest, as for as possible.

17. Project Grievance Redress Mechanism (GRM) is being established to evaluate, and facilitate the resolution of affected persons’ concerns, complaints, and grievances related to social and environmental issues of the project. The GRM will aim to provide a time-bound and transparent mechanism to voice and resolve social and environmental concerns linked to the project.

18. A common GRM will be in place for social, environmental, or any other grievances related to the project. Every grievance shall be registered and careful documentation of process with regard to each grievance undertaken, as explained below. The PIU environmental and social safeguards officers will have the overall responsibility for timely grievance redress on environmental and social safeguards issues, including keeping and maintaining the complaint and redress records. Public awareness campaign will be conducted to ensure that awareness on the project and its grievance redress procedures is generated.

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Figure 2: Vishakhapatnam-Chennai Industrial Corridor Development Program

Grievance Redress Mechanism

GRC = grievance redress committee, PIU = project implementation unit, PMSC = project management and

supervision consultant, PMU = project management unit.

IX. CONCLUSIONS & RECOMMENDATIONS

19. As per ADB SPS, the project is classified as environmental category C and does not require an initial environmental examination (IEE)/ environmental impact assessment (EIA) or any further environmental assessment. GVMC will provide monitoring information as per the monitoring plan format (Appendix V) provided in this report.

20. The proposed project is categorized as C for environment as it will bring positive environmental and socioeconomic benefits. Since the e-vehicles will have no tail-pipe air emission, almost no noise pollution, and will replace the petrol / diesel powered vehicles with lithium ion acid batteries. It is classified as category C for environment as it will have no adverse environmental impacts, accordingly no environmental assessment will be required although environmental implications need to be reviewed.

21. Under the e-vehicle sub project, GVMC will monitor and report on the proper handling of the old and used batteries by the O&M operator, Number of kilometers run per month by each evehicle, etc. In addition to the principles embodied in the United Nations Framework Convention on Climate Change (UNFCC) on environment protection, the provisions of national and local legislations such as the Hazardous Waste Management Rules, Battery Recycling Rules, Solid Waste Management Rules, etc. will be observed.

Field/ward level

Responsible: Contractor, Divisional Engineer, and PIU safeguard officers

PIU level

Responsible: PIU/District-level GRC members, PMSC expert and PIU safeguard officers

PMU/State level

Responsible: State-level GRC, and PMU safeguard officers

Affected person

1st Level Grievance

3rd Level Grievance

2nd Level Grievance

N

Yes

within 7 days Grievance redressed and record keeping

Grievance redressed and record keeping

Grievance redressed and record keeping

Yes

within 15 days

Yes

within 15 days

No

Court of Law

No

Appendix 1 7

PICTURES OF BRTS CORRIDOR WHERE E-BUSES ARE PROPOSED

BRTS Corridor

Bus Stand

8 Appendix 2

NATIONAL AMBIENT AIR QUALITY STANDARDS

Sl

No: Pollutants Time

weighted

average

Concentration in ambient air Method of

measurement Industrial, Residential, Rural and Other Areas

Ecologically Sensitive Areas

1 Sulphur Dioxide (SO2) µg/m3

Annual 24

hours 50 80

20 80

Improved West and

Geake-Ultraviolet

fluorescence 2 Nitrogen Dioxide

(NO2) µg/m3 Annual 24

hours 40 80

30 80

Modified Jacob and Hochheiser (NaArsenite) Chemiluminescence

3 Particulate Matter (Size less than

10 µm) or PM10

µg/m3

Annual 24

hours 60 100

60 100

Gravimetric -TOEM -Beta attenuation

4 Particulate Matter (Size less than

2.5 µm) or PM2.5

µg/m3

Annual 24

hours 40 60

40 60

Gravimetric -TOEM -Beta attenuation

5 Carbon Monoxide

(CO) mg/m3 8 hours 1 hours

02 04

02 04

Non DispersiveInfra Red

(NDIR) Spectroscopy

Appendix 3 9

NATIONAL AMBIENT AIR QUALITY STANDARDS IN RESPECT OF NOISE

Area code Category of area/zone Limit in dB (A)

Day time Night time a Industrial area 75 70 b Commercial area 65 55 c Residential area 55 45 d Silence zone 50 40

10 Appendix 4

VEHICLE EXHAUST EMISSION NORMS

1. Passenger Cars Norms CO( g/km) HC+ NOx(g/km)

1991Norms 14.3-27.1 2.0(Only HC)

1996 Norms 8.68-12.40 3.00-4.36

1998Norms 4.34-6.20 1.50-2.18

India stage 2000 norms 2.72 0.97

Bharat stage-II 2.2 0.5

Bharat Stage-III 2.3 0.35 (combined)

Bharat Stage-IV 1.0 0.18 (combined)

2. Heavy Diesel Vehicles Norms CO( g/kmhr) HC (g/kmhr) NOx (g/kmhr) PM(g/kmhr)

1991Norms 14 3.5 18 -

1996 Norms 11.2 2.4 14.4 -

India stage 2000 norms 4.5 1.1 8.0 0.36

Bharat stage-II 4.0 1.1 7.0 0.15

Bharat Stage-III 2.1 1.6 5.0 0.10

Bharat Stage-IV 1.5 0.96 3.5 0.02 Source: Central Pollution Control Board

CO = Carbon Monixide; g/kmhr = grams per kilometer-hour; HC = Hydrocarbons; NOx = oxides of nitrogen; PM = Particulates Matter

Appendix 5 11

MONITORING REPORT FORMAT FOR E-VEHICLES OPERATION

No. No of petrol /

diesel vehicles replaced by

Evehicles

Total Number Total Kilometers

Run (per month) Charging Station Quantity of Hazardous

waste per month

1 BUS

2 MSW Trucks

3 Cars

6. Monitoring of environmental impacts on project surroundings / Charging Stations / Vehicle Workshop (ambient air, water quality

and noise levels)

• Brief discussion on the basis for monitoring

• Indicate type and location of environmental parameters to be monitored

• Indicate the method of monitoring and equipment to be used

• Provide monitoring results and an analysis of results in relation to baseline data and statutory requirements As a minimum

the results should be presented as per the tables below.

Air Quality Results Site No. Date of Testing Site Location Parameters (Government Standards)

PM10 µg/m3 SO2 µg/m3 NO2 µg/m3

12 Appendix 5

Water Quality Results Site No. Date of Sampling Site Location Parameters (Government Standards)

pH Conductivity

µS/cm BOD

mg/L TSS

mg/L TN mg/L TP mg/L

Noise Quality Results Site No. Date of Testing Site Location LAeq (dBA) (Government Standard)

Day Time Night Time