Draft Initial Environmental Examination Project Number: 46943 July 2012

IND: HORTICULTURE COLD CHAIN PROJECT Prepared by Champion Agro Limited (CAL) The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website.

IND: Horticulture Value Chain Project Champion Agro Limited, Gujarat, India

INITIAL ENVIRONMENTAL EXAMINATION REPORT

ON

FRUIT AND VEGETABLE PROCESSING FACILTIES

OF

CHAMPION AGRO LIMITED, Regd. Corporate Office: Champion Agro Limited Survey No 217, Plot No 2, NH 8-B, Veraval Main Road, Veraval(Shapar) Rajkot-360024, Gujrat, India Contact Person: Mr Shamender Sharma, COO Email: shamender@chapionagro.com URL:www.championagro.com IEE Report Prepared by HARI PRAKASH, Environmental and Social Safeguards Consultant, Deccan Consulting Engineers Private Limited, B-98/5A, 3rd Floor, Joshi Colony, Behind BALCO Market, I P Extension, Delhi 1100 92 Email: hari@deccan.org.in URL: www.deccan.org.in

CONTENTS Page A Executive Summary 1

B Policy, Legal and Administrative Framework 2 B1 Applicable National Regulatory Acts and Notifications 2 B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation 4 B3 Regulatory/Legal Policy Framework for Indigenous Peoples 6

C Description of Current and Proposed Facilities 8 C1 Current / Existing Facilities 8 C2 Proposed Facilities 10

D Description of Baseline Environment 18 D1 Baseline Environmental Profile of IQF Facility Location / Site 19

D2 Baseline Environmental Profile of CA Storage Facility Location/Site 20 D3 Baseline Environmental Profile of ARCCs and ADCs Location/Site 21

E Anticipated Environmental Impacts and Mitigation Measures 21 E1 Pre-Construction Stage Impacts and Mitigation Measures 21 E2 Pre-construction Stage Regulatory Compliances: 22 E3 Construction Stage Impacts and Mitigation Measures: 22 E4 Operation Stage Impacts and Mitigation Measures: 22 E5 EHS Performance Standards/Requirements 24

F Analysis of Alternatives 24 F1 No Project Facility Alternative 25 F2 Equipment Layout and Selection of Machinery 25 F3 Siting of the Facilities and Land Purchase Arrangement 25

G Information Disclosure, Consultation 26

H Grievance and Redress Mechanism 27 I Environmental Management Plan 28 I1 Environmental Mitigation Action Plan 28 I2 Environmental Enhancement Measures 28 I3 Operation Stage Environmental Monitoring 29 I4 Budgetary Cost Provision for EMAP Implementation 29 I5 Institutional Arrangements 30

J Conclusion and Recommendation 30

List of Tables Table 1 Applicable Environmental Regulations for CAL’s proposed facilities 4 Table 2 Current Facilities of CAL for Fruits and Vegetables processing 9 Table 3 Proposed Facilities by CAL under ADB Financing 10 Table 4 Land Requirements for IQF Facility 12 Table 5 Location and Land Requirements of Proposed Facilities 18 Table 6 Liquid Waste Generation from CAL’s Proposed Facilities (Location Wise) 23 Table 7 Liquid Waste Discharge Standards for Fruits and Vegetables Processing

Industry 23

Table 8 Sanitary Waste Generation from CAL’s Proposed Facilities (Location Wise)

23

Table 9 Solid Waste Generation from CAL’s Proposed Facilities (Location Wise) 24 Table 10 Summary EMAP Implementation cost (Figures in INR) 29 Table 11 Institutional Arrangements for Implementation of EMAP 30

List of Exhibits Exhibit 1 Process / Operations Flow Diagram of IQF Facility for Fruits &

Vegetables 33

Exhibit 2 Layout Plan of IQF Facility for Fruits & Vegetables 35 Exhibit 3 Operations / Process Flow Diagram of CA Storage Facility 37 Exhibit 4 Layout Plan of CA Storage Facility 39 Exhibit 5 Operations / Process Flow Diagram of ARCC with Linkage to ADC 41 Exhibit 6 Layout Plan of ARCC 43 Exhibit 7 Layout Plan of ADC 45 Exhibit 8 Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka,

Rajkot District, Gujarat 47

Exhibit 9 Location Plan of CA Storage Facility Site at Palanpur, Banaskantha District, Gujarat

49

List of Annexures Annexure 1 Categorisation of Industries by SPCB for Consent Management under

Water & Air Pollution Act, 1974 51 - 54

Annexure 2 Land Acquisition Policy of GIDC, Govt. of Gujarat 55 – 59 Annexure 3 CAL’s Corporate Considerations for Siting and Land Purchase for New

Facility 60 – 62

Annexure 4 Environment Mitigation Action Plan (EMAP) 63 – 69 Annexure 5 EHS Guidelines for Food & Beverage Processing Sector

Recommended by IFC 70 – 87

Annexure 6 Detailed Cost Estimate for EMAP 88 - 89

Abbreviations

IEE Initial Environmental Examination ADB Asian Development Bank ADC Agri Distribution Centre ARCC Agri Retail and Collection Centre CA Controlled Atmosphere CAL Champion Agro Limited CAP Corrective Action Plan CFE Consent for Establishment CFO Consent for Operation CSF Cold Storage Facility EHS Environmental Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EPA Environmental Protection Act ESMS Environmental and Social Management System ESMU Environmental and Social Management Unit GIDC Gujarat Industrial Development Corporation GOI Government of India GPCB Gujarat Pollution Control Board Ha Hectare (1 Ha = 10000 Sq. mtrs) IP Indigenous People IQF Individual Quick Frozen Facility LA Land Acquisition LAA Land Acquisition Act MOEF Ministry of Environment and Forests, Govt. of India NCST National Commission for Scheduled Tribes NOC No Objection Certificate NRRP National Resettlement and Rehabilitation Policy PESA Panchayat Extension to the Scheduled Areas Act PH Pack House PPEs Personal Protection Equipment RC Ripening Chamber SC Scheduled Castes SPCB State Pollution Control Board SPS Safeguards Policy Statement, 2009, ADB ST Scheduled Tribes

Initial Environmental Examination Report on

Fruits and Vegetable Processing Facilities of Champion Agro Limited, Gujarat

A Executive Summary 1 M/s Champion Agro Limited (CAL), established in 1994, is a leading Indian agribusiness corporate entity from Gujarat, providing fully integrated services from agricultural inputs to farmers up to the delivery of fresh fruits & vegetables to corporate retailers. 2 CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). The proposed project facilities comprise four types namely a) Individual Quick Frozen (IQF) facility (1No.); b) Controlled Atmosphere (CA) Storage (1No.); c) Agri-Retail Collection Centres (5No.s) and d) Agri-Distribution Centres (ADC) (5No.s). The first three type of facilities are proposed to be located within Gujarat, whereas the fourth type facility i.e. ADCs are proposed in major urban centres such as Ahmedabad in Gujarat, Jaipur in Rajasthan, Indore in Madhya Pradesh, Ludhiana and Jalandar in Punjab and in Delhi. 3 In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL. As required under SPS1, an Initial Environmental Examination was carried out for the proposed facilities, to determine the likely potential impacts and risks, and to enable preparation of an environmental management plan, so as develop the facilities in environmentally sustainable manner and in compliance with the SPS, 2009 as well as National and State regulatory requirements. 4 Due to the nature and scale, CAL’s presently proposed facilities (Table 3) does not require prior environmental clearances and is out of the purview of EIA Notification, 2006 of MOEF, GOI. At the state level, all of the proposed facilities fall under orange category2 in Gujarat and therefore will require ‘Consent for Establishment’ (CFE) during pre-construction stage and ‘Consent For Operation (CFO)’, prior to commencement of commercial operations from the Gujarat Pollution Control Board (GPCB)3. Since, 5 ADC’s are being considered in other States like Rajasthan, Delhi, Punjab, and Haryana, the respective State wise applicable consent procedures have been reviewed and found to be same as applicable in Gujarat. 1 The Safeguards Policy Statement is available at http://www.adb.org/Documents/Policies/Safeguards 2 State Pollution Control Board has categorized all industries into RED, ORANGE and GREEN categories for

consent management procedures to regulate the establishing and operation of Industries under the Air Pollution and Water Pollution Act. Red category industries indicate high pollution potential and has stricter compliance requirements whereas Green category indicate least pollution potential and has the least compliance conditions. All industries will require to obtain Consent to Establish (CFE), prior to establishing and follow it up to obtain Consent for Operation (CFO), prior to commencement of commercial operations. The procedure for obtaining the CFE and CFO is well established and industries can obtain the consent in a time bound manner, after submitting the required information and consent fee to the State Pollution Control Board. However, it shall be at the discretionary of State Pollution Control Board to assess the process and determine the applicable category based on the pollution potential of an industry

3 The consent management procedure for Gujarat State is available at www.gpcb.gov.in/

1

5 The procedure for obtaining the CFE and CFOs from the State Pollution Control Boards in Gujarat and in other states are well established and consents can be obtained in a time bound manner and not a major constraint to establish and operate the proposed facilities. 6 The IEE indicates that pre-construction stage impacts due to location or siting of facility can be mitigated through adopting pre-determined criteria for siting and finalization of location for the facilities. The involuntary resettlement impacts are avoided through purchase of land for the facility on a ‘willing seller and willing buyer’ principle through direct negotiated settlement from one or a maximum of three land owners. The proposed facilities will avoid impacts in indigenous peoples. The construction stage impacts of the facilities are comparable to any general building construction projects and can be mitigated through site specific environmental management plan/measures. 7 The operation stage impacts are to be mitigated through implementation of liquid and solid waste management systems (mainly wash water discharge and organic agri-residue and discarded fruits & vegetables), apart from EHS performance standards for the work force at all the proposed facilities. In addition, measures such as recycling of treated wash water, rain water harvesting and ground water recharging, renewable (solar) energy are to be adopted to further enhance environmental sustainability of the proposed facilities. 8 During the operation stage, the facility has to adopt a schedule for monitoring environmental, occupational health and safety indicators in order to comply with the consent conditions stipulated by the SPCB, if any as well as safeguards monitoring and reporting requirements of ADB. 9 The IEE has enabled to prepare an Environmental Management Plan (EMP) for the pre-construction, construction and operation stage of the proposed facilities and has suggested institutional arrangements for implementing the EMP along with the required budgetary provisions. The IEE also includes a periodical environmental monitoring schedule for the operation stage of the facilities. 10 The implementation of EMP for all stages of the facilities, complying with the regulatory requirements of the State Pollution Control Board like obtaining pre-construction and operation stage consents (CFE & CFO) and further implementation of environmental enhancement measures like recycling of treated wash waters, rain water harvesting and ground water recharging, adopting renewable (solar) energy for lighting applications will enable the proposed facilities to be environmentally sustainable operation, and become consistent with the safeguard requirements of SPS, 2009 and will not involve any kind of reputational risk to ADB on environmental and social safeguard issues. B Policy, Legal and Administrative Framework B1 Applicable National Regulatory Acts and Notifications 11 Environment. All developmental projects, subject to the applicability are required to strictly comply with the relevant National environmental laws and regulations of the Government of India and respective State laws and regulations. These laws and regulations

2

include: The Environmental Protection Act,(1986); The Water (Prevention and Control of Pollution )Act, 1974, as amended upto 1988, The Air (Prevention and Control of Pollution) Act, 1981 as amended upto 1987 and Environmental Impact Assessment Notification,1994 with latest amendments. 12 Applicability of Environmental Laws and Regulations. Due to the nature and scale, CAL’s presently proposed facilities under ADB financing does not require prior environmental clearances and is out of the purview of EIA Notification, 2006 of MOEF, GOI notified under the Environmental Protection Act (1986). 13 Under the provisions of Water (Prevention and Control of Pollution) Act, 1974, any individual, industry or institution, discharging industrial or domestic wastewater is required to obtain consent of the Board. Similarly, under the Air (Prevention and Control of Pollution) Act, 1981, any individual, industry or institution responsible for emitting smoke or gases by way of use as fuel or chemical reactions is required to obtain consent from the State Pollution Control Boards. It is an offence to commence or run any such industries without obtaining the consent and the State Pollution Control Board is empowered to close down and seal the unit, in case of violation. 14 Two types of consents are issued by the State Pollution Control Boards. Prior to establishment of an industry, operation or a process, Consent for Establishment (CFE) has to be obtained and Consent for Operation (CFO) has to be obtained, prior to commissioning of an industry and subsequently for continuation of discharge of emission and effluents or for expansion and modernization of existing Industry. Based on the capital investment and pollution potential, the industries are classified into Red category: Highly polluting units; Orange Category: Moderately pollution and Green Category: Less Polluting. The consents are issued by the State Pollution Control Boards, on submission of project related information in a prescribed application along with applicable consent fee, based on the scale and category of a specific industry. The consent management procedures are well established by all State Pollution Control Boards and can be obtained in a time bound manner. 15 At the state level, the proposed facilities by CAL, are listed under orange category4 and therefore will require CFE during pre-construction stage and Consent for Operation (CFO), prior to commercial production from the Gujarat Pollution Control Board (GPCB)5. The categorization of Industries for Consent Management by the Gujarat Pollution Control Board is given in Annexure 1. Although, these facilities are apparently listed under orange category, it shall be at the discretion of the SPCB to assess the process of an industry and

4 State Pollution Control Board has categorized all industries into RED, ORANGE and GREEN categories for

consent management procedures to regulate the establishing and operation of Industries under the Air Pollution and Water Pollution Act. Red category industries indicate high pollution potential and have stricter compliance requirements whereas Green category indicate least pollution potential and has the least compliance conditions. All industries will have to obtain Consent to Establish (CFE), prior to establishing and follow it up to obtain Consent for Operation (CFO), prior to commencement of commercial operations. The procedure for obtaining the CFE and CFO is well established and industries can obtain the consent in a time bound manner, after submitting the required information and consent fee to the State Pollution Control Board.

5 The consent management procedure can be available at www.gpcb.gov.in/

3

determine the applicable category, based on the pollution potential and accord the consent. The procedures for obtaining the CFE and CFOs in a time bound manner are well established and are not a major constraint to establish and operate the proposed facilities in Gujarat and other States. 16 Among the proposed facilities, 5 ADC’s are being considered in other States like Rajasthan, Delhi, Punjab, and Haryana and therefore the respective State wise applicable consent procedures were also reviewed and found to be same as applicable in Gujarat. 17 The applicable environment regulatory requirements for the CAL’s proposed facilities under ADB financing are summarized in Table 1 hereunder:

Table 1 : Applicable Environmental Regulations for CAL’s proposed facilities

Sl. No. Regulatory Requirements Regulatory Body Applicability for CAL’s Proposed

Facility Action Required

1 Prior Environmental Clearances under EIA Notification, 2006

MOEF, Govt. of India

Not Applicable. Facilities does not fall under the purview of the EIA Notification

None

2 ‘Consent For Establishment’ (CFE) during Pre-construction Stage & ‘Consent For Operation’ prior to commencement of commercial operation/ production.

State Pollution Control Boards

Applicable. CFE & CFO needs to be obtained from Gujarat State Pollution Control Board for all proposed facilities within Gujarat. For ADCs located outside Gujarat, CFE & CFO are to be obtained from respective State Pollution Control Boards (Rajasthan, Delhi, Punjab and Haryana)

Applications are to be submitted to State Pollution Control Board in the prescribed application form and consent fee, depending upon capital investment

3 NOC (No Objection Certificate) for conversion of land to non-agricultural use

State Pollution Control Board, District Authority/ Industries Dept.

Applicable for all facilities proposed in Gujarat and other states where ADCs are proposed depending upon the location of the facility.

Applications are to be made to competent authorities

4 NOC (No Objection Certificate) for construction of new tube wells

Central/State Ground Water Authority/ Dept /Distt. Authorities

Depends on fresh water requirement of facility. Exempted from NOC, if facility requires upto 25000 litres/day in over exploited areas: upto 50000 litres/day in critical areas: upto 100000 litres/day in semi-critical areas and upto 1000000 litres/day in safe areas.

Depending up on location of facility & categorization of area by state Ground Water Dept. from ground water utilization perspective.

B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation 18 In India, compensation for land acquisition (LA) and resettlement assistance for project affected persons/families is governed by the Land Acquisition Act (1894), which has been amended from time to time. 19 Land Acquisition Act, 1894 as amended in 1984. This Act enables the State to acquire private land for public purpose and has provisions for acquisition of land for industrial

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purposes. The Act ensures that no person is deprived of land except under law and entitles APs (landowner, tenant or licensee) to a hearing before acquisition, with due and adequate compensation made thereafter. The Act deals with cash compensation and provides several methods of valuing compensation. Several Indian states are using negotiations as a means to determine compensation and acquire land. The Act has a provision which enables any project proponent to opt for direct purchase of land on the basis of negotiated price after issue of notification requiring acquisition of land under relevant Act(s) i.e., section 4(1) of the Land Acquisition Act, 1894 through the competent District authorities. However, only landowners, tenants and licensees are possible compensation recipients and the Act does not recognize and exclude the landless, agricultural and non-agricultural laborers, artisans, forest produce collectors. Grievance redress mechanisms are also in place and APs may seek the intervention of the High Court and Supreme Court under this Act. 20 National Resettlement and Rehabilitation Policy (NRRP), 2007. The Government of India notified the National Rehabilitation and Resettlement Policy in October, 2007. This policy and the associated legislative measures aim at striking a balance between the need for land for developmental activities and, at the same time, protecting the interests of the land owners, and others, such as the tenants, the landless, the agricultural and non-agricultural laborers, artisans, and others whose livelihood depends on the land involved. The objectives of the National Rehabilitation and Resettlement Policy are as follows:- i) to minimize displacement and to promote as far as possible, non-displacing or least-

displacing alternatives; ii) to ensure adequate rehabilitation package and expeditious implementation of the

rehabilitation process with the active participation of the affected families; iii) to ensure that special care is taken for protecting the rights of the weaker sections of

society, especially members of the Scheduled Castes and Scheduled Tribes, and to create obligations on the State for their treatment with concern and sensitivity;

iv) to provide a better standard of living, making concerted efforts for providing sustainable income to the affected families;

v) to integrate rehabilitation concerns into the development planning and implementation process; and where displacement is on account of land acquisition, to facilitate harmonious relationship between the requiring body and affected families through mutual cooperation.

21 The NRRP 2007 emphasizes the need for participatory and transparent R&R planning and implementation. A strong grievance redress mechanism has been prescribed, which includes standing R&R Committees at the district level, R&R Committees at the project level, and an Ombudsman duly empowered for this purpose. The R&R Committees shall have representatives from the affected families including women, voluntary organizations, panchayats, local elected representatives, etc. Provision has also been made for post-implementation social audits of the rehabilitation and resettlement schemes and plans.

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22 At State Level, the Gujarat Industrial Development Corporation (GIDC)6 has adopted a new land acquisition policy in year 2010 which safeguards that no farmland is acquired forcibly for the setting up of private companies. Under this policy, farmland acquisition is to be made only if 100% farmers give consent. The Government will not do any forceful acquisition for any private companies. As per this new policy, land will be acquired from farmers at market prices determined by a third party agency such as Centre for Environment Planning and Technology (CEPT) University," Copy of the policy is given in Annexure 2. 23 Applicability of Land Acquisition Acts and NRRP. CAL requires small land parcel(s) at various locations for each of its proposed facilities and intends to purchase the selected land from the willing land owners through negotiated settlement on a willing seller and willing buyer principle and without intervention of land acquisition procedures of the Government. CAL will select the required land parcel based on certain criteria, which is aimed at avoiding fertile agricultural land as well as social impacts arising out of the land purchase. Thus, application of the land acquisition act and its provisions will not be warranted. B3 Regulatory /Legal Policy Framework for Indigenous Peoples 24 By definition, indigenous people (IP) refer to a population with social, cultural, economic, and political traditions and institutions distinct from the mainstream or dominant society and culture. IP with similar cultural characteristics are known as Adivasi in Hindi and are recognized as Schedule Tribes (STs) as per the Indian Constitution. 25 As per SPS, the term Indigenous People is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self identification as members of a distinct indigenous cultural group and recognition of its identity by others; (ii) collective annexure to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or the region. Essentially, indigenous peoples have a social and cultural identity distinct from the mainstream society that makes them vulnerable to being overlooked in development processes. The Legal Policy Framework in India for Indigenous People is listed hereunder: 26 National Commission for Scheduled Tribes. The National Commission for Scheduled Tribes has been formed through bifurcation of the National Commission for Scheduled Castes and Scheduled Tribes is under the 94th Amendment Act of the Constitution. Although, the National Commission for Scheduled Tribes has been created in August 2003, little measures in terms of adequate budgetary and staff allocations have been made to make the Commission function effectively. One of the duties assigned to the National Commission for Scheduled Tribes and Scheduled Castes is to submit reports to the

6 GIDC is responsible for setting up Industrial Areas/Estates and therefore extensively involved in land

acquisition and development of industrial areas and estates and allot them to those interested in setting up industries. The land acquisition policies developed by GIDC can serve as a good reference for any land acquition for industrial purposes within Gujarat and elsewhere.

