Environmental and Social Due Diligence Report · 2016. 2. 12. · Page 1 of 108 Environmental and Social Due Diligence Report for Kakinada Deep Water Port March 2015 Submitted by:

Page 1 of 108

Environmental and Social Due Diligence Report for

Kakinada Deep Water Port

March 2015

Submitted by:

HaskoningDHV Consulting Pvt. Ltd. Green Boulevard, Plot B 9A, Tower B, 4th Floor, Sector 62, Noida - 201301, India

T +91 120 4016100, F +91 120 4260165, Email: [email protected]

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TABLE OF CONTENTS

1 INTRODUCTION ................................................................................................................................... - 4 -

1.1 SUB PROJECT LOCATION & REGIONAL SETTINGS ................................................................................ - 4 -

1.2 SUB-PROJECT DESCRIPTION ................................................................................................................... - 6 -

1.3 SCOPE OF SERVICES UNDER THE CURRENT ASSIGNMENT ................................................................ - 8 -

1.4 STRUCTURE OF THE REPORT .................................................................................................................. - 9 -

2 ENVIRONMENTAL COMPLIANCE STATUS ...................................................................................... - 10 -

2.1 APPRAISAL OF CONCESSION AGREEMENT ......................................................................................... - 10 -

2.2 APPRAISAL OF ENVIRONMENTAL CLEARANCE – 4TH BERTH & OSV TERMINAL ............................... - 11 -

2.3 APPRAISAL OF THE EIA DOCUMENT (5TH, 6TH & 7TH BERTH) ................................................................ - 14 -

2.4 WATER SUPPLY AND WASTE WATER GENERATION ........................................................................... - 15 -

2.5 EMERGENCY PREPAREDNESS & RESPONSE PLAN ............................................................................ - 16 -

2.5.1 FIRE FIGHTING ....................................................................................................................................... - 16 -

2.5.2 ONSITE AND OFF SITE DISASTER MANAGEMENT PLAN ................................................................... - 16 -

2.6 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEMS ........................................................... - 17 -

2.7 ENVIRONMENTAL MONITORING PROGRAMME .................................................................................... - 17 -

2.8 DREDGING & LAND RECLAIMATION ACTIVITIES ....................................................................................... 17

2.9 GREEN BELT DEVELOPMENT ..................................................................................................................... 17

2.10 STATUS OF STATUTORY COMPLIANCE– ENVIRONMENTAL ................................................................... 18

2.11 PUBLIC HEARING AND DISCLOSURE OF INFORMATION FOR 5TH, 6TH & 7TH BERTH ............................. 21

2.12 SITE OBSERVATIONS ................................................................................................................................... 22

2.13 PROPOSED ACTION PLAN ........................................................................................................................... 24

2.14 CONCLUSIONS .............................................................................................................................................. 28

3 SOCIAL COMPLIANCE & ISSUES ......................................................................................................... 29

3.1 FRAMEWORK FOR SOCIAL DUE DILIGENCE ............................................................................................. 29

3.2 PROJECT STRUCTURE AND DELINEATION OF PROJECT AREA ............................................................. 31

3.3 LAND ACQUISITION AND RESETTLEMENT IMPACTS UNDER THE PROJECT ........................................ 33

3.4 COMMUNITIES IN THE PROJECT AREA - THE IMPACT ............................................................................. 36

3.5 PUBLIC CONSULTATIONS AND HEARING IN THE PROJECT .................................................................... 39

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3.6 EMPLOYMENT GENERATION AND SAFEGUARDS FOR EMPLOYEES ..................................................... 39

3.7 CSR INITATIVES BY KSPL ............................................................................................................................ 40

3.8 PROPOSED ACTION PLAN ........................................................................................................................... 41

3.9 CONCLUSIONS .............................................................................................................................................. 42

3.10 DISCLOSURES .............................................................................................................................................. 44

3.11 MONITORING BY IIFCL ................................................................................................................................. 44

ANNEXURE 2-1: EC FOR 4TH BERTH & OSV................................................................................................ 45

ANNEXURE 2-2: EC FOR 5TH, 6TH, & 7TH BERTH .......................................................................................... 49

ANNEXURE 2-3: WATER CESS FORM 1 ...................................................................................................... 55

ANNEXURE 2-4: ENVIRONMENTAL STATEMENT YEARLY SUBMITTED ON SEPT 2014 ........................ 58

ANNEXURE 2-5: STATUS OF ROAD NETWORK – PORT AREA ............................................................ - 84 -

ANNEXURE 2-6: CFO CERTIFICATE ........................................................................................................ - 87 -

ANNEXURE-3.1: PUBLIC HEARING UNDER EIA ..................................................................................... - 92 -

ANNEXURE-3.2: CASE STUDY OF KAKINADA DEEP WATER PORT .................................................... - 94 -

ANNEXURE-3.3: CSR DETAILS FROM APR 2010 TO MAR 2014 ............................................................ - 96 -

ANNEXURE-3.4: MINUTES OF MEETINGS UNDER CSR INITIATIVES ................................................... - 99 -

ANNEXURE-3.5: DETAILED ACTION PLAN AND TENTATIVE BUDGET PROPOSED ......................... - 101 -

ANNEXURE-3.6: ACTION PLAN DISCLOSURE ...................................................................................... - 104 -

ATTACHMENT A: GUIDELINES ON CORPORATE SOCIAL RESPONSIBILITY FUND, DISTRICT

COLLECTOR EAST GODAVARI DISTRICT, 1 JUNE 2013

ATTACHMENT – B: COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RULES, 2014, GOI,

MINISTRY OF CORPORATE AFFAIRS

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1 INTRODUCTION

1. The India Infrastructure Finance Company Ltd (IIFCL) was constituted in 2006 with a mandate to

increase the availability of long term financing for public private partnership (PPP) infrastructure

projects in India. The IIFCL further revised its objectives in 2013, for strengthening its capacity for

infrastructure PPP financing through piloting instruments and implementation approaches.

2. Primarily, IIFCL focuses on two types of financing, direct financing (funding undertaken directly by

IIFCL to the developers during the construction stage) and post construction refinancing, also called the

“Takeout” financing. The two sectors pre-identified and agreed by IIFCL for “Takeout” financing entail

roads & port terminal.

3. The current assignment for preparation of Environmental and Social Due Diligence reports by

HaskoningDHV Consulting Private Limited (HDC) for a maximum of six sub-projects (Kakinada Deep

Water Port being one of them) acts as a groundwork (under the takeout financing component) ensuring

that there are no pending legacy issues or other reputational risks with regard to environmental and

social aspects.

4. The current draft environmental and social due diligence report presents the findings of the

appraisal for the first sub project i.e. Kakinada deep water port terminal1. The project details are

provided in the subsequent sections.

1.1 SUB PROJECT LOCATION & REGIONAL SETTINGS

5. Owing to its strategic location in the East Godavari district of Andhra Pradesh, Kakinada Deep

Water Port (KDWP) constitutes a part of Kakinada port (the second largest port in the state after

Vishakhapatnam). The Latitudinal and Longitudinal extent of the port entail 16°58’05.69’’N

to16°57.36.86”N and 82°16’56.82’’E to 82°16’50.97’’E respectively.

6. The port is well connected and accessible from all major Indian cities and enjoys multi-modal

connectivity by road, rail, air and pipelines (for liquid cargo). The nearest major settlement to the port is

Kakinada town at a distance of 10 km. The port is situated between Vishakhapatnam (170 km in north)

and Chennai (650 km in south) and forms the gateway for the rich agricultural belt of East Godavari,

West Godavari and Krishna Districts of Andhra Pradesh (Refer Figure 1-1).

7. From the regional perspective, the port development over the years coupled with good transport

network comprising connectivity through important roads (NH-214/ NH5 – part of the Golden

Quadrilateral Network), railways (railway station within port area) and air routes (nearest airports at

1 Terminal at the port shall mean an unit consisting of berth or berths with or without the associated land (leased, acquired, reclaimed etc) and water area and the facilities provided therein by the promoter including but not limited to cargo handling equipments/system, storage, inter modal transfer systems and utilities.

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Rajahmundry – 65 Kms and Vishakhapatnam - 170 Km) has given impetus to industrial activities in the

region and further consolidated its position as one of the most important intermediate (non- major) ports

in the eastern region of the country.

Figure 1-1: Regional Linkages for the Kakinada Port

8. The bifurcation of the erstwhile state of Andhra Pradesh and a proposal to develop a new capital

town between Vijayawada and Guntur towns has provided additional focus to the region.

9. In addition to the Kakinada Deep Water Port, there is one additional minor port in vicinity i.e.

Kakinada Anchorage Port operated by

Department of Ports, Government of

Andhra Pradesh. An additional port i.e.

Kakinada SEZ port is also proposed in

vicinity to be developed by GMR on 2,100

acres out of the 10,500 acres available

with KSEZ, at an investment of around

INR 500 million. The location of the Port

is about 15 km North of Kakinada Deep

Water Port and is an all together separate

entity with no links to the existing

Kakinada Deep Water Port. The location of

these three ports in Kakinada is depicted

figure 1-2.

Figure 1-2: Location of Port

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10. GMR has also established barge-mounted gas-power plant at Kakinada after the Reliance

Industries began natural gas production in KG-D6 block but is currently not operational as observed

during the site visit.

1.2 SUB-PROJECT DESCRIPTION

11. Kakinada Sea Ports Limited (KSPL) is the appointed concessionaire by the Government of Andhra

Pradesh (GoAP) for operation, maintenance and management of the terminal in accordance with the

terms of the concession2 agreement and its subsequent amendments. The port was originally

developed as an all-weather port by GoAP with financial assistance from Asian Development Bank and

was commissioned during 1997. GoAP operated the facilities for two years prior to privatizing and

concessionising to KSPL in March, 1999.

12. KSPL began its commercial operations upon signing of the concession agreement for “four berth

terminal”. Four Berth Terminal as defined in the concessionaire agreement implies a terminal with the

existing three shore connected berths (610 m long) and a future berth (300m long) to be constructed

contiguous to the above three berths for handling all containerized cargo of any type, liquid cargo, LPG,

heavy machinery and equipment, over dimensional cargo and steel material with arrangement of any

type developed and operated by concessionaire on the

premises for receiving, shipping and transshipping of

cargo to and from vessels including ships and barges

in domestic and international service, onshore

transportation arrangements, storage and onshore

transfer from or to railways, road and inland

waterways. The activities to be undertaken under the

project were divided into two phases (Phase 13 and

Phase 24) as per the concession agreement.

13. The components of Four Berth Terminal shall

include but not be limited to berths, open stockyards,

storage sheds, railway yards, handling systems,

utilities such as water supply, power supply, fire

fighting and safety facilities, communication facilities

and all other engineering structures/facilities on the

premises.

14. IIFCL has sanctioned financial assistance for

2 The Concession grants exclusive right and authority to KSPL for Operation, Maintenance and Management of Terminal with Four Shore connected Berths at Kakinada Port through Concessionaire’s own investment together with a right to levy, collect and retain appropriate charges for Services by Concessionaire during the concession period. 3 Phase 1 Development shall mean development of that part of the Package which makes the existing three berths fully developed for cargo handling, storage etc 4 Phase 2 development shall mean construction of the fourth berth (300 meters long) contiguous to South of the three berths and providing of cargo handling and storage arrangements and other associated facilities

The Takeout Agreement for subproject between

the Novator, Takeout Lender and Borrower has

been designed under the Phase I and Phase II.

Phase IPhase IPhase IPhase I as per the takeout agreement shall mean

and include the expansion of existing port and

development of OSV jetties and fourth berth of

Kakinada Port.

Phase IIPhase IIPhase IIPhase II shall mean and include the construction

of fifth and sixth berths, north berths, north

retention wall berth, laying of railway sidings,

capital dredging (balance) fourth berth and for

deepening of channel to 13.5 meters from the

existing level if around 12 meters at Kakinada

Port.

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Phase I and Phase II developments post (at least one year) start of commercial operations date (COD)

as per the guidelines under “takeout” financing. The Phase I and II defined under the Take out

Agreement and concession agreement have different scope of coverage. The phase I and II as

considered under the takeout agreement are explained in the box above.

15. The Port operation was initiated by the KSPL-SPV in April 1999 and fourth berth was commissioned

in March 2008 and two additional berths (fifth and sixth berths) were commissioned in 2012. It may be

observed that Kakinada Deep Water Port (KDWP) since its inception¸ has witnessed series of

development and, expansion activities are still ongoing in line with the proposed port master plan.

16. The ongoing expansion activities includes construction of 7th Berth contiguous to the 6th Berth,

dredging the berth pockets at 7th Berth, reclamation and development of back up area behind 7th Berth,

construction of drainages, roads, installation of lighting system and development of other infrastructural

activities, laying of railway sidings, doubling of existing main line to the port main station, widening and

deepening of Channel from 13.5m to 16m from break water to 5th and 6th and 7th Berths. These above

mentioned tasks are expected to be completed by December 2017.

17. The port operations started with an initial land parcel of 65 acres owned by the Government of

Andhra Pradesh. During the process of expansion, KSPL has reclaimed an area of about 360 acres

and further plans to reclaim additional 153 acres for future developments. Figure 1-3 below shows the

expansion activities in the port terminal area over the years starting 2005 till 2014 based on the Google

Earth data.

Figure 1-3: Development and expansion of the port area

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1.3 SCOPE OF SERVICES UNDER THE CURRENT ASSIGNMENT

18. By emphasizing on achieving a balance between developmental imperatives and environmental

sustainability and social well-being, IIFCL endeavors to avoid, minimize, mitigate environmental and

social adverse impacts/risks in their operations and is committed to comply with all relevant

Government of India (GoI) and state level statutory requirements and also remains responsive to E & S

safeguard policy requirements of DFIs (Development Finance Institutions) wherever DFI’s Line of credit

is involved.

19. The scope of work of the study will mainly encompass the following:

• To review whether the sub-project is in compliance with applicable national & state statutory

requirements and regulations related to social and environmental aspects only.

• To review that there is no significant outstanding legal or legacy issues pending based on the

information in public domain and no significant outstanding risks for either IIFCL or the World

Bank.

• To review whether the social and environmental plans have been implemented during the post

COD phase of sub-projects as per national policies on safeguards and

• To confirm and report in ESDD, if any safeguard covenants or issues identified as part of

appraisal process are implemented.

20. Under Takeout financing, the financing is akin to post-COD refinancing of a lender as it does not

finance any construction stage activities, and differs considerably from typical project financing. It

contributes to improving (through reduced debt service burden and reduced interest rate) funding for

the operation and maintenance activities (including debt servicing) without financing any new capital

assets, any construction, or any purchase of land, etc.

21. The safeguard implementation during the construction stage as per the applicable policy

provisions has been reviewed based on the available information in public domain to identify

residual issues, if any. However, the current environmental and social due diligence study

focuses on the phase-I and phase-II post COD activities wherein IIFCL has sanctioned financial

assistance. Certain facilities / activities / services provided by the developer for the complete port area

are also appraised as part of the current study as these activities cannot be considered in isolation e.g.

the disaster mitigation plan, etc

22. Being a post COD due diligence study, the focus of the assignment mainly entail review of

environment and social management/action plans under the applicable clauses of the Concessionaire

Agreement, environmental and social safeguard compliance post COD and highlight the compliances

and gaps.

23. This report is based on the reconnaissance field visit observations, data collated and analyzed for

the activities having related environmental and social measures, review of the available compliance

reports/ document, EIA/EMP documents for expansion activities undertaken in the past as per the

availability.

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1.4 STRUCTURE OF THE REPORT

24. Chapter 1 provides a brief background about the project, description of the sub-project and scope of

the assignment. Chapter 2 provides the details of the due diligence carried out for the environmental

compliance of the sub-project and concludes with any non-compliance and pending statutory

requirements or legacy issues if any identified during the appraisal. Chapter 3 provides the due

diligence of the social safeguards including status of the land and public consultations conducted.

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2 ENVIRONMENTAL COMPLIANCE STATUS

25. The Environmental due diligence task focuses on the status of the applicable environmental

regulatory clearance obtained as on date; the compliance and /or compliance reporting with the

regulatory clearance conditions; review of the EIA documents including compliance of clearance

conditions and address residual environmental impacts of significance especially related to

community/common property resources, natural habitats, and cultural properties etc. The ESDD study

for takeout shall also focus on impacts during operation phase of the sub-project.

26. As part of the environmental due diligence under TFS5 (Take-out Financing), the compliance to the

project was reviewed w.r.t the following:

• Environmental plans implementation during operation phase

• Outstanding or pending legal or legacy issues

• Compliance to applicable national social and environmental laws

• Institutional arrangements in place for implementation and monitoring of environmental

mitigation measures

• EHS related clauses in O & M agreement

• Emergency preparedness and Response plan during operation phase

• Status of plantation and compensatory plantation; and current arrangements for

maintenance and replacement of casualties

• Accident / incident reporting

• Health and work safety measures

• Outcome of implementation status of public hearing proceedings

27. Reconnaissance site visit was conducted by the consultant’s team along with the IIFCL’s safeguard

team. The site visit focussed on understanding the port terminal activities; applicable environmental and

social aspects in the KSPL Deep Water Port operations; informal interactions with the fishing

community in immediate vicinity; Port officials including the environment and safety department team

members; understanding efforts undertaken by KSPL as part of their mandatory CSR commitments;

and gather requisite information available in public domain & discussions with the developer for

preparation of the environmental and social due diligence report.

2.1 APPRAISAL OF CONCESSION AGREEMENT

28. The concession agreement was signed between the Government of Andhra Pradesh (Transport,

Roads & Buildings Department) and International Seaports Pte Limited, Singapore (currently

5 TFS will deal with sub projects which are at post construction/ operational phase. As assistance under TFS is sanctioned only after minimum of one year after the start of commercial operations date (COD), it is expected that the safeguard issues as per applicable state, national guidelines/regulations would have been addressed by then.

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represented by SPV in the name of KSPL) on March 19, 1999 at Hyderabad. The Government of

Andhra Pradesh (GoAP) granted permission to the concessionaire to take over the existing

three berths with all the existing infrastructure facilities, construct an additional berth

contiguous to the existing three berths, operate and maintain the facilities and provide services

at its sole cost and expenses. The land reclaimed and waterfront shall always be owned by GoAP

however the concessionaire shall be the owner of the assets only for duration of concession period.