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President annually or at such other time as the Commission may deem fit, upon the working of the safeguards. 27 The SCs/STs Prevention of Atrocities Act, 1989. The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, is the main Act to deal with atrocities against members of Scheduled Castes and Scheduled Tribes. Gujarat has setup 10 exclusive Special Courts, apart from this some states have also setup special courts like Andhra Pradesh (12), Bihar (11), Chhattisgarh (7), Gujarat (10), Karnataka (6), Madhya Pradesh (29), Rajasthan (17), Tamil Nadu (4), Uttar Pradesh (40) and Uttarakhand (1). The remaining States and Union Territories have notified the existing Courts of Sessions as Special Courts for the trial of offences under the Act. 28 Panchayat Extension to the Scheduled Areas Act (PESA), 1996. The Parliament of India has passed the Provisions of the PESA, to extend the provisions of the 73rd Constitutional Amendment to the Schedule V Areas of the country. This Act accords statutory status to the Gram Sabhas in Schedule V areas with wide-ranging powers and authority. This aspect was missing from the provisions of the 73rd Constitutional Amendment. This Act recognizes the prevailing traditional practices and customary laws besides providing the management and control of all the natural resources- land, water and forest in the hands of people living in the Schedule Areas. The Act empowers people in the tribal areas through self governance. 29 One of the important provisions of this act states “the Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-settling or rehabilitating persons affected by such projects in the Scheduled Areas. 30 The Scheduled tribes and Other Traditional Forest Dwellers Act 2006. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006, recognises and vests the forest rights and occupation in forest land to Scheduled Tribes and other traditional forest dwellers who have been residing in such forests for generations but whose rights are not recorded. This law provides for recognition of forest rights to Scheduled Tribes in occupation of the forest land prior to 13.12.2005 and to other traditional forest dwellers who are in occupation of the forest land for at least 3 generations i.e. 75 years, up to maximum of 4 hectares. These rights are heritable but not alienable or transferable. 31 The National Policy on Tribals, 2006. The success of the National Policy on Tribals of the Government of India to a large extent will depend on strengthening of the National Commission for Scheduled Tribes, implementation of the Civil Rights Act and the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 and making necessary budgetary allocations. 32 Applicability of Acts and Provisions related to Indigenous People. CAL’s intended land selection and purchase arrangement(s) for each of its proposed facilities

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through negotiated settlement on a willing seller and willing buyer principle will not involve application of any of the acts and provisions related to the indigenous people. C Description of Current and Proposed Facilities 33 CAL was established in 1994 to manufacture pumps and electrical motors for irrigation applications and later on diversified into retail sales business of agro inputs viz. seeds, pesticides, fertilizers, bio-chemicals and bio-products in 2006-07 and fruits and vegetable processing for marketing it to big retailers network in 2008. CAL’s operations also include contract and/or lease farming apart from trading of agricultural inputs and equipment through its agri-retail malls or business centres. The existing facility description of CAL is briefly described hereunder. C1 Current / Existing Facilities 34 Manufacturing of Pumps and Motors: CAL’s operations began in 1994 with the manufacture of pumps and motors for irrigation applications. CAL manufactures both submersible and turbine type pumps with suitable motors conforming to Bureau of Indian Standards and are designed for high operating efficiency, to withstand wide voltage fluctuations and suitable for long hours of continuous operation and thus has established itself as a formidable local brand in Gujarat. 35 Although, this is stated to be manufacturing operations of pumps and motors, but in actual CAL’s present operations is limited to the assembling of pumps and motors through sourcing of components and parts meeting its specifications and designs from various vendors. Therefore more aptly, these operations may be termed as assembling of pumps and motors rather than a manufacturing unit. The manufacturing /assembling facility is situated in the same premises of CAL’s corporate Office at Veraval, Shapar, District Rajkot, Gujarat. 36 Agri-Retail Mall/Business Centres: CAL at present has 38 established agri-retail malls or business centres across Gujarat, through which it renders agri-extension services like trading of seeds, pesticides, chemical / bio-fertilizers, bio products, agriculture machinery/equipment like tractors & its accessories like harvesters, Sprayers & dusters, drip & sprinkler irrigation system, pipes & fittings, green houses & net houses, cattle feed among others. Through these agri retail malls/business centres, CAL also provide farm services comprising periodic crop inspection, farm visits, soil testing for determining the type and application levels of fertilizers among others to the local agriculturists. Apart from these, the agri-business centres also serve as an information centre for crop loan, equipment loan, commodity finance and CAL facilitates the needy agriculturalists in availing the loans from financial institutions. 37 Cattle Feed Production Facility: CAL is marketing complete range of feed, under the registered trade mark “Champion” and intends to be the leading player of superior quality cattle feed in Gujarat. At present, CAL has an installed pilot production facility at Veraval, Shapar, District Rajkot, Gujarat and has plans to construct a new cattle feed production facility for 200 MT per day, with a state-of-the-art quality control laboratory at the same location.

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38 Green Houses and Net Houses: CAL in collaboration with Top Green House of Israel provides turnkey solutions for erection of greenhouses, net houses, agronomic extension services including marketing support and buy back of crops at farm gate/yards. These operations are conducted through its CAL’s 38 agri retail cum business centres across Gujarat. The green house and net house solutions aims at creating a conducive environment to regulate and maintain crop growth parameters like ambient temperature, humidity, light level, ventilation rate, air speed, and carbon dioxide concentration levels, which have direct bearing on the overall growth of the plants leading increased productivity, right time flowering, and best timing to market the produce. 39 Contract and Lease Farming: CAL, at present has contract and lease farming7 in saurastra region through 38 Agri Malls in different Talukas. Altogether, there are some 8500 farmers are associated with CAL through contract and lease farming activities. The crop types are wheat, Groundnut, Maiz, castor Seed, Gram etc. The activities are directly connected through CAL’s Agri Malls staff and supervisors without any middlemen. 40 Further, CAL has arrangements including buying back of crops at farm gate/yards as per prevailing market rates from with agricultural land owners for about 24343 acres of land, spread across several Districts of Gujarat. The area under lease farming is 11550 acres for crops like Corn, Castor, Wheat, Gram and Groundnut whereas the contract farming is for 12793 acres for crops like Wheat, Gram, Corn. CAL also has plans to enter into contract and lease farming arrangements for horticultural value crops like Baby Corn & Pomegranate in 1000 acres and Banana in 1250 acres, in other districts within Gujarat. 41 Fruits and Vegetables Processing Facilities: CAL, since Year 2008 has diversified into fruits and vegetable processing through establishing pack houses (PH) comprising cooling chambers, ripening chambers as well as cold storage facilities (CSF) at several locations across Gujarat. The current/existing facilities of CAL for fruits and vegetables processing are summarized in Table 2.

Table 2 : Current Facilities of CAL for Fruits and Vegetables processing Sl. No. Facilities Nos. Unit Capacity Location

1 Cooling Chambers (Pack House & Ripening Chamber)

4 15 ton each

Rajkot. Gujrat

Multi-chambered CA Cold Storage

1500 ton

2 CA Cold Storage 1 2000 ton Borsad, Gujrat Multi-chambered CA Cold Storage with 2200 ton

7 Contract farming is a formal arrangement between CAL and agricultural land owner, wherein all inputs for

agriculture including quality seeds, fertilizers, agri methods and all other related farming consultancy services will be provided by Champion Agro at cost to the land owner whereas the actual farming including arranging farm labour, water and electricity will be arranged by landowner. The Champion Agro will buyback the agri produce at market rates. However, the land owner will have the liberty to sell the produce to anybody and first right of refusal rests with Champion Agro. Lease farming is also a formal arrangement between CAL and agricultural landowner, wherein the land owner will only get a fixed land lease rent on an annual basis and all other agri inputs, responsibilities and marketing of agri produce will be undertaken by Champion Agro.

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Sl. No. Facilities Nos. Unit Capacity Location sorting & grading facilities

3 Ripening Chambers 3 8 ton each Anand, Gujarat

4 Ripening Chambers 4 15 ton each Delhi

5 Ripening Chambers Cold Storage with Pack House

3 8 ton each 100 ton

Solan (*ARCC), Himachal Pradesh

42 CAL directly procures the fruits from agriculturists at farm yards/gates, puts it through their fruit processing operations like washing, grading, waxing and ripening followed by packing prior to marketing it to big retailers like Future Group, Bharti-Walmart, Reliance Fresh, Big Apple, Carrefour, SRS Value Bazar, Safal (Mother Dairy, Aditya Birla Retail among others. The major commodities handled are Banana, Apple, Pomegranate, Papaya and alike. The Farmer produce are collected from Farm gates by CAL’s employees but the process of crop harvesting, up to loading into trucks will be carried out by locally available labour, constituting mainly male and at times female depending upon their availability. C2 Proposed Facilities 43 CAL is presently seeking a corporate loan from ADB to enhance and invest in horticulture value chain infrastructure facilities. The proposed facilities are grouped into four types and comprise 12 subproject facilities. The proposed facilities, primarily caters to process the harvested fruits and vegetables (from farm yards/gates) involving operations like washing-grading-waxing-ripening (if required/ applicable), pre-cooling storage under regulated/ controlled atmosphere, packing and transportation to retailer destinations. The facilities, with the installed capacities will be designed to ensure demand driven regulated supply of processed fruits and vegetables throughout the year and absorb seasonal fluctuations. CAL has plans to engage upto 90% locally available labour and / or skilled workers for all its post harvest management including fruit processing operations and prefers to engage female workers upto 40% of the overall work force, depending upon their availability. 44 The proposed facilities and its respective unit wise capacities along with their locations are given in Table 3. The operations at each of these facilities are briefly described hereunder.

Table 3: Proposed Facilities by CAL under ADB Financing Sl. No. Type of Project Facility Unit Capacities Location

1 Individual Quick Frozen (IQF) Project Facility (1 No.) i) ii) iii) iv)

Vegetable Processing Line Freezing Line Frozen Storage CA Cold Storage

2 ton/hr 2 ton/hr 1000 ton 1000 ton

Gundasara Village, Taluka Gondal, Distt. Rajkot, Gujrat

2 Controlled Atmosphere (CA) Storage (1 No.) i) ii) iii)

CA store Pre-cooling Chamber Holding Chamber

5000 ton 20 ton/day 500 ton

Palanpur, Gujarat State

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Sl. No. Type of Project Facility Unit Capacities Location 3 Agri-Retail Collection Centers (ARCC) (5 Nos.) i) ii) iii) iv) v) vi)

Grading, Packing Line Pre-cooling Chamber Holding Cold Store Reefer Van Warehouse Laboratory (Soil/Water/Food)

1 ton/hr 20 ton/day 100 ton 10 ton 500 ton

--

Navsari, Junagadh, Prantij, Rajpipla, Borsad, all in Gujarat State

4 Agri-Distribution Centers (ADC) (5 Nos.)

i) ii) iii)

Sorting, Packing, Grading Line Pre-cooling Chamber Holding Cold Store

1 ton/hr 30 ton/day 300 ton

Ahmedabad, Jaipur, Indore, Delhi, Ludhiana, Jalandhar,

45 Individual Quick Frozen (IQF) Facility: This facility will comprise the following components: i) Individually Quick Frozen Line (IQF) ii) Air cooled Sorting, Grading, Processing and Packing Hall. iii) Multi chambered CA cold store iv) Frozen store for finished goods storage v) Material Storage and Handling Equipment

46 Individually Quick Frozen Facility (IQF): IQF is a food preservation technology, where fresh food passes through the low temperature zone very quickly, leaving very low and safe microbial counts. This type of freezing results in the product free rolling and not clotting into lumps. Through the IQF process it is possible to offer fresh picked' flavors (fruit, vegetable, sea foods, meat, and other fresh foods) all year round, in packaging convenient for the busy consumer. IQF foods lock-in the essential nutrients and flavor, with optimum color, taste and texture. The appeal of IQF foods resembles the much-sought-after appearance, flavor and nutrition of the fresh versions. The project envisages installing a 2000 kg per hour IQF Line capable of handling a variety of products. The suggested system for achieving the sub zero temperature temperatures is ammonia liquid pumping system. The major produces which will be processed in the IQF are green peas, mixed vegetables, sweet corn and other vegetables and fruits. 47 Air Cooled Sorting, Grading, Processing & Packaging Area: It is envisaged to undertake handling of IQF and stored produce by establishing an air cooled processing hall/room to carry out the various operations before and after processing. A prefabricated air-cooled sorting, grading, processing and repackaging hall will be constructed to handle a variety of operations. The facilities will include a sorting grading line of 2 MT/hour capacity. 48 Multi-chambered CA Cold store: This unit is envisaged to be single chambered, 2000 MT multi commodity cold storage (above zero) and 4 chambered 2000 MT frozen cold (sub zero) storage. The unit will have facilities for accurate monitoring of Temperature, Oxygen, Carbon Monoxide and Humidity. Pre-fabricated insulated metal laminated panels with insulation of Poly Urethane Foam (PUF) will be used for construction of cold room chambers. The joinery will be done through cam locks and finished with silicone sealant.

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49 For the above zero cold storage, gas tight sliding doors made of high density PUF as per required specifications will be provided for zero degree application and up to 90% humidity levels. For the multi commodity cold storage, cooling system comprise open drive single screw compressor unit with liquid pumping system integrated to forced air circulation evaporators and low oxygen, CO Scrubbers with PLC Control system. 50 For the sub-zero temperature cold storage, air cooled condensation system with Freon based coolant will be used for creating chilling and freezing temperatures. Vibration eliminators will be used in refrigeration piping to achieve greater efficiency in temperature control. Safety systems like high and low pressure cut outs, microprocessor based thermo controls, pressure relief valves for deep freezers, etc. will be used appropriately to ensure high efficiency and low loss in the system. The major produce, which will be processed in the IQF are potato, green peas, sweet corn and other vegetables and fruits such as papaya, guava, mango among others. 51 Material Storage and Handling Equipment: The proper handling of produce is critical to ensure that the product is not damaged during the physical handling and storage operations. Further, through appropriate storage and handling equipment, proper utilization of space and cost effective movement of produce within cold storage and distribution can be achieved. Therefore, plastic pallets, plastic crates, electric forklifts and crate washing system will be procured for this purpose. 52 Frozen Store for Finished Goods Storage: The storage of finished products at a constant sub 20 Degree Celsius in the frozen storage panel and refrigeration system will enable to maintain the products for longer duration at sub 20 Degree Celsius. 53 The process/operations flow diagram along with the layout of an IQF facility is given in Exhibit 1 & 2. 54 IQF Location and Land Requirements: The IQF is proposed to be set up at Gundasara Village, Taluka Gondal, Distt. Rajkot, Gujrat. The total land requirements for establishing the IQF facility is 12000 sq. mtrs. with a built up area of 4000 sq. mtrs as follows in Table 4.

Table 4: Land Requirements for IQF Facility

Sl. No. Components Built Up Area (in Sq. Mtrs.)

1 Raw Material CA Storage 980 2 IQF Process Hall 1050 3 Frozen Storage for Finished Goods 980 4 Administrative Block & Other Misc Areas 1000

Total 4010 55 Power: The facility will require 600 KW of power and CAL will apply and get the power from the state run power distribution company.

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56 Water: The facility will require fresh water supply of about 25,000 litres per day, which is envisaged to be met through installation of a tube well within the facility and reuse/ recycling of treated wash water. 57 Manpower: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The IQF facility will require 60 semi-skilled labour, 6 plant operators, 8 managerial staff and 17 general staff for non-managerial work and administrative work. 58 Controlled Atmosphere (CA) Storage Facility: Controlled-Atmosphere (CA) storage is a technique for maintaining the quality of fresh fruits and vegetables in an controlled atmosphere that differs from normal atmosphere with respect to the concentrations of oxygen (O2), carbon dioxide (CO2), and/or nitrogen (N2). The desired composition of the atmosphere for storing commodities are usually obtained by initially increasing CO2 or decreasing O2 levels in a gastight storage room or container. Sometimes, the addition of Carbon Monoxide (CO) or removal of ethylene (C2H4) may also be beneficial. Modified atmosphere (MA) is a condition similar to CA, but with less or no active control of the gas concentrations. In CA, the O2 level is reduced and the CO2 level is controlled at a rate determined by the respiration rate of the commodity, the storage temperature, humidity and the permeability of the container and film wrap to the gases. Judicious selection of the commodity, the package dimensions, and the package material will ensure establishment and maintenance of the desired atmosphere conditions under specified storage temperatures. 59 Low-oxygen CA has received increased attention in recent years; not only because it markedly retards fruit softening, but also because it greatly reduces the development of storage scales and breakdown of apples and pears. In regular CA, the recommended O2 concentrations are usually 2% or higher. It has been found that O2 levels between 1 and 1.5% are even more effective in extending the storage life of some fruits and vegetables. Careful monitoring to maintain the precise O2 level is essential to avoid damage due to anaerobic respiration. 60 Beneficial Effects of CA Storage: Beneficial effects of CA storage include reduction of respiration, decay, discoloration, and internal breakdown, inhibition of ethylene production and ripening, and retention of firmness, flavor, and nutritional quality. The rate of respiration of fresh fruits and vegetables has been shown to be reduced by low O2 or high CO2. The lower respiration rate indicates that CA has an inhibitory effect on the overall metabolic activities of stored commodities. A slower rate of utilization of carbohydrates, organic acids, and other reserves usually leads to prolong the life of the produce. Ethylene production of fresh fruits and vegetables is suppressed by low O2 and/or elevated concentrations of CO2.

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61 At present, the pre-dominance of the temperature controlled storage is prevalent in India. The CA storage facility practically non-existent in India. Typically, all the fruits and vegetables produced in India can be stored for the varying length of storage life ranging from few days to few months. Hence, it is varying imperative that the development of such preservation and storages facilities is under taken. 62 In order to increase the shelf life, it is necessary to remove the field heat instantly. In a pre-cooling unit, the produce temperature is reduced the desired levels. Different products require different temperatures for optimum shelf life. Apart from temperature, it is also necessary to control humidity level, since low humidity and high circulation of cold air take away the moisture from the produce and the quality of the produce is adversely affected. Moreover, loss of moisture also reduces volume, which affects the profitability. 63 The facility will handle two types of products. In the first category, products such as fresh vegetable, leafy vegetables, etc. will be received in the pack house in crates and will be dispatched to the market within one day. The second category includes those products, which need to be stored for long time. Such products need to be pre-cooled and handled through the cold chain. 64 Keeping in view the product assortment to be marketed, forced air-cooling is recommended for this project. In this system, cold air is passed through the produce at a high circulation rate so that the produce is cooled inside the box. Pre-cooling equipment consists of an air handler placed against the wall and the produce is placed in two rows in from of the air handler with a gap in between. The gap from the top and on the far end is covered with tarpaulin. The air handler sucks the air, which creates an air draft. The air from the room, which passes through the boxes containing the produce, fills up the containers. The cold air containing the desired humidity levels is pushed into the room through a vent attached to the refrigeration unit. 65 After the core temperature of the produce is brought down to the desired level, the produce can be sent to the cold storage or through reefer trucks to the market. 66 Pre-cooling: High temperatures are detrimental to keeping quality of fruits and vegetables, especially when harvesting is done during hot days. Pre-cooling is a means of removing the field heat. It slows down the respiration of the produce, minimizes susceptibility to attack of microorganism, reduces water loss and eases the load on cooling system of storage or transport. Peas and Okra which deteriorate fast need prompt cooling. Sometimes the stage of ripening and level of field heat of produce also determines the need for pre-cooling. For example, unless tomatoes are above 26.7°C and ripening is to be delayed, there is no need for pre-cooling. 67 In air cooling, cool air can be provided from cold storage. Temperature should not be less than 1°C to avoid freezing. In water cooling (hydro cooling), field heat is removed quickly. It is used for leafy vegetables to retain their texture and freshness. Ice can be added to bring down the temperature. However, temperature should be controlled to avoid chilling injury in cold sensitive fruits and vegetables.

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68 The presently proposed Controlled Storage (CA) facility by CAL will have grading, packing and post-harvest line (5T/H Capacity), Pre- Cooling (20 MT/per day Capacity), controlled atmospheric cold storage facilities, which would be mainly used for enhancing shelf life of fruits and vegetables and value addition etc. The modified atmosphere cold storage will be multi-chambered and have capacity to store 5000 tons of fruits and vegetables, to minimize the post-harvest and loses and also to ensure safe delivery of products. The facility will also be provided with refrigerated vans for collection of raw material and deliver chilled and fresh products to the market center. 69 The operations flow diagram and layout of the CA storage facility is given in Exhibit 3 & 4. 70 CA Storage Facility Location and Land Requirements: The total land requirements for establishing the CA storage facility is 12000 sq. mtrs. with a built up area of 5000 sq. mtrs. The facility is proposed to be installed at Palanpur District, Gujarat. 71 Power: The facility will require 600 KW of connected power and CAL will get the power from the state run power distribution company. 72 Water: The facility will require fresh water supply of about 10,000 litres per day, envisaged to be met through installation of a tube well within the facility and supplement the recurrent requirement through reuse/ recycling of treated wash water. 73 Manpower requirement: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The CA storage facility will require 10 semi-skilled workers, 3 plant operators, 2 Supervisors, 6 personnel for managerial work and 8 personnel for non-managerial work and administrative work. 74 Agri Retail Cum Collection Centers: ARCCs, proposed by CAL will be one of its kind of agri mall, which will serve each and every agri related inputs (be it seeds, pesticides, fertilizers, farm machinery, irrigation system etc) from all major/known brands under one roof. It will also act as a Technical Training and Knowledge Centre to the farmers and positioned to serve as one stop shop the centre. The ARCC will also provide soil & water testing, crop inspection and farm visit, training, agri- advisory, market trends, prices of various crops in the markets to the framers. 75 The ARCC will also include Pack House having facilities for grading, sorting, cleaning packing and storage so that the quality of the agri produce, and fruits & vegetables can be stored for better prices. The pack house will serve as a boon for farmers where the produce will be enhanced quality wise and prepared to be sold at much fairer prices to markets, food processing companies and export houses. CAL’s buy back facilities will facilitate direct contact with farmers and can fetch much better prices for their year round hard work. The

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ARCC’s will be located at the close vicinity of farm gates where farmers can avail the benefits of all facilities for multi produce under one roof. CAL’s field executives will also provide extension services from time to time and assist the farmer(s) in all farm related processes/activities. 76 ARCC, aims at empowering farmers and meeting the needs of rural households by providing access to agricultural products, services summarized below: i) Quality inputs (fertilizers, seeds, pesticides, farm, equipment’s, veterinary products,

animal feed, irrigation items) ii) Agronomic services with team of qualified technical staffs like soil testing, crop

inspection, weather forecasts etc. iii) Financial services- acts as a facilitator between the farmers and the financial

institutions for different types of loan including farm credit, life insurance, medical Insurance and crop loan, term loan etc.

iv) Access to output markets by helping farms produce buyback opportunities, commodity trading

v) Information on latest trends, new developments and research in agriculture, government schemes and subsidies, market prices etc.)

77 ARCC is envisaged to provide all the required facilities and services for marketing under one roof and connecting farmers directly with the market. The operation of ARCC is based on hub and spoke format in which the ARCC (Collection center) acting as a hub is connected to many villages (production centers), which act as spokes. Each ARCC will cater to communities within a 25-30 km periphery. The catchment area will depend on convenience needs of farmers like transportation to collection center, operational efficiency and capacity utilization at the center. 78 The ARCC will provide an easy and direct access to agricultural products, technical services regarding product and general agriculture practices so that the farmers can improve upon their produce quality, quantity and subsequently CAL will buy-back farmer’s agri produce at market rates, which will lead to socio-economic development of the farmers, 79 The operations/Process flow diagram at ARCC along with linkage to ADC and lay out plan of an ARCC and ADC are given in Exhibit 5 & 6. 80 ARCCs Location and Land Requirements: The ARCC’s are proposed at 5 locations namely Navsari, Junagadh, Prantij, Rajpipla, Borsad all in Gujarat. The land requirement per location will be 6000 Sq Mtrs with a built up area of 1500 Sq Mtrs. 81 Manpower, Transport & Communication Facilities: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The ARCCs will require a total 310 varied staff, comprising semi-skilled workers, plant operators, supervisors,

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managerial, non-managerial and administrative staff. In addition, the ARCC will also be provided with adequate number of refer trucks and vans with loading and unloading facilities. 82 Power: ARCC at each location will require 60 KW, CAL intends to get the required power connection from the State run power distribution company. 83 Water: ARCC at each location will require about 10000 litres of water per day, which can be sourced from construction of a tube well within ARCC facility and supplement the requirement through recycle and reuse of treated wash water. 84 Agri Distribution Center: The Agri Distribution Centers (ADC) is intended to provide forward linkage and will receive the agri produce from ARCC as well as from other major F&V growing pockets. The ADC will act as central distribution facility and manage following components of supply chain and will thus help to reduce heavy post-harvest losses of fruits and vegetables. a. Post-harvest management

i) Pack house including pre-cooling (Sorting, Grading, Quality check, Ripening, Short/Long term storage, Packaging)

ii) Controlled atmospheric Storage b. Network marketing (Branding)

i) Supply to processing units ii) Retailing(include modern Retail Outlets, food marts / super markets / malls,

general trade shops iii) Institutional Sales – Hospitals, Army, NCC, Gurudwaras, Charitable trusts, Mid-

day meals, etc. iv) Wholesale marketing

c. Logistics and distribution

i) Refer transport ii) Distribution centers

85 Agri Distribution Centers will cater to the market demands of farm output and sourcing the produce from ARCC and other production belts. These centers will be located in high market potential areas, which have huge demands for fruits and vegetables with a focus on B2B sales. 86 Agri Distribution Centers (ADC) will be located in high per capita income and fastest growing cities (with population of 5 million and above) like Ahmedabad, Jaipur/ Indore, NCR (Delhi), Ludhiana, Panchkula (Chandigarh). 87 The lay out plan of an ADC is given in Exhibit 7. The operations/Process flow diagram of ARCC along with its linkage to ADC facility is given in Exhibit 5.

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88 ADCs Location and Land Requirements; The land requirements for each ADC will be setup in 4000 sq.mt. area (built-up area of 1500 sq.mt.) and will be equipped with facilities comprising pre-cooling unit(cap.20 tonnes/day), processing unit(cap. 50 tonnes/day), ripening unit (cap.15 tonnes/day) and cold storage (cap.150 tonnes). 89 Manpower, Transport & Communication Facilities: As a corporate policy, CAL intends to employ locally available un-skilled, semi-skilled and skilled workers, to the extent of their availability, The total work force required for all 12 proposed project facilities is 425, out of which 90% are intended to be sourced locally and prefer to engage female workers upto 40% of the overall work force, depending upon their availability. The ADCs will require a total of 150 staff, comprising semi-skilled workers, supervisors, managerial staff, and non-managerial staff and administrative staff. In addition, the ADCs will be provided with refer trucks and vans with loading and unloading facilities. 90 Power: ADC at each location will require 60 KW, CAL intends to get the required power connection from the State run power distribution company. 91 Water Requirement: ADC at each location will require about 10000 litres of water per day, which can be sourced from construction of a tube well within each ADC facility and supplement the requirement through recycle and reuse of treated wash water. D Description of Baseline Environment 92 The proposed facilities comprising IQF (1No.), CA storage (1No.), ARCC (5No.) are all located in various districts within Gujarat. Whereas the ADCs are located at fast growing cities with high per capita income located in Gujarat, and other neighbouring states like Rajasthan, Madhya Pradesh, Delhi, Punjab and Haryana. The location details and land requirements at each of the locations for the proposed facilities are given in Table 5. The baseline environment of the project facility locations are briefly described hereunder.

Table 5: Location and Land Requirements of Proposed Facilities

Sl. No. Facility Type No. of Unit(s)

Land Requirement/ Unit Location

1 Individual Quick Frozen (IQF) Project Facility

1 12,000 Sq. mtrs. with 4000 sq. mtrs of built-up area

Gundasara Village,Taluka Gondal,Distt. Rajkot, Gujarat

2 Controlled Atmosphere (CA) Storage

1 12,000 Sq. mtrs with 5000 sq. mtrs of built-up area

Palanpur, Gujarat State

3 Agri Retail and Collection Centres (ARCC)

5 6,000 Sq. mtrs with 1500 sq. mtrs of built-up area per location

Navsari, Junagadh, Prantij, Rajpipla, Borsad, all in Gujarat State

4 Agri Distribution Centre(s) (ADC)

5 4,000 Sq.mtrs with 1500 sq. mtrs of built-up area per location

Ahmedabad, Jaipur /Indore, Delhi, Ludhiana, Jalandhar,

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D1 Baseline Environmental Profile of IQF Facility Location / Site 93 Facility Location: IQF facility has been proposed in Gundasara Village, Taluk Gondal, District Rajkot. Within Gujarat, Rajkot is third-most advanced district and Rajkot city is the administrative headquarters of the district. The location plan of project site and Gundasara Village is given in Exhibit 8. 94 Road Rail Connectivity: The Village Gundasara in Gondal Taluk is well connected to National Highway network through NH 8B and also adjacent to Rajkot Verawal Section of Western Railway and well connected to the National rail network. 95 Weather: The weather in the project region does not exhibit extremities and range between 20°C and 40°C. The summer months are between March to June and winter months are between October and February. The monsoon season span between July to September months with an average annual rainfall ranging between 625-750 mm. 96 Water Resources: Within vicinity of 1-2 km of the project site, there are no rivers or surface water bodies. Owing to the arid climatic conditions, characterized by erratic or limited rainfall and in between drought years, groundwater is the only reliable source of irrigation water for agriculture as well as domestic consumption by the local communities. The ground water table in the project region is 75 to 100 meters below ground level. The water quality is satisfactory and widely used without any restrictions due to quality or any other issues. 97 Flora and Fauna: In the vicinity of project site and/or within a surrounding region of 5 -10 km radius, there is no forest area, wild life sanctuary or ecologically sensitive area. No endangered fauna or their migrant routes have been reported in the project region. 98 Archeological/Historical Monuments: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there are no archaeological and/or historical monuments, declared and protected by the State or Government of India. 99 Landuse: The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 sq metres (1.2 Ha) and is devoid of any human settlements/households or vegetative cover. The site clearing and construction activities of the facility will not require tree felling or clearance of vegetative cover at project site. The general land use pattern in the project region is agriculture land use interspersed with cultivable pasture land, uncultivable open areas with sporadic human settlements. 100 Soil: Soils in the project region vary in depth from 25 to 60 cm and are well drained due to porous sub soil structure. The colour of the soils vary from dark grey to light grey, clay loam to clay in texture and calcareous in nature and thus Calcium is the dominant exchangeable cation. Taxonomically, these soils are classified as Entisols, Inceptisols and further classified as Orthents, Ochrepts, Psamments, Fluvents, Aquepts at sub-group level. The soils in the project region have low fertility values as they are poorly supplied with N and P (Sodium and Phosphorus) but with adequate supply of K (Potassium).

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101 Agricultural Crops: The major crops cultivated in the project region are Groundnut, Cotton, Pulses, Wheat, Bajra, Jowar & Sugarcane. Vegetables are also grown as an intermittent crop. D2 Baseline Environmental Profile of CA Storage Facility Location/Site 102 Facility Location: The CA storage facility is proposed in Palanpur town, the district headquarters of Banaskantha District. The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 Sq meters (1.2Ha) and is devoid of any human settlements/households or vegetative cover. The location plan of project site and Palanpur town is given in Exhibit 9. 103 Road Rail Connectivity: The facility location is well connected to National Highway and State Highway network through NH 14, SH 41 and SH 54. Palanpur is also on the main line of Western Railway and well connected to the National rail network. 104 Economy of District: The economy of the Banaskantha district, in which the CA storage facility is being proposed, is largely based on agro & food processing, tourism, textile and mineral (ceramic) based industries. The district ranks 1st in the production of vegetables contributing nearly 18% to the overall vegetable production of the Gujarat State. The district is also the largest producer of potatoes and one of the leading producers of Isabgul (Psyllium husk- a laxative medicinal property) in the country.Thus the district industry profile and economy auger well for the proposed CA storage facility. 105 Weather: The weather in project region comprising Palanpur town and surrounding areas exhibit extremities and range between 5°C and 42°C and occasionally reaching up to 46°C. During summer months of March to June, the weather will be hot and humid with sandy winds. However, during winter months of November to February, the temperature ranges between 5° to 15°C, which is considered as quite cold, compared to other parts of Gujarat. The average rainfall of Palanpur range between 500 to 750 mm. 106 Water Resources: Within vicinity of 1-2 km of the project site, there are no rivers or surface water bodies, although Banas, Saraswati & Sepu rivers flow through the district. Owing to the arid climatic conditions, characterized by erratic or limited rainfall and frequent drought years, groundwater is the only reliable source of irrigation water for agriculture as well as domestic consumption by the local communities. The ground water table in the project region is 75 to 100 meters below ground level. The water quality is satisfactory and widely used without any restrictions due to quality or any other issues. 107 Flora and Fauna: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there is no forest area, wild life sanctuary or any ecologically sensitive area. No endangered fauna or their migrant routes have been reported in the project region. 108 Archeological/Historical Monuments: In the vicinity of project site and/or within a surrounding region of 5-10 km radius, there are no archaeological and/or historical monuments, declared and protected by the State or Government of India.

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109 Landuse: The project site, although not a prime agricultural land, presently is under cultivation spread over an area of 12,000 sq metres (1.2 Ha) and is devoid of any human settlements/households or vegetative cover. The site clearing and construction activities of the facility will not require tree felling or clearance of vegetative cover at project site. The general land use pattern in the project region is agriculture land use interspersed with cultivable pasture land, uncultivable open areas with sporadic human settlements. 110 Soil: Soils in the project region vary in depth upto to 90 cm or even more. The colour varies from brown to yellowish brown and soils are sandy loam to loam in texture. Taxonomically these soils are classified as Entisols, Inceptisols, Aridisols. These are further classified as Ochrepts, Orthents, Orthids, Psamments and Fluvents at sub-group level. The NPK (Sodium, Phosphorus and Potassium) value of the soils in the project regions is medium, hence leading to moderate fertility of soil. 111 Agricultural Crops: The major crops cultivated in the project region are Paddy, Bajra, Pulse, Cotton, Groundnut, Tobacco, Wheat, Jowar, Minor Millet, Vegetables (majorly potato), Spices & condiments, Oil Seeds. The vegetable production of the Distrcit constitutes 18% of the overall production of the State. D3 Baseline Environmental Profile of ARCCs and ADCs Location/Site 112 The baseline environmental profile of site(s) proposed for ARCCs (5no.s) and ADCs (5 No.s) were also assessed and found to be at par or even with lower environmental sensitivity as proposed for IQF and CA storage facilities. Further, these facilities will require much smaller land requirement and will be located near in proximity to urban centres like Navsari, Junagadh, Prantij, Rajpipla, Borsad towns, all in Gujarat State and major cities/business centres like Ahmedabad, Jaipur /Indore, Delhi, Ludhiana, Jalandhar cities of nearby states as per the business plans of CAL. In all these locations, facilities will be established within the designated agri-produce marketing centres, having all basic amenities and facilities and has been setup either directly by the respective State Governments or through co-operatives. E Anticipated Environmental Impacts and Mitigation Measures E1 Pre-Construction Stage Impacts and Mitigation Measures: 113 The pre-construction stage impacts arising out of the siting and selection of land for the proposed facilities can have wide ranging but limited impacts due to scale of project facility on land, soil, water resources, flora and fauna, socio economic environment. However, CAL’s criteria for siting of the facility and land purchase arrangements (ref Annexure 3), will avoid all such perceivable impacts. The land purchase arrangements adopted by CAL will also avoid any social impacts on the local communities as well as involuntary resettlement impacts and issues arising due to economic displacement. 114 The IEE indicates that pre-construction stage impacts due to location or siting of facility can be mitigated through adopting pre-determined criteria for siting and finalization of location for the facilities. The involuntary resettlement impacts are avoided through purchase of land for the facility on a ‘willing seller and willing buyer’ principle through direct negotiated

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settlement from one or a maximum of three land owners. The proposed facilities will avoid impacts in indigenous peoples. E2 Pre-construction Stage Regulatory Compliances: 115 Under the provisions of Water (Prevention and Control of Pollution) Act, 1974, each of the proposed facility is to obtain the consent for establishment (CFE) from the State Pollution Control Board. It is an offence to commence or run any facility/industries, which generate/discharge industrial or domestic wastewater without obtaining the consent and the State Pollution Control Board is empowered to close down and seal the unit, in case of violation. 116 The consent for establishing (CFE) is issued by the State Pollution Control Board, on submission of project related information in the prescribed application along with applicable consent fee, based on the scale and category of a specific facility/industry. The consent management procedures are well established by State Pollution Control Board and can be obtained in a time bound manner. E3 Construction Stage Impacts and Mitigation Measures: 117 Due to the nature and sale of the proposed facilities, the impacts arising out of the construction activities are comparable to any general building construction projects. Such impacts can be avoided and/or mitigated through site-specific environmental management plan/measures. The likely impacts, mitigation measures along with responsibility for implementing the measures are outlined in Environmental Mitigation Action Plan (EMAP) given in Annexure 4. The construction contract documents will include conditions / provisions to bind the contractors / subcontractors to comply with National Labor and Safety Standards to be maintained at site during work. E4 Operation Stage Impacts and Mitigation Measures: 118 The operation stage impacts due to the proposed facilities can be mainly due to process wash water, solid waste from operational areas and sanitary waste/sewage from toilets and wash areas. In addition to this, the safety, health and indoor air quality at work area environment will be one of the issues which require to be addressed in order to avoid the associated impacts at work place. These impacts can be readily managed through providing appropriate measures as summarized here under. 119 a) Process Wash Water: Fresh water will be used to wash and clean the fruits and vegetables, prior to further processing operations as per requirements. The washing and cleaning operations are required to remove loose organic scales, dirt and soil present on the fruits and vegetables, which also generate wash water. The facility wise water consumption and estimated liquid waste generation is given in Table 6.

120 The wash water needs to be treated to meet the applicable effluent discharge standards prior to disposal. The applicable effluent standards to be adopted, prior to discharge of treated liquid waste is given in Table 7.

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Table 6 : Liquid Waste Generation from CAL’s Proposed Facilities (Per Location Wise)

Sl. No. Facility Process Water Consumption and Waste Generation (litres/day)

Fresh Water Consumption Wash Water Generation

1 IQF 25,000 23,750

2 CA Storage 25,000 23,750

3 ARCC 15,000 14,250

4 ADC 5,000 4,750

Table 7: Liquid Waste Discharge Standards for Fruits and Vegetables Processing Industry

Sl. No Parameter

IFC Guideline Values for food & beverage sector

Effluent Standards for Food and Vegetable Processing Industry,

EPA Act 1986, Govt. of India 1 pH 6 – 9 6.5 – 8.5 2 BODs (mg/l) 50 (5 days @ 200 C) 30 (3 days @ 270 C) 3 COD (mg/l) 250 Not specified 4 Total Nitrogen (mg/l) 10 Not specified 5 Total Phosphorus (mg/l) 2 Not specified 6 Oil & Grease (mg/l) 10 10 7 Total Suspended Solids (mg/l) 50 50 8 Total Coliform Bacteria

(MPN/100ml) 400 Not specified

9 Temperature increase ( 0C ) < 30 C Not specified 10 Active Ingredients / Antibiotics to be determined on

case specific basis Not specified

121 Since, the process wash water is not highly polluted and can be easily treated through settling, filtration, followed by oxidation cum disinfection. The treated wash water can be safely reused /recycled except for toping up the system losses/wastages and enable/avoid use of fresh water.