The concession agreement was originally signed for a period of 20 years and has been extended

based on the revised agreements between the GoAP and concessionaire. The key aspects stated in

the concession agreement pertinent to environmental due diligence includes:

• Obtaining of all statutory and non-statutory clearances required for the package

development of all government and other agencies and authorities and the cost for

obtaining such clearances shall be the responsibility of concessionaire.

• All plans and designs of the package development shall be reviewed by GoAP prior to

implementation to ensure conformity with the total development plan and accepted

engineering design codes and practices.

• Concessionaire shall take all necessary measures to ensure compliance with all

environmental laws, laws relating to pollution and shall be entirely liable to any violations or

breaches thereof attributable to concessionaire.

29. Supplementary agreements to the concession agreement were signed between GoAP and KSPL

on 25-Aug-2003 and 28-Jan-2009 modifying some of the clauses under the original agreement taking

into account, the overall circumstances and long term viability of the package. The key points being :

• The concessionaire shall have the freedom to develop new berths / facilities within the

Deep Water Port. However, GoAP can construct and operate their berth(s). In all other

cases concessionaire has first right of refusal.

• Additionally the supplementary agreements states that the land if any available and also in

future as and when any lease agreements entered with GoAP by the port users expire, first

right of refusal may be offered to KSPL, in deep water port except the areas earmarked for

ship-building units, fishing harbour and land being used for government purpose.

• KSPL has been granted permission to establish the ship building activity in the earmarked

land as per the approved master plan of Kakinada port for land use and water front.

Currently KSPL is also undertaking the construction of the 5th, 6th and 7th Berth (berth 5th

and 6th completed). Other future expansion activities include setting up of a floating LNG

terminal.

2.2 APPRAISAL OF ENVIRONMENTAL CLEARANCE – 4TH BERTH & OSV

TERMINAL

30. The documents related to the Environmental Clearance granted by MoEF for the 4th berth & OSV

facility (Refer Annexure 2-1) was reviewed. The status of the compliance to the specific conditions

subject to which the clearances has been granted is reported below. It may be noted that specific

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conditions under which the environmental clearance was granted relate to “during construction stage”

activities. The below mentioned compliance reporting is based on the information provided by the

developer during the site visit and documents shared.

SR SPECIFIC CONDITIONS COMPLIANCE STATUS

1 The dredged material from the maintenance dredging activity should be dumped at the same location where the dumping is ongoing. The height of the dumping should not exceed 30 mts.

Complied - The dredged material from maintenance dredging disposed into the ongoing dumping site only. The dumping site did not exceed more than 25 mts height.

2 The reclamation should be carried out using the sand from sand trap.

Complied - For reclamation sand was used from the sand trap.

3 Geo textile base should be provided to prevent percolation at the stacking and storage site.

Complied– Already provided at stacking yard.

4. Drill oil, metal cuttings during construction should be properly collected and disposed at approved disposal areas identified by APPCB.

Minute quantities of drill oil, metal cuttings which aroused from the construction activity collected with care and disposed to recyclers

5 Adequate precautions should be taken to contain spillage and pollution of the coastal water as per the standard practices observed in the port.

Complied as reported by KSPL

6 The impact of the project on Coringa should be studied by NIO and the recommendations should be implemented. Steps should be taken to promote additional mangrove plantation in the Coringa mangroves including opening up of the freshwater sources to be provided.

As per NIO (National Institute of Oceanography) report (report not available with the consultants) there was no impact on the Coringa and mangrove plantation.

7 Measures to prevent spontaneous combustion of the coal in the yard.

Complied with - All coal yards are arranged in such a way that water sprinkler should meet the corner position also. Further temperature recording for minimizing the risk of spontaneous combustion in the coal yards.

8 Measure to prevent the dispersion of dust should be implemented.

Implementing dust suppressions measures like continuous sprinkling of coal stacks / wetting of roads / usage of max sweeper (dust sweeping machines) etc

9 The NIOT report on erosion, littoral drift study along with the recommendations of the study should be provided and the recommendations should be implemented.

Implemented the recommendations of NIO during the construction stage as reported by KSPL

10 All the recommendations listed in the Environmental Management Plan, Environmental Impact Assessment report prepared by NIO should be strictly implemented.

Implemented the recommendations of EMP document. (Water sprinklers arranged, Road sweeper for control of fugitive emissions, Restriction of vehicular movement, Oil spill control, Proper disposal of dredge material, Using of sand in the sand trap for reclamation works as reported by KSPL)

11 The dredged material obtained should be utilized for filling up of back up area.

Complied with - The capital dredged material was used for filling the backup area wherever feasible.

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12 The recommendations of CWPRS (Central Water & Power Research Station) mathematical model studies with respect to hydrodynamics should be implemented.

Implemented the recommendations of CWPRS.

13 Appropriate shore erosion measures should be taken up as indicated in the report of NIO.

As per NIO report there is no specific shore erosion impact due to our project.

14 All the conditions stipulated by the Andhra Pradesh Pollution Control Board in their consent order No. APPCB/VSP/RJY/451/CFE/HO/2006, dated: 6-7-2006 should be effectively implemented.

Complied as reported by KSPL

15 Sewage arising in the port area should be disposed off through septic tank – soak pit system or shall be treated along with the industrial effluents to conform to the standards stipulated by APPCB and shall be utilized/re-cycled for gardening, plantation and irrigation.

Septic tank followed by soak pit for the disposal of sewage wastewater, and further STP provided and treated water used for on land irrigation for small part of the green belt.

16 Adequate plantation should be carried out along the roads of the port premises and a green belt should be developed.

Ongoing Activity - Avenue plantation all along the road and blocked plantation in vacant premises.

(Proposed 10-meter green belt along the periphery of the Backup area of the 4th berth and OSV complex)

17 There should be no withdrawal of ground water in CRZ area, for this project. The proponent should ensure that as a result of the proposed constructions, ingress of saline water into ground water does not take place. piezometers should be installed for regular monitoring for this purpose at appropriate locations on the project site.

The fresh water for construction activity was supplied through tankers by an external party. No withdrawal of ground water from CRZ area for this project was undertaken and it is only through third party suppliers.

Piezo wells were installed for monitoring of ground water/ leachate collection.

18 The project should not be commissioned till the requisite water supply and electricity to the project are provided by the PWD/Electricity Department.

All necessary approvals from the concerned departments and all applicable clearances were obtained.

19 Specific arrangements for rain water harvesting should be made in the project design and the rain water so harvested should be optimally utilized. Details in this regard should be furnished this Ministry’s Regional Office at Bangalore within 3 months.

Rain water structures were already provided at all water flowing / collecting areas as reported by KSPL during the interactions.

The copies of reports submitted to the MoEF’s office were not available.

20 All development activities and the facilities to be constructed in CRZ area as part of this project should be strictly in conformity with the provisions of the CRZ Notification, 1991 as amended subsequently.

All the construction activities were carried out according to the CRZ rules only.

21 Green buffer zone should be provided all around the project area in consultation with local forest department and the report submitted to this Ministry’s Regional Office

The development of the green belt is ongoing currently and additional green areas are being developed by the concessionaire.

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at Bangalore.

22 No product other than those permissible in the Coastal Regulation Zone Notification, 1991 should be stored in the Coastal Regulation Zone area.

Being Complied with as reported by KSPL

23 The project proponent should undertake up activities to improve the quality of life of the local people living along the project site. The activities should include supply of drinking water, providing rainwater harvesting structure.

KSPL has been arranging drinking water in the nearby wards / fishing community and residents of Hope Island for the consumption of the general public, and also RO plants installed under the mandatory CSR initiatives.

24 The relocation of the fishermen community should be done strictly in accordance with the norms prescribed by the State Government. The relocated fishermen community if any will be provided with all facilities including health care, education, sanitation and livelihood.

No relocation was required for this project during the project construction stage as no habitation was covered within the project area.

The general conditions under the EC granted were also adequately complied by the concessionaire /

KSPL as informed during interactions with the officials of KSPL.

31. There are no pending non - compliances against the general & specific conditions under

which the EC has been granted. However the tasks for development of the proposed green belt

(10-meter green belt along the periphery of the Backup area of the 4th berth and OSV complex)

are yet to be completed. The KSPL officials did highlight the low survival rate of saplings and not so

favourable soil conditions as reasons for slow progress on the development of green belt but confirmed

its commitment to develop the same as per the statutory requirements.

2.3 APPRAISAL OF THE EIA DOCUMENT (5TH , 6TH & 7TH BERTH)

32. The review of the EIA document reveals that the area is predominantly agriculture oriented with

crops like sugarcane and paddy as predominant crops. The area has predominantly agricultural

labourers and industrial workers. The proposed project area is devoid of any major natural vegetation.

33. There is no anticipated rehabilitation of the village / community due to the proposed expansion of

the port. The following activities are being carried out by KSPL towards environmental management

during the port operations:

• Green belt development in the port area

• Dust suppression

• Ambient environmental quality monitoring

34. The port terminal area is not in vicinity of any ecologically sensitive zones like an estuary or

mangrove forest areas. No significant irreversible impacts are identified in the EIA study. The impacts

identified are short term, localized impacts mainly during the construction stage both for marine-side

and land-side. The construction stage impacts include:

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1. Changes in the current pattern

2. Increased turbidity levels and DO levels

3. Suspended sediment

35. No impacts are envisioned for the fishing activity being carried out from the fishing harbour located

north of the existing facility and also near the anchorage port. The dredging activity is confined

within the immediate vicinity of the port hence no significant impacts are envisioned. The monitoring

reports shared by KSPL also confirm that the impacts due to increased sediment and turbidity

levels are restricted to construction site / berth only.

2.4 WATER SUPPLY AND WASTE WATER GENERATION

36. As per the information shared by KSPL, the waste water generation is domestic in nature and for

treatment of domestic waste water, a STP is installed and treated water is used for gardening or

irrigation within the STP area. However, the STP is part functioning with less than adequate operation

and maintenance systems. The treated water from STP is being used for gardening, plantation

purposes. In order to further strengthen the STP operations, KSPL plans to undertake complete

revamping of STP by painting, pumps replacement, welding/patch works where necessary, Over Shed

Construction, Cleaning of all the tanks and re-commissioning of STP by August 2015.

37. The estimated waste water generation (KLD) after implementation of expansion shall not exceed

the following:

Sl.No Source Quantity (KLD) Existing Expansion Total after expansion

a) Domestic 25 KLD 20 KLD 45 KLD

38. The port operation generates fugitive liquid emissions due to runoff as well as port operations at

different terminals. Except settling tank arrangement, currently there is no prudent/well established

mechanism of effluent treatment. An ETP is under construction and KSPL confirmed that the ETP will

be established by Oct 2015.

39. There is no extraction of ground water, and water supply is through third party supplier as

mentioned in the table below:

Sr No Purpose Quantity (KLD)

Existing Expansion Total after expansion

a) Dust suppression 500 KLD 100 KLD 600 KLD

B) Domestic & Gardening 90 KLD 55 KLD 145 KLD

Total 590 KLD 155 KLD 745 KLD

40. KSPL is complying with the statutory requirements by ensuring that no ground water

extraction is being undertaken; the water requirements for domestic purposes, offices, dust

suppression etc are met through an external third party supplier, ensuring that the domestic

waste water generated is treated and reused after treatment in gardening & plantation related

activities.

- 16 -

2.5 EMERGENCY PREPAREDNESS & RESPONSE PLAN

41. The port complex is equipped with adequate water storage and other fire fighting facilities in all fire

prone areas. The details of the facilities and manpower to handle emergencies round the clock are

mentioned in the subsequent subsections:

2.5.1 FIRE FIGHTING

42. KSPL is having a 20 member Fire Emergency Team for Fire Fighting which operates on shift basis

round the clock. In addition to this a separate Safety Team comprising of 7 members, also work on shift

basis round the clock to tackle any emergencies. Apart from this 24X7 Emergency Ambulance Service,

Dock Inspectors, Mechanical Staff, Marine Operational Staff and in-house Security are all trained to co-

ordinate Emergency Situations in Port. The list of firefighting equipment with KSPL is as follows:

• Main Fire pumps : 3 No’s

• Jockey Pump : 1 No. (30HP)

• Cooling Water pump : 1 No (7.5 HP)

• Tower Monitors : 2 Nos

• Foam Tanks : 2 Nos (Each tank

capacity 3000 Ltrs.)

• Water curtains : 2 Nos

• Motor Operated Valves : 3 Nos

• Ground Monitors : 4 Nos

• Double Hydrants : 5 Nos

• Single Hydrants : 12 Nos

• Hose Boxes : 17 Nos

• Hoses : 34 Nos Canvas hoses

& 10 Nos Synthetic Rubber Hoses

• Nozzles : 11 Nos Fixed Jet type

& 4 Nos Universal type

• International shore coupling: 02 Nos

• Foam Making Branch : 01 No

• Siren : 01 No

• 10 kg DCP Extinguishers : 61 Nos

• 75kg DCP Extinguishers : 04 Nos

• 05kg DCP Extinguishers : 03 Nos

• 3.2kg DCP Extinguishers : 02 Nos

• 4.5kg CO2 Extinguishers : 31 Nos

• 09 lts Mechanical Foam : 21 Nos

• Fire Entry Suits : 02 Nos

• Breathing Apparatus : 04 Nos

43. Apart from above, a dedicated & sophisticated multipurpose Fire Tender is available to combat fire

emergencies in & around the port with 9 member dedicated team which operates round the clock on

shift basis.

44. No major fire incidents have been reported in the past within the Port terminal area except one

instance of fire in the conveyor belts for coal transfer due to excessive heating. KSPL upon request by

the DM has also responded to fire emergencies outside the port area as part of their Corporate

Social Responsibility.

2.5.2 ONSITE AND OFF SITE DISASTER MANAGEMENT PLAN

45. The risk assessment & emergency response manual provides guidelines for dealing with natural

(storms / earthquake) and man-made disasters (fire, explosions, terrorist attacks, and discharge of

effluents to water, collision and escape of inflammable or toxic gases). The manual provides guidelines

for minimizing losses to life, environment and property; systematic response to the crisis situations.

46. The manual lays down the institutional setup, roles and responsibilities of the KSPL staff on duty to

handle emergency scenarios. It was observed during the site visits that adequate signs depicting

- 17 -

assembly areas, hardhat areas etc and emergency numbers are displayed adequately within the port

premises. KSPL also conducts regular training and mock drills (at least twice a year) to train staff and

workers in handling emergency situations.

KSPL is adequately complying with the emergency response management in case of natural

and man-made disasters and have a trained manpower to undertake such tasks with a sound

institutional mechanism for implementation.

2.6 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEMS

47. KSPL has established HSE (health, safety and environment) Management Systems with relevant

staffing and management protocols. KSPL Deep water port operations are also certified for ISO 14001,

OSHAS 18001 and 18000 for overall port management and common infrastructure facilities within the

port area. KSPL also enforces stringent HSE standards for all operators working within the port. While

some of the terminal/cargo operators (fertilizer, etc.) have such systems in place, many of them are yet

to comply with such international practices fully. In order to ensure a common minimum and unified

HSE policy across all the activities within the port area, KSPL plans to prepare an

implementation strategy and conduct training programs in future for further strengthening the

existing management systems.

2.7 ENVIRONMENTAL MONITORING PROGRAMME

48. The monitoring is being carried out on monthly basis through a third party consultant. KSPL

operates 8 ambient air quality monitoring stations within the port area and 2 of these stations have been

recently converted in to continuous monitoring stations. The air quality monitoring efforts by KSPL are

commendable. The monitoring locations and plans which have been deduced in consultation with

Regional Office of Andhra Pradesh Pollution Control Board (APPCB) Kakinada are as follows:

I. Stack Monitoring for SO2, NOx & SPM

a. 5 DG sets: 125 KVA & 250 KVA & 03x500 KVA capacities.

II. Ambient air Quality Monitoring for SO2, NOx, PM10 & PM2.5

a. Top of Fire Pump House

b. Top of Control Room Building

c. Near Cairn Office Building

d. Near Customs Office Building

e. VIth Berth area

f. VIth Berth Back Up area

III. Domestic Waste Water Quality Monitoring

a. At inner Canteen Area (STP Inlet)

b. STP Outlet

IV. Marine Water Monitoring

a. VIth Berth Area during Low Tide

V. Noise Monitoring

a. OSV-Berth I

b. OSV Berth II

c. Near OSV Sub Station

d. Outside OSV DG Set room

e. OSV Gate

f. Vth Berth area

g. Vth Berth Back Up area

h. VIth Berth area

i. VIth Berth Back Up area

j. Gate 4 entrance

VI. Sediment Quality

a. VIth Berth area

17

KSPL is adhering to the guidelines for regular monitoring and reporting on the ambient

air quality monitoring (stack emissions), waste water monitoring, noise monitoring and

marine water quality by hiring the services of an approved testing laboratory services.

The monitoring results for May 2014, June 2014, July 2014, Aug 2014 and Oct 2014

declared by the laboratory were shared with the consultants and found to be within

permissible limits for all parameters. The KSPL officials also shared the yearly

compliance reports submitted on Sept 2013 and Sept 2014 and the reports were found to

be satisfactory.

In addition to the statutory compliances it is felt that the haulage roads require

strengthening which could include black topping of these road stretches in the short term

and building concrete roads subsequent to the achievement of the desired soil

compaction levels as part of the measures to enhance the ambient air quality. The

inventory of current haulage roads and their status is enclosed as Annexure 2.

2.8 DREDGING & LAND RECLAIMATION ACTIVITIES

49. The dredge material disposal and dredging tasks were carried out as per the EMP

guidelines. As per the EIA document and information shared by KSPL, the dredged material

from the sand trap is being used for reclamation of the backup areas for the multipurpose berth.

50. About 80% of the maintenance dredge material from the channel and berths area is being

used for beach nourishment and transferred to the northern side to maintain the continuity of the

littoral drift. The remaining dredged material is being disposed at the designated site 15 kms

north of the Deep Water Sea Port. As regards the 5th, 6th & 7th berth EC, the proponent is

complying with the following as informed during the site visits:

S No Solid Waste Quantity Treatment & disposal

1 Capital dredging material 3.2 million cum. Back filling at disposal site as approved by the competent authorities. 2

Maintenance dredge material

0.66 m3/year

3 Waste Oil 300 Lts/year To disposed to recyclers authorized by APPCB.

2.9 GREEN BELT DEVELOPMENT

51. A total of 12 acres of green belt has been developed by KSPL as per the following details:

• 5 m wide along the periphery of the back-up area of the multipurpose berth at S-

Bund internal Road.

• Along the length of the main approach road.

18

• Along the OSV Internal Road.

• Along ADB road about 2.5 km stretch (recently undertaken)

• Opposite all port offices viz., Operations, HSE, Projects, Security etc.

52. As per the information shared by the concessionaire, an area of approximately 12 acres has

been converted to green areas within port complex. Additionally 5 acres at Port Administrative

Building and 2 acre at existing vacant pockets in the port are planted. The concessionaire plans

to develop 45 acres of green plantation areas within the port area as per the conditions under

which NOC has been granted. The details of the 12 acres of green belt is mentioned below:

53. Owing to the saline conditions and black soil the development of the green belt is slow and

difficult. As per the information shared by KSPL, 27,667 saplings have been planted and more

plantations are proposed to be planted. The development of green belt is currently under way to

meet the requirements.

KSPL would need to put in additional efforts to ensure early completion of the targeted

green cover based on which the two EC’s has been granted for 4th Berth and 5th, 6th & 7th

Berth separately.

2.10 STATUS OF STATUTORY COMPLIANCE– ENVIRONMENTAL

54. The table below provides an outline of the applicable regulatory requirements and overall

representation of the statutory compliance followed by the concessionaire. The status is based

on the information shared by KSPL, review of the documents shared by IIFCL/KSPL and

interactions held with the KSPL officials during the site visit.

Statutory

Requirements

Remarks / Status

Environmental

Clearance (EC) and

CRZ clearances for

construction of 4th

Berth

(Refer Annexure 2-1)

• EC from CRZ & EIA notifications for 4th Berth and OSV facility

granted on 31 Jan 2007 to handle iron and coal.

• NOC from AP Pollution Control Board granted on 06 July 2006

• Copy of EIA / EMP documents was not made available to the

consultants – hence could not be reviewed.

• 10-meter green belt along the periphery of the backup area of

the 4th Berth and OSV complex. (Ongoing activity at present)

• Year wise expenditure statements on environmental safeguards.

SPECIFIC CONDITIONS FOR GRANT OF NOC

• Adequate plantation along the roads of the port premises and

green belt to be developed. (Ongoing activity at present)

19

Statutory

Requirements

Remarks / Status

Environmental

Clearance (EC) and

CRZ clearances for 5th,

6th and 7th Berths

(Refer Annexure 2-2)

• EIA Report pertaining to 5th, 6th and 7th Berth at existing facility

(April 2010) - Reviewed.

• EC from CRZ & EIA notifications granted for 5th, 6th and 7th Berths

Consent to Establish

Under Water & Air Act

• Based on the review of the documents shared, consent granted

under section 25/26 of Water Act; Section 21 of Air Act was valid till

30th Sept 2014. Renewal application filed by developer within 60

days of expiry (on 26.08.2014), renewal granted (Annexure-2.6)

• STP is operational and ETP is expected to be operational by Oct

2015 as per the information shared by the developer.

• Based on the information provided by the developer, water supply is

through an external third party supplier and no ground water

extraction is undertaken by KSPL.

6 - Monthly report

submissions

• Reports submitted for the half year ending Sept 2013 were reviewed

and found satisfactory.

Water Cess (Form – 1)

returns

• Form 1 for Nov 2014 shared by the developer and found

satisfactory.

Labour Licence • Registered under the Contract Labour (regulation & abolition) Act

1970 till 31-12-2014

Accident Risk and

Group Health

Insurance

• Certificate issued by Bharti AXA valid till 31-03-2015

Minimum Wages Act KSPL is complying with the Minimum Wages Act as informed during

the site visit.

Child Labour

(Prohibition and

Regulation) Act, 1986

KSPL is complying with the requirements under the Act as informed

during the visit.

No child labour was seen during the site visits.

The building and Other

Construction Workers

(Regulation of

Employment and

Conditions of Service)

Act 1996 and the Cess

Act of 1996

As the construction activities are being carried out by the contractor

and not directly by the developer, the liability to pay cess rests with the

contractor.

However KSPL ensures that the contractor has paid the cess as per

the regulatory requirements before payments are released to the

contractor by developer.

Factories Act 1948,

with AP State Rules

Factories Act is not applicable to KSPL operations as informed by

KSPL

Environment, Health

and Safety Provisions

Occupational Health, Safety and Environment Management Plan in

place including accident reporting,

Forest Diversion /

Clearance

No Forest land diversion was undertaken for the port terminal area.

20

Statutory

Requirements

Remarks / Status

Handling and Storage

of Hazardous

Substances

• Authorization granted under HW (MH & TM) Rules 2008

• Annual Hazardous Waste Filing (Form-4), submitted on 28-06-2014

for year ending March 2014

Public Liability

Insurance

• The insurance policy documents received from the developer are

valid till April 2015.

Consent for handling

hazardous materials

and hazardous waste

• Individual parties handling Hazardous Cargo obtain these licenses

separately. KSPL is not directly handling such cargo.

• The Pollution Control Board license granted to KSPL is inclusive of

Hazardous License for Port.

Consent for diesel

storage and operation

of DG sets up to a

capacity of 800KW

• In order to control the noise levels in vicinity of the operational DG

sets, the State Pollution Control Board has suggested certain

mitigation measures which are being compiled by KSPL.

Provision of cargo

storage and wind

barrier

• The review of the document states that the consent has been

granted for maximum height up to 8 meters & wind barrier of 12

meters around cargo storage areas.

• It was observed during the site visit that additional mitigation

measures are required around the coal terminal area to control

dust suppression like installation of high dust screens.

•

Mechanized fully

closed conveyor belt

with water sprinkling

arrangements for dust

suppression

• The review of the documents reveals that the mechanized systems

are in place for coal and fertilizers at 5th and 6th Berth operations.

• For the 4th Berth, handling is being done in a semi-mechanized

manner.

• During site visit period the mechanized conveyor belts were under

maintenance.

• Dust suppression by sprinkling water on Roads, Berth and yard

areas is practiced.

• All the vehicle involved in transportation of cargo shall be covered

with tarpaulin –

• It was observed during site visits that provisions were

undertaken to control dust suppressions. However additional

measures are required to fully control dust suppressions

including adopting fog generating mechanisms.

• All the transfer point, loading / unloading points and conveyer

systems are housed completely with leak proof arrangements.

Adequate dust suppression and containment measures need to be

implemented for effective control of fugitive emissions.

Onsite and Offsite

disaster management

plan

• The onsite emergency and disaster management plan is adopted by

KSPL

21

Statutory

Requirements

Remarks / Status

Fire Emergency Team • Dedicated and trained 20 member fire emergency team working in

shifts round the clock to tackle any crisis

• Safety audit and training conducted at regular basis as informed by

KSPL.

Development of green

belt within one year

giving due

consideration to

sources of dust

generation and

metrological conditions

• As per the CFE (Consent For Establishment) conditions, the port

shall develop within one year properly designed green belt giving

due consideration to dust generation and meteorological conditions

with minimum width as committed in letter dated 30.04.2014 and

report compliance every three months to RO-Kakinada.

• The development of the green belt is currently ongoing. New

plantations have been undertaken along the ADB road giving

due consideration to dust generating areas near the dry cargo

handling facilities.

Submission of

environmental

statement on a yearly

basis

• Environmental Monitoring being carried out by a third party.

• Results of the marine and ambient environmental quality monitoring

(ambient air quality, marine water sample, sediment sample for 6th

berth area) for month of year 2014 was shared by the developer.

• Environmental statement submitted in Sept 2013 & Sept 2014

shared by KSPL

Disposal of the Dredge

Materials

• Undertaken at a designated site (at Uppada) in sea approximately

15 km north of the port area.

• A visit to the site could not be conducted due to the turbulent sea

conditions and absence of permission from the coast guards.

Reclamation of land

parcels for expansion

of port terminal

• A part of the dredge spoil is used for backfilling and remaining is

being dumped at the disposal ground.

Dust Suppression

along Haul roads

•

2.11 PUBLIC HEARING AND DISCLOSURE OF INFORMATION FOR

5TH , 6TH & 7TH BERTH

55. As per the information shared by KSPL and minutes of the public hearing meetings (as part

of the EIA requirements for 5th, 6th and 7th Berth) no special demands were raised by the Public.

The issues raised during the public hearing for EIA were predominantly focused on the

measures to improve the environment and employment opportunities for the local people. The

other environmental issues highlighted by the participants during the hearing was with regard to

safety and health problems of workers; allowing fishermen fishing in the ocean and adequate

measures in disposing the dredged waste materials.

56. The issues raised by the local community are addressed by the KSPL by way of providing

employment to the local fishing community, conducting regular health checkup camps for the

22

workers, and ensuring the fishermen community that there are no restrictions on fishing by them

from KSPL. The avenue street lighting for beach road emerged as one of the key expectations in

the hearing which has already been implemented by KSPL.

2.12 SITE OBSERVATIONS

57. The following key observations are concluded based on the site visit and available

documents including interactions with the KSPL officials:

i. The environmental clearance for 4th Berth & OSV facility and 5th, 6th and 7th berth were

obtained under EIA and CRZ notifications.

ii. The port terminal does not require any clearances under the Forest Conservation Act as

no forest land parcel was ever acquired. Most of the land has been reclaimed.

iii. The details about the borrow areas / quarry sites (site locations, closure plans and its

implementation etc) were not made available to the consultant.

iv. The port terminal has obtained necessary clearances from MoEF / State Pollution

Control Board under Air & Water Acts and other regulatory organizations and has been

complying with the reporting requirements based on the information shared by KSPL.

v. It was observed during

the site visit that the basic

facilities provided by the

contractor to the

construction labourers at

labour camps (for

ongoing port expansion

activities) are inadequate

and needs further

strengthening as depicted

in the snaps below. KSPL

has the overall responsibility to ensure compliance to the regulatory requirements for

themselves as well as the sub lease partners/ sub contractors/ any third party operating

within the Port terminal area.

vi. The health and safety compliance are kept as contractor’s responsibility in sub

contracting by KSPL.

vii. The development of green belt and additional plantations are being undertaken by KSPL.

23

viii. During the field visit it was observed that the workers were seen wearing safety gears at

work site, adequate safety related signs were displayed at various locations in the port

terminal area.

ix. Water sprinkling was being done on a regular basis as observed during site visit in areas

handling dry cargo and on the main access roads.

x. Fire extinguishers are installed and adequate training programs and mock drills are

conducted by KSPL on a regular basis for the staff and workers as observed during site

visit.

xi. The sub project did not impact any eco sensitive zones / critical natural habitats. None of

such impacts are

expected in the port

expansion activities.

The land

requirements are met

through land

reclamation only.

xii. Periodic

environmental quality

monitoring including

marine environment

24

is carried out regularly by third party agency appointed by KSPL.

58. Project developer has confirmed that hazardous materials wastes are being

handled by a third party and disposed in an environmentally safe manner. Majority of

these activities are applicable for the complete port terminal area and cannot be looked in

isolation for the due diligence tasks. Overall the development of the port during phase I

and phase II did not have any noticeable adverse impacts.

2.13 PROPOSED ACTION PLAN

59. KSPL in line with its commitment for continual improvement in port operations and

continuing compliance to various statutory requirements has proposed the following action plan

for implementation:

S Description Comments & action plan along with Sub Activities

Tentative Timeline for implementation

Monitoring & Supervision By

Tentative Cost Implication

As on date Remarks

Environmental Aspects

1 CFO for Berths 5th& 6th CFO Meeting is expected to be completed before 31st march 2015

31.03.2015 -- -- COMPLETED (Refer Annexure – 2.7)

2 Common minimum unified HSE policy across all the activities within the port

-Kick Start meeting between KSPL HSE related team on way forward to achieve unified HSE policy. -Circular with reference to unified HSE policy to be circulated to all concerned. -Call for meeting to understand the concept and gap analysis -Concrete Plans for filling the gaps by different parties under KSPL -Way forward & Training, -implementation aspect. -Assessment of the implementation

15.04.2015 03.05.2015 15.05.2015 15.07.2015 30.09.2015 30.01.2016 31.07.2016

KSPL HSE Team

Individual Parties will bear the cost and hence not included.

Target Date 31.07.2016

25





As on date Remarks

3 Adopting fog generating systems in all dusty areas instead of water sprinkling such that working conditions will significantly improve.

Fog Generating System will be installed. However, the sprinkling system by sprinklers & road tankers usage for haulage dust suppression in other areas will continue as before. -Meeting with coal handling agents who are responsible to install Fog Generating System -Collecting of location plan & other description details of the plan. -Installing new AAQ Station for monitoring the particulate levels before installation of system and after installation of system & one sample per month will be collected. -Meeting on the way forward on the implementation aspect of Fog Generating System. -Erection of the System -Commissioning of the System

20.04.2015 25.04.2015 25th-30th Apr 2015 20.10.2015 20.01.2015 31.03.2016

KSPL HSE Team

15Lakhs Target Date 31.03.2016

26





As on date Remarks

4 High dust screens around coal handling facilities such that the emissions will be minimized;

Dust Screen/Wind Breaker will be installed towards ADB Road side, all along the stretch of 5th Berth Back Up area , where major portion of the coal is handled -Meeting on the Dust Screen aspect with the Coal Handling Agent erecting the screen which is presently ongoing. --Installing new AAQ Station for monitoring the particulate levels before installation of system and after installation of system & one sample per month will be collected. -Review Meeting on the implementation aspect. -Erection Completion

20.04.2015 25th-30th Apr 2015 20.06.2015 31.08.2015

KSPL HSE Team

30Lakhs Target Date 31.08.2015

5 Immediate black topping of all the haulage roads in the short term and subsequent concretizing once the soil settlement/compaction is achieved;

Black Topping of necessary Haulage Roads is under progress. Black Topping of few Haulage Roads is planned Concreting will be done based on need basis. - Inventory of the Roads Existing & Proposed (Annexure 2.5)

30.06.2015 KSPL HSE Team

2.5Crores New Target Date 30.06.2015

27





As on date Remarks

6 The proposed ETP is one of the critical aspects which need to be implemented on urgent basis given the lack of comprehensive treatment facility. KSPL confirmed that the ETP will be established by May 31, 2015

ETP Designs finalized, and expected to establish it by Oct 2015. -Wetting of Design Drawings by GM Ops of KSPL -Civil Bill of Quantities preparation -Initiation of Civil Work -Completion of Civil Work -Initiation of ETP System Erection Work -Completion of ETP System Erection Work -Commissioning of the System

05.04.2015 30.04.2015 15.06.2015 15.08.2015 01.09.2015 01.12.2015 01.02.2016

KSPL HSE Team

ETP System Cost Rs.20Lakhs Civil Work Cost for erecting the ETP Rs.20Lakhs

New Target Date 01.02.2016

7 It is essential to upgrade the STP and fully utilize the treated sewage for expanding the ongoing green belt program within the port boundaries.

Complete Revamping of STP by Painting, Pumps Replacement, Welding/Patch works where necessary, Over Shed Construction, and Cleaning of all the tanks and Re-commissioning of STP. -Finalising of Contractor/s for Revamping work -Initiation of Revamping Work -Completion of Revamping Work

05.05.2015 05.08.2015 05.11.2015

KSPL HSE Team

New Target Date 05.11.2015

8 Currently KSPL operates 8 ambient air quality monitoring stations within the port area and 2 of these stations have been recently converted in to continuous monitoring stations. The air quality monitoring efforts by KSPL are commendable. The data generated by KSPL need to be further processed to present a meaning analysis to record the improvements as well as the future actions to minimize the air pollution.

Statistical Analysis of Data will be done every quarter henceforth for all the eight stations from the financial year 2015-16, and comments or remarks for future actions to minimize the air pollution will be considered.

30.06.2015 KSPL HSE Team

28

2.14 CONCLUSIONS

60. Based on the review of the available information, reconnaissance site visits,

interactions with the KSPL officials and local fishermen community in vicinity of the port

area, it can be established that the concessionaire i.e. KSPL is adhering to the statutory

requirements as per the national and state regulations and is committed to protection of

the environment while performing its activities.

61. A random internet search also did not reveal any pending legacy issues related to the

Kakinada Deep Water Port or its operations. As part of the CSR initiatives, KSPL has also

responded to the fire emergences beyond the port area in the past.

62. KSPL however need to strength their efforts in establishing green cover in the port area

as per the conditions stipulated under the EC granted.

63. KSPL has reiterated its commitment to continue its efforts for compliance to the

requirements set forth under the environmental regulatory framework as per the proposed action

plan.

29

3 SOCIAL COMPLIANCE & ISSUES

3.1 FRAMEWORK FOR SOCIAL DUE DILIGENCE

64. The Terms of Reference for the ESDD envisage review of the following aspects as part of

Social Due Diligence

• Magnitude of land acquisition and resettlement impacts in the project;

• Outcomes of Resettlement and Tribal Development Plan implementation, if

applicable;

• Outstanding grievances and complaints, if any;

• Any court reference cases on land acquisition matters and pending compensation

payments; and

• Summary of consultations held in affected villages and with other stakeholders

during construction phase, if available and based on this, assessment of

implementation status of outcomes of public hearings/ consultations.

65. The ToR also anticipate ESDD to cover any proposal for the preparation and implementation

of a “Community Development Plan” to meet the pressing and priority needs of the villagers in

the Project Area under their CSR initiatives during the construction and operation phase.