122 b) Sanitary Waste/Sewage: The proposed facilities will generate sanitary waste/sewage mainly from toilets and wash areas provided for the workers and other staff within the facility. The facility wise estimated sanitary waste/sewage generation is given in Table 8.

Table 8 : Sanitary Waste Generation from CAL’s Proposed Facilities (Per Location Wise)

Sl. No. Facility Domestic Waste Generation(litres/day)

Staff Strength Sewage/Sanitary Waste*

1 IQF 90 3,650

2 CA Storage 30 1,200 3 ARCC 60 2,450

4 ADC 30 1,215

* based on 45 litres/day/person consumption and 90% of which as sewage/sanitary waste generation

23

123 The sanitary waste/sewage can be directly discharged into public sewer system (municipal) without any treatment. At locations, where public sewer system is not available, septic tank and soak pit disposal systems will have to be provided. Due to the small quantities of the sanitary waste generation at each of these facilities, any other form of mechanized biological treatment may not be feasible or warranted. Since, public sewer systems are not available at locations of the proposed facilities, septic tank and soak pit disposal systems are the preferred option for treatment of sanitary and sewage from toilet and wash areas. 124 c) Process Solid waste: The processing of vegetables and fruits at each of the facilities will generate solid waste in the form of discarded vegetables fruits/vegetables, leaves, packing materials etc, which are mostly organic residues. The facility wise estimated solid waste generation is given in Table 9.

Table 9 : Solid Waste Generation from CAL’s Proposed Facilities (Per Location Wise)

Sl. No. Facility Waste Generation Per Ton of Product Processed (Kgs)*

Total Waste Generation** (Kg/day)

1 IQF 40 400 2 CA Storage 40 400 3 ARCC 40 200 4 ADC 40 200

*in line with IFC’s EHS guidelines for food and beverage processing sector ** Based on the installed capacity to process fruits and vegetable at respective facility

125 Since the solid waste is mostly organic in nature, it can be decomposed through aerobic composting or through vermin composting process and generate organic manure with good fertility value. The composting process will require minimal space and can be provided at each of the facility. E5 EHS Performance Standards/Requirements: 126 In order to ensure workers safety, health and work area environment, particularly indoor air quality during the operations stage, industry specific EHS performance standards are to be implemented. The EHS performance standards/requirements shall cover workers safety (including use of PPEs), housekeeping, sanitation and hygiene at the work place. The environmental, health and safety guidelines for food and beverage processing sector recommended by the IFC, World Bank are given in Annexure 5 for reference and adoption by Environmental and Social Safeguard Management Unit (ESMU) of CAL. F Analysis of Alternatives 127 This section presents the considerations made during the analysis of alternatives carried out to the proposed facilities in terms of equipment layout, selection of machinery, siting/location of facility, land acquisition, including ‘no project facility alternative’. These are briefly summarized hereunder.

24

F1 No Project Facility Alternative 128 India is the second largest producer of fruits and vegetable in World, accounting for nearly 10% of global fruits & vegetables production. Its diverse agro-climatic regions are ideal to grow a large variety of crops. In spite of being one of the world’s 2nd largest producer of fresh fruits & vegetables, its share in the World market in both fresh and processed form is less than 7%. This is mainly due to its inadequacy of proper post-harvest management, resulting in the produce getting perished before it reaches the consumer. As a result of this, an estimated of 25-35% of the horticulture produce perishes due to improper postharvest operations, which in turn reduces the grower’s share in the present marketing arrangements. Fruit and vegetable processing sector in India is underdeveloped and less than 7% is being processed as against 30% in Thailand, 70% in Brazil, 78% in Philippines and 80% in Malaysia. 129 Therefore, urgent interventions are required in the vegetable and fruits processing sector in India comprising harvesting at proper maturity, adoption of improved harvesting and handling techniques, innovations in mechanical harvesting, electronic sorting, proper handling, grading, packaging, storage and transportation under controlled temperatures to reduce the post-harvest losses. Recent developments in the storage techniques for fruits and vegetables like controlled atmosphere and sub-atmosphere storage, computerized sorting and grading and adoption of cold storage facilities are the required interventions required for the growth of the fruits and vegetable processing sector in India. 130 As per the present estimates, this sector needs a significant boost in investments to the tune of Rs 140,000 crores. Such investments are likely to generate direct employment for 7.7 million people and indirect employment for some 30 million people. CAL’s investments plans for the proposed facilities under ADB financing is in sync with these sectoral investment requirements of fruits and vegetable processing Industry and can contribute to the socio economic growth of the country. F2 Equipment Layout and Selection of Machinery 131 While, finalizing the proposed facilities, several alternatives and options have been considered in (a) selection of equipment and machinery with latest technology for process operations to ensure desired output /handling capacity and (b) Compact design and functional layout for least usage of floor space. These considerations have enabled CAL to arrive at the best functional layout within an optimal floor area as well as selection of equipment and machinery for smooth operations for desired handling capacity and helped in avoiding unwarranted inclusions F3 Siting of the Facilities and Land Purchase Arrangement 132 CAL’s expansion plans to build fruits and vegetable processing (project) facilities in Gujarat and elsewhere across India, required acquisition of small parcels of land for each project facility. The land requirements varied between 4000 sq. metres (0.4 Ha) to 12000 sq. metres (1.2 Ha). Such land parcels were available in Gujarat and elsewhere either from a single land owner and or group of land owners ranging between 2 to 4, depending upon the location, individual owner’s land holding and willingness to sell the land in part or full.

25

133 However, in order to mitigate the likely social and involuntary resettlement impacts due to siting and land purchase, CAL has applied the following considerations, while finalizing a specific location as well as selection of land parcel for establishing the proposed project facility. These comprised: i) Land parcel, suiting to its business operations should be road facing atleast on any

one side with reasonably good connectivity to State Highways and National Highways

ii) Land parcel should not be a prime and fertile agricultural land, preferably a barren land or having a low agricultural potential

iii) Land parcel shall be devoid of any household(s), structures, free from vegetative cover

iv) Land parcel should not be in proximity to any archeological monuments, large natural water bodies, national parks, wild life sanctuaries, forest areas, ecologically sensitive areas declared by the State or Government of India

v) Screen the land parcel ownership documents and profile of the owner to determine whether the land belongs to any person of indigenous(Scheduled Tribe or ethnic minorities) group and directly or indirectly affects his or her dignity, human rights, livelihood systems or culture, if any due to proposed land purchase transaction

vi) Screen the ownership details of the land parcel to determine whether the land is owned by one owner or how many owners are involved and their willingness to sell the land parcel to CAL on a mutually negotiated rates

134 In case the landowner(s) belongs to an Indigenous Group, CAL’s to exercise its resources to identify an alternative suitable land, in order to avoid purchase of land parcel belonging to an individual or group of indigenous people, to the extent possible. If unable to find an alternate land, suiting its requirements, it shall review project facility planning and design and explore options to minimize land requirements. 135 After exercising option(s) to minimize land requirements, CAL to initiate dialogue with the individual or group of land owner(s) belonging to indigenous group to seek their consent in writing to purchase their land through direct negotiations for proposed project facilities. 136 In case the landowner(s) belongs to a scheduled tribe/group or an indigenous group, it shall be the responsibility of the landowner(s) to get required mandatory permission from the competent authority at District level, prior to negotiations, transaction and transfer of title. 137 CAL shall not apply coercion directly or indirectly on to potential sellers and shall conduct transaction in a transparent, consistent and equitable manner and ensure that transaction leads to better income and livelihood status of the potential seller of land. G Information Disclosure, Consultation 138 During the siting and selection of the land for the facility, CAL has undertaken the following activities as part of its information disclosure, consultation and participation.

26

i) Meetings with the local village community leaders either in group or individually to

ascertain the availability of the land and potential land owners willing to sell the land on direct negotiated basis.

ii) Press Notification in one local Newspaper and one national newspaper inviting objections, if any from public at large due to land purchase, through their counsel/legal advisor.

iii) Disclosure of a project brief to enable them to understand the nature of operations, land requirements during these initial interactions.

iv) Disclosure of a more detailed project brief to potential land owners willing to sell the land upon identifying the suitable land parcel suiting CAL’s business operations, so as to make them understand the nature of operations, land requirements.

v) Focused Group meeting with potential land owner(s), to assess their willingness to sell the land through the direct negotiations. CAL has encouraged women members of the land owners’ family to actively participate during the assessment and consenting to sell their land.

vi) All such interactions with local people has taken place in an atmosphere free of intimidation or coercion.

vii) CAL has provided project brief to several local people, who have shown interest to about CAL’s operations in the project facility area

139 Due to the nature and scale of land requirements, all the consultations conducted by CAL were informal and none of the proceedings of the meetings and viewpoints expressed by the local community have been formally documented /recorded. CAL procures land directly from owners through general practices of purchase and sale of lands in accordance with CAL’s corporate consideration for siting and land purchase for new facilities (Annexure 5 of ESMS Framework).

140 Since the proposed project facility did not involve social impacts due to involuntary resettlement issues and impacts on indigenous peoples, no formal social surveys, consultations, were warranted. The current environment regulatory framework, CAL’s proposed facilities do not fall under the purview of the EIA Notification, 2006, which exempts CAL from conducting formal public consultation with the communities, where the project facilities are located. The issuance of consent for establishment (CFE) and Consent for Operation (CFO) management procedures of the SPCB also does not warrant conducting public consultation with the communities, where the project facilities are located. H Grievance and Redress Mechanism 141 During the course of interactions, CAL has informed the probable land owners and other community people that local community CAL as a corporate entity has a grievance redress mechanism to address any possible concerns and dissatisfaction of affected local people regarding the social and environmental impact of its project facilities and local community can seek an appropriate and amicable solution. CAL shall promptly respond to the affected groups, be transparent and free of gender discrimination, enable different affected groups to express their opinions, with no fear of reprisal.

27

142 The grievances will be redressed at the subproject level in a consultative manner and with full participation of the affected households, or their representatives, along with CAL and local self-government representatives, if required in the following manner.

i) Stage 1. If any person is aggrieved by any aspect of the proposed project facility,

he/she (AP) can state his/her grievance and appeal to the head of the specific subproject. If an oral appeal is made, the head of the specific subproject will record it on paper and process it for making a decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

ii) Stage 2. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can appeal to the ESMU at CAL’s corporate office after receiving the decision by the head of the specific subproject. The ESMU manager will reach a decision in two weeks and AP will be informed of the result via written notice.

iii) Stage 3. If the aggrieved AP is still not satisfied with the decision of ESMU Manager at CAL’s corporate office, he/she will appeal to the office of the CAL’s Chairman cum Managing Director after receiving the decision from ESMU Manager. The Chairman cum Managing Director of CAL, with the approval of the Board of Directors will reach a decision in two weeks. The AP will be informed of the result via written notice.

iv) Stage 4. If the AP is still dissatisfied with the decision of the CAL’s Chairman cum Managing Director, he/she will appeal to the civil court according to the civil procedural law after receiving the decision from the CAL’s Chairman cum Managing Director and decision of the court shall be the final and binding on both CAL and affected persons.

143 CAL has informed the local community and the affected about the grievance and appeal procedure through group meetings, so that they can fully understand their rights for grievance and appeal in a court of law. I Environmental Management Plan: I1 Environmental Mitigation Action Plan: 144 An environmental management action plan for pre-construction, construction and operation stages for the proposed facilities are given in Annexure 4. The EMAP indicates the role and responsibility for implementation at each of the implementation stages. I2 Environmental Enhancement Measures: 145 In addition to the implementation of the EMAP, the proposed facilities can include several environmental enhancement measures at the facilities comprising: i) Reuse and Recycling of treated process wash water ii) Rain Water Harvesting and Recharging iii) Regular occupational health checkups and screening for workers iv) Mandatory use of PPEs v) Landscaping and Plantation

28

vi) Adoption of renewable energy for lighting applications I3 Operation Stage Environmental Monitoring: 146 During the operational stage, periodical environmental monitoring is to be carried out at each of the facility covering the following: i) Quality of water to be used for washing ii) Wash water quality (prior to treatment) iii) Fertility quality of organic waste iv) Performance evaluation of Treatment facility for wash water v) Cleaning of Rainwater harvesting and recharging structures, prior to monsoon 147 The periodical environmental monitoring during the operation stage will enable to determine the effectiveness of the environmental mitigation plan as well as the benefits of the fit I4 Budgetary Cost Provision for EMAP Implementation: 148 The implementation of EMAP during planning/pre-construction, construction and operation stages for all proposed facilities will require a capital cost of INR 1,64,00,000 and a recurring cost of INR 61,60,000 per annum. The summary of the budgetary provision for implementing the EMAP during planning/pre-construction, construction and operation stages is given in Table 10. The detailed cost provision for EMAP implementation for CAL’s Proposed Facilities is given in Annexure 6. 149 The recurring cost comprises annual maintenance and upkeep of liquid and solid waste management systems as well as components implemented as part of environmental enhancement measures. The recurring cost also includes periodic environmental monitoring in compliance with local regulatory as well as ADBs safeguards requirement.

Table 10: Summary EMAP implementation cost (Figures in INR)

S No Type of Facility IQF (1No.)

CA Storage (1No.)

ARCC (5No.s)

ADC (5 No.s)

Total Cost (INR)

A One time capital cost for implementation of EMAP components for all Facilities

24,50,000 24,50,000 57,50,000 57,50,000 164,00,000

B Annual Recurring Cost for all facilities i Annual Maintenance cost

of EMAP components @10% of capital cost

2,25,000 2,25,000 1,15,000 1,15,000 6,80,000

ii Operation stage periodical environmental monitoring for all facilities

6,00,000

3,60,000

3,60,000

3,60,000

16,80,000

Sub-total (Annual Recurring Cost for all facilities)

8,25,000 5,85,000 23,75,000 23,75,000 61,60,000

29

I5 Institutional Arrangements: 150 The institutional arrangements for implementation of EMAP during planning/pre-construction, construction and operation stages are given in Table 11. The role and responsibility for implementing the EMAP is further detailed under Annexure 4.

Table 11 : Institutional Arrangements for implementation of EMAP

Sl.No Implementation Stage

Implementation Responsibility Planning & Execution Supervision & Monitoring

1 Planning & Pre-Construction Stage

Project Development Team and ESMU of CAL

Designated Senior Management Functionaries of CAL

2 Construction Stage Contractor/Agency engaged by CAL

ESMU and Project Management Group(PMG) of CAL

3 Operation Stage ESMU & Project facility specific SHE (Safety, Health & Environment) Officer

ESMU / Project Operations Group/Designated Senior Management Functionaries of CAL

J Conclusion and Recommendation 151 Due to the nature and scale of the facilities proposed by CAL, the likely impacts are not significant. The social impacts are avoided through the purchase of land through direct negotiated settlement on a willing buyer and willing seller principle. The pre-construction, construction and operation stage environmental impacts can be mitigated by implementing management measures through an institutional arrangement with clearly defined roles and responsibilities and dedicated budgetary provisions. The consent for establishing and operation of the proposed project facilities can be obtained from the state pollution control board in a time bound manner. The project facilities will be subjected to periodical environmental monitoring during the operation stage. Further, implementation of environmental enhancement measures like recycling of treated wash water, rain water harvesting and ground water recharging, adopting renewable (solar) energy for lighting applications will enable the proposed facilities to be an environmentally sustainable, compliant to state regulatory requirements and consistent with the safeguard requirements of SPS, 2009 and will not involve any kind of reputational risk to ADB on environmental and social safeguard issues.

30

List of Exhibits

Exhibit 1 Process / Operations Flow Diagram of IQF Facility for Fruits & Vegetables

Exhibit 2 Layout Plan of IQF Facility for Fruits & Vegetables

Exhibit 3 Operations / Process Flow Diagram of CA Storage Facility

Exhibit 4 Layout Plan of CA Storage Facility

Exhibit 5 Operations / Process Flow Diagram of ARCC with Linkage to ADC

Exhibit 6 Layout Plan of ARCC

Exhibit 7 Layout Plan of ADC

Exhibit 8 Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, Rajkot District, Gujarat

Exhibit 9 Location Plan of CA Storage Facility Site at Palanpur, Banaskantha District, Gujarat

31

Exhibit 1

PROCESS / OPERATIONS FLOW DIAGRAM OF IQF FACILITY FOR FRUITS & VEGETABLES

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

Exhibit-1: Process / Operations Flow Diagram of IQF Facility for Fruits & Vegetables

Product Receipt in bags 

Sorting, grading, preliminary washing & inspection 

Automatic cutting / manual trimming / peeling 

Manual inspection 

Controlled feeding

Blanching / heat treatment 

Automatic washing and cleaning 

Small part / excess wash water removal 

Chilling cooling t0 + 10 deg C 

Removal of excess surface water 

Spreading for even feed 

Individual Quick freezing t0 ‐18 deg C 

Bulk packing in bags 

Cold storage 

33

Exhibit 2

LAYOUT PLAN OF IQF FACILITY FOR FRUITS & VEGETABLES

34

                                     

Exhi

bit 2

: Lay

out P

lan

of IQ

F Fa

cilit

y fo

r Fru

its &

Veg

etab

les

 

35

Exhibit 3

OPERATIONS / PROCESS FLOW DIAGRAM OF CA STORAGE FACILITY

36

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Exhibit-3: Operations / Process Flow Diagram of CA Storage Facility

Loading on to Transport Vehicle

Dumping (Dry or in water)

 Initial‐sorting (to remove culls or foreign material)

Pre‐sizing (small size eliminator)

• Washing 1  (to remove organic matter) • Washing 2  (to clean commodity with water & detergent 

with 100‐150 ppm chlorine dosage) • Rinsing with chlorinated water

Removal of surface moisture (sponge roller + air draft)

Waste Stream 3: Sorting to remove no. 3 grade and overripe fruits

Brushing and waxing (optional)

Sorting by colour (optional)

Sizing (By weight of dimension)

Small  Medium  Large Extra 

Sorting by Quality grades

Fancy  Quality No.1 Quality No.2

Packing in retail units  Marketed in identified markets

Packing in master container  Weight Check

Inspection Palletization

Forced to air Cooling

Transport  to distribution centre

Waste Stream 1 Cull accumulation bin

Waste Stream 2 Wash Water

Waste Stream 3 Wastage/Scrapped fruits 

Temporary storage

Export 

37

Exhibit 4

LAYOUT PLAN OF CA STORAGE FACILITY

38

                                     

Exhi

bit 4

: Lay

out P

lan

of C

A S

tora

ge F

acili

ty

 

39

Exhibit 5

OPERATIONS / PROCESS FLOW DIAGRAM OF ARCC WITH LINKAGE TO ADC

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 5: Operations / Process Flow Diagram of ARCC with Linkage to ADC

 

FARMERS

Wholesale centres (Auction/sale, Walk-in-cold store

Market feedback on price & quality /new products

Market feedback on price & quality /new products

(ADC) CITY RE- DISTRIBUTION CENTRE

(TEMPORARY STORAGE AND DISTRIBUTION TO RETAILERS AND CASH CARRY ACTIVITIES)

Insulated Transport

RETAILERS INSTITUTIONS

Refer / Regular Transport

Refer / Regular Transport

COLD / CA STORAGE

PROCUREMENT PLAN &

EXTENSION

FEEDBACK & PAYMENT

FEEDBACK

Agri Input & Services Farm Output

(ARCC) AGRI-RETAIL CENTRES

CUM COLLECTION CENTRE

PACKHOUSE (GRADING, SORTING, PACKING,

WAXING, PIPING, POST HARVEST TREATMENT)

41

Exhibit 6

LAYOUT PLAN OF ARCC

42

                                     

Exhi

bit 6

: Lay

out P

lan

of A

RC

C  

43

Exhibit 7

LAYOUT PLAN OF ADC

44

                                     

Exhi

bit 7

: Lay

out P

lan

of A

DC

 

45

Exhibit 8

LOCATION PLAN OF IQF FACILITY SITE AT GUNDASARA VILLAGE, GONDAL TALUKA, RAJKOT

DISTRICT, GUJARAT

46

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibit 8: Location Plan of IQF Facility Site at Gundasara Village, Gondal Taluka, Rajkot District, Gujarat

District Map of Rajkot

Proposed Location of IQF Facility

47

Exhibit 9

LOCATION PLAN OF CA STORAGE FACILITY SITE AT PALANPUR, BANASKANTHA DISTRICT,

GUJARAT

48

Exhi

bit 9

: Loc

atio

n Pl

an o

f C.A

. Sto

rage

Fac

ility

Site

at P

alan

pur,

Ban

aska

ntha

Dis

tric

t, G

ujar

at

Dis

tric

t Map

of B

anas

kant

ha

49

List of Annexures

Annexure 1 Categorisation of Industries by SPCB for Consent Management under Water & Air Pollution Act, 1974

Annexure 2 Land Acquisition Policy of GIDC, Govt. of Gujarat

Annexure 3 CAL’s Corporate Considerations for Siting and Land Purchase for New Facility

Annexure 4 Environment Mitigation Action Plan (EMAP)

Annexure 5 EHS Guidelines for Food & Beverage Processing Sector Recommended by IFC

Annexure 6 Detailed Cost Estimate for EMAP

50

Annexure 1

CATEGORISATION OF INDUSTRIES BY SPCB FOR CONSENT MANAGEMENT UNDER WATER & AIR

POLLUTION ACT, 1974

51

52

53

54

Annexure 2

LAND ACQUISITION POLICY OF GIDC, GOVT. OF GUJARAT

55

56

57

58

59

Annexure 3

CAL’S CORPORATE CONSIDERATIONS FOR SITING AND LAND PURCHASE FOR NEW FACILITY

60

Annexure 3

Corporate Considerations of Champion Agro Private Limited for

Siting of New Facilities and Land purchase to mitigate Social Impacts

A Background

1. CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for general corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL. 2. In order mitigate the likely social and involuntary impacts due to siting and land purchase for its newly proposed facilities under ADB financing, CAL has adopted the certain considerations, which shall be applied during siting and land purchase transactions. The considerations would enable CAL to avoid the social impacts as a result of its proposed facilities and also would enable to be consistent with requirements of SPS 2009, ADB.