66. In light of the anticipated due diligence requirements of the study, there are four critical

elements:

• Delineating the project area for the purpose of study and understanding the project

structure

• Assessment of development activities, the land requirements and its procurement

under the project

• Social impact of the project in the project area including achievement of recorded

community expectations as part of the public hearing/ consultation process

• Initiatives by the project developer to address the community needs as part of the

CSR Initiatives as well as integration of communities in the project development

process

67. Social Due Diligence for the Kakinada Deep Water Port (KDWP) Project has been carried

out on the basis of review of project documents and documents available in the public domain

including:

30

• Concession Agreement for Four Shore Connected Berths at Kakinada Port signed

between GoAP and ISPL, Singapore dated March 19, 1999

• Supplementary Agreement to the Concession Agreement for Four Shore Connected

Berths at Kakinada Port signed between GoAP and KSPL (SPV constituted by ISPL

in the name of Cocanada Port Company Limited and Assignment Deed signed in

favour of CCPL on April 2, 1999, CCPL was renamed as Kakinada Seaports Limited

on September 18, 2001) dated August 25, 2003

• Second Supplementary Agreement to the Concession Agreement for Four Shore

Connected Berths at Kakinada Port signed between GoAP and KSPL dated January

28, 2009

• Project Agreement dated August 10, 1990 between Asian Development Bank and

the Government of Andhra Pradesh. The loan agreement was applicable for

financing the initial development of Births 1-3 by the GoAP.

• Government Orders issued by GoAP with regard to KDWP and other Port Projects

in the State

• Report No. 3 of 2013 Government of Andhra Pradesh - Report of the Comptroller

and Auditor General of India on Economic Sector

• Environmental Impact Assessment (EIA) Report (for proposed multi-purpose berths

V, VI and VII at existing facility), April 2010 including Compliance of Public Hearing

Points

• Take-out Agreement signed between KSPL, IIFCL, State Bank of Patiala and Union

Bank of India dated July 27, 2012

• Guidelines of Corporate Social Responsibility Funds, District Collector East

Godavari District dated June 1, 2013

• PPP TOOLKIT for Improving PPP Decision-Making Processes, Ministry of Finance,

GoI, Case Study of Kakinada Port

68. The following information has been provided by the Developer with regard to the

implementation of social safeguards and the corporate social responsibility.

• Implementation Status of Compliance of Public Hearing Points as reported by the

KSPL

• Information regarding CSR activities undertaken by KSPL

69. In addition to the documents reviewed and the information provided by the Developer, the

community in the project area was contacted to understand the project impact and also the

selected CSR initiatives taken up by the Developer were visited and the beneficiary community

consulted regarding the benefits.

31

3.2 PROJECT STRUCTURE AND DELINEATION OF PROJECT AREA

70. Kakinada Port comprises of Kakinada Anchorage Port and Kakinada Fishing Harbour

(managed departmentally by the Director of Ports), and Kakinada Deep Water Port (developed

by GoAP and handed over to a private developer KSPL). The present study is limited to the

Kakinada Deep Water Port being managed by KSPL. However, from the perspective of impact

area, parts of Kakinada municipal area (mainly the fisherman colonies), Village Suryapet and

fishing harbor community falls within the immediate surroundings of the Project area (KDWP) on

the land side and Hope Island fisherman community on the water side. The major interventions

made as part of the community development activities under the CSR concentrate on these

areas.

The GOAP recognized the importance of port development due to major developments in power

sector, industrial development, agricultural activities, fisheries development and mineral

exploitation etc in light of the initiation of liberalization process in the Indian economy in early

1990’s. Kakinada Deep Water Port (KDWP), located in East Godavari District and comprising

three berths and other related infrastructure, was developed by GoAP between 1993 and 1996.

GOAP decided to operate the three existing shore connected berths, develop and operate one

more berth contiguous to the existing three berths and perform certain aspects of operation

maintenance and management of common facilities of the entire port through private

participation.

71. The Government of Andhra Pradesh had initiated the process for privatization of Kakinada in

1994 and finally the process could be successfully culminated in March 1999 with the award of 3

+ 1 berths at KDWP to the International Seaports Pte Limited, Singapore (ISPL) consortium, led

by Larsen & Toubro (India) Ltd., on Operate, Maintain, Share and Transfer (OMST –for three

berths)/Build Operate, Share and Transfer (BOST- for fourth berth) basis. Posts signing of

Concession Agreement in March 1999, the project facilities at existing three births for operations

were handed over to the SPV and the operations were commenced by the SPV with effect from

April 1, 1999.

72. As per the Concession Agreement, the development was envisaged to be completed in two

phases. The Phase 1 Development included making the existing three berths fully developed for

cargo handling, storage etc and Phase 2 development involved construction of the fourth berth

(300 meters long) contiguous to South of the three berths and providing of cargo handling and

storage arrangements and other associated facilities. The developer was required to prepare

plan for execution of Phase 2 Development (addition of fourth berth) on achievement of berth

occupancy of 65% for a year and complete the execution within 24 months of its

commencement. The Fourth Birth was commissioned in March 2008.

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73. KDWP project was amongst the first private sector port projects in the country and was

launched at a time when such experience was not available in the country related to Concession

Agreements for the Port Projects and also in terms of defining the risk sharing mechanisms.

Based on the experiences gained during the execution of Agreement, several issues were

identified in the Concession Agreement including the ones emerging due to policy changes and

signing of concession agreement for other ports. In view of factors affecting the viability of the

project (primarily due to the non-realization of estimated traffic and the high component of MGA

that the developer had to pay to GoAP and the advantageous position for the other Competitor

Port Operators who entered agreements at later dates with different terms and conditions of the

Concession Agreement), several discussions and negotiations took place between the GoAP

and KSPL based on which two supplementary agreements to the original concession agreement

have been signed during 2003 and 2009 respectively.

74. The major changes as mutually agreed between GoAP and KSPL include revision in

concession period, freedom for future development, revisions in revenue sharing and removal of

minimum guarantee provisions, revision in provisions related to requirement of additional lands.

Following the amendments in the Concession Agreement in 2009, KSPL initiated the process for

3 additional births, out of which two additional berths (fifth and sixth berths) were commissioned

in 2011-12 and the seventh is under commissioning.

Figure-3.1: Master Plan for Kakinada Port for Land use and Water Front (2020)

75. Figure-3.1 shows the Master Plan for Kakinada Port for Land use and Water Front (2020)

prepared by the Government of Andhra Pradesh, which clearly shows that majority of the Port

related activities are concentrated on the eastern side of the Samalkota-Kakinada Bypass

Berth-1 to 4 Phase-1 and Phase-2

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except for a narrow strip of proposed activities on the western side of the road. The Outline of

the Master Plan area (red outline) has been superimposed on the google earth image along with

demarcation of existing KDWP boundary of development (blue outline) in Figure-3.2. The

chronological development of KDWP over a period of 2005 to 2014 is already explained in

Section 1.1 also clearly shows that majority of the development has started coming up post

2009.

Figure-3.2: Master Plan and KDWP Boundaries on Google Earth

76. The safeguard implementation during the construction stage as per applicable policy

provisions has been reviewed to identify any residual issues based on the information available

in public domain. The extent and scope is limited to post COD Phase-I and Phase-II activities

included as part of takeout financing by IIFCL. Being a post COD due diligence study, the focus

of the social due diligence is more on the compliance of provisions under the Concessionaire

Agreement and the prevailing national laws related to social safeguards.

3.3 LAND ACQUISITION AND RESETTLEMENT IMPACTS UNDER

THE PROJECT

77. The Project involved transfer of land under the existing Port developed by the GoAP during

the period 1993-96 which became operational in 1997 and was being operated by GoAP till it

was transferred to KSPL in 1999. The Port was built primarily in the submerged and partially

reclaimed land in the coast area falling in the jurisdictions of the Government as is clearly evident

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from Clause 3.2 of the Concession Agreement regarding the land area leased which reads as

follows:

78. “Clause 3.2: The land areas (including the submerged areas) to be leased by the GOAP to

CONCESSIONAIRE upon execution of this Agreement are indicated in Annexure C (Figure 3.3

below). The partially reclaimed area behind the three berths will be treated as land area for the

purposes of lease charges.”

Figure 3.3: Project Area as per Concession Agreement (Four Berth Terminal)

79. The Clause 3.2 of the Concession Agreement has been amended as per the Second

Supplementary Agreement signed in 2009 and now reads:

80. “The land area (including the submerged areas) to be released by the GoAP to

Concessionaire upon execution of this Agreement, area indicated in Annexure-C of the

Concession Agreement dated 19.3.1999. The partially reclaimed areas behind the three berths

will be treated as land area for the purpose of lease charges.

81. GoAP shall offer land if any available and also in future as and when any lease agreements

entered with GoAP by the port users expire (both annual and long term), first right of refusal may

be offered In KSPL, in deep water port, except the areas earmarked for ship- building units,

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fishing harbour and land being used for Government purpose." The area excluded from the

purview of the Concession Agreement is marked with green circle in Figure 3.1.

82. The issue related to land status and ownership was also confirmed during the site visit from

the Developer and the residents of surrounding fishing harbour settlement (settlement has come

up on government land) and it has been confirmed that the land under the KDWP belonged to

the government and no private land was acquired for the KDWP.

83. The Concession Agreement does not provide the exact extent of land (except the map) area

including the submerged area that was transferred to KSPL as part of initial Three Berth Port

handed over in 1999. As informed by KSPL, the GoAP had transferred about 65 Acres of land

(including submerged land) at the time of initial transfer.

84. During the process of expansion, KSPL reclaimed an area of about 360 acres and further

plans to reclaim an additional 153 acres for future developments, which can be seen in Figure

3.4 below.

Figure-3.4: Layout of KDWP including Future Berths

85. Clause 2.25 of the Concession Agreement defines the term Premises as:

“The Premises means and includes (1) land (including submerged land) given on lease by the

GOAP to the CONCESSIONAIRE (2) all structures and facilities constructed or provided by the

GOAP on Premises sub component (1) above; (3) land reclaimed by the CONCESSIONAIRE

during the pendency of this Agreement; (4) all structures and facilities including modifications

constructed or provided by the CONCESSIONAIRE or its sub-contractors or any other

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assignees on the Premises sub components (1) to (3) above during the pendency of this

Agreement and (5) Tugs, pilot launches and other flotilla for providing services to the ships, all

above within limits of Kakinada Port.”

86. It clearly establishes that except for the initial government land leased by the GoAP

(including submerged land), the remaining land has to be reclaimed by the Developer. Under this

project, the acquisition of land was not anticipated and hence there is no clause in the

Concession Agreement which refers to any land to be acquired and the associated

responsibilities of the Developer with regard to the social safeguards. The second important

factor is that the Concession Agreement was signed back in 1999, where the policies and

process for private port agreements were in the evolving stages. Since there was no land

acquisition involved in the project, there were no issues associated with the resettlement

impacts. Even the future expansion of births Container Zone and Cargo Zone is proposed only

through reclaimed land. Hence, no resettlement impacts are anticipated. The review of

documents available in public domain and discussions with the stakeholders clearly

reveals that there are no residual issues with regard to social safeguards implementation.

87. The subsequent Agreements for other Private Ports signed by the GoAP involving land

acquisition had provisions for the R&R package. The Government of Andhra Pradesh has come-

up with privatization guidelines to encourage the private sector in Port development. The specific

provisions related to land for private ports in the policy are:

• Government will assist in acquisition of land on payment by the investor. Wherever port

land is available, it will be provided to the parties at the rates prescribed by the

Government.

• Land required for those industries which need to be located close to a port to take

advantage of bulk handling of their materials/products, can be acquired on the basis of

feasibility report made by the investor. If the investor wants to own the land and lease out

to industries, such land can be acquired on market price under Land Acquisition Act.

3.4 COMMUNITIES IN THE PROJECT AREA - THE IMPACT

88. As can be observed from Figure-3.4, there is an existing Fishing Harbour (green boundary in

Figure-3.5) in the north of KDWP boundary which was constructed back in 1984. In addition to

the Fishing Harbour, several huts have come-up on the harbor area (yellow boundary in Map-

3.5). The fishing harbor community resides outside the land allotted to KSPL for the purpose of

Kakinada Deep Water Port (blue boundary in Figure-3.5). As per the Master Plan for the

Kakinada Port, the fishing harbor is proposed to be relocated to further north of the existing

harbor (refer Figure-3.1) beyond the proposed break water structure and the current fishing

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harbor area is proposed for future ship building activity as per the Master Plan Proposal. The

issue was discussed with the representatives of KSPL and they mentioned that decision

regarding relocation of fishing harbor is not within their purview as it falls under the Department

of Port of the state government. The operations of fishing harbor do not affect the functioning of

KDWP and they don’t intend to disturb the harbor. If the state government decides to relocate

the fishing harbor, KSPL has no controls over the decision. As per the provisions of the Second

Supplementary Agreement, “GoAP shall offer land if any available and also in future as and

when any lease agreements entered with GoAP by the port users expire (both annual and long

term), first right of refusal may be offered In KSPL, in deep water port, except the areas

earmarked for ship- building units, fishing harbour and land being used for Government

purpose". The Fishing Harbor does not fall under the purview of KSPL and hence has no

direct impact on the KSPL operations.

Figure-3.5: Fishing Harbour and Fishing Harbour Colony

89. In the initial stages of the privatization process, the stakeholder consultations were not

carried out and as a result, the two major stakeholders, i.e. the fisherman and the port workers at

Anchorage Port had lot of apprehensions with regard to loss of livelihood due to expansion of

KDWP.

90. The Fishermen working on the Fishing Harbour also had apprehensions in the initial stages

of the project regarding the likely impact on their business and livelihood. The KSPL adopted

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an approach of inclusive and participative development. It worked with the people and also

explained them about the project and assured the community of not affecting their shipping

operations for fishing. The fishing harbour operations and the port navigation channel do not

conflict each other. KSPL has not put any restrictions on fishing ships crossing the navigation

channel. The KSPL has also made a provision to get the navigation channel before any ship is

brought into the channel by using the pilot boats to avoid any risks of accidents.

91. The tender documents issued by the GoAP had made certain projections with regard to the

cargo mix that included agri centric cargo like fertilizers, oil extractions, sugar, rice and wheat

that constituted 70% of the projected volumes at the time of bid. However, there were instances

of the anchorage port workers going on strike in protest of the deep water port handling agri

commodities such as wheat. The final negotiated Concession Agreement signed with the

Developer introduced a Clause which was not in line with the original tender conditions. Clause

2.19.1 (part) clause restricted the Developer to handle cargo handled by Anchorage Port, which

reads as follows:

92. “The concessionaire would also be permitted to handle any bulk cargo of the kind not

previously or presently handled by the Anchorage Port. Further, all cargo generated exclusively

by the Concessionaire through their own efforts may be handled by the Deep Water Port.”

93. The restrictive clause affected the viability of the project and KSPL was unable to meet the

obligations of Minimum Guaranteed Amount (MGA), which resulted in financial closure for

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Phase-1 Development. After several rounds of discussions and negotiations, the government

agreed for rescheduling of payment of MGA ensuring that NPV of the amount to be paid during

the concession period remained the same in 2003 and accordingly the supplementary

concession agreement included these changes. However, even these changes did not make the

project viable and accordingly the second supplementary agreement deleted the clause related

to MGA. Annexure-3.2 provides further details of the Case Study of KDWP available as part of

PPP Toolkit on the web-site of Ministry of Finance, GoI.

3.5 PUBLIC CONSULTATIONS AND HEARING IN THE PROJECT

94. The project does not involve any land acquisition so there were no hearings related to the

land acquisition or resettlement impacts. However, as part of the EIA exercise for V, VI and VII

birth, public hearings were conducted in 2009-2010 where the community representatives had

flagged certain issues and expressed the expectations from the project for the area. The list of

issues and the response from the management along with the status of existing implementation

is enclosed as Annexure-3.1. The issues raised during the public hearing for EIA were

predominantly focused on the measures to improve the environment and employment

opportunities for the local people (discussed in next section). The other social issues raised

during the hearing was with regard to rehabilitation of fishermen who will lose their livelihood,

and it was clarified that the reclamation of land is towards the southern side of the existing port

which does not affect the fishermen livelihood in any way. The avenue street lighting for beach

road emerged as one of the key expectations in the hearing which has already been

implemented as reported.

95. Apart from the above referred Public Hearing minutes, there is no formal documentation

available regarding the specific demands from the community. The community needs for the

surrounding communities are identified more on the basis of word of mouth and then in

consultation with the local community representatives, the developer has executed various

activities under the CSR for social development. However, no formal documentation of the

consultations was being maintained.

3.6 EMPLOYMENT GENERATION AND SAFEGUARDS FOR

EMPLOYEES

96. As per the data provided by the Developer, about 400 members were employed through

construction contractor and his sub contractors during construction phase. During operation

stage, about 100 members are employed. The expansion of port activities with the creation of

additional births would result in further expansion of employment during construction and

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operation phase. As per the EIA document prepared for Births 5, 6 and 7, the total direct

employment is estimated at 600, whereas during construction phase an employment of about

1000 workers and indirect employment is estimated at 1500. KSPL is adhering to the insurance

for employees as per the provisions of the Concession Agreement and the Port requirements for

the employees. In addition, other safeguards for employees with regard to health and safety of

the employees are also being adhered to which are already discussed in Section on

Environmental Due Diligence.

3.7 CSR INITATIVES BY KSPL

97. The year-wise detail of the amount spent by KSPL towards CSR activities is given below.

98. The activities undertaken by KSPL as part of the CSR initiatives ranges from small scale

donations to trusts/ societies working for social causes to large capital intensive contribution of

equipments and vehicles for hospital as per the requirements finalised by the district

administration. The list of activities taken up by KSPL during the past 4 years along with the

amount spent on each activity under CSR is enclosed as Annexure-3.3. The District Collector,

East Godavari District issued the guidelines for implementation of CSR activities in order to

coordinate the development activities in the district. The guidelines are enclosed as Attachment -

A. The guidelines were made effective from April 1, 2013 and subsequent implementation of

CSR activities has been made as per the provisions of these guidelines. The CSR provisions

have been notified by the Ministry of Corporate Affairs (“MCA”) on February 27, 2014 giving

effect to Section 135 the new Companies Act, 2013 (“Companies Act”) dealing with CSR read

with Schedule VII (“Schedule”) of the Companies Act covering the revised list of activities and

the Companies (Corporate Social Responsibility) Rules, 2014 (“CSR Rules”), enclosed as

Attachment - B. The said Section, Schedule and CSR Rules will come into effect from the first

day of April, 2014.The CSR provision will be applicable to companies with an annual turnover of

INR 10 billion and more, or a net worth of INR 5 billion and more, or a net profit of INR 0.05

billion or more during any financial year. Companies that trigger any of the aforesaid conditions

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must spend at least two per cent (2%) of their average net profits made during the three

immediately preceding financial years on CSR activities and/or report the reason for spending or

non-expenditure. The provisions related to the monitoring are well laid out in CSR Rules

regarding the implementation of the activities planned and compliance of the reporting

requirements. Based on the information provided by the Developer and visit to some of the CSR

initiatives implemented it can be concluded that the CSR activities are being implemented as per

the statutory requirements.

99. KSPL as part of its CSR initiatives had volunteered to organize meetings with the villagers of

Fishing Harbor, Vakalpudi, and Surya Rao Peta and identify immediate interventions that require

support in meeting the pressing needs of the community with regard to the infrastructure

development in these villages. In this context KSPL has organized meeting at Gram Panchayat

office of Surya Rao Peta on Feb 17, 2015 and at fishing harbor village on Feb 18, 2015 to

identify the priorities of the local communities. The minutes of the above referred meetings are

enclosed as Annexure 3.4.

3.8 PROPOSED ACTION PLAN

100. KSPL in line with its commitment for improving the living conditions of the communities in

the surrounding villages as part of CSR initiatives plans to undertake the following activities

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based on the priorities of the village communities as discussed during the above referred

meetings:

Sl. No.

Activities identified Tentative Timeline for implementation


Remarks

1 The activities identified for implementation based on discussion with the community in SuryaRao village include For School in Suryarao pet (a) Improving toilet facility. (b) Sintex Tank (1000 liters capacity) including pipeline connections. (c) Steel Plates & Glasses for afternoon lunch (d) Improve sanitation by providing dust bins and spraying of germicide powders. (e) Improve the standards of Anganwadi Centers like repairs for the building.

31.08.2015 KSPL CSR Team

Action Plan Separately Given for Social Aspects (Village Wise) Annexure 3.5

2 The activities identified for implementation based on discussion with the community in Fishing harbor village include . a) Water distribution lines b) Improvements to toilets. c) refurbishment to the ceilings of the school to protect from heat in summers,

31.08.2015 KSPL CSR Team

Action Plan Separately Given for Social Aspects (Village Wise)

Annexure 3.5

The detailed action plan including tentative budget proposed for implementation of these

activities along with the timeline are enclosed in Annexure 3.5.

3.9 CONCLUSIONS

101. The Social due-diligence study for the KDWP project clearly shows that there is no land

acquisition involved in the project and hence no issues related to resettlement and rehabilitation.

The consultants also visited the project site along with the social and environmental experts of

IIFCL during November 2014. The objective of the visit was to get a first hand information and

understanding of the project and the safeguard and social/ community development measures

being undertaken by the developer. The site visit included interactions with the developer, review

the updated documents available with the developer regarding the project activities, understand

the project operations and also interact with the communities in the project area to understand

the social impact of the project.

• The initial parcel of three births (including submerged land) was part of the existing port

managed by GoAP admeasuring about 65 Acres handed over to KSPL in April 1999 and the

remaining entire land is only through reclamation. Based on the review of the Concession

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Agreement, documents and the available information provided by Developer, information

available in public domain and the interaction with the community, the project does not

appear to have any legacy or residual issues related to the social safeguards.

• The project did not have any negative impact on the livelihood of the communities in the

surrounding areas and in fact it has generated employment opportunities for the local people,

both directly and indirectly as confirmed through the interactions with the community in the

surrounding area. The project has helped in generating employment opportunities during

construction and operation stages of project.

• The interactions with the users of Fishing Harbour facility for catching the fishes also

confirmed that there are no conflicts in the port operation and the shipping operation. The

Developer has never stopped movement of fishing ships crossing the navigation channel and

the safety measures are adopted by the KSPL at the time of movement of any ship in the

Channel. The operations at the fishing harbour are managed by the Department of Ports.

The fishing harbour activities were also observed and it was found that both the fishing and

port activities do not conflict each other and hence no impact on the livelihood.

• The fishing harbour community in the fishing harbour area as reported are squatting on the

fishing harbour land which does not fall under the direct purview of KSPL. In addition as per

the provisions of the second supplementary agreement, “the GoAP shall offer land if any

available and also in future as and when any lease agreements entered with GoAP by the

port users expire (both annual and long term), first right of refusal may be offered In KSPL, in

deep water port, except the areas earmarked for ship- building units, fishing harbour and

land being used for Government purpose.".It clearly establishes that the state government

has exempted the Fishing Harbour area from the purview of First right of refusal for KSPL. It

does not conflict the operations of KDWP and any issue of relocation or rehabilitation of this

community does not fall in the purview and action plan of the Developer.

• The community also confirmed the positive impact the project has for the area. The

developer has helped the community living in the fishing harbour area in addressing two

major day to day needs by extending support for improvement in the school building and

daily supply of drinking water through tankers for the community living in the fishing harbour

area huts.

• The Port, being a gated complex with restricted entry due to security and safety reasons,

does not affect the only community in the surrounding areas.

• The Developer has established systems for health and safety of the staff and workers. The

Developer has taken necessary insurance for the workers.

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• The Corporate Social Responsibility activities are being undertaken as per the provisions of

the Company Act, CSR Rules and the guidelines issued by the District Administration with

regard to community development activities. The monitoring mechanisms are already in

place as per the provisions of the CSR Rules, 2014 as well as the guidelines issued by the

district administration and the implementation of CSR activities is being taken up by the

developer as per the directions of the district administration.

102. Based on the site visits observations and findings based on review of information

available in Public domain, it can be concluded that the project have no residual social safeguard

issues which could have reputational risks for the IIFCL or the World Bank.

3.10 DISCLOSURES

103. The final ESDDR report will be accepted and approved by the project developer and

endorsed by IIFCL after getting the No Objection Certificate (NOC) from the World Bank. After

approval, the report will also be uploaded for public disclosure in IIFCL’s official website as well

as Project developer’s website.

104. The action plan translated in local language for sharing with the village communities is

enclosed as Annexure 3.6 and shall be shared with the local villagers after it is approved and

ESDDR is uploaded on the developer’s website.

3.11 MONITORING BY IIFCL

105. The Developer shall submit the report on the implementation of the action plan every six

months to IIFCL, which shall be shared with the World Bank by IIFCL. IIFCL shall make annual

site visits for the purpose of monitoring the implementation of the action plans for social and

environmental aspects.

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Annexure 2-1: EC for 4th Berth & OSV

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47

48

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Annexure 2-2: EC for 5th, 6th, & 7th Berth

50

51

52

53

54

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Annexure 2-3: Water Cess Form 1

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57

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Annexure 2-4: Environmental Statement

Yearly submitted on Sept 2014

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PURPOSE AND ADVANATGES OF ENVIRONMENTAL STATEMENT STUDIES

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The Environmental statement studies serve the following three basic purposes: i) Compilation of the complete information on the operation of the industrial facility and its potential sources of pollution through technical inspection. This inspection, which is conducted at a facility, allows the activities that are programmed and entrusted to the operational branches to be carried out in order to correct the different problems detected at their source or to force conservation and maintenance measures need to prevent major pollution problems. ii) Evaluation of the conditions surrounding the industrial facility in order to estimate possible impacts, which may be caused, and the suggested recovery measures for such situations. iii) Preparation and implementation of action plans for better control of the environment, and the environmentally related industrial activities, including further developmental activities of the areas.

The primary and obvious advantage of preparation of environmental statement is to help and safeguard the environment and to substantiate compliance with local, regional and national laws and regulations, and with the company policy and standards. There can be several other benefits, the importance of which may vary from situation to situation. These benefits include

i)Reduced exposure to litigation and regulatory risk (e.g. prosecutions, penalties etc.) – facilitating comparison and interchange of information between operations or plants. ii)Increasing employer awareness of environmental policies and responsibilities. iii)Identifying potential cost – savings including those resulting from waste minimization. iv)Evaluating training programmes and providing data to assist in training personnel. v)Providing an information base for use in emergencies and evaluating the effectiveness of emergency response arrangements. vi)Assuring an adequate, up-to-date environmental data base for internal management awareness and decision making in relation to plant modification, new plants etc. vii)Enabling management to give credit for good environmental performance. viii)Helping to assist relations to authorities by convincing them that complete and effective statement are being undertaken. ix)Facilitating and obtaining of insurance coverage for environmental impairment liability. Summary INTRODUCTION: The Kakinada Seaports Limited site is on the southern part of East coast of India, 10 Km from Kakinada Town in East Godavari District. The port is commissioned and started operating from April 1999. The Plant is occupied an area of 145 acres. Environmental Audit Report is a commitment by M/s. Kakinada Seaports Limited to minimize the impact of its operations on the environment and is also committed to the principles of cleaner production and waste minimization. Environmental Audit Report is being developed in conjunction with regulatory authorities, APPCB, and is in full compliance with relevant Industry codes of practice. M/s. Kakinada Seaports Limited assigned M/s. SV ENVIRO LABS & CONSULTANTS, Visakhapatnam to provide consulting services to conduct “Environmental Statement” studies. SV ENVIRO LABS & CONSULTANTS has carried out an analysis of the activities of port affecting environment. The subject-matter of the study/analysis are:

• Process audit

• Energy audit

• Stack emissions

• Water and waste water audit

• Compliance audit

• Health and safety audit METHODOLOGY Audit programme was carried out at M/s. Kakinada Seaports Limited in 3 phases:

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1. Pre-audit activities 2. On-site activities 3. Post-audit activities

SCOPE OF ENVIRONMENTAL AUDIT The scope of Environmental Statement envisages-

� Facilitating Management Control of Environmental Practices on port’s performance, economical benefit and environmental situation,

� Assessing compliance with M/s. Kakinada Seaports Limited’s policy and standards, which would include meeting regulatory requirements.

� Develop and draw recommendations based on material, water and energy balance scenarios. � Site assessment proceeding specific questionnaires, plant surveys, interviews with the plant staff and the

specific documentation provided by the company on request have been used as work tools to carry out an environmental analysis.

� The Environmental Statement here reported has considered the activities concerning techno legal standpoints.

The subject matter of the analysis and the environmental effects connected with:

• Process Audit

• Energy Audit

• Water and Wastewater Audit

• Environmental Quality Audit

• Health and Safety Audit The work is organized according to chapters concerning the single environmental sections mentioned above, after a general description of M/s. Kakinada Seaports Limited. Based on the above scenarios, conclusion and recommendations are included.

Environmental Issues The following environmental issues are addressed in the M/s. Kakinada Seaports Limited Environmental Statement Report:

• Air Emissions – Vents

• Air – “Fugitive Emissions”

• Water & Waste water – Domestic

• Solid waste

• Noise METEOROLOGICAL INFORMATION:

The wind speed at Kakinada ranges between 5 to 15 km/hr indicating good dispersion. Wind dispersion characteristics are with 5.5% and 2.2% calm period. The predominant wind direction is from Northwest and South direction. The maximum temperature recorded is 480C, and minimum temperature recorded was 200C. Humidity ranges from 61 to 90 %. The area is prone to cyclones during rainy season, being situated near to the eastern Sea coast of Bay of Bengal.

SITE PARTICULARS

Climate conditions Annual Max Temp. 460C

Annual Min Temp. 220C

Annual Rainfall 1050 - 1100 mm

Land acquired for the Plant Total Land 205.93Acres Present Reclaimed land – 122.00 acres Green belt area – 12.25 Acres + 6acres by Sep2014

Land use and major crops Dry land scattered with shrubs.

Predominant wind direction NW

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Nearest town Kakinada

Major Settlement Kakinada

Nearest Water Bodies Nil

Hills and Mountains Nil

Ecological sensitive zones No reserved forests

No wild life sanctuaries

Historical Places Nil

Wind speed Avg., 6.16 Kmph

IMPLEMENTATION OF AUDIT The audit was performed at port site during September 2014, according to SV ENVIRO LABS & CONSULTANTS programme. Mr. KHASIM, Manager HSE of M/s. Kakinada Seaports Limited, representing port’s process development and environmental issues, functioned as contact persons for the auditors and gave valuable contributions to the audit results.

The implementation of on-site audit was conducted as follows: 1. Presentation of the port by the Managers of M/s. Kakinada Seaports Limited: i) Organization ii) Functions of each and every unit operations

iii) Layout descriptions and flow sheets, etc.,

2. Analysis of the environmental issues: Presence of authorization to water discharge, temporary dumping of waste and emissions in atmosphere, noise emissions along with the accomplishments connected with the safety and health aspects and prevention of accidents,

- Description of emissions & Air quality - Presence of hazardous wastes; - Presence of bore wells, storage facilities; - Evaluation of noise levels; - Evaluation of work atmosphere for health aspects; - Prevention, internal environment, safety;

3. Documentation concerning the audit purpose - Plant survey.

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TOPO MAP OF 10 KM RADIUS

PROCESS AUDIT M/s. Kakinada Seaports is engaged in handling /facilitating export and import of sea cargoes and contributes to the exchequer. The cargo presently being handled consists of: Import : Liquid Ammonia, Phosphoric acid, Sulphuric acid, POL, Edible Oils,

General/Project Cargoes, Wood Pulp Export : Iron Ore & General Cargo On the jetty, GSPC, Transocean, ONGC & Reliance have dedicated installations / storage areas where they keep their off-shore drilling platform materials like tools, tackles, drilling bits, rigs, store items such as pipes, valves, fittings, hoses etc and civil construction material prior to transportation to off shore platforms on the sea. PORT FACILITIES: Kakinada Deepwater Port (KDWP) currently has four multi purpose berths in operation. The berths are oriented approximately in N-S direction. The present water depth in front of berth after completion of maintenance dredging is -12.0 m chart datum. This can accommodate vessel of about 50000 DWT.

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At present the port has 2 no. mobile cranes and 12 no. forklift trucks to handle small capacity break bulk cargoes. POL and liquid cargoes are handled at the north berth and edible oil is handled at the South berth. Various Port users have installed their pipelines from KDWP berths to their shore facilities as below.

Organization Product Size

HPCL Naphtha 400/16’’

BPCL HSD 500/20’’

BPCL Furnace Oil 500/20’’

BPCL Naphtha 600/24’’

IMC POL 450/18’’

Gowthami POL 350/14’’

GFCL Ammonia (Main Line) 400/16’’

GFCL Ammonia (Pre cool line) 100/4’’

GFCL Phos / Sulfuric Acid 400/16’’

GFCL Phos / Sulfuric Acid Extension from NB to MB

400/16’’

IMC Veg. Oil 350/14’’

SSS Veg. Oil 350/14’’

NCS Veg. Oil 350/14’’

RUCHI Veg. Oil 250/10’’

CARGO HANDLING: The licensed cargos as per APPCB consent order:-

1. Cargo handling - 45,75,000 TPA North(1) 2. Iron and coal cargo handling – 9,60,000 TPA Middle(2) 3. Handling of Alumina - 8,00,000 TPA &South(3) 4. Handling of Bauxite – 10,00,000 TPA Berths Fourth berth - multipurpose berth to handle Iron ore – 20, 00,000 TPA

& coal - 15, 00,000 TPA IV Berth OSV facility: To serve offshore exploration activities in KG basin.

…………………………… TOTAL: �� 10835000 TPA i.e 10.835 Million Tons

�� Consent For Operation License Valid Upto 31st Aug 2016 for 1,2,3 Berths, OSV Berths & 04th Berth & NRW Extension Berth 5 & 6 Berths – existing licence Valid till 30th Sep 2014 and renewal under process for: 1. Coal Cargo Handling � 1.25 TPA 2. Fertilizer Handling � 2.5 TPA 3. Iron Ore Handling � 1.667 TPA …………………………… TOTAL: �� 5.417 Million Tons GRAND TOTAL LICENSED CARGO QUANTITIES: 16.252 MTPA

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PRODUCTION DETAILS FROM APRIL’ 2013 – MARCH’ 2014

Month Cargo Handling

Coal & Iron Ore Granite Blocks Other Cargo Handling

April’ 2013 437783 275116 280101

May’13 458987 214997 532341

June’13 569293 240905 595007

July’13 454792 274229 574358

August’13 336393 140175 616709

September’13 260759 196324 536760

October’13 300057 74689 631263

November’13 280619 215343 570603

December’13 532076 227555 448918

January’14 380548 216236 566097

February’14 247413 138755 487200

March’14 353512 257911 481166

Details of pipe line Connections from KDWP Jetty to Storage Terminals

Berth Organization Product Size Length (in KM)

mm / inch To Exchange pit To Terminal

NB HPCL Naphtha 400/16” 0.95 4.3

NB BPCL HSD 500/20” 1.2 4.5

NB BPCL FO 600/24” 1.2 4.5

NB BPCL Naphtha 500/20” 1.2 4.5

NB IMC POL 450/18” 1.2 4.1

NB Gowthami POL 350/14” 1.2 5.5

SB IMC Veg.Oil 350/14” 0.9 3.9

MB IMC Veg.Oil Extension from SB to MB

350/14” XXXX 0.2

SB SSS Veg. Oil 350/14” 0.9 3.7

MB SSS Veg.Oil Extension from SB to MB

200/8” XXXX 0.2

SB NCS Veg. Oil 350/14” 0.9 2.6

SB RUCHI Veg. Oil 250/10” 0.9 2.5

NB GFCL Ammonia (Main Line)

400/16” XXXX 2.7

NB GFCL Ammonia (Pre cool Line)

100/4” XXXX 2.7

NB GFCL Phos/Sulphuric Acid 400/16” XXXX 2.7

MB GFCL Phos/Sulphuric Acid Extension from NB to MB

400/16” 0.19

NB: North Berth / MB: Middle Berth / SB: South Berth

COMPLIANCE ADUIT This investigates the status of the Environmental Management systems and equipment. The complex embodies a number of measures to control oil spillage and the 125 KVA & 250 KVA & 500KVA x3 generator’s stack emissions, etc. Show cause notice received on 15th May, 2014 and respective compliance is submitted on 23rd May’ 2014.