B Land Requirements for Proposed Facilities 3. CAL’s expansion plans to build more project facilities in Gujarat and elsewhere across India, will require acquisition of small parcels of land for each project facility. The land requirements vary between 4000 sq. metres (0.4 Ha) to 12000 Sq. metres (1.2 Ha) and is available in Gujarat and elsewhere either from a single land owner and or group of land owners ranging between 2 to 4, depending upon the location, individual owner’s land holding and willingness to sell the land in part or full. C Corporate Considerations for siting and Land Purchase 4. CAL will identify and select the required parcel of land based on its business operations and land requirements for establishing the project facility at a specific location and comply the following considerations, to extent possible • Land shall be road facing atleast on any one side with reasonably good connectivity to

State Highways and National Highways

• Land parcel should not be a prime and fertile agricultural land, preferably a barren land or having a low agricultural potential

• Land parcel shall be devoid of any household(s), structures, free from vegetative cover

• CAL shall screen the location to determine whether the land belongs to any person of indigenous(Scheduled Tribe or ethnic minorities) group and directly or indirectly affects

61

his or her dignity, human rights, livelihood systems or culture, if any due to proposed land purchase transaction

• Required land parcel shall preferably be owned by one owner but in case of more than one owner (but preferably not exceeding four), all of them should be voluntarily willing to sell the land parcel to CAL on a mutually negotiated rates

5. In case the landowner(s) belongs to an Indigenous Group, CAL’s shall exercise its resources to identify an alternative suitable land, in order to avoid purchase of land parcel belonging to an individual or group of indigenous people, to the extent possible. If unable to find an alternate land, suiting its requirements, it shall review project facility planning and design and explore options to minimize land requirements. 6. After exercising options to minimize land requirements, CAL shall initiate dialogue with the individual or group of land owner(s) belonging to indigenous group to seek their consent in writing to purchase their land through direct negotiations for proposed project facilities. 7. In case the landowner(s) belongs to a scheduled tribe/group or an indigenous group, it shall be the responsibility of the landowner(s) to get required mandatory permission from the competent authority at District level, prior to negotiations, transaction and transfer of title. 8. CAL shall not apply coercion directly or indirectly on to potential sellers and shall conduct transaction in a transparent, consistent and equitable manner and ensure that transaction leads to better income and livelihood status of the potential seller of land. D Consistent to ADB Safeguards 9. CAL consideration to select and purchase land for its expansion of its existing facility and/ or for establishing new facilities through this “willing seller and willing buyer” principle and negotiated rate settlement without involuntary resettlement, economic displacement and involuntary physical displacement from land or housing will not trigger Safeguard Requirements 2 and 3: of SPS 2009 of ADB.

62

Annexure 4

ENVIRONMENT MITIGATION ACTION PLAN (EMAP)

63

1

Tab

le: E

NV

IRO

NM

EN

TA

L M

ITIG

AT

ION

AC

TIO

N P

LA

N (E

MP)

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

PRE

- CO

NST

RU

CT

ION

ST

AG

E

1

Crit

eria

for

final

izat

ion

of

Loca

tion

and

Sitin

g of

Pr

ojec

t Fac

ility

• Th

e la

nd p

arce

l for

pro

ject

faci

lity

shal

l con

form

to C

AL’

s co

rpor

ate

cons

ider

atio

ns fo

r si

ting

and

sele

ctio

n of

land

giv

en a

s atta

chm

ent t

o th

is E

MA

P.

• Th

e la

nd

esse

ntia

lly s

hall

not b

e in

pro

xim

ity to

any

arc

heol

ogic

al m

onum

ents

, lar

ge

natu

ral

wat

er b

odie

s, na

tiona

l pa

rks,

wild

life

san

ctua

ries,

fore

st a

reas

, ec

olog

ical

ly

sens

itive

are

as d

ecla

red

by th

e St

ate

or G

over

nmen

t of I

ndia

Proj

ect D

evel

opm

ent

Team

of C

AL

and

ESM

U

Des

igna

ted

Seni

or

Man

agem

ent

Func

tiona

ries o

f CA

L

2 La

nd P

urch

ase

/Acq

uisi

tion

Proc

ess

• Th

e la

nd p

arce

l sha

ll be

pur

chas

ed th

roug

h di

rect

neg

otia

tions

with

the

cons

entin

g la

nd

owne

rs o

n a

will

ing

selle

r an

d w

illin

g bu

yer

prin

cipl

e an

d av

oid

any

invo

lunt

ary

rese

ttlem

ent i

ssue

s and

soci

al im

pact

s the

reof

. •

In c

ase,

lan

d ow

ners

bel

ong

to s

ched

uled

trib

e, i

t sh

all

be t

heir

resp

onsi

bilit

y to

get

re

quire

d pe

rmis

sion

from

dis

trict

aut

horit

ies,

prio

r to

trans

actio

n/ tr

ansf

er o

f titl

e.

• C

AL

shal

l dis

clos

e al

l req

uire

d in

form

atio

n to

the

prob

able

land

sel

lers

and

nei

ghbo

ring

land

ow

ners

abo

ut th

e pr

opos

ed fa

cilit

ies a

nd re

solv

e an

y of

con

cern

s prio

r to

trans

actio

n an

d tra

nsfe

r of t

itle.

Proj

ect D

evel

opm

ent

Team

of C

AL

and

ESM

U

Des

igna

ted

Seni

or

Man

agem

ent

Func

tiona

ries o

f CA

L

3 O

btai

ning

CFE

(C

onse

nt to

Est

ablis

h)

from

SPC

B

• Pr

escr

ibed

app

licat

ion

for

obta

inin

g C

FE s

hall

be p

repa

red

with

all

proj

ect

faci

lity

info

rmat

ion

and

subm

itted

to S

tate

Pol

lutio

n C

ontro

l Boa

rd.

• A

dditi

onal

inf

orm

atio

n, i

f an

y so

ught

by

SPC

B s

hall

be p

rovi

ded

and

CFE

sha

ll be

ob

tain

ed in

a ti

me

boun

d m

anne

r •

No

Con

stru

ctio

n w

ork

shal

l be

ini

tiate

d w

ithou

t ob

tain

ing

the

man

dato

ry C

FE f

rom

SP

CB

ESM

U

CA

L -

Proj

ect

Man

agem

ent

Gro

up(P

MG

)/ D

esig

nate

d Se

nior

M

anag

emen

t Fu

nctio

narie

s of C

AL

4

Con

tract

or’s

R

espo

nsib

ility

for

Impl

emen

tatio

n of

EM

AP

• Th

e co

ntra

ct

docu

men

ts

for

civi

l, el

ectro

m

echa

nica

l w

orks

sh

all

incl

ude

the

envi

ronm

enta

l man

agem

ent r

equi

rem

ents

as

cond

ition

s of

con

tract

, so

that

con

tract

or is

cl

early

aw

are

of th

e re

quire

men

ts a

nd c

an a

ccor

ding

ly q

uote

for w

orks

ES

MU

C

AL

- Pr

ojec

t M

anag

emen

t G

roup

(PM

G)

CO

NST

RU

CT

ION

ST

AG

E

5 C

lear

ance

and

B

arric

adin

g o

f Si

te

• Th

e si

te s

hall

be c

lear

ed o

f all

unw

arra

nted

mat

eria

ls a

nd b

arric

aded

on

all s

ides

exc

ept

for e

ntry

and

exi

t poi

nts,

so a

s to

cau

se m

inim

um h

indr

ance

/dis

turb

ance

to a

djac

ent l

and

owne

rs/o

ccup

ants

dur

ing

cons

truct

ion

stag

e

Con

tract

or/A

genc

y en

gage

d by

CA

L ES

MU

and

PM

G

6 Pr

eser

vatio

n of

Tre

es

• A

ll ef

forts

shal

l be

mad

e to

pre

serv

e tre

es, i

f any

with

in th

e pr

ojec

t fac

ility

site

incl

udin

g re

wor

king

on

the

layo

ut o

f th

e fa

cilit

y to

sav

e tre

es. T

ree

cutti

ng, i

f un

avoi

dabl

e sh

all

proc

eed

only

afte

r ge

tting

the

req

uire

d tre

e cu

tting

per

mis

sion

s fr

om t

he c

ompe

tent

au

thor

ities

.

ESM

U/C

ontra

ctor

/Age

ncy

enga

ged

by C

AL

ESM

U a

nd P

MG

Ann

exur

e 4

64

2

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

7 Pr

eser

vatio

n of

Top

So

il

• Th

e to

p so

il fr

om th

e si

te, i

f fo

und

to b

e fe

rtile

sha

ll be

pre

serv

ed fo

r reu

sing

at a

late

r st

age

for l

ands

capi

ng a

nd o

ther

app

licat

ions

with

in p

roje

ct fa

cilit

y si

te.

• If

top

soil

pres

erva

tion

is d

eem

ed n

eces

sary

, the

n, to

p 15

0mm

thic

k so

il sh

all b

e ta

ken

out a

nd st

acke

d in

a su

itabl

e si

te a

nd c

over

ed w

ith p

olye

thyl

ene

shee

ts

Con

tract

or

ESM

U

8 C

oncr

ete

Bat

chin

g Pl

ants

• A

ll ba

tchi

ng p

lant

s fo

r pr

oduc

tion

of c

oncr

ete

shal

l pr

efer

ably

be

set

up w

ithin

co

nstru

ctio

n si

te. I

n ca

se s

uffic

ient

land

not

ava

ilabl

e w

ithin

pro

ject

site

, the

n it

shal

l be

loca

ted

at a

ny o

ther

sui

tabl

e si

te lo

cate

d at

leas

t 100

m a

way

fro

m th

e ne

ares

t dw

ellin

g pr

efer

ably

in th

e do

wnw

ind

dire

ctio

n.

• Th

e C

ontra

ctor

sha

ll su

bmit

a de

taile

d la

yout

pla

n fo

r al

l su

ch s

ites

for

appr

oval

of

ESM

U p

rior t

o th

e es

tabl

ishm

ent.

• A

rran

gem

ents

to

co

ntro

l du

st

pollu

tion

thro

ugh

prov

isio

n of

w

inds

cree

ns,

wat

er

sprin

kler

s and

dus

t ext

ract

ion

syst

ems s

hall

have

to b

e pr

ovid

ed a

t all

such

site

s. •

Alte

rnat

ivel

y, c

ontra

ctor

may

be

enco

urag

ed to

sou

rce

conc

rete

from

alre

ady

esta

blis

hed

read

y m

ix p

lant

s and

tran

spor

t it t

o si

te th

roug

h ta

nker

s

Con

tract

or

ESM

U

9 C

onst

ruct

ion

Veh

icle

s, Eq

uipm

ent

and

Mac

hine

ry

• A

ll ve

hicl

es, e

quip

men

t and

mac

hine

ry to

be

proc

ured

/dep

loye

d fo

r co

nstru

ctio

n w

orks

sh

all b

e in

goo

d co

nditi

on a

nd p

refe

rabl

y no

t les

s tha

n 5

year

s old

. •

The

Con

tract

or sh

all m

aint

ain

a re

cord

of P

ollu

tion

Und

er C

ontro

l (PU

C) f

or a

ll ve

hicl

es

and

mac

hine

ry u

sed

durin

g th

e co

ntra

ct p

erio

d w

hich

sha

ll be

pro

duce

d to

ESM

U f

or

verif

icat

ion

whe

neve

r req

uire

d.

Con

tract

or

ESM

U

10

Bor

row

Are

as

• Lo

catio

ns f

or b

orro

win

g ea

rth s

hall

be f

inal

ized

by

the

Con

tract

or a

nd r

epor

ted

to th

e ES

MU

for i

ts in

spec

tion

and

appr

oval

of t

he si

te.

• Th

e C

ontra

ctor

sha

ll no

t st

art

borr

ow o

pera

tions

unt

il th

e fo

rmal

agr

eem

ent

is s

igne

d be

twee

n la

ndow

ner a

nd C

ontra

ctor

and

with

out p

rior a

ppro

val o

f ESM

U

• Fi

naliz

atio

n of

bor

row

ing

area

and

all

logi

stic

arr

ange

men

ts a

s w

ell

as a

pplic

able

co

mpl

ianc

e as

per

loca

l sel

f gov

ernm

ent r

equi

rem

ents

sha

ll be

the

sole

resp

onsi

bilit

y of

th

e C

ontra

ctor

. •

The

haul

roa

ds s

hall

be r

oute

d to

avo

id h

uman

set

tlem

ent

and

sens

itive

rec

epto

rs l

ike

scho

ols,

hosp

itals

as f

ar a

s pos

sibl

e an

d sh

all u

se th

e ex

istin

g ro

ads w

here

ver a

vaila

ble.

Con

tract

or

ESM

U

11

Ston

e A

ggre

gate

Pr

ocur

emen

t

• C

ontra

ctor

sha

ll pr

ocur

e al

l st

one

aggr

egat

es s

ourc

ed f

rom

sto

ne c

rush

ers,

whi

ch

conf

orm

to S

tate

Pol

lutio

n C

ontro

l Boa

rd N

orm

s,

• C

ontra

ctor

shal

l wor

k ou

t hau

l roa

d ne

twor

k an

d ob

tain

ESM

U a

ppro

val.

Con

tract

or

ESM

U

12

Con

stru

ctio

n W

ater

ar

rang

emen

ts

• Th

e co

ntra

ctor

sha

ll id

entif

y su

itabl

e (g

roun

d/su

rfac

e) w

ater

as

a so

urce

of w

ater

for t

he

cons

truct

ion

and/

or m

ay s

et u

p ow

n bo

re w

ell

faci

lity

for

cons

truct

ion

wor

k, a

fter

obta

inin

g th

e re

quis

ite p

erm

issi

ons,

if an

y re

quire

d un

der a

ppro

val o

f ESM

U.

Con

tract

or

ESM

U

13

Sand

•

The

Sand

sha

ll be

pro

cure

d fr

om li

cens

ed s

and

min

es. T

he C

ontra

ctor

sha

ll ob

tain

cop

y C

ontra

ctor

ES

MU

65

3

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

of th

e Le

ase

Agr

eem

ent o

f the

supp

lier a

nd su

bmit

to E

SMU

bef

ore

proc

urin

g th

e sa

nd.

14

Sour

cing

of

loca

l la

bour

(s

kille

d/un

skill

ed)

• Th

e C

ontra

ctor

sha

ll en

cour

age

and

use

unsk

illed

and

or

skill

ed l

abou

r as

may

be

avai

labl

e/dr

awn

from

loca

l com

mun

ities

to g

ive

max

imum

em

ploy

men

t ben

efits

to th

e lo

cal c

omm

unity

. C

ontra

ctor

ES

MU

15

Con

stru

ctio

n C

amp

site

s and

mat

eria

l st

ocky

ards

• Th

e co

nstru

ctio

n ca

mps

, if

requ

ired

shal

l pr

efer

ably

be

with

in a

n ea

rmar

ked

area

of

proj

ect f

acili

ty s

ite. I

f ade

quat

e ar

ea is

not

ava

ilabl

e, c

ontra

ctor

may

set

up

cons

truct

ion

cam

ps a

t any

suita

ble

near

by si

te w

ith p

rior a

ppro

val o

f ESM

U.

• Th

e co

nstru

ctio

n ca

mp

site

s sh

all b

e pr

ovid

ed w

ith r

equi

site

fac

ilitie

s fo

r sa

fe d

rinki

ng

wat

er, s

anita

tion

and

oth

er b

asic

infr

astru

ctur

e fa

cilit

ies

like

fuel

for

coo

king

, lig

htin

g,

ente

rtain

men

t, ba

sic

heal

th c

are

for

labo

ur a

mon

g ot

hers

and

ens

ure

they

are

not

de

pend

ant o

n ou

tsid

e re

sour

ces t

o fu

lfill

thei

r bas

ic re

quire

men

ts

• M

ater

ial s

tock

yard

s sh

all e

ssen

tially

be

with

in th

e pr

ojec

t fac

ility

con

stru

ctio

n si

te a

nd

all m

ater

ial s

hall

be o

rder

ly st

acke

d an

d co

vere

d to

pre

vent

dus

t pol

lutio

n

Con

tract

or

ESM

U

16

Arr

ange

men

ts fo

r Te

mpo

rary

Lan

d R

equi

rem

ent

• Th

e C

ontra

ctor

sha

ll ca

rry

out

nego

tiatio

ns w

ith t

he l

ando

wne

rs f

or o

btai

ning

the

ir co

nsen

t for

tem

pora

ry u

se o

f lan

ds fo

r set

ting

up c

onst

ruct

ion

cam

p w

ith p

rior a

ppro

val

of E

SMU

C

ontra

ctor

ES

MU

17

Envi

ronm

enta

l Tr

aini

ng fo

r C

ontra

ctor

’s S

taff

• ES

MU

sh

all

orga

nize

or

ient

atio

n an

d pe

riodi

c (r

egul

ar)

train

ing

sess

ions

at

al

l co

nstru

ctio

n st

ages

of

th

e pr

ojec

t fa

cilit

y to

co

ntra

ctor

’s

staf

f to

se

nsiti

ze

the

envi

ronm

ent s

afeg

uard

requ

irem

ents

at c

onst

ruct

ion

site

ES

MU

PM

G/ D

esig

nate

d Se

nior

M

anag

emen

t Fu

nctio

narie

s of C

AL

18

Tran

spor

ting

Con

stru

ctin

g M

ater

ials

and

Hau

l R

oad

Man

agem

ent

• A

ll ve

hicl

es u

sed

for

trans

porti

ng c

onst

ruct

ion

mat

eria

ls to

the

site

sha

ll be

cov

ered

to

avoi

d sp

illag

e of

mat

eria

ls.