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OIL SPILLAGE AVOIDANCE AND CONTROL PLAN M/s. Kakinada Seaports Limited handles products & Edible oils. Following precautions are taken towards prevention & management of Oil spillage if any during the discharge of oils The cargo receivers / pipe line- terminal operators are advised to use wire reinforced rubber hoses for discharge of oils. This ensures that the hoses are adequately protected normal wear and tear & abrasion during handling. The flange joints are inspected for leaks. Drip trays, sawdust, cotton rags are kept standby for attending to any accidental leaks. Discharge pressure and flow rates are continuously monitored by the vessel and the receivers to ensure that the lines are never pressurized. Continuous walkie-talkie communication is maintained by the pipeline-terminal operators to check and control oil spillage if any during discharge. Communication is also maintained between the receiving terminal and the vessel to effect emergency stop of cargo pumping in the event of a leak. The vessels are advised to comply with all international regulations and effect the mandatory precautions on cargo discharge. KSPL maintains about 400 Ltrs of OSD (Oil Spill Dispersant) and dedicated dispersing spray system on board one of its tug for quick combat of oil if any on the water surface. WATER AND WASTE WATER ADUIT: The total water requirement is 590 KLD + 155KLD Water balance scenario is developed taking into consideration of the total water drawn from raw water source which is a third party and its usage in different units, as per the water cess details submitted monthly to APPCB. ENERGY ADUIT: Adoption of cleaner and more efficient technological process geared towards greater energy efficiency and production efficiency help in preventing the loss of energy. ENERGY SUPPLY A total of 1000 KVA of power is received from AP TRANSCO, and a suitable substation also installed for this purpose. In addition a power diesel generators of 125 KVA & 250 KVA & 3x500 KVA capacities and the DO’s and DON’T’s are exhibited. Operational procedures are to be exhibited at terminal powerhouse. An Electrical / Energy audit is to be taken up by M/s. Kakinada Seaports Limited as a separate module for better clarity. However the Diesel Consumption with respect to the Electrical aspects during the year was 108595lts.

APEPDCL POWER UTILIZATION OF 2013-2014

Month

Jetty Supply (RJY -352) Contracted Demand (600 KVA)

OSV Supply (RJY -727) – Contracted demand (1000 KVA)

Running Demand (KVA)

Units Utilized (KWH) Running Demand

(KVA) Units Utilized

(KWH)

April ‘13 254.11 64069 448.50 95955

May’13 225.05 65490 540.00 107055

June’13 256.52 72034 568.50 105735

July’13 243.83 72431 628.50 118230

August’13 264.39 93664 559.50 157080

September’13 281.34 100181 598.50 159615

October’13 324.67 104910 531.00 125445

November’13 225.00 91823 628.50 159615

December’13 286.72 89700 628.50 202805

January’14 272.71 90968 513.00 138385

February’14 223.60 90210 474.90 139680

March’14 255.62 89603 443.36 139485

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GENERATOR UTILIZATION DETAILS OF 2013-2014

Month 500 KVA Generator at Jetty Substation 250 KVA Generator at Shore Substation 500 KVA Generator at OSV

No. of Running Hrs

Units Generated

Fuel Consumption

No. of Running Hrs

Units Generated

Fuel Consumption

No. of Running Hrs

Units Generated

Fuel Consumption

April ‘13 243 19120 8379 224 12352 5795 97.1 11472 4240

May’13 219 18544 7827 230 13053 6481 145.3 18336 6597

June’13 147 11264 5103 146 7481 3992 119.8 16592 5879

July’13 144 13520 5427 139 6690 3548 82.8 10464 3548

August’13 21 1472 785 26 1021 616 19.2 2304 940

September’13 71 5600 2460 65 2729 1568 80.1 10544 3845

October’13 93 6944 3137 98 4181 2277 153.7 19968 7106

November’13 63 3728 1864 51 1855 1066 48.4 4624 1994

December’13 56 5408 2107 16 541 309 32.5 4416 1643

January’14 8 368 264 17 490 324 2.5 336 142

February’14 59 1792 1418 74 2228 1302 61.5 8608 3130

March’14 31 1120 794 42 1710 933 39.9 5120 1885

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BATTERIES DISPOSED DURING 2013-14

Date Capacity of Battery

Qty Generated & disposed to recycler

Location

22.07.2013 180 AH 2 Star board Main Engine - Pilot Launch Bhima

22.07.2013 180 AH 2 Port Auxiliary Engine - Tug Jala Kanya.

22.07.2013 180 AH 2 Star board Auxiliary Engine - Tug Jala Kanya.

30.10.2013 180 AH 4 Emergency communication equipment & lighting - Pilot Launch Bhima.

30.10.2013 180 AH 2 For Emergency communication equipment & lighting - Tug Jala Tarangini.

19.03.2014 180 AH 2 500 KVA DG-1 - OSV

28.03.2014 180 AH 2 Port Generator - Tug Jala Hamsa.

MECHANICAL EQUIPMENT RUNNING HOURS IN 2013-14

S.No Month Mobile Silos

Mobile Compressors Maxsweepers Crane & Forklift

Rhrs Consumption Rhrs Consumption Rhrs Consumption Rhrs Consumption

1 April'13 223.2 114 148.9 1978 384.85 1048 63 182

2 May'13 154.4 78 108.3 1449 444.61 1145 52 163

3 June'13 274.5 139 183.9 2443 360.07 1052 91 281

4 July'13 416.9 209 192.9 2570 320.87 973 116 405

5 August'13 359.1 181 190.8 2547 423.1 1318 146 463

6 September'13 285.7 142 206.7 2766 403.38 1146 100 340

7 October'13 244.1 124 159.9 2154 112.05 396 95 324

8 November'13 254.9 119 126.2 1688 304.93 984 179 859

9 December'13 440.9 221 191.8 2591 533.74 1641 125 486

10 January'14 338.9 169 186.1 2450 528.49 1661 95 245

11 February'14 456.3 228 207.6 2755 981.51 1341 135 466

12 March'14 517.8 259 247.6 3357 859.43 1893 155 555

TOTAL 3966.7 1983 2150.7 28748 5657.03 14598 1352 4769

COMPLIANCE AUDIT INTRODUCTION “Compliance Audit” aims at investigating the status of the Environmental Management Systems and equipments vis-à-vis the regulatory requirements. Proper operation and maintenance practices helps in reducing emissions from the M/s. Kakinada Seaports Limited to arrest Environmental Quality deterioration.

AIR QUALITY AND COMPLIANCE STACK EMISSIONS M/s. Kakinada Seaports Limited has generators of 125 KVA, 250 KVA, 500 KVA and two Fire Engines. Flue gas analysis was carried out for generators and fire engines. AIR QUALITY MONITORING Ambient Air quality is monitoring at M/s. Kakinada Seaports Limited in four locations within the port area i.e., first location is at top of Customs Office Building, the second location is at top of the Control Office Building, the third location is at Top of Fire pump house and the fourth location is at Near Cairn Office for determining the parameters viz., Sulphur Dioxide (SO2), Nitrogen Oxides (NOX), Particulate Matter10 (size less than 10 um), Particulate Matter2.5 (size less than 2.5 um). In addition to the above, micrometeorological data like wind speed, wind direction, ambient temperature, barometric pressure are measured at one location. The table shows the Ambient Air Quality Monitoring (AAQM) levels for SO2, NOX, PM10, PM2.5 at 4 locations within the M/s. Kakinada Seaports Limited. NOISE LEVELS The Noise level measurements were made within the port premises of M/s. Kakinada Seaports Limited to determine the compliance with respect to ambient noise standards and results are depicted in Table. On Perusal of the results depicts the fact that the plants have been designed and built so that noise levels are well below the OSHA standards of 90 dB(A) Past record review indicated that the noise levels recorded at various locations within M/s. Kakinada Seaports Limited range from 50 to 75 dB(A).

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BACKGROUND NOISE LEVELS AT

M/S. KAKINADA SEAPORTS LIMITED

Sl. No.

Location

RESULT

Day dB(A) Night dB(A)

1. OSV – Berth I 70.0 66.5

2. OSV – Berth II 69.2 63.9

3. Near Sub Station 72.3 66.6

4. Outside of DG Set Room 71.9 69.0

5. OSV Gate 69.9 63.2

STANDARD 75.0 70.0

WATER AND WASTEWATER ADUIT INTRODUTION Water and wastewater audit conducted at M/s. Kakinada Seaports Limited aimed at evaluation of raw water intake facilities, performance evaluation of existing facilities for Domestic & Drinking purposes. Development of Water Balance Scenario The total water requirement is 590 KLD + 155KLD Water balance scenario is developed taking into consideration of the total water drawn from raw water source and its usage in different units of the M/s. Kakinada Seaports Limited. M/s. Kakinada Seaports Limited does not have any product-related industry. The main function is to receive or export products such as Liquid Ammonia, Phosphoric Acid, Sulphuric Acid, edible oils and Generals. In M/s. Kakinada Seaports Limited potable water is stored in tanks. WATER & WASTE WATER MONITORING Water and wastewater monitoring, samples will be collected regularly by the M/s. Kakinada Seaports Limited for the following:

1. Raw water quality 2. Liquid effluent - Domestic

Characteristics of water, wastewater and soil samples are analyzed and results are formulated in tables, results reveals that all the concentrations are within the stipulations of CPCB and APPCB Specifications. SAMPLE PARTICULARS : SOIL ANALYSIS SOURCE OF COLLECTION : Soil 1. Opp. to Canteen DATE OF SAMPLING COLLECTION : Sep 2014 Analysis Soil Samples

S.No. Parameter Unit Concentration

1. pH -- 7.26

2. Conductivity µ mhos 40

3. Sodium as Na Meq/100gm 0.28

4. Potassium as K Meq/100gm 0.21

5. Calcium as Ca Meq/100gm 1.10

6. Magnesium as Mg Meq/100gm 1.23

7. Total Kjedahl Nitrogen as N % BDL

8. Phosphates as P mg/kg 0.072

9. Sulphates as SO4-- mg/kg 0.002

10. Nitrate as N % BDL

Available Metals

11. Zinc as Zn mg/kg 0.003

12. Copper as Cu mg/kg 1.31

13. Iron as Fe mg/kg 10.44

14. Manganese as Mn mg/kg 8.22

Note: BDL denotes below detectable level

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SAMPLE PARTICULARS : SOIL ANALYSIS SOURCE OF COLLECTION : Soil 2. Near Technical Office DATE OF SAMPLING COLLECTION : Sep 2014 Analysis Soil Samples

S.No. Parameter Unit Concentration

1. pH -- 7.30

2. Conductivity µ mhos 43

3. Sodium as Na Meq/100gm 0.34

4. Potassium as K Meq/100gm 0.30

5. Calcium as Ca Meq/100gm 1.13

6. Magnesium as Mg Meq/100gm 0.72

7. Total Kjedahl Nitrogen as N % BDL

8. Phosphates as P mg/kg 0.072

9. Sulphates as SO4-- mg/kg 0.003

10. Nitrate as N % BDL

Available Metals

11. Zinc as Zn mg/kg 0.005

12. Copper as Cu mg/kg 1.13

13. Iron as Fe mg/kg 11.14

14. Manganese as Mn mg/kg 9.02

Note: BDL denotes below detectable level HEALTH AND SAFETY AUDIT Kakinada Seaports Ltd has been undertaking inspection and evaluation of health and safety parameters as would be generally be relevant and appropriate for Port operations. Essentially it covers the following:

1. Systems to identify hazards. 2. Corrective actions with respect to prevention, control & containment. 3. Compliance with standard safety norms and practices.

With regards to Health and Safety, We carried out an audit of the systems, procedures and activities and the details are as under: HEALTH AND SAFETY AUDIT DETAILS:

• Covering of pits, openings in the floors & open yards have been found satisfactory,

• The general safety was found good. Safety equipment have been positioned at various level in the utility areas,

• The electrical equipment, cables have been designed properly with enough safety margin and there is no possibility of overloading or overheating,

• The statutory requirements of earth resistance monitoring & other electrical checks are being done scrupulously and records maintained properly,

• Properly tested gloves are made available for working personal,

• Fire fighting pumps, power supply are independent of shore electric supply & have back up genset power,

• Accident report form for reporting electrical accidents is available and to be reported within 24 hours,(till date accidents are Nil)

• On perusal of M/s. Kakinada Seaports Limited documents, it was observed that the statutory and legal aspects are being fulfilled.

Reporting and Review The Management of M/s. Kakinada Seaports Limited routinely report to the A.P. Pollution Control Board on the progress of improvement of Environmental aspects. The follow-up action to the Environmental Statement will be reviewed annually by M/s. Kakinada Seaports Limited, to assess progress and provide input to future improvement goals actions. ACCIDENT REPORTING Any accident small or high will be simultaneously reported to following in that order;

• KSPL Jetty Office : Tel 2354170, 2368246, 2349619

• Security Gate :9866556710

• Fire –Pump house : 9000552515

• Ambulance : 7702544401

• GM Operations (Designated Officer) : 9866556688

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Whosoever among the above receives first information of accident, will inform others over phone. They will immediately rush to the spot, as quickly as possible. The person noticing the accident will identify:

i. Spot of the accident ii. Cause of accident iii. Seriousness of accident.

According to Hazardous Chemicals (management & handling) rules of 1989 promulgated by Govt. India, it is mandatory for KSP management to:

• Identity major accidents / hazards and outline steps to be taken to avoid such accidents.

• Notify State Pollution Control Board authorities & Inspectorate of Factories, in the event of any accident.

• Submit a safety report to State Pollution Control Board. Protocol for accident reporting will be adopted to ensure compliance with above said rules. Each and every accident, however small it may will be reported and investigated. Accident report will contain a detailed description of the incident and identify immediate cause. Accident report will also incorporate information on steps taken to prevent such accidents in future, impact on accident, if any on the environment and cost estimate of loss. In order to evaluate overall safety performance and to draw action plans to improve safety. OCCUPATIONAL HEALTH/INDUSTRIAL HYGIENE Spillage of Oil content at Work Place Spillages of Oil content at work Place are virtually nil, as M/s. Kakinada Seaports Limited is well maintained and leaks are minimum. Personal Protective Equipments During our on –site studies it was observed that all types of personal protective equipments, fire proximity suits, all type of hand gloves safety helmets/safety shoes etc are maintained. FIRE PREVENTION AND PROTECTION SYSTEM

LIST OF FIRE FIGHTING FACILITIES AT KAKINADA SEAPORTS PVT. LIMITED

Fire Pumps:

Description Qty Make Make of Drive Drive HP

Disch. Pressure

Disch. Rate Total Head

4 stage vertical turbine

2+1 WPIL 2 nos Engine 230

(Cummins) 8.8 Kg/cm2 410 m3/Hr 96 m

1 no. Motor 220

Jockey Pump 1 no WPIL Motor driven 30 8.8 Kg/cm2 30 m3/Hr 88 m

Cooling Pump 1 no Kirloskar Motor driven 7.5 30 m3/Hr 35 m

Hydrants, Monitors & Water Curtains

Description Qty Size Type Rate Range Rotation Operation

Single head Hydrants

12 63 mm Female Oblique

900 LPM Manual

Double head Hydrants

5 63 mm 1800 LPM Manual

Ground Monitors 4 75 NB

Stand post fixed installation

2580 LPM 60 meters at 7 kg/cm2

H - 3600

V-+85–650 Manual

38 nozzle

Tower Monitors 2 200 NB Monitor Trigger Teo

3000 LPM 51 meters at 7 kg/cm2

H - 3600

V-+85–650 Remote/ Electrical 135nozzl

e

Water Curtains 2 100 ND Jumbo 3000 LPM 33mHorizontal 11 m vertical

Electrical

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Branch pipes (Nozzles):

Description Qty Type of Nozzle Nozzle Bore Nominal Bore

Instaneous male end 13 Jet Type 20 mm 63 mm

Universal (Dual Type) branch pipe

4 Jet & Spray type 108 mm 63 mm

Reinforced Rubber Lined hoses Size: Dia 63mm X 15 M long : 34 Nos. Fibre Reinforced Plastic Hose Boxes : 17 Nos. Portable Fire & Safety Equipment:

1. Dry Chemical Power Extinguishers 75 Kg : 4 Nos. 2. Dry Chemical Power Extinguishers 10 Kg : 4 Nos. 3. Carbon dioxide type Extinguishers 4.5 Kg : 21 Nos. 4. Mechanical Foam type Extinguishers 9 Lts : 21 Nos. 5. AFFF (Aqueous Film Forming Foam) Foam tanks : 2 Nos. Each 3000 Liters 6. Fire Entry suits : 2 Nos. 7. Fire Proximity suits : 10 Nos. 8. Breathing Apparatus : 4 sets Siren: Horizontal Double mounting type Range 5 Kilometers.