• A

ll ex

istin

g ro

ads

used

by

mat

eria

l hau

lage

veh

icle

s, sh

all b

e ke

pt c

lear

of a

ll du

st/m

ud

or o

ther

ext

rane

ous m

ater

ials

dro

pped

by

such

veh

icle

s. •

Con

tract

or s

hall

arra

nge

for

regu

lar

clea

ning

and

wat

er s

prin

klin

g as

nec

essa

ry f

or d

ust

supp

ress

ion

of a

ll su

ch ro

ads a

nd su

rfac

es, i

f req

uire

d

Con

tract

or

ESM

U

19

Dra

inag

e an

d flo

od

cont

rol

• C

ontra

ctor

sha

ll en

sure

tha

t no

con

stru

ctio

n m

ater

ials

lik

e ea

rth,

ston

e, o

r ap

pend

age

disp

osed

off

in

a m

anne

r th

at b

lock

the

flo

w o

f w

ater

of

any

wat

er c

ours

e an

d cr

oss

drai

nage

cha

nnel

s, in

pro

xim

ity to

pro

ject

faci

lity

site

•

In a

dditi

on,

Con

tract

or s

hall

take

all

requ

ired

mea

sure

s as

dire

cted

by

the

ESM

U t

o pr

even

t tem

pora

ry o

r per

man

ent f

lood

ing

of th

e pr

ojec

t site

or a

ny a

djac

ent a

rea.

Con

tract

or

ESM

U

20

Wat

er P

ollu

tion

from

Fu

el a

nd L

ubric

ants

st

orag

e/ha

ndlin

g ar

eas

• Th

e C

ontra

ctor

sha

ll ta

ke p

re-c

autio

nary

mea

sure

s to

ens

ure

that

no

wat

er p

ollu

tion

occu

rs th

roug

h su

rfac

e ru

noff

fro

m c

onst

ruct

ion

vehi

cle

park

ing

area

s, f

uel/l

ubric

ants

st

orag

e si

tes,

vehi

cle,

mac

hine

ry/e

quip

men

t mai

nten

ance

site

s •

Con

tract

or sh

all e

nsur

e th

at a

ll ve

hicl

e/m

achi

nery

and

equ

ipm

ent o

pera

tion,

mai

nten

ance

an

d re

fuel

ing

shal

l be

carr

ied

out i

n su

ch a

man

ner

that

spi

llage

of

fuel

s an

d lu

bric

ants

Con

tract

or

ESM

U

66

4

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

does

not

con

tam

inat

e th

e gr

ound

.

21

Dus

t Pol

lutio

n at

wor

k si

tes

• Th

e C

ontra

ctor

sha

ll ta

ke e

very

pre

caut

ion

to re

duce

the

leve

l of d

ust f

rom

con

stru

ctio

n pl

ants

, co

nstru

ctio

n si

tes

invo

lvin

g ea

rthw

ork

by s

prin

klin

g of

wat

er,

and

pro

vidi

ng

scre

ens a

t sou

rce

for w

ardi

ng o

ff th

e du

st

• Th

e C

ontra

ctor

sha

ll pr

ocur

e/us

e co

nstru

ctio

n pl

ants

and

mac

hine

ry,

whi

ch s

hall

conf

orm

to th

e po

llutio

n co

ntro

l nor

ms b

y SP

CB

Con

tract

or

ESM

U

22

Emis

sion

from

C

onst

ruct

ion

Veh

icle

s, Eq

uipm

ent

and

Mac

hine

ries

• C

ontra

ctor

sha

ll en

sure

that

all

vehi

cles

, equ

ipm

ent a

nd m

achi

nery

use

d fo

r con

stru

ctio

n ar

e re

gula

rly m

aint

aine

d an

d co

nfirm

to p

ollu

tion

emis

sion

nor

ms

of S

PCB

and

/ Mot

or

Veh

icle

s A

cts

&

Rul

es.

The

Con

tract

or

shal

l su

bmit

PUC

ce

rtific

ates

fo

r al

l ve

hicl

es/e

quip

men

t/mac

hine

ry u

sed

for t

he P

roje

ct.

Con

tract

or

ESM

U

23

Noi

se fr

om V

ehic

les,

Plan

ts a

nd

Equi

pmen

ts

• Th

e C

ontra

ctor

sha

ll en

sure

tha

t co

nstru

ctio

n pl

ants

and

equ

ipm

ent

used

sha

ll st

rictly

co

nfor

m t

o th

e M

oEF/

CPC

B/S

PCB

noi

se s

tand

ards

. Th

e m

aint

enan

ce o

f ve

hicl

es,

equi

pmen

t and

mac

hine

ry sh

all b

e do

ne re

gula

rly to

kee

p no

ise

leve

ls a

t the

min

imum

. •

All

maj

or n

oisy

act

iviti

es o

f con

stru

ctio

n sh

all b

e lim

ited

to d

ay h

ours

onl

y an

d no

nig

ht

shift

s sha

ll be

allo

wed

for

such

act

iviti

es u

nder

nor

mal

circ

umst

ance

s

Con

tract

or

ESM

U

24

SHE(

Safe

ty, H

ealth

an

d En

viro

nmen

t) Pl

an fo

r Con

stru

ctio

n si

te

• Th

e co

ntra

ctor

sha

ll pr

epar

e a

SHE

(Saf

ety,

Hea

lth a

nd E

nviro

nmen

t) pl

an f

or t

he

cons

truct

ion

site

and

sha

ll ge

t it a

ppro

ved

by E

SMU

. At t

he c

onst

ruct

ion

site

SH

E sh

all

be im

plem

ente

d

• A

ll co

nstru

ctio

n pe

rson

nel

shal

l be

pro

vide

d w

ith P

rote

ctiv

e fo

otw

ear,

prot

ectiv

e go

ggle

s an

d no

se m

asks

to th

e w

orke

rs e

mpl

oyed

in c

oncr

ete

wor

ks, c

rush

er a

nd d

ust

gene

ratin

g ac

tiviti

es

• W

elde

r’s

prot

ectiv

e ey

e-sh

ield

s sh

all

be p

rovi

ded

to w

orke

rs w

ho a

re e

ngag

ed i

n w

eldi

ng w

orks

and

ear

plug

s to

wor

kers

exp

osed

to n

oisy

env

ironm

ent b

eyon

d th

resh

old

leve

ls

• C

ontra

ctor

sha

ll co

mpl

y w

ith a

ll re

gula

tions

reg

ardi

ng s

afe

scaf

fold

ing,

lad

ders

, saf

e pl

atfo

rms

for

wor

king

at

heig

hts,

gang

way

, sta

ircas

es, e

xcav

atio

ns, t

renc

hes

and

safe

m

eans

of e

ntry

and

egr

ess.

•

Con

tract

or s

hall

com

ply

with

all

the

prec

autio

ns a

s re

quire

d fo

r en

surin

g th

e sa

fety

of

the

wor

kmen

as p

er th

e St

ate

and

Nat

iona

l Reg

ulat

ions

and

Indu

stry

Bes

t pra

ctic

es.

• Th

e C

ontra

ctor

sha

ll ar

rang

e fo

r firs

t aid

uni

t inc

ludi

ng a

n ad

equa

te s

uppl

y of

ste

riliz

ed

dres

sing

mat

eria

ls a

nd a

pplia

nces

as

per

the

Fact

orie

s A

ct a

nd R

ules

in

ever

y w

ork

zone

. The

arr

ange

men

ts s

hall

incl

ude

avai

labi

lity

of s

uita

ble

trans

port

at a

ll tim

es t

o ta

ke in

jure

d or

sick

per

son(

s) to

the

near

est h

ospi

tal.

• C

ontra

ctor

sha

ll en

sure

ava

ilabi

lity

of t

rain

ed f

irst

aid/

nur

sing

sta

ff a

t co

nstru

ctio

n ca

mp

durin

g al

l wor

king

hou

rs.

Con

tract

or

ESM

U

25

Land

scap

ing

and

•

The

Con

tract

or s

hall

initi

ate

prep

arat

ory

activ

ities

for

lan

dsca

ping

so

as t

o en

sure

C

ontra

ctor

ES

MU

67

5

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

Plan

tatio

n St

rate

gy

land

scap

ing

and

plan

tatio

n w

ithin

pro

ject

fac

ility

site

are

ful

ly d

evel

oped

as

per

the

deve

lopm

enta

l pla

n an

d co

inci

de w

ith th

e co

mpl

etio

n of

con

stru

ctio

n ac

tiviti

es

26

Was

te D

ispo

sal

• Th

e C

ontra

ctor

sha

ll pr

ovid

e ga

rbag

e bi

ns a

t co

nstru

ctio

n w

orke

rs c

amp

site

s an

d en

sure

that

thes

e ar

e re

gula

rly e

mpt

ied

and

disp

osed

off

in a

hyg

ieni

c m

anne

r app

rove

d by

ESM

U.

Con

tract

or

ESM

U

27

Cle

an-u

p O

pera

tions

, R

esto

ratio

n an

d R

ehab

ilita

tion

• C

ontra

ctor

sha

ll un

derta

ke s

ite c

lean

up o

f op

erat

ions

, as

app

rove

d by

ESM

U.

The

cl

ean-

up o

pera

tions

are

to

be i

mpl

emen

ted

by t

he C

ontra

ctor

prio

r to

dem

obili

zatio

n an

d sh

all

com

pris

e cl

earin

g of

al

l te

mpo

rary

st

ruct

ures

; di

spos

e al

l ga

rbag

e,

cons

truct

ion

debr

is, u

nuse

d/w

aste

mat

eria

ls u

nuse

d am

ong

othe

rs.

Con

tract

or

Envi

ronm

enta

l Sp

ecia

list

of C

SC, K

SHIP

28

Pollu

tion

Mon

itorin

g •

The

perio

dica

l (m

onth

ly) m

onito

ring

of th

e am

bien

t air

qual

ity, n

oise

leve

l, w

ater

qua

lity,

at

sel

ecte

d lo

catio

ns w

ithin

the

pro

ject

fac

ility

sha

ll be

und

erta

ken

eith

er b

y in

hou

se

faci

lity

or th

roug

h an

ext

erna

l lab

orat

ory

appr

oved

by

Stat

e Po

llutio

n C

ontro

l Boa

rd

Con

tract

or

ESM

U a

nd P

MG

29

Com

mun

ity

Parti

cipa

tion

• C

omm

unic

atio

n ch

anne

l sho

uld

be k

ept o

pen

with

loca

l peo

ple

arou

nd th

e pr

ojec

t fac

ility

to

en

sure

th

at

the

cons

truct

ion

activ

ities

at

pr

ojec

t si

te

are

not

caus

ing

undu

e in

conv

enie

nce

to th

e lo

cal p

eopl

e du

e to

noi

se, d

ust o

r dis

posa

l of d

ebris

etc

. C

ontra

ctor

and

ESM

U

PMG

an

d D

esig

nate

d Se

nior

M

anag

emen

t Fu

nctio

narie

s of C

AL

30

Grie

vanc

e R

edre

ss

• Th

e co

ntra

ctor

sha

ll cr

eate

a fa

cilit

y at

pro

ject

site

to re

ceiv

e an

y co

mpl

aint

s/gr

ieva

nces

(e

ither

ora

lly o

r in

doc

umen

ted

form

) re

late

d to

con

stru

ctio

n ac

tiviti

es f

rom

loc

al

peop

le/a

djac

ent l

and

owne

rs a

nd re

solv

e th

e m

atte

rs e

xped

itiou

sly.

If g

rieva

nce(

s) c

anno

t be

reso

lved

at s

ite le

vel i

tsel

f, th

e m

atte

r sha

ll be

refe

rred

to P

MG

and

ESM

U fa

cilit

y fo

r re

solv

ing

the

mat

ter e

xped

itiou

sly.

Con

tract

or a

nd E

SMU

PM

G

and

Des

igna

ted

Seni

or

Man

agem

ent

Func

tiona

ries o

f CA

L

OPE

RA

TIO

N S

TA

GE

31

Obt

aini

ng C

FO

(Con

sent

to O

pera

te)

from

SPC

B

• Pr

escr

ibed

app

licat

ion

for

obta

inin

g C

FO s

hall

be p

repa

red

with

all

proj

ect

faci

lity

info

rmat

ion,

prio

r to

com

men

cem

ent o

f co

mm

erci

al O

pera

tions

and

sub

mitt

ed to

Sta

te

Pollu

tion

Con

trol B

oard

. •

Arr

ange

for v

isit

of S

PCB

off

icia

ls fo

r fie

ld v

erifi

catio

n of

the

faci

lity

•

Add

ition

al i

nfor

mat

ion,

if

any

soug

ht b

y SP

CB

sha

ll be

pro

vide

d an

d C

FO s

hall

be

obta

ined

in a

tim

e bo

und

man

ner

• N

o co

mm

erci

al o

pera

tions

sha

ll be

initi

ated

with

out o

btai

ning

the

man

dato

ry C

FO fr

om

SPC

B

ESM

U

and

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth

and

Envi

ronm

ent)

Pro

ject

O

pera

tions

G

roup

(PO

G) o

f CA

L an

d D

esig

nate

d Se

nior

M

anag

emen

t Fu

nctio

narie

s of C

AL

32

Was

te M

anag

emen

t O

pera

tions

• Th

e fa

cilit

y sh

all

oper

ate

efflu

ent

colle

ctio

n (li

quid

was

te/w

ash

wat

er),

treat

men

t an

d di

spos

al sy

stem

s as p

er th

e liq

uid

was

te m

anag

emen

t pla

n

• Th

e fa

cilit

y sh

all o

pera

te s

olid

was

te c

olle

ctio

n, tr

eatm

ent a

nd d

ispo

sal s

yste

ms

as p

er

the

solid

was

te m

anag

emen

t pla

n

• Th

e fa

cilit

y sh

all o

pera

te e

nviro

nmen

tal h

ealth

, hyg

iene

and

san

itatio

n up

keep

sys

tem

s

ESM

U

and

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth

and

Envi

ronm

ent)

Proj

ect

Ope

ratio

ns

Gro

up(P

OG

)

68

6

Sl. N

o.

Env

iron

men

tal I

ssue

M

anag

emen

t Mea

sure

s R

espo

nsib

ility

Pl

anni

ng a

nd E

xecu

tion

Supe

rvis

ion/

Mon

itori

ng

and

proc

edur

es

33

EHS

Perf

orm

ance

St

anda

rds a

nd

Prac

tices

The

proj

ect

faci

lity

shal

l im

plem

ent

an E

HS

perf

orm

ance

Ope

ratio

ns a

nd I

ndus

try B

est

Prac

tices

and

ens

ure

its a

dher

ence

by

all w

orke

rs a

nd m

anag

emen

t sta

ff (

as r

elev

ant a

nd

appl

icab

le).

It

shal

l be

ens

ured

tha

t al

l w

orke

rs a

re p

rovi

ded

with

PPE

s as

req

uire

d un

der

the

EHS

perf

orm

ance

and

Ind

ustry

Bes

t Pr

actic

es s

tand

ards

/ope

ratio

ns m

anua

l an

d sa

me

is u

sed

durin

g th

e en

tire

oper

atio

nal h

ours

of t

he fa

cilit

y by

all

wor

kers

.

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth a

nd E

nviro

nmen

t) ES

MU

and

PO

G

34

Perio

dica

l En

viro

nmen

tal

Mon

itorin

g w

ithin

Pr

ojec

t Fac

ility

• Th

e pe

riodi

cal

(mon

thly

) m

onito

ring

of t

he a

mbi

ent

air

qual

ity,

nois

e le

vel,

wat

er

qual

ity, w

aste

wat

er (b

efor

e an

d af

ter t

reat

men

t) at

sel

ecte

d lo

catio

ns w

ithin

the

proj

ect

faci

lity

shal

l be

unde

rtake

n ei

ther

by

in h

ouse

faci

lity

or th

roug

h an

ext

erna

l lab

orat

ory

appr

oved

by

Stat

e Po

llutio

n C

ontro

l Boa

rd

• Th

e Pe

riodi

cal m

onito

ring

repo

rts a

re to

be

subm

itted

to S

PCB

and

AD

B a

s pe

r as

per

co

mpl

ianc

e re

quire

men

ts

• A

ny o

ther

con

ditio

ns s

tipul

ated

in

the

CFO

are

to

be f

ully

com

plie

d an

d av

oid

any

regu

lato

ry v

iola

tions

eith

er w

illfu

lly o

r due

to n

eglig

ence

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth a

nd E

nviro

nmen

t) ES

MU

and

PO

G

35

3rd P

arty

Inde

pend

ent

Envi

ronm

enta

l and

So

cial

Saf

egua

rds

Aud

it

• A

n En

viro

nmen

tal a

nd S

ocia

l Saf

egua

rds

Aud

it sh

all b

e ca

rrie

d ou

t eve

ry y

ear

thro

ugh

enga

gem

ent

of a

n in

depe

nden

t 3rd

par

ty a

genc

y. A

ll au

dit

obse

rvat

ions

are

to

be

impl

emen

ted

at th

e fa

cilit

y in

a ti

me

boun

d m

anne

r •

The

audi

t rep

ort a

long

with

‘Act

ion

Take

n R

epor

t’ sh

all b

e su

bmitt

ed to

AD

B

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth a

nd E

nviro

nmen

t)

ESM

U,

POG

an

d D

esig

nate

d Se

nior

M

anag

emen

t Fu

nctio

narie

s of C

AL

36

Com

mun

ity

Parti

cipa

tion

Com

mun

icat

ion

chan

nel s

houl

d be

kep

t ope

n w

ith lo

cal p

eopl

e ar

ound

the

proj

ect f

acili

ty

to e

nsur

e th

at th

e op

erat

ions

of

the

proj

ect f

acili

ty is

not

cau

sing

und

ue in

conv

enie

nce

to

the

loca

ls re

sidi

ng in

the

vici

nity

of p

roje

ct

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth a

nd E

nviro

nmen

t) an

d ES

MU

POG

and

and

Des

igna

ted

Seni

or

Man

agem

ent

Func

tiona

ries o

f CA

L

37

Grie

vanc

e R

edre

ss

• Th

e fa

cilit

y sh

all h

ave

a m

echa

nism

to re

ceiv

e co

mpl

aint

s/gr

ieva

nces

(eith

er o

rally

or i

n do

cum

ente

d fo

rm)

due

to o

pera

tions

of

the

proj

ect

faci

lity

from

loc

al p

eopl

e/ad

jace

nt

land

ow

ners

and

reso

lve

the

mat

ters

exp

editi

ousl

y. If

grie

vanc

e(s)

can

not b

e re

solv

ed a

t si

te l

evel

its

elf,

the

mat

ter

shal

l be

ref

erre

d to

ESM

U f

acili

ty f

or r

esol

ving

the

mat

ter

expe

ditio

usly

.

Proj

ect

Faci

lity

Spec

ific

SHE

Off

icer

(S

afet

y,

Hea

lth

and

Envi

ronm

ent)/

ESM

U

POG

and

and

Des

igna

ted

Seni

or

Man

agem

ent

Func

tiona

ries o

f CA

L

69

Annexure 5

EHS GUIDELINES FOR FOOD & BEVERAGE PROCESSING SECTOR RECOMMENDED BY IFC

70

Environmental, Health, and Safety Guidelines FOOD AND BEVERAGE PROCESSING

APRIL 30, 2007 1

WORLD BANK GROUP

Environmental, Health, and Safety Guidelines for Food and Beverage Processing

Introduction

The Environmental, Health, and Safety (EHS) Guidelines are

technical reference documents with general and industry-

specific examples of Good International Industry Practice

(GIIP) 1. When one or more members of the World Bank Group

are involved in a project, these EHS Guidelines are applied as

required by their respective policies and standards. These

industry sector EHS guidelines are designed to be used

together with the General EHS Guidelines document, which

provides guidance to users on common EHS issues potentially

applicable to all industry sectors. For complex projects, use of

multiple industry-sector guidelines may be necessary. A

complete list of industry-sector guidelines can be found at:

www.ifc.org/ifcext/enviro.nsf/Content/EnvironmentalGuidelines

The EHS Guidelines contain the performance levels and

measures that are generally considered to be achievable in new

facilities by existing technology at reasonable costs. Application

of the EHS Guidelines to existing facilities may involve the

establishment of site-specific targets, with an appropriate

timetable for achieving them. The applicability of the EHS

Guidelines should be tailored to the hazards and risks

established for each project on the basis of the results of an

environmental assessment in which site-specific variables, such

as host country context, assimilative capacity of the

1 Defined as the exercise of professional skill, diligence, prudence and foresight that would be reasonably expected from skilled and experienced professionals engaged in the same type of undertaking under the same or similar circumstances globally. The circumstances that skilled and experienced professionals may find when evaluating the range of pollution prevention and control techniques available to a project may include, but are not limited to, varying levels of environmental degradation and environmental assimilative capacity as well as varying levels of financial and technical feasibility.

environment, and other project factors, are taken into account.

The applicability of specific technical recommendations should

be based on the professional opinion of qualified and

experienced persons.When host country regulations differ from

the levels and measures presented in the EHS Guidelines,

projects are expected to achieve whichever is more stringent. If

less stringent levels or measures than those provided in these

EHS Guidelines are appropriate, in view of specific project

circumstances, a full and detailed justification for any proposed

alternatives is needed as part of the site-specific environmental

assessment. This justification should demonstrate that the

choice for any alternate performance levels is protective of

human health and the environment.

Applicability

These guidelines cover the processing of meat2, vegetable, and

fruit raw materials into value-added food and beverage3

products for human consumption. Meat and poultry

slaughtering and processing activities, from reception of the

animals until the carcasses are ready for sale or further

processing, are covered in the EHS Guidelines for Meat

Processing and the EHS Guidelines for Poultry Processing. This

document is organized according to the following sections:

Section 1.0 — Industry-Specific Impacts and Management Section 2.0 — Performance Indicators and Monitoring Section 3.0 — References Annex A — General Description of Industry Activities

2 Meat includes beef, pig, and poultry. 3 Includes only the manufacturing of non-fermented beverages. Beer manufacturing is addressed in the EHS Guidelines for Breweries.

71

Environmental, Health, and Safety Guidelines FOOD AND BEVERAGE PROCESSING

APRIL 30, 2007 2

WORLD BANK GROUP

1.0 Industry Specific Impacts and Management

The following section provides a summary of EHS issues

associated with food and beverage processing, which occur

during the operational phase, along with recommendations for

their management. Recommendations for the management of

EHS issues common to most large industrial facilities during the

construction and decommissioning phases are provided in the

General EHS Guidelines.

1.1 Environment

Essential tools for managing impacts while optimizing water,

energy, and resource use and improving working practices

involve the adoption of industry-specific good-manufacturing

practice, quality management systems (including ISO 9000

series, ISO 22000), risk management systems (e.g., Hazard

Analysis Critical Control Points, HACCP), and environmental

management standards (e.g., ISO 14000).4

Environmental issues in food and beverage processing facilities

primarily include the following:

• Solid waste

• Wastewater

• Energy consumption

• Emissions to air

Solid Waste Depending on the raw materials, food and beverage processing

activities may generate significant volumes of organic,

4 HACCP is for the systematic identification and management of risks associated with the production and distribution of foodstuffs. ISO 22000:2005 covers requirements for a food safety management system in which an organization in the food chain demonstrates its ability to control food safety impacts to ensure that food is safe at the time of human consumption. ISO 9000 series is an international standard for the certification of manufacturing and quality management systems; ISO 14001 is an international standard for the certification of environmental management systems.

putrescible solid waste in the form of inedible materials and

rejected products from sorting, grading and other production

processes.5 Where meat products are the raw material, solid

waste generated during processing may include organic

materials that have the potential to significantly impact food

safety due to the proliferation of pathogenic microorganisms.6

Recommended measures to prevent and control solid waste

generation include the following:

• Minimize inventory storage time for raw materials to reduce

losses from putrefaction;

• Monitor and regulate refrigeration and cooling systems

during storage and processing activities to minimize

product loss, optimize energy consumption, and prevent

odors;

• Consider use of enclosure techniques to minimize damage

to raw materials stored outdoors;

• Monitor and optimize process yields, e.g. during manual

grading or cutting activities, and encourage the most

productive employees to train others in efficient processing.

• Clean, sort, and grade raw foodstuffs at an early stage

(e.g. at the farm site), in order to reduce organic waste and

substandard products at the processing facility;

• Contain solid waste in dry form and consider disposal

through composting and / or use for soil amendment;

• Organic and non-organic debris / soil, solid organic matter,

and liquid effluents, including sludge from wastewater

5 For example, mushrooms have a low wastage factor (around 3 – 5 percent) whereas the wastage factor for sweet corn kernel processing is much higher (around 50-60 percent). United Nations Environment Programme (UNEP). 2004. Working Group for Cleaner Production in the Food Industry. Fact Sheet 3: Food Manufacturing Series. Food and Beverage Processing. 6 The proportion of animal by-products in food processing activities in relation to their carcass weight ranges from approximately 8 to 16.5 percent for pig, 7 to 8 percent for poultry, and 12 percent for beef. European Union (EU) Commission. 2006. Directorate General Joint Research Council (JRC) Institute for Prospective Technological Studies. Integrated Pollution Prevention and Control Reference Document on Best Available Techniques in the Food, Drink and Milk Industries.

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treatment, which remain after the implementation of waste

prevention strategies should be recycled as a soil

amendment (based on an assessment of potential impacts

to soil and water resources) or other beneficial uses such

as energy production;

• Collect and reuse rejected raw materials for manufacturing

other products;7

• Provide leak-proof containers for collected solid and liquid

waste;

• Segregating individual by-products from each other and

from waste to maximize their use and minimize waste.

Wastewater

Industrial Process Wastewater

Effluent streams from food and beverage processing may have

a high biochemical and chemical oxygen demand (BOD and

COD) resulting from organic wastes entering into the

wastewater stream, and from the use of chemicals and

detergents in various processes including cleaning (discussed

below). In addition, effluent may contain pathogenic bacteria,

pesticide residues, suspended and dissolved solids such as

fibers and soil particles, nutrients and microbes, and variable

pH. The effluent load should be reduced by preventing raw

materials, intermediates, product, by-product and wastes from

unnecessarily entering the wastewater system, as discussed in

the solid waste section above.

Process Wastewater Treatment

Techniques for treating industrial process wastewater in this

sector include grease traps, skimmers or oil water separators for

7 Secondary products may include jams and cut products, such as coleslaws; sauerkraut; orange peels for use in dietary fiber supplements; potato pulp for production of biofuel; onion material for onion oil production, fructooligosaccarides, pectic polysaccharides, and low-lignin dietary fiber; animal waste for production of animal feeds with strict recognition of biosafety considerations; and use of bones, fat, and other by-products from meat as raw material for glue, detergents, gelatin, and other materials.

separation of floatable solids; flow and load equalization;

sedimentation for suspended solids reduction using clarifiers;

biological treatment, typically anaerobic followed by aerobic

treatment, for reduction of soluble organic matter (BOD);

biological nutrient removal for reduction in nitrogen and

phosphorus; chlorination of effluent when disinfection is

required; dewatering and disposal of residuals; in some

instances composting or land application of wastewater

treatment residuals of acceptable quality may be possible.

Additional engineering controls may be required to contain and

neutralize nuisance odors.

Management of industrial wastewater and examples of

treatment approaches are discussed in the General EHS

Guidelines. Through use of these technologies and good

practice techniques for wastewater management, facilities

should meet the Guideline Values for wastewater discharge as

indicated in the relevant table of Section 2 of this industry sector

document.

Other Wastewater Streams & Water Consumption

Guidance on the management of non-contaminated wastewater

from utility operations, non-contaminated stormwater, and

sanitary sewage is provided in the General EHS Guidelines.

Contaminated streams should be routed to the treatment system

for industrial process wastewater. Food and beverage

processing activities (e.g. washing, internal transport of raw

materials using water, cooling of blanched foods, and general

equipment cleansing) may consume large quantities of water.8

In addition to the recommendations on water conservation

included in the General EHS Guidelines, industry specific

measures include the following:

8 Water demands in meat processing are diverse and may, depending upon the specific operation, include thawing of frozen materials, continuous equipment, boot, apron and clothing washing and disinfection as well as generation of steam and process heat, and cooling processes.

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• Minimize water consumed during production processes:

o Optimize product conveying systems to reduce

contact of raw material and product with water, for

example by using dry instead of wet conveying

systems. Optimize process line operations to avoid

spills of raw materials and water, reducing the need to

wastewater treatment and associated energy

consumption;

o Use dry methods, such as air classifiers, magnetic

separators and vibration over sieving and screening

devices, for the primary cleaning of robust raw

materials with low moisture content;

o Where feasible, use a continuous / batch steam or a

dry caustic process for peeling activities, or

alternatively, consider dry caustic peeling;

o Minimize rate of make-up supply to continuously

overflowing tanks, flumes etc.

o Use taps with automatic shut-off valves and use high

water pressure and optimized nozzles,

o Use counter-current wash techniques for primary

wash of raw materials;

o Implement dry clean of equipment with scraper or

broom before cleaning with water

o Minimize wet transport (pumping) of waste

• Reuse water streams in the production processes to the

maximum extent possible while avoiding water

contamination or compromising food safety:

o Separate and recirculate cooling water from process

and waste water streams. Recirculate and reuse

thawing water in a closed circuit provided this practice

does not compromise food safety

o Recirculate fluming water used in vegetable transfer

provided this practice does not compromise food

safety

o Return condensate for use as boiler feed water.

Alternative uses for condensate include as a sprinkling

agent for dust suppression or in general factory wash

down (e.g. cleaning the floor)

o Where feasible, recycle low grade wash water and

reusing it for the primary wash of raw materials or for

wet transport

o Explore opportunities collection and use of storm

water consistent with food safety requirements

• Review process lines and operations to identify

opportunities to reduce the effluent load by minimizing

contact with water at every stage of the process, to avoid

contamination of the water and the need for consequent

treatment, including:

o Use dry methods (e.g. vibration or air jet) to clean raw

materials

o Install grids to reduce or avoid the introduction of solid

materials into the wastewater drainage system. Install

trays to catch waste from trimming operations and

juice / product on conveyors

o Ensure regular integrity testing of bulk storage tanks

for product and waste

o Provide secondary containment for storage and

process vessels to contain spills

o Adopt best-practice methods for plant cleaning, which

can be manual or automated Clean In Place (CIP)9

systems, using approved chemicals and (or)

detergents with minimal environmental impact and

compatibility with subsequent wastewater treatment

processes.

9 Automated CIP systems reduce chemical, water, and energy consumption and facilitate rinse recovery but may not be appropriate for all applications.

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Energy Consumption

Food and beverage processing activities may require high levels

of thermal energy consumption in process heating, cooling, and

refrigeration. In addition to the recommendations on energy

conservation included in the General EHS Guidelines, industry

specific measures include the following10:

• Implement operational, maintenance and housekeeping

measures:

o Insulate refrigeration room/areas and use of

automatically closing doors and airlocks

o Insulate refrigeration rooms / areas

• Optimize plant processes for energy efficiency:

o Use Combined Heat and Power (CHP) particularly in

plants which have high heat and power demand for

more than 5000 hours/year

o Reduce the size of refrigeration rooms where feasible,

but still taking food safety into consideration

o Design plant layout to reduce pumping and conveyor

belt transportation distances

o Ensure that fouling on heat transfer surfaces, for

example in the sterilization process, is regularly

cleaned to ensure optimum efficiency

o Avoid refrigeration of fruits, vegetables and by-

products intended for animal feed by storing outside in

clean covered areas or in containers, when climate

conditions and plant design allow

o Use high temperature pre-cooling before refrigerated

cooling and freezing, for example, after blanching pre-

chill products by passing them cold water before

freezing. This is particularly cost –effective when liquid

nitrogen freezing is used.

10 EC (2006)

• Recover energy from thermal processes where possible.

Heat recovery opportunities may include, for example11:

o Recovering heat from ovens, dryers, evaporators,

pasteurizers and sterilizers.

o Maximizing regeneration efficiency in plate heat

exchanger pasteurizers (regeneration efficiency up to

94 percent is possible)

o Recovering heat from condensed steam for blanching

and steam peeling operations before it is discharged

o Using multi-effect evaporators in large scale

evaporator applications.

Emissions to Air The main air pollutants from food and beverage processing

operations consist of particulate matter (PM) and odor. PM may

arise from solids handling, solid reduction and drying. Odor may

be released by thermal processing steps such as steam peeling,

blanching and dehydrating and by microbial action in stored

solid waste. In meat processing, odor may also be emitted from

cooking and smoking activities. 12

Management of emissions to air from combustion sources for

electricity generation is addressed in the General EHS

Guidelines.

Particulate Matter

Recommended techniques to prevent and control particulate

matter emissions include13:

• Cover skips and vessels, and stockpiles, especially

outdoors;

• Enclose silos and containers used for bulk storage of

powders and fine materials;

11 EC (2006) 12 EC (2006) 13 Based on Environment Agency. 2003. Environment and Heritage Service. Guidance for the Food and Drink Sector. Sector Guidance Note IPPC S6.20.

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• Where enclosure is not feasible, use sprays, windbreaks,

sweeping, sprinkling, and other stockpile management

techniques to suppress dust ;

• Use closed conveyors equipped with filters to clean

transport air prior to release;

• Use cyclones and, if necessary, and fabric filters to remove

dust from exhaust air;

• Remove particulate matter from the gas stream using dry

cyclones, venturi scrubbers, electrostatic precipitators

(ESPs) or dry filter systems, as necessary.

Odor

Recommended techniques to prevent and control point source

odor emissions include:

• Use exhaust stack heights that are consistent with Good

Engineering Practice (GEP) as described in the General

EHS Guidelines;

• If the plant is in close proximity to residential areas

consider the use of wet scrubbers to remove odor

emissions. Wet scrubbers are used to remove odors with a

high affinity to water, such as ammonia emitted during the

rendering process; and

• During the procurement of air emission systems for

smoking units, it is best practice to install integrated

systems that combine air cleaning, incineration, and heat

recovery. Such systems are highly effective with regard to

the reduction of odor emissions, production / energy

efficiency;

• Recirculate exhaust gas from frying and other cooking

operations to the burner.

Recommended techniques to prevent and control fugitive

emissions of odor include:

• Minimize storage duration for solid waste to avoid

putrefaction;

• Operate facilities under partial vacuum to prevent fugitive

odor emission;

• Regular inspection of chilling and freezing equipment to

monitor loss of refrigerants.

1.2 Occupational Health and Safety

Occupational health and safety issues associated with the

operation of food and beverage processing during the

construction and decommissioning phases are discussed in the

General EHS Guidelines. Hazards during the operational

phase include the following:

• Physical hazards

• Exposure to noise

• Biological hazards

• Chemical hazards

• Exposure to heat and cold

Physical Hazards Physical hazards include exposure to same-level fall hazards

due to slippery conditions, the use of machines and tools, and

collisions with internal transport equipment, such as forklift

trucks and containers. Guidance on general workplace

conditions, including design and maintenance of working and

walking surfaces to prevent slips and falls, is presented in the

General EHS Guidelines. Additional, industry-specific

recommendations are presented below.

• Maintain walking and working surfaces clean and dry by

preventing spillages through equipment design and

operation, providing workers with anti slip footwear where

still necessary;

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• Control of occupational risks at their source through

implementation of engineering controls. Address residual

risks based on hygiene and safety surveys and by

providing workers with training in the proper use and

maintenance of safety devises (including the proper use of

machine safety devises) and personal protective

equipment (PPE), such as hearing protection, and gloves,

aprons etc. to avoid cuts, amputations, and other sharp

instrument traumas;

• Ensure that the process layout reduces opportunities for

process activities to cross paths, thus avoiding collisions

and falls;

• Demarcate transport corridors and working areas and

ensure the proper placement of handrails on platforms,

ladders, and stairs;

• Prevent ingress of water;

• Ground all electrical equipment and installations;

• Prepare emergency plans and train staff for emergency

situations.

Lifting, Repetitive Work, and Work Posture Injuries

Food and beverage processing activities may include a variety

of situations in which workers can be exposed to lifting, carrying,

repetitive work, and work-posture injuries. Such injuries may

result from heavy manual lifting and repetitive work, including

the operation of slicing and vacuum-packing machines and poor

working postures caused by inadequate workstation and

process activity design. Recommended management

approaches to reduce these injuries are discussed in the

General EHS Guidelines.

Exposure to Noise A variety of operations in food and beverage processing units

generate substantial noise levels, for example the canning plant,

bottling machines, conveyors and blanching applications.

Recommended measures to prevent and control worker

exposure to noise are discussed in the General EHS

Guidelines.

Biological Hazards Exposure to biological and microbiological agents may be

associated with inhalation and ingestion of dust and aerosols.

Dust from the ingredients used in food and beverage processing

and high levels of humidity may cause skin irritation or other

allergic reactions.

Recommendations for the prevention and control of exposures

to biological hazards specific to food and beverage processing

include the following:

• Avoid dust- and aerosol-generating activities (such as use

of compressed air or high-pressure water for cleaning) and,

where they cannot be avoided, provide proper ventilation of

enclosed or semi-enclosed areas to reduce or eliminate

exposure to dust and aerosols;

• Install exhaust ventilation equipped with filters, cyclones,

etc., at sources of dust;

• Provide workers with PPE that is appropriate for the

process activity, e.g. masks and gloves;

• Ensure physical segregation of work and welfare facilities

to maintain worker personal hygiene.

Chemical Hazards Exposure to chemicals (including gases and vapors) typically

involves chemical-handling activities related to cleaning

operations, disinfection of process areas and use of

preservatives in long-term food storage, in addition to the

maintenance of heating (thermal oils) and cooling systems

(ammonia). Recommended measures to prevent and control

exposure to chemicals are discussed in the General EHS

Guidelines.

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Food and beverage processing sites usually have large

refrigeration systems, which often use ammonia as a primary

refrigerant, and may have secondary refrigerants such as

glycols or brines. Ammonia is a toxic substance and can form

explosive mixtures with air. Guidance on the safe use of

ammonia and other refrigerants is readily available from

professional refrigeration institution14 and should be considered.

Heat and Cold Food and beverage processing may create changing

temperature conditions due to activities such as heat treatment,

chilling and freezing. Workers may be exposed to heat from

steam peeling, pasteurization, and canning processes and

exposed to low temperatures in refrigerated areas / rooms.

Irradiation dosing to extend the shelf-life of fruits and vegetables

should be monitored for occupational exposure to radiation.

Recommended measures to prevent and control exposure to

heat, cold, and radiation are discussed in the General EHS

Guidelines.

1.3 Community Health and Safety

Community health and safety impacts during the construction

and decommissioning of food and beverage processing facilities

are common to those of most industrial facilities and are

discussed in the General EHS Guidelines. Industry-specific

issues with the potential to impact the community are those

associated with hygiene and food safety.

Process, Equipment, and Staff Hygiene The design of the processing plant should be organized to

ensure that products move from “dirty” to “clean” areas to avoid

recontamination. Employee movement within the facility should

14 See the Institute of Refrigeration (IOR) for guidelines on the safe design of ammonia and other refrigeration systems, as well as safe handling of ammonia. Also, the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).

be opposite to the flow direction of products (i.e. from “clean”

towards “dirty” zones). Cleaning activities during processing will

depend on the particular production and processing systems.

Daily cleaning and disinfection should comprise:

• Ensuring proper equipment clearance for cleaning

• Removal of solid waste

• Pre-rinsing with water

• Application of detergent(s)

• Rinsing

• Disinfection

• Post rinsing

• Post treatment

Staff should be trained in food safety issues and should follow

established procedures for hand washing, working attire

(clothes, shoes, gloves and hair coverage), and how to handle

injuries and diseases.

Food Safety Impacts and Management A food product recall caused by contaminated or adulterated

food products can devastate a viable business. If a company

can trace its products to specific lot numbers, then recall is a

matter of removing all foods associated with those numbers.

With a robust food safety program in place, a company can

protect itself from product adulteration, contamination, and the

impacts of food recalls.

Food and beverage processing should therefore be performed

according to internationally recognized food safety standards

consistent with the principles and practices of Hazard Analysis

Critical Control Points (HACCP)15; and Codex Alimentarius16.