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PETTY INCIDENT/NEAR MISS/ACCIDENT REPORT FOR THE YEAR OF 2013 - 2014

S. No: Description MONTH & YEAR

Apr - Jun Jul - Sep Oct - Dec Jan - Mar

2013 2013 2013 2014 TOTAL

1 Petty incidents 9 6 8 4 27

2 Near Miss 4 3 7 5 19

3 Accidents:

a) Minor 6 8 4 9 27

b) Major

TOTAL

19 17 19 18 73

PETTY INCIDENT/NEAR MISS/ACCIDENT REPORT FOR THE YEAR OF 2014

S. No: Description MONTH & YEAR

Apr - Jun Jul - Sep

2014 2014 TOTAL

1 Petty incidents 3 2 5

2 Near Miss 1 2 3

3 Accidents:

a) Minor 4 3 7

b) Major

TOTAL

8 7 15

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Fire Watch & Ward 2013-2014

Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total

No. of diesel bunkerings 99 129 126 144 498

Hot works 66 81 89 86 322

Hazardous cargo Vessels 24 50 50 30 154

Fire Watch & Ward 2014-2015

Apr-Jun Jul-Sep Oct-Dec Jan-Mar Total

No. of diesel bunkerings 107 114 221

Hot works 81 105 186

Hazardous cargo Vessels 35 31 66

S. No: NAME

DESCRIPTION OF THE TRAINING/TOOL BOX

CONDUCTED

No's Participants No's Participants No's Participants No's Participants No's Participants

1 Granite hooking labour 126 1015 110 1042 90 598 64 593 390 3248

2 Coal handling labour 15 147 9 77 12 140 46 232 314 596

3 Bentonite handling labour 10 108 1 9 6 49 17 164 34 330

4 CP Coke handling labour. 1 15 6 51 3 30 0 0 10 96

5 Wood pulp handling labour. 3 30 4 33 2 16 0 0 9 79

6 Wheat handling labour. 1 7 0 0 3 31 9 94 13 132

7 Ballclay handling labour. 1 7 0 0 2 16 0 0 3 23

8 Fertilizer handling labour. 3 26 4 27 13 128 9 75 29 256

9 Feldspar labour 1 12 5 58 1 9 0 0 7 79

10 Lime stone handling labour 0 0 1 6 0 0 0 0 1 6

11 Wood handling labour 0 0 4 38 1 7 6 49 11 94

12 cement clinker handling labour 0 0 0 0 7 65 9 74 16 139

13 Soda ash labour 0 0 0 0 0 0 2 23 2 23

14 Tool box conducted at other yards 0 0 0 0 0 0 6 49 6 49

TOTAL 161 1367 144 1341 140 1089 168 1353 845 5150

MONTH & YEAR

TOOL BOX TALK 2013 - 2014

April - June

TOTAL

July - Sep

20132013

Oct - Dec

2014

Jan- Mar

2014

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TOOL BOX TALK 2014 - 2015

S. No: NAME MONTH & YEAR

DESCRIPTION OF THE TRAINING/TOOL BOX April - June July - Sep TOTAL

CONDUCTED 2014 2014

No's Participants No's Participants No's Participants

1 Granite hooking labour 36 259 95 1427 131 1686

2 Coal handling labour 34 189 27 313 61 502

3 Bentonite handling labour 15 114 4 32 19 146

4 CP Coke handling labour. 3 32 0 0 3 32

5 Wood pulp handling labour. 0 0 1 12 1 12

6 Wheat handling labour. 0 0 0 0 0 0

7 Ballclay handling labour. 0 0 1 20 1 20

8 Fertilizer handling labour. 10 82 16 167 26 249

9 Feldspar labour 0 0 8 114 8 114

10 Lime stone handling labour 0 0 3 32 3 32

11 Wood handling labour 4 36 2 17 6 53

12 Cement clinker handling labour 7 64 8 101 15 165

13 Soda ash labour 0 0 4 50 4 50

14 Tool box conducted at other yards 6 55 0 0 6 55

TOTAL 115 831 169 2285 284 3116

Mock Drills 2013-14

S.No Mock Drill Description

1st

Quarter April to June

2nd

Quarter July to September

3rd

Quarter October to December

4th

Quarter January to March

Total

No.’s Participants No.’s Participants No.’s Participants No.’s Participants No.’s Participants

1 Hose Drill 01 15 01 10 01 09 02 34 05 68

2 Portable Fire Extinguishers 04 57 --- --- 04 69 05 182 13 308

3 SCBA --- --- 01 07 --- --- 01 29 02 36

4

Hydrants, Monitors & water curtains

--- --- 01 11 02 30 03 126 06 167

5 Ammonia Leak Rescue --- --- --- --- --- --- 01 11 01 11

6 fire drill with fire Tender --- --- --- --- --- --- 01 28 01 28

Total 05 72 03 28 07 108 13 410 28 618

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Mock Drills 1st & 2nd Quarter 2014

S.No Mock Drill

Description

1st

Quarter April to June

2nd

Quarter July to September

3rd

Quarter October to December

4th

Quarter January to March

Total

No.’s Participants No.’s Participants No.’s Participants No.’s Participants No.’s Participants

1 Hose Drill 05 71 01 43 --- --- --- --- 06 114

2 Portable Fire Extinguishers 07 89 07 162 --- --- --- --- 14 251

3 SCBA --- --- 01 13 --- --- --- --- 01 13

4

Hydrants, Monitors & Water curtains

02 24 02 43 --- --- --- --- 04 67

5 Ammonia Leak Rescue --- --- 01 31 --- --- --- --- 01 31

6 fire drill with fire Tender 05 81 04 69 --- --- --- --- 09 150

7 Oil spill Boom laying --- --- 01 13 --- --- --- --- 01 13

8 Smoke Detection

--- --- 02 28 --- --- --- --- 02 28

19 265 19 402 --- --- --- --- 38 667

Fires Attended for the period of 2013 - 2014

Fires Attended Inside Port Outside Port Total

Minor Major Minor Major Minor Major

1st Quarter Apr to Jun 01 03 -- 01 01 04

2nd Quarter Jul to Sep 04 -- -- -- 04 --

3rd Quarter Oct to Dec -- 02 -- 01 -- 03

4th Quarter Jan to Mar 02 01 01 02 03 03

Total 07 06 01 04 08 10

Fires Attended for the period of 2014 - 2015

Fires Attended Inside Port Outside Port Total

Minor Major Minor Major Minor Major

1st Quarter Apr to Jun 07 -- -- -- 07 --

2nd Quarter Jul to Sep 04 01 01 04 05 05

3rd Quarter Oct to Dec -- -- -- -- -- --

4th Quarter Jan to Mar -- -- -- -- -- --

Total 11 01 01 04 12 05

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GREEN BELT Green belt developed till 2012-2013 was about 12acres and for 2013-14 another 0.25acres added to the Green Belt and by Sep 2014 about 06 acres more Green Belt Developed. Plants of native origin, first growing type with thick canopy and large leaf index shall be preferred. The philosophy behind the green belt developed at M/s. Kakinada Seaports Limited is to improve the ecology and environment of the surrounding of the plant by extensive afforestation. Appropriate planning techniques have been adopted in selected areas. Greenbelt is a set of rows of trees planted in such a fashion, to create effective barrier between the port and surroundings. The greenbelt helps to capture the fugitive emissions, attenuate the noise levels in the port and simultaneously improving aesthetics of the port site. The greenbelt around the factory compound wall in the reserve site will be developed in keeping view of the following objectives:

1. Planting of trees in each row are in staggered pattern. 2. The short trees are planted in the first two rows and the tall trees in the outer rows around the purview of the project site. 3. Since the trucks of the tall trees are generally devoid of foliage, it will be useful to have shrubs in front of the trees so as

to give coverage to this portion. 4. Sufficient spacing is maintained between the trees to facilitate effective height of the greenbelt. The photographs of already completed Green Belt, Ongoing & Proposed areas are depicted in the subsequent pages.

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MINISTRY OF ENVIRONMENT AND FORESTS NOTIFICATION New Delhi, the 22nd April, 1993

G.S.R. 386(E) – In exercise of the powers conferred by sections 6 and 25 of the Environment (Protection) Act, 1986 (29 of 1986), the Central Government herby makes the following rules further to amend the Environment (Protection) rules, 1986, namely:- 1. (a). These rules may be called the environment (Protection) Amendment rules, 1993. (b). They shall come into force on the date of the their publication the Official Gazette. 2. In the Environment (Protection) rules, 1986:- (a). in rule 14 – i). For the words “audit report” wherever they occur, the word, “Statement” shall be substituted. ii). For the figures letters and words “15th day of May” the words “30th day of September,” shall be substituted. (b). In Appendix ‘A’ for FORM V. the following from shall be substituted, namely :- “FORM V” (See rule 14) Environmental Statement for the financial year ending the 31st March 2014 PART A i. Name and Address of the Owner Occupier of the industry operation of process – M/s. Kakinada Seaports Limited, Beach Road, Kakinada – 533 305. E.G.Dt., A.P. ii. Industry category Primary (SIC Code) Secondary – (SIC Code) iii. Production capacity – Enclosed as annexure iv. Year of establishment - 1996 v. Date of the last environmental statement submitted- September 2013 PART - B Water and Raw Material Consumption

(i). Water Consumption: Explained under water Requirement Process - --- Cooling - --- Dust suppression - 500 KLD +100KLD Gardening/irrigation - 70 KLD Domestic: - 20 KLD+55KLD

Name of Product Process water Consumption per unit of

Product Output During the previous During the Current financial year financial year

(1) (2) (1) Cargo Handling 45, 75,000 TPA As per pg no.9 above (2) Iron & Coal Cargo Handling 4460000 TPA (3) Alumina handling 800000 TPA (4) Bauxite handling 1000000 TPA There is no process water consumption Raw Material Consumption: Explained under Raw material consumption *Name of Raw Name of Consumption of Raw Material per Materials Products unit of Output During the Previous During the Current

Financial Year financial year

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There is no Raw Material consumption. It is only Cargo Handling Seaport. *Industry may use codes if disclosing details of raw materials would violate contractual obligations; otherwise all industries have to name the raw materials used. PART – C Pollution discharged to environment/unit of output (parameters as specified in the consent issued) Explained under water management pollutants Quantity of pollutants Concentrations Percentage of

Discharged(mass/day) of Pollutants Variation from In Discharges prescribed (mass/day) Standards with Reasons a) Water Domestic effluents Analysis Report s enclosed

b) Air Air Quality Analysis Report s enclosed PART – D HAZARDOUS WASTE (as specified under Hazardous Wastes/Management and Handling rules, 1989) Hazardous Waste Total Quantity (kg) During the Previous During the current Financial year financial year (a) From Process No Hazardous No Hazardous (b) From Pollution waste generated waste generated

Control facilities Waste oil generated from generators are being using for lubricating the machinery. As per Form-4, 300LPA during current year

PART – E SOLID WASTE Total Quantity During the Previous During the Current Financial year financial year (a) From Process - No process Solid waste generated, however domestic solid waste generated (b) From Pollution Control facilities 130640kgs (c) i) Quantity recycled or reutilized within the unit ii) Sold

iii) Disposed � Domestic Waste used for filling Low Lying area within port, however KSPL is permitted for Municipal Dumping of the Domestic waste Generated.

PART – F Please specify the characterizations (in terms of composition and quantum) of hazardous as well as solid wastes and indicate disposal practice adopted for both these categories of wastes.

� There is no solid waste generated in the plant � Waste oil generated from generators is being used for lubricating the machinery parts.

PART – G Impact of the pollution abatement measures taken on conservation of natural resources and on the cost of production.

� It is not a production unit. There are no fugitive emissions from the plant. The pollution abatement measure is mainly linked to dust suppression by water sprinkling, which will further improve the surrounding Air Environment, whereas for development of natural resources, the green belt is continuous developed throughout the port premises.

PART – H Additional measures/investment proposal for environmental protection including abatement of pollution, prevention of pollution.

- Using of Dust Sweeping Machine - Water sprinklers at all transfer and fugitive emission sources. - Controlling of Vehicular Speed - Tarpaulin arrangement for Vehicles.

- 83 -

PART –I Any other particulars for improving the quality of the environment. A Green belt area of 12.25 acres developed through out the port area, and further being enhanced as a continuous process. APPLICABLE ENVIRONMENTAL LAWS APPLICABLE ENVIRONMENTAL REGULATIONS

The following statutory requirements applied in the state of Andhra Pradesh have been taken into consideration:

1. Water (Prevention & Control of Pollution) Act, 1974 and the rules made thereunder. 2. Water (Prevention & Control of Pollution) Cess Act, 1977 and the Rules made there under. 3. Air (Prevention & Control of Pollution) Act, 1981 and the rules made there under. 4. Environment (protection) Act, 1986 and the rules made there under. 5. Hazards Waste (Management & Handling) rules, 1989. 6. The public liability Insurance Act, 1991 and the rules made there under. 7. The factories Act 1948 with the Andhra Pradesh State rules.

The competent authorities in the application of the mentioned set of statutory requirements (1 to 6) are the “Andhra Pradesh Pollution Control Board (APPCB) whose headquarters is in Hyderabad and its regional and sub-regional branches are all over the State.

• The APPCB Engineers/Scientists during their surveys collect samples of the industrial discharges/emissions after the treatment to be analyzed in their own labs.

• The results of the analytical reports are sent to the M/s. Kakinada Seaports Limited. The M/s. Kakinada Seaports Limited has been authorized to water discharging, noise and emissions in atmosphere.

• The extensions of the mentioned authorizations have been requested when expired.

• The M/s. Kakinada Seaports Limited has shown that compliance is important to it, displaying a willingness to accept guidance from A.P. Pollution Control Board in this matter.

• The industry has demonstrated in the past its ability and commitment to work closely with A.P. Pollution Control Board staff to meet environmental requirements.

- 84 -

Annexure 2-5: Status of Road Network –

Port Area

KAKINADA SEAPORTS LIMITED KAKINADA

CATEGORY WISE LENGTH OF ROAD UNDER Minor Ports Format No. 1-A Name of the state: ANDHRA PRADESH As on 31st March, 2015 (In Kms)

Type of Road Total Length

(5+8)

Surfaced Un Surfaced

WBM BT/CC Total (3+4)

Motorable

Non Motorable Total (6+7)

1 2 3 4 5 6 7 8

Minor Ports Roads

4.55

B.T. 9.085KM C.C. 0.66KM

−

−

−

Total 14.295KM 4.55 9.745KM 14.295KM − − −

BT/CC = Black Top/Cement Concrete WBM = Water Bound Macadam

B.T. ROADS

S. No Name of Roads Length Conditions

1 OSV gate entrance road 530M Good working condition

2 4th berth gate entrance 770M Some settlement ditches are there, they are to be rectified

3 Direct access road(Main entrance road) 955M Good working condition

4 North road 900M Good working condition

5 Middle road 1000M Some pot holes are there, to be frectified

6 Cross road 500M Some pot holes are there, to be rectified

7 Middle yard road 450M Some pot holes are there, to be rectified

8 Semi cross road 30M Pot holes are there, to be rectified

9 South ramp road 200M Pot holes are there, to be rectified

10 Jetty west side road 580M Working condition

11 Jetty 4M road 610M Working condition

12 Cresent road 200M Working condition

13 North yard plots road 300M Working condition

14 NFCL unused road 120M Working condition side berms at bell mouth to be laid

15 R&D yard west side 180M Working condition

16 R&D yard Road No-1 80M Working condition

17 R&D yard Road No-2 120M Ditches formed at bell mouth areas, to be rectified

18 R&D yard Road No-3 160M Working condition

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19 East side in Spur-V Road 350M Working condition

20 OSV Pipe line corridor road 370M Working condition

21 Approach to Ex. GSPC Yard 120M Working condition

22 Opposite to Transocean yard 150M Working condition

23 Opposite to SKL Godown 100M Working condition

24 OSV - 2 Approach road 310M Working condition

9085M = 9.085 Km

W.B.M ROADS


1 OSV-II approach road 310 M Some ditches are there, to be rectified

2 North side in Spur-V 400 M Working condition

3 East side in Spur-V (by the side of NS2 Bund road)

350 M Working condition

4 Middle yard road in 4th Berth Backup area 720 M Working condition

5 Cresent road to 4th Berth approach road in 4th Berth Backup area

120 M Working condition

6 5th & 6th Berth East Road 600M Working condition

7 5th Berth South Road 900M Working condition

8 6th Berth South Road 1000M Working condition

4400M = 4.4 Km

- 86 -

C.C. ROADS


1 In front of Ware House at Middle Jetty South 80 M Working condition

2 Back side of Ware House No-1 (North) 80 M In some places water is stagnating

3 B.J bulk plant side road 50 M Working condition

4 Opposite warehouse No-2 50 M Working condition

5 Semi cross road 170 M Working condition

6 U-Bend road 120 M Working condition

7 6 Road junction 30M Working condition

8 U- Turn Near Control room 35M Working condition

9 Rock Bund Road 15M Working condition

10 4th Berth Gate 30M Working condition

660M = 0.660 Km

- 87 -

Annexure 2-6: CFO Certificate

- 88 -

- 89 -

- 90 -

- 91 -

- 92 -

Annexure-3.1: Public Hearing under EIA

Sl.

No.

Issues raised by the Public Compliance from Industry (as

in EIA document)

Implementation Status (as

reported by the Developer)

1 Sri. G. Srinivas, Sarpanch, Vakalapudi,

Kakinada welcomed the project and he

expressed that there will not be much

pollution problems due to this project is

away from habitation and further

requested the management to address

the safety and occupational health

problems of workers working in the port

and to provide employment to the

fishermen community who have lost

their livelihood.

Shri Y.S. Prasad, CEO, KSPL

stated that at present the port

management is conducting the

health checkups of the workers by

utilizing the services of specialists

in Apollo Hospital and same will

be continued

At present the port management is

conducting the health checkups of

the workers working in the port and

no fishermen have lost their

livelihood due to port development.

2 Sri. K. Satyanarayana, Sarpanch,

Suryaraopeta welcomed the project

and requested the Govt. to take

remedial action over the surrounding

industries causing air pollution and ash

nuisance. Further requested the port

authorities to allow fishermen to catch

fish in the ocean and also requested to

modify the park located adjacent to the

port.

The management responded

positively and assured to

complete the task.

The surrounding industries causing

air pollution and ash nuisance is

beyond KSPL purview, and KSPL

has no control over fishermen to

catch fish in the ocean and there is

absolutely no objection from KSPL

over fishermen to catch fish in the

ocean. At present there is no park

located adjacent to the port to

modify.

3 Sri P.V.V. Satyanarayana, Sarpanch,

Indrapalem welcomed the project and

he requested the port management to

take precautions in disposing the

dredged material and to take care of

health needs of workers, people and

fishermen.

The management stated that the

generated dredged material will

be used for back up area

development and part will be

disposed at designated dumping

site near Uppada in the sea.

The generated dredged material

partly used for back up area

development and part disposed at

designated dumping site near

Uppada in the sea.

4 Sri. G. Srinivas, Sarpanch, Vakalapudi,

welcomed the project and suggested to

provide rehabilitation to the fishermen

living in fishing harbour.

The management clarified that the

construction of new births is

proposed to take place in the

southern side and as such no

rehabilitation is required

The construction of new berths

took place in the southern side and

no rehabilitation was required.

5 Sri. K. Parameswar Rao, Kotha

Kakinada, welcomed the project and

requested the Govt. to take measures

to control pollution due to the

surrounding oil units.

---- Positive Response –

Implementation Status Not

Applicable in this regard.

- 93 -

Sl.

No.

Issues raised by the Public Compliance from Industry (as

in EIA document)

Implementation Status (as

reported by the Developer)

6 Sri. G. Gurraju, Sarpavaram Junction,

welcomed the project and he was

happy with the measures taking by the

port like dust suppression through

water sprinkling.

The management stated that

presently port is having dust

sweeping unit, sprinklers for dust

suppression and tankers for road

wetting and further assured to use

sophisticated methods to control

pollution

Positive Response –


Applicable in this regard. Anyways

Management has procured an

additional dust sweeping machine.

7 Sri. Venkateswara Rao, Kakinada,

welcomed the project and stated that

the project is providing employment to

many people and requested to provide

avenue lighting system in the Beach

road.

The management assured to

provide employment to the local

people to the most extent.

Solar Lights provided on ADB

Road, and maintaining the same.