15 International Organization for Standardization (ISO) (2005) 16 Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO) (1962-2005)

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The Codex Alimentarius provides Current Official Standards for

a range of specific products from the food and beverage

processing sector including canned, quick frozen, and whole

fresh food products. In addition the Codex Alimentarius provides

Current Official Standards for general and specific

manufacturing steps in the production process, for example

General Principles of Food Hygiene, Recommended

International Code of Hygienic Practice for Canned Food and

Beverage Products and the Recommended International Code

of Practice for the Packaging and Transport of Tropical Fresh

Food and beverages. In general, recommended food safety

principles include:

• Strictly maintain cold chains and other preservation

processes;

• Full institutionalization of HACCP prerequisites as well as

Standard Operational Procedures, including:

o Sanitation

o Good Manufacturing Practice (GMP)

o Pest control

o Chemical control

o Allergen control

o Staff hygiene and education

o Customer complaints mechanism

o Traceability and reuse

2.0 Performance Indicators and Monitoring

2.1 Environment

Emissions and Effluent Guidelines Table 1 presents effluent guidelines for this sector. Guideline

values for process emissions and effluents in this sector are

indicative of good international industry practice as reflected in

relevant standards of countries with recognized regulatory

frameworks. These guidelines are achievable under normal

operating conditions in appropriately designed and operated

facilities through the application of pollution prevention and

control techniques discussed in the preceding sections of this

document. These levels should be achieved, without dilution, at

least 95 percent of the time that the plant or unit is operating, to

be calculated as a proportion of annual operating hours.

Deviation from these levels in consideration of specific, local

project conditions should be justified in the environmental

assessment.

Effluent guidelines are applicable for direct discharges of treated

effluents to surface waters for general use. Site-specific

discharge levels may be established based on the availability

and requirements of publicly operated sewage collection and

treatment systems or, if discharged directly to surface waters,

on the receiving water use classification as described in the

General EHS Guidelines.

Emissions from food processing activities are principally

associated with particulate matter (PM) and odor. PM and odor

emissions from point sources such as ventilation exhaust

systems and smoking units should be released through GEP-

designed stacks. Smoking unit emissions of PM should typically

not exceed 50 mg/Nm3. Combustion source emissions

guidelines associated with steam- and power-generation

activities from sources with a capacity equal to or lower than 50

MWth are addressed in the General EHS Guidelines with

larger power source emissions addressed in the Thermal Power

EHS Guidelines. Guidance on ambient considerations based on

the total load of emissions is provided in the General EHS

Guidelines.

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Table 1. Effluent levels for food and beverage processing

Pollutants Units Guideline Value

pH pH 6 – 9

BOD5 mg/l 50

COD mg/l 250

Total nitrogen mg/l 10

Total phosphorus mg/l 2

Oil and grease mg/l 10

Total suspended solids mg/l 50

Temperature increase °C <3b

Total coliform bacteria MPNa / 100 ml 400

Active Ingredients / Antibiotics

To be determined on a case specific basis

Notes: a MPN = Most Probable Number b At the edge of a scientifically established mixing zone which takes into account ambient water quality, receiving water use, potential receptors and assimilative capacity

Table 2: Waste Generation in the Food and Beverage Processing Sector

Solid waste produced per tonne of product

Unit Industry Benchmark

Maize Kg 40

Peas Kg 40

Potatoes Kg 40

Broccoli Kg 200

Carrots Kg 200

Strawberries Kg 60

Apples Kg 90

Peaches Kg 180

Resource Use and Waste Generation Tables 2 and 3 provide examples of resource consumption

indicators for energy, water, materials, and waste in this sector.

Industry benchmark values are provided for comparative

purposes only and individual projects should target continual

improvement in these areas.

Environmental Monitoring Environmental monitoring programs for this sector should be

implemented to address all activities that have been identified to

have potentially significant impacts on the environment, during

normal operations and upset conditions. Environmental

monitoring activities should be based on direct or indirect

indicators of emissions, effluents, and resource use applicable

to the particular project.

Monitoring frequency should be sufficient to provide

representative data for the parameter being monitored.

Monitoring should be conducted by trained individuals following

monitoring and record-keeping procedures and using properly

calibrated and maintained equipment. Monitoring data should be

analyzed and reviewed at regular intervals and compared with

the operating standards so that any necessary corrective

actions can be taken. Additional guidance on applicable

sampling and analytical methods for emissions and effluents is

provided in the General EHS Guidelines.

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2.2 Occupational Health and Safety Occupational Health and Safety Guidelines Occupational health and safety performance should be

evaluated against internationally published exposure guidelines,

of which examples include the Threshold Limit Value (TLV®)

occupational exposure guidelines and Biological Exposure

Indices (BEIs®) published by American Conference of

Governmental Industrial Hygienists (ACGIH),17 the Pocket

Guide to Chemical Hazards published by the United States

National Institute for Occupational Health and Safety (NIOSH),18

Permissible Exposure Limits (PELs) published by the

Occupational Safety and Health Administration of the United

States (OSHA),19 Indicative Occupational Exposure Limit Values

published by European Union member states,20 or other similar

sources.

Accident and Fatality Rates Projects should try to reduce the number of accidents among

project workers (whether directly employed or subcontracted) to

a rate of zero, especially accidents that could result in lost work

time, different levels of disability, or even fatalities. Facility rates

may be benchmarked against the performance of facilities in this

sector in developed countries through consultation with

published sources (e.g. US Bureau of Labor Statistics and UK

Health and Safety Executive)21.

Occupational Health and Safety Monitoring The working environment should be monitored for occupational

hazards relevant to the specific project. Monitoring should be

17 Available at: http://www.acgih.org/TLV/ and http://www.acgih.org/store/ 18 Available at: http://www.cdc.gov/niosh/npg/ 19 Available at: http://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=STANDARDS&p_id=9992 20 Available at: http://europe.osha.eu.int/good_practice/risks/ds/oel/ 21 Available at: http://www.bls.gov/iif/ and http://www.hse.gov.uk/statistics/index.htm

designed and implemented by accredited professionals22 as part

of an occupational health and safety monitoring program. 22 Accredited professionals may include Certified Industrial Hygienists, Registered Occupational Hygienists, or Certified Safety Professionals or their equivalent.

Table 3: Resource and Energy Consumption in Food and Beverage Processing

Outputs per unit of product Unit Industry

Benchmark

Electricity Consumption a

Sorting of vegetables (carrots) 8

Caustic peeling of vegetables 2

Steam peeling of vegetables 3.5

Washing of vegetables (carrots) 2.5

Mechanical processing prior to freezing (diced carrots)

2.5

Drum blanching in deep freezing of vegetables

0.5 – 1.3

Countercurrent water cooling of vegetable

0.5 – 1.3

Belt blancher with water cooler 2 - 9

Belt blancher with air cooling

kWhe/t frozen vegetables

7 - 30

Water Consumption

Canned fruit 2.5-4.0

Canned vegetables 3.5-6.0

Frozen vegetables 5.0 – 8.5

Fruit juices 6.5

Jams 6.0

Potato processing: b Range Well managed

4.5 – 9.0

5.1

Cooked Ham b 4 - 18

Cured Ham b 2 - 20

Sausages, ham, bacon, etc. b

m3/ton

10 - 20

NOTES a Tables 3.31 – 3.39. European Commission. IPPC. Reference Document on BAT in the Food Drink and Milk Industries. P. 169 - 177. b Table 3.20: Water consumption for some processes in the food and beverage sector. European Commission. IPPC. Reference Document on BAT in the Food Drink and Milk Industries. P. 162.

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Facilities should also maintain a record of occupational

accidents and diseases and dangerous occurrences and

accidents. Additional guidance on occupational health and

safety monitoring programs is provided in the General EHS

Guidelines.

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3.0 References and Additional SourcesAmerican Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE). http://www.ashrae.org/

Arbejdstilsynet (Danish Working Environment Authority). 2006. Konserves og drikkevarer mv. (Preserved foods and drinks). Arbejdsmiljøvejviser 39 – 2. udgave. Copenhagen: AT. Available at http://www.at.dk/sw5801.asp

Australian Government Department of Environment and Heritage (Environment Australia). 1999. National Pollutant Inventory (NPI). Emission Estimation Technique Manual for Food and Beverage Processing Industry. Canberra: Environment Australia.

Australian Government Department of Primary Industries and Water (DPIW). Tasmania. 2002. Emisión Limit Guidelines for Fruit & Vegetable Processing Activities that Discharge Pollutants into Fresh and Marine Waters. Hobart: DPIW. Available at: http://www.dpiw.tas.gov.au/inter.nsf/attachments/cdat-5ba9fv/$file/guidelines%20for%20fruit%20and%20veg%20processing%20activities.pdf

European Commission (EC). 2006. Directorate General Joint Research Council (JRC) Institute for Prospective Technological Studies (IPTS). Integrated Pollution Prevention and Control Reference Document on Best Available Techniques in the Food, Drink and Milk Industries. Seville: IPTS. Available at http://www.jrc.es/home/index.htm

Food and Agriculture Organization of the United Nations (FAO) and World Health Organization (WHO).1962-2005. Codex Alimentarius. Geneva: FAO and WHO. Available at http://www.codexalimentarius.net/web/index_en.jsp

Food Processing Technology – Principles and Practice. 2000. Second edition. Fellows, P.J. Cambridge: Woodhead Publishing.

Institute of Refrigeration (IOR). http://www.ior.org.uk

International Organization for Standardization (ISO). 2005. ISO 22000: 2005: Food safety management systems - Requirements for any organization in the food chain. Geneva: ISO. Available at http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=35466&ICS1=67&ICS2=20&ICS3

ISO. 2004. ISO 14001: 2004: Environmental Management Systems - Requirements with guidance for use. Geneva: ISO. Available at http://www.iso.org/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=31807&ICS1=13&ICS2=20&ICS3=10

ISO. 2004. ISO 9001: 2000: Quality Management System. Geneva: ISO. Available at http://www.iso.org/iso/en/iso9000-14000/index.html

Konserveringsteknik (Preservation technology) 1. 2004. Second edition. Bøgh-Sørensen, L. and Zeuthen, P. Copenhagen: DSR.

Konserveringsteknik (Preservation technology) 2. 2002. Second edition. Bøgh-Sørensen, L. and Zeuthen, P. Copenhagen: DSR.

United Nations Environment Programme (UNEP). 2004. Working Group for Cleaner Production in the Food Industry. Fact Sheet 3: Food Manufacturing Series. See http://www.gpa.uq.edu.au/CleanProd/

United Kingdom (UK) Environment Agency. 2003. Environment and Heritage Service. Sector Guidance Note IPPC S6.10 Guidance for the Food and Drink Sector. Bristol: Environment Agency. Available at http://publications.environment-agency.gov.uk/pdf/GEHO1205BJZJ-e-e.pdf

United States Department of Labor, Bureau of Labor Statistics (US BLS). 2004a. Industry Injury and Illness Data – 2004. Supplemental News Release Tables. Table SNR05: Incident rate and number of nonfatal occupational injuries by industry, 2004. Available at http://www.bls.gov/iif/oshwc/osh/os/ostb1479.pdf

US BLS. 2004b. Census of Fatal Occupational Injuries Charts, 1992-2004. Number and rate of fatal occupational injuries by private industry sector, 2004. Available at: http://www.bls.gov/iif/oshwc/cfoi/cfch0003.pdf

United States Environment Protection Agency (US EPA) . 1995. Compilation of Air Pollutant Emission Factors. Volume 1: Stationary Point and Area Sources, AP 42, Fifth Edition, Volume I. Chapter 9: Food and Agricultural Industries. Sections 9.8.1 Canned Food and Vegetables and 9.8.2 Dehydrated Food and Vegetables. North Carolina, USA: US EPA. Available at http://www.epa.gov/ttn/chief/ap42/ch09/index.html

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Annex A: General Description of Industry ActivitiesThe food and beverage processing sector covers a wide range

of products. Many process steps are common to the

manufacture activities of different products. Food and beverage

processing plants vary in size and location, and are ideally

located in close proximity to fresh water resources. Plant

operation is often seasonal reflecting the harvesting of the raw

materials, however product lines are unaffected by seasonal

variations and take place throughout the year.

Figure 1.0 summarizes the major processes for most food and

beverage products from fruit and vegetable sources, though the

actual process flow will vary depending on the product and the

plant set-up. Figure 2.0 summarizes the major steps for

processing of meat products, specifically applicable to cooked

ham manufacturing.

Fruit and Vegetable Processing23 Fruit and vegetable production begins with the preparation of

the raw food and beverages thorough a variety of methods

including cleaning, trimming and peeling to reduce the product

to a uniform size before cooking, canning, drying or freezing, as

well as pulping and filtration to make soft drinks. The process

culminates with the packaging and transport of the final product.

There are two major sub-sectors including fresh packed

products and processed products. Processed products involve

other unit operations such as cooking, evaporating and drying to

provide product diversity and increase shelf-life. Common

examples of processed fruit products are canned peaches and

pears, dried fruits, jams and jellies, and fruit purees for use in

the food industry. Examples of processed vegetable products

include canned beans and frozen peas, as well as vacuum

23 This section briefly describes the major manufacturing steps in the food and beverage processing sector and has been adapted from text in the British Environment Agency’s Guidance for the Food and Drink Sector, Environmental Agency (2003).

packed beetroot. Typical examples of soft drinks are food and

beverage juices and concentrated fruit extracts for dilution with

water.

Receipt of Raw Materials

Raw materials are typically delivered in bulk on trucks and are

off-loaded directly for processing or for storage (e. g. in silos).

Other solid material ingredients may be delivered in bags on

pallets. Liquid raw materials and ingredients may be transported

in bulk tankers and pumped to storage tanks or delivered in

containers on pallets. Solid raw materials are conveyed by belts

and elevators.

Primary Grading / Screening

This process stage often covers grading and sorting but its main

objective is the assessment of the overall quality of the food

using a number of criteria. Solid raw materials should preferably

be sorted and graded on the farm in order to minimize the

quantity of waste material, organic and non-organic debris, and

off-specification product that is transported to the processing

plant.

Intermediary Storage

Storage of food and beverages can be required at various

stages of the manufacturing process and the storage conditions

will be dependent on the product. In general the parameters to

be controlled for storage include humidity, temperature,

atmospheric conditions, and hygiene.

Primary Cleaning

Primary cleaning removes and separates off-specification

material, organic and non-organic debris, metals, and pesticide

residues, among other contaminants, from the raw material prior

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to further processing. The method used depends on the type of

materials to be removed and may include the use of water

although dry methods are favored for water conservations and

wastewater prevention reasons.

When water is used, the raw materials may be sprayed, and

then immersed for organic and non-organic debris removal

using brushes, shaking, and stirring. The spray water may be

chlorinated and detergents may be added to the wash water,

which may also be heated to increase cleaning efficiency.

Sorting, Grading and Inspection

The washed material may be sorted, graded and inspected prior

to further processing to ensure uniformity. Sorting is the

separation of materials into categories and the main factors are

size, shape, weight, and color. Size sorting is typically done

using screens and sieves. Shape sorting may be done manually

or mechanically and weight sorting is typically used for valuable

material such as tropical fruits. Color sorting is performed

manually or by use of computer technology whereby the

material passes the control point on conveyor belts at high rates

and rejected items are blasted away using compressed air.

Product Preparation

Most raw materials have parts that are inedible and need to be

removed in order to make the raw materials uniform and

suitable for further processing. In the product preparation phase,

the sorted and graded materials are subjected to a variety of

processes including trimming (manual or by rotating knives),

peeling, and size reduction, as well as mixing, forming,

separation and concentration of the food components. Various

peeling methods are available including flash steam, flame,

knife, abrasion, and caustic.

Product Processing

Food and beverages can be processed as a single operation or

in a combination of several operations. The most common

processing methods are through heat application and heat

removal. The heat application methods include blanching,

pasteurization, heat sterilization, evaporation, and dehydration

including heat processing by baking or cooking in oils. Heat

removal processing includes chilling, controlled or modified

storage and packaging (to reduce the rate of respiration),

freezing, and freeze-drying. Other preservation and processing

methods include the use of sodium chloride and sugar, food

additives, and irradiation.

Packaging

Products are packed to provide containment, protection,

communication, and convenience. Packaging materials typically

used in the food and beverage processing sector include flexible

polymer materials (e.g. single films and laminates), paper,

cardboard and corrugated cardboard, glass, cans, and wooden

or polymer boxes.

Meat Processing If beef, poultry and pork are received frozen, processing

involves thawing after arrival to the processing plant using air,

water showers, or water immersion techniques. The first two

techniques generally require less water consumption than

immersion thawing methods. Thawed meat is then cut into retail

portions using electric cutting systems. Excess fat and bones

can be reprocessed into commercial products such as gelatin,

glues, etc. Fresh cuts are refrigerated prior to further processing

into preserved meat products, such as sausage, ham, and

bacon. Cuts may be ground down and reconstituted into

different product shapes using various processing machinery.

Preservation techniques include heat, such as cooking (e.g. in

water bath, shower, steam, and hot air ovens) and smoking,

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dehydration, fermentation, brining, curing, pickling, and canning.

These activities are performed to increase the shelf life of the

product. Brining, curing and pickling typically involve injection of

a saline solution, followed by a massaging process to ensure

mixing of ingredients and product additives. Meats are then

inserted into casings to define their shape and size.

Receipt of raw materials

Primary grading / screening

Intermediary storage

Primary cleaning and washing

Sorting, grading, and inspection

Product preparation

Packaging

Storage and dispatch

Product processing

Further processing

Figure A.1: General Process for Food and Beverage Processing Operations

Source: Adapted from UNEP (2004)

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Figure A.2: Canned Meat Production (Including Cured and Cooked Meat)

Receipt of raw materials

Thawing

Cutting/trimming

Meat dosing

Weight control

Cooking (de-aeration)

Thermal treatment

Cooling

Sealing

Can washing

Storage

Salting

Refrigeration

Resting

Trimming

Washing

Dehydration

Curing

Packing under vacuum

Cans Pickling

Moulding

Cooking (de-aeration)

Cooking and smoking

Re-moulding/cooling

Surface pasteurization

Trimming and stuffing

Cooling

Refrigeration

Packaging

CANNED

CURED COOKED

Mould washing

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Annexure 6

DETAILED COST ESTIMATE FOR EMAP

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Annexure 6

Table: Detailed Budgetary Provision for EMAP Implementation (Per Location wise and Overall cost)

S No Project Components Type of Facility IQF

(1 No.) CA

Storage (1 No.)

ARCC (5 No.s)

ADC (5 No.s)

A One-time Capital Cost

1 Land Purchase As per Rate negotiation by CAL Management (Part of Overall Project Cost)

2 Consent Fee payable to SPCB As determined by SPCB

3 Construction Stage Mitigation Measures

Incidental to Civil & Electro Mechanical Contracts awarded by CAL

4 Installation of Wash Water Treatment & Recycling System

6,00,000 6,00,000 2,00,000 2,00,000

5 Installation of Septic Tank & Soak Pit Disposal System

5,00,000 5,00,000 2,50,000 2,50,000

6 Installation of Composting & Vermi Composting

5,00,000 5,00,000 2,50,000 2,50,000

7 Provision of PPEs of Operational work force

1,00,000 1,00,000 1,00,000 1,00,000

8 Rain Water Harvesting & Recharging Structures

3,50,000 3,50,000 1,50,000 1,50,000 

9 Landscaping and Plantation Part of Overall Project Cost

10 Occupational Health Screening and Checkups

As per Actual

11 Adoption of Renewable (Solar) Energy for Lighting Applications

4,00,000 4,00,000 2,00,000 2,00,000

12 Sub-total (One-time Capital Cost Per Location )

24,50,000 24,50,000 11,50,000 11,50,000

13 Sub-total (One-time Overall Capital Cost for All Facilities)

24,50,000 24,50,000 57,50,000 57,50,000

B Recurring Annual Cost 14 Annual Maintenance and up keep cost

@10% of Capital cost 2,25,000 2,25,000 1,15,000 1,15,000

15 Operational Stage Environment Monitoring Cost

6,00,000/Year

3,60,000/ Year

3,60,000/ Year

3,60,000/Year

16 Sub-total (Recurring Annual Cost) 8,25,000 5,85,000 4,75,000 4,75,000

17 Sub-total (Recurring Overall Annual Cost for All Facilities)

8,25,000 5,85,000 23,75,000 23,75,000

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