8 Sri. P. Adinarayana, Jagannaickpur,

welcomed the project and requested

the management to protect the

environment besides providing

employment.


protect the environment by

takingup more avenue plantation

along both sides of the road

Positive Response –


Applicable in this regard, Anyways

the management is committed to

protect the environment by

adopting all feasible environment

friendly aspects.

9 Sri. G. Soma Raju, Ex. MPTC,

Suryaroapeta, welcomed the project

and expressed unhappiness over the

pollution caused by oil units and

requested the port to provide

employment to the locals.


provide employment to the local

people to the most extent.

The management provides

employment to the local people to

the most extent.

10 Sri. Dasari Sattibabu, Komarigiri,

welcomed the project and dismay over

not providing of employment and

requested the management to provide

free power and to adopt the village.

The management assured that

the employment preference will

be given to the local people only.



the most extent.

11 Sri. Bhargav, Kakinada, welcomed the

project and requested the management

to provide employment to all the skilled

people in the area. While handling Iron

ore, port authorities shall take all

precautions such as coverage of ore,

dust suppression, etc., Further the port

shall also develop green belt as well as

avenue lighting.

The Management has committed

to contribute Rs. 1 Crore and

CSR for augmenting drinking

water supply to Kakinada Town

besides providing green belt in

the Mc Laurin High School in

Kakinada



the most extent & the management

is committed to protect the

environment by adopting all

feasible environment friendly

aspects.

- 94 -

Annexure-3.2: Case Study of Kakinada Deep

Water Port

PPP TOOLKIT for Improving PPP Decision-Making Processes, Ministry of Finance, GoI

GoAP handed over the project facilities to KSPL in March 1999. All immovable assets were transferred

without any consideration. All movable assets like tugs, cranes and forklifts were transferred at a rate

calculated as per the norms agreed in the concession agreement. Soon after, it was realized that the

project was not likely to be viable on the existing terms of the concession. GoAP reportedly failed to

allow KSPL to handle the cargo mix as mentioned in the tender forms. This included agri-centric cargo

like fertilizers, oil extractions, sugar, rice and wheat that constituted 70 per cent of the projected

volumes at the time of the bid. In fact there was considerable social unrest with respect to handling of

commodities at the anchorage port and the deep water port. There were instances of the anchorage

port workers going on strike in protest of the deep water port handling agri commodities such as wheat.

KSPL thus was unable to meet the obligation of the MGA. This also impacted the financial closure for

the Phase 1 development. Accordingly, there were several rounds of negotiations and discussions

where KSPL requested the government to withdraw the MGA clause and retain only the revenue

sharing clause. In 2003, the Government agreed that the payment of MGA can be rescheduled

ensuring that the net present value of the amount to be paid during the concession period remained the

same. KSPL was thus able to achieve financial closure for the Phase 1 development in 2004 which

envisaged back-up area development, railway line connectivity and procurement of equipment. In 2004,

Salgaocar Mining Industries Pvt. Ltd. (SMIPL) was inducted as a shareholder in KSPL. Subsequently,

KSPL took up the development of the fourth berth and an OSV complex in 2007. The same was

completed in 2008.

Despite the changes in the concession agreement, KSPL continued to experience difficulty in attracting

traffic and paying the MGA to the Government. In addition, the development of the new ports of

Gangavaram and Krishnapatnam, in the vicinity of Kakinada, with modern facilities and a deeper draft,

added to the problems of the KSPL. Accordingly, KSPL once again appealed to the government for

flexibility and amendment in terms and conditions.

After a detailed evaluation and analysis, GoAP, in 2009, agreed to amend the concession agreement

by way of a supplementary agreement. The amendments included an extension in the concession

period from the original tenure of 20 years to 30 years, with a further option for extension by 20 years in

two blocks of 10 years each, elimination of the stipulation with respect to the MGA for revenue sharing

with the GoAP and allowing KSPL to undertake additional/ new developments at the port at the same

terms and conditions of the existing agreement.

In 2009, the principal shareholder L&T sold its stake in KSPL to Kakinada Infrastructure Holdings

Pvt. Ltd. (KIHPL). KIHPL also purchased the 2% stake held by SMIPL and now holds the single

- 95 -

largest stake in KSPL. The revised shareholding pattern of the company is as follows: KIHPL – 41%;

Everlink Asia Investments Ltd. (owned by the Salgaocar Group) - 30% and Konsortium Ports Pte Ltd.

(and its associate) - 29%. KSPL plans to expand its capacity by 3 million tonnes by constructing an

additional berth with facilities for handling edible oil, other liquid and general cargo at an investment of

Rs. 150 – 200 crore.

Key Learning and Observations

Level Playing Field: During the bid process/ tendering stage, the Government had indicated that the

private developer would get complete rights for development of Port. However, during the award of the

project, there were restrictions in terms of the anchorage port that will be operating in parallel. One of

the key reasons for the disputes between KSPL and GoAP was the restrictions on the cargo that KDWP

could handle. In order to protect the volume of cargo at the existing anchorage port, GoAP did not

provide a level playing field to KSPL thus affecting the traffic to an extent. While this issue was resolved

subsequently, ideally it should have been dealt with at the inception stage to prevent an adverse impact

on the project.

MGA to the Government: The revenue maximization approach of the Government by insisting on a

minimum guaranteed amount put substantial pressure on the project and could have derailed it. The

government had to eventually agree to an elimination of this stipulation.

Technical Due Diligence: There were a number of issues with respect to the port assets such as

cavities in the diaphragm wall, additional dredging requirement and requirement for removal of

boulders. Since this was a brownfield asset being privatised, the government should have undertaken a

detailed technical due diligence of the project site to accurately estimate the investment requirement.

Stakeholder Consultation: The project experienced social unrest with strikes by employees of the

anchorage port against the deep water port’s operations. A stakeholder consultation prior to the

appointment of the private operator where various affected parties would have been taken into

confidence could have prevented such disruptions.

Resolution of Issues through Mutual Discussions: The noteworthy learning from this project is the

amendments that were made in the terms of the concession agreement through mutual discussions

without abandoning the project. Despite the nature of the issues such as MGA and the term of the

concession agreement, both GoAP and KSPL mutually agreed to modify the agreement and ensured

continuity of the project.

Competing Facilities and Better Packages: Newer ports such as the Gangavaram Port and the

Krishnapatnam Port have given tough competition to KDWP. Both these ports had competitive

advantages in terms of being Greenfield ports, availability of huge land for future expansion, longer

concession period and better concession terms because of the evolution of concession agreements

and risk sharing mechanisms in the country. Thus while KDWP was at a disadvantage initially, its

concession terms were modified to bridge the gap.

- 96 -

Annexure-3.3: CSR Details from Apr 2010 to

Mar 2014

Particulars 2010-11 2011-12 2012-13 2013-2014

Donation to Janhit Foundation for

empowerment of women & children

1,800,000 1,000,000 200,000

Donation for Development of cemetery at

Kakinada

500,000

Sensitization Workshop on Safety & health

to local people

58,365

Sensitization Workshop on Security

Aspects

22,260

5000 Saplings plantation drive on the

occasion of green day on 16.07.10 as part

of the 1 million plantation drive day set by

then Chief Minister A.P

581,270

KSPL Set up a techno stall at Kakinada in

the month of Jan 2011, to educate

Kakinada public on maritime activities

199,403

ADB Road Storm Drain Cleaning activity

undertaken as a proactive measure, to

combat flooding of Road outside KDWP in

monsoon season

1,512,990

A modest service oriented initiative of

providing Ambulance service on 24X7

basis

1,383,740 900,000

Provided Solar lamps on ADB Road to

facilitate the local commuters

428,000

Donated an unique Mobile Blood Donor

Van to Indian Red Cross Society Kakinada

2,984,000

Donation to Handicapped & Economically

poor arranged at tyagaraya gnanasabha at

chikkadpally, Hyd.

10,000

Sponsorship for international Coastal

Cleanup Day Conducted by Indian Coast

Guard along with South Asian cooperative

Environment programme (SACEP)

15,000 12,250 20,000

Donation for Durga Puja Celebrations at

keyes Girls High School, Secunderabad

100,000

Financial Assistance for Kakinada Police

Welfare through DSP Kakinada

408,164

Encouraged Fine Arts by Financial

Assistance to Sri KRKM Memorial

Academy of fine arts, Hyderabad

25,000

Donation to Indian Red Cross Society,

Kakinada.

30,000 20,000

- 97 -

Particulars 2010-11 2011-12 2012-13 2013-2014

Financial assistance for building 1st Floor

of an Auditorium at JNTU Kakinada

through ECK Development trusts

2,000,000

Contribution to Cultural Activities by

Donation to Hyderabad Bangalee Samiti

50,000

Donation for Youth Development activities

through the young men’s Happy Club,

Kakinada

1,000,000

Donation for Development Activities for a

section of women to Sri Sarada niketanam

purva vidardhi (nee) sangham

1,000,000

Uniforms for poor Students (Through

APPCB Officials)

25,000

Financial Assistance for construction of

library Hall at District Police Office,

Kakinada.

200,000

Nilam Cyclone Relief Material Supply 150,000

Encouraging Sports by financial assistance

to Hyderabad Hockey Association

200,000

Encouraging Socio-Cultural Activities by

providing donation to Swarna Bharathi

Trust

500,000

Encouraging Socio-Cultural Activities by

providing Sponsorship for Kakinada Beach

Festival at Vakalapudi, through RDO/

District Collector Kakinada

100,000 300,000

Financial assistance for Police Welfare to

Kakinada Police Fund

500000

Uniforms Distribution through Sri Sai Poor

People Society Associated with Bharatiya

Mazdoor Sangh Kakinada on 1st May,13 to

Orphan, Blind, Disabled Children

25,500

Good News service for the Blind Towards

Donations

200,000

Donation for distribution of cotton cloths for

old age & poor peoople through social

service worker Mr. L. Chinna Babu,

Kakinada ( cloths purchase from Sri

Dhanalaxmi cut pieces)

20,000

Donation under CSR to bring out 2nd

edition yatra special supplement on east

godavari heritage, traditions, tourism and

industries scenario.

50,000

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Particulars 2010-11 2011-12 2012-13 2013-2014

Supply of materials for repairs works to

Terrace, ceiling of slab, columns & beams

in Ground floor and first floor , Supply and

fixing of Reno Sintex Drinking Water Tank

(2KL) and Supply of Tent House Items for

inauguration of New Drinking Water Tank

Opening at Kumbabishekam temple in

beach road Kakinada.

597,353

Distribution of Rice bags for flood Victims

Area

228,615

Hrudaya cure little heart foundation 1,000,000

Free Eye Camp at KDWP on 25.09.2013 16,352

Chandra rajeswara rao foundation 1,000,000

Purchase of Maquet servo-s Upgradeable

Ventilator plat form medical equipment and

other medical equipment for Kakinada

hospital

4,357,401

Sambayya (Security) towards donation for

heart operation purpose

5,000

ISWMAW towards Sponsorship for

International Conference on Solid Waste

Management(ICO SWM-2014)

100,000

Fund Given to Indian Navy Welfare 1,500,000

Service Tax on Sponsorship 241,020

Sponsorship for Coast Guard Week

Celebrations 2014

50,000

Construction & Supply of material for New

toilets 2No's , 2KL water tank and supply &

Fixing of Iron Structure & Galivaliam Sheet

at M.P.U.P School, Fishing Harbor,

Kakinada

220,644

Supply and fixing of play equipment at

AMG School, Dairy Farm Center, Kakinada

230,160

Maintenance charges for KSPL donated

Blood donar Van

80,000

Total 3,589,298 7,468,894 6,837,250 10,262,045

- 99 -

Annexure-3.4: Minutes of Meetings under

CSR Initiatives

- 100 -

- 101 -

Annexure-3.5: Detailed Action Plan and

Tentative Budget proposed

ACTION PLAN WITH TIME BOUND ACTIVITIES & PROPOSED BUDGET FOR ACTIVITIES FOR

SURYARAO PETA VILLAGE

S DEVELOPMENT ACTIVITY

SUB ACTIVITY TIME LINES FOR ACTION PLAN & NO. OF DAYS ESTIMATED

TENTATIVE BUDGET PROPOSED

1. Improving Toilet facilities

(i.e. 08 Toilets)

� Expected to initiate by 15

th

Apr & Complete by 18

th Apr 2015

Day One: Free inspection & estimate the cost.

Day Two & Three: Ground work started with men material to clean and apply the acids and also put the repairs and distempers etc. Prepare paper work.

Day Four: Final touch and re-inspection and handed over to the school.

10:00 Hrs to 13:00 Hrs

09:00 Hrs to 17:00 Hrs on both days

Approx Four days

Rs 40,000/-

2. Syntex Tank (1000 liters capacity) including pipelines connections


th


rd Apr

2015


Day Two: Procuring the items from market like syntax tank and pipelines etc, than select the contractor give the task.

Day Three: Fix the syntax tank and pipelines, tap etc and test the same.

Day Four: Handed over to them after checking.

10:00 Hrs to 13:00 Hrs

10:00 Hrs to 17:00 Hrs

Approx Four days

Rs 30,000/-

3. Steel plates and glasses for afternoon lunch


th


th Apr 2015

Day One: Ask which type of plates they want from school Head Master and obtain samples from shop take approval from management.

Day Two: Place the requisition to the material department and prepare paper work accordingly.

Day Three: Purchase the items and put the name of KSPL with date.

Day Four: Handed over to the school.

10:00 Hrs to 13:00 Hrs

10:00 Hrs to 13:00 Hrs

10:00 Hrs to 16:00 Hrs

Approx Four days

Rs 20,000/-for 200 sets (each set having one plate & glass).

- 102 -

S DEVELOPMENT ACTIVITY

SUB ACTIVITY TIME LINES FOR ACTION PLAN & NO. OF DAYS ESTIMATED

TENTATIVE BUDGET PROPOSED

4. Improve sanitation by providing dust bins and spraying of germicide powders.


th

May & Complete by 13

th May

2015

Day One and Day Two: Inspect the entire village and note the important places were condition of sanitation too bad.

Day Three & Day Four: Plan the work how and when it is started and how much of man power required to clean the area of village and note how many number of dust bins required and what quantity of germicide powders required and plan to use the same also print with paint on each dust bin etc.

Day Five & Day Six: Distribute the area sector wise on paper with the help of local body.

Day Seven & Day Eight: Start the work with sufficient Housekeeping personnel (take some personal from Gram Panchayat and also take some personnel from volunteers of villages if agreed as a part of Swacha Bharat thereafter also put some KSPL side on cash payment, as a part of CSR to complete the task peacefully.

Day Nine & Day Ten: Same as above.

All days morning 10:00 Hrs to evening 18:00

Hrs

All days morning 10:00 Hrs to evening 18:00 Hrs

Approx ten days

Rs 2,00,000/-

5. Improve the standards of Angarwadi centers like repairs for the building


th

May & Complete by 22

nd May

2015

Day One: Free inspection of all the Angarwadi buildings in the presence of Executive Officers and President Gram Panchayat by the CSR team of KSPL and list out the buildings of Angarwadi centers.

Day Two: Procure the material like sand, cement, water etc and also the detail the labor and mastry through a contractor.

Day Three& Day Four: Start the work with the help of contractor and put one. Supervisor from village panchayat and one person from our KSPL side to see the work run smoothly without any problem.

Day Five & Day Five: Same as above.

All days works run between

10:00 Hrs to 18:00 Hrs

Approx. six days.

Rs 2,00,000/-

GRAND TOTAL Rs 4,90,000/-

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ACTION PLAN WITH TIME BOUND ACTIVITIES & PROPOSED BUDGET FOR ACTIVITIES FOR

FISHING HARBOR VILLAGE

S.No DEVELOPMENT ACTIVITY SUB ACTIVITY TIME LINES FOR

ACTION PLAN & NO OF DAYS TAKEN

BUDGET PROPOSED

1. Water distribution lines


th May & Complete by

03rd

Jun 2015

Day One: Obtain sketch of plan to layout the pipelines from village EO or village Sarpanch were they want and calculate the same that how much length of pipeline required by them and how many taps they want with the help of EO/Sarpanch.

Day Two: Prepare the plan of work with the help of contractor and ask to obtain the connection from where etc.

Day Three: To procure the items like pipelines, taps, cement & sands etc and detail a suitable plumber with assistants and also labor to dig the canal/pits.

Day Four & Day Five: Start the work under the supervision of one person from Gram panchayat and one person from CSR team of KSPL

Day Six & Day Seven: Same as above.

Day Eight & Day Nine: Same as above.

All days started the job from 10:00 Hrs and closed at 18:00 Hrs

Taken approx nine days.

Rs 2,00,000/-

2. Improvements to toilets

Expected to initiate by 114

th May & Complete by

14th May 2015


Day Two & Three: Ground work started with men, material to clean and apply the acids and also put the repairs and distempers etc. Prepare paper work.

Day Four: Final touch and re-inspection and handed over to the school.

10:00 Hrs to 13:00 Hrs

09:00 Hrs to 17:00 Hrs on both days

Taken approx Four days

Rs20,000/-

3. Refurbishment to the ceiling of the school to protect from heat in summers.

Expected to initiate by 8th

June & Complete by 14h

June 2015

Day One: Free inspection & estimate the cost for roof ceiling along with the contractor in the presence of School Head Master and CSR team.

Day Two & Day Three: Procurement of material &paper work.

Day Four& Day Five: Ground work started under the supervision of one person from our CSR team and also Head master of the school.

Day Six & Day Seven: Applying the white coat two times and handed over to the school for their further use.

All days started the job from 10:00 Hrs and closed at 18:00 Hrs

Taken approx seven days.

Rs40,000/-

GRAND TOTAL 20 Days Rs 2,60,000/-

- 104 -

Annexure-3.6: Action Plan Disclosure

- 105 -

- 106 -

Attachment A: Guidelines on Corporate

Social Responsibility Fund, District Collector

East Godavari District, 1 June 2013

- 107 -

Attachment – B: Companies (Corporate

Social Responsibility Policy) Rules, 2014,

GoI, Ministry of Corporate Affairs

Documents

Environmental and Social Due Diligence Report · 2016. 2. 12. · Page 1 of 108 Environmental and Social Due Diligence Report for Kakinada Deep Water Port March 2015 Submitted by: