EIA final report Kalika refineryy

Environmental Impact Assessment (EIA) Study of Kalika Refinery, Nawalparasi

ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OF

KALIKA REFINERY A Oil Processing and Production Mills

(Gaidakot Municipality-07, Kalikanagar, Nawalparasi)

Government of Nepal Ministry of Forests and Environment

Singhadurbar, Kathmandu

Through

Ministry of Industry, Commerce and Supplies Department of Industry

Tripureshwor, Kathmandu, Nepal

Kalika Refinery Pvt. Ltd.

Gaidakot Municipality-07, Nawalparasi, Gandaki Province, Nepal

Tel: 9803751716

Email: [email protected]

Greenwich Environmental and Engineering

Consult Pvt. Ltd. Baneshwor, Kathmandu

Tel: 9841531582 E-mail: [email protected]

January, 2020


ACRONYMS % Percentage

ADS Agricultural Development Strategy

APP Agricultural Perspective Plan

BS Bikram Sambat

DHM Department of Hydrology and Meteorology

EIA Environment Impact Assessment

EMP Environmental Management Plan

EMS Environmental Monitoring System

EPA Environment Protection Act

EPR Environment Protection Rules

FGD Focus Group Discussion

GDP Gross Development Product

GoN Government of Nepal

IUCN International Union for Conservation of Nature

ISO International Standard Organization

Kg Kilogram

Km Kilo meter

KVA Kilovolt Ampere

L Litter

M Meter

NEA Nepal Electricity Authority

no. Number

NRs. Nepalese Rupees

RBD Refined, Bleached and Dried

Sq. m Square Meter

ToR Terms of Reference

ZoI Zone of Influence

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Units

% Percentage dBA Decibel (A) Kg Kilogram Km Kilo meter kVA Kilo Volt Ampere kW Kilo watt L Liter M meter no number NRs Nepalese Rupees Sq.m. Square Meter

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ug]{ /x]sf] 5 . @)&%⁄!)⁄)* df sflnsf l/kmfOg/L k|f= ln= sf] gfddf sDkgL /lhi6«f/sf]

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cWoog k|lqmof jg tyf jftfj/0f dGqfnoaf6 :jLs[t sfo{;"rL tyf If]q lgwf{/0f k|ltj]bg / jftfj/0f ;+/If0f lgodfjnL @)%$ cg';f/ cWoog u/L of] k|ltj]bg tof/ ul/Psf] xf] . k|:tfljt If]qsf] ef}lts, h}ljs, ;fdflhs, cfly{s—;f+:s[lts jftfj/0fdf cfof]hgfsf] sfof{Gjogaf6 kg{ hfg] k|efjx?sf] klxrfg, ljZn]if0f / d"NofÍg ul/Psf] 5 . cfof]hgf :ynsf] ljBdfg cj:yfaf/] hfgsf/L ;d]6\gsf] nflu k|yd / bf]>f] >f]taf6 tYof°x? ;Íng ug'{sf ;fy} cWoogsf] qmddf hg;xeflutfnfO{ ljz]if Wofg lbOPsf] 5 .

sfg"gL k|fjwfgx? cfof]hgf;Fu ;fGble{s P]g, lgod, lgodfjnL, gLlt, /0fgLlt tyf cGt/f{li6«o dxf;GwLx?nfO{ cfwf/ lnO{ of] cWoog ul/Psf] xf] . k|:tfjsf] sfof{Gjog / ;~rfngdf afwf pTkGg ug{ ;Sg]

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k|efj klxrfg / d"Nof°g cfof]hgf :ynsf] ;j{]If0f / ;Gbe{ ;fdfu|Lx?sf] k'g/fjnf]sgaf6 ;Ílnt tYofÍx?sf] cfwf/df cfof]hgfsf] sfof{Gjog tyf ;~rfngaf6 k|:tfljt If]qdf kg{ ;Sg] k|efjx?sf] klxrfg / d"NofÍg ul/Psf] 5 . o; cWoogn] klxrfg ePsf k|efjx?nfO{ ;sf/fTds / gsf/fTds u/L b'O{ efudf ljefhg u/L kl/df0f, cjlw / l;dfsf] cfwf/df laZn]if0f u/]sf] 5 . o; ljZn]if0f cg';f/ k|:tfljt cfof]hgfaf6 kg{ hfg] ;sf/fTds k|efjx?sf] pNn]vgLotf w]/}h;f] dWod :t/sf] /x]sf] 5 . pBf]u ljsfz, /f]huf/sf] cj;/ pRr :t/sf] pNn]vgLotf ePsf k|efjx? dWo] kb{5g\ . To;}u/L k|:tfljt cfof]hgfsf] sfof{Gjogaf6 pRr :t/sf pNn]vgLo gsf/fTds k|efjx? kg]{ ;Defjgf b]lvFb}g . t/ klg s]lx dxTjk"0f{ ljifox? h:t} kmf]xf]/ Joj:yfkg cflbdf ljz]if Wofg lbg' kg]{ b]lvG5 . ljsNk ljZn]if0f jftfj/0f ;+/If0f lgodfjnL @)%$ cg';f/ o; If]qsf] :yn, cfof]hgfsf] lqmofsnfkx? ;DaGwL lgwf{/0f ul/Psf] ;do, cfof]hgfn] k|of]u ug]{ k|ljlw tyf k|lqmof / k|:tfj sfof{Gjog ug]{ of gug]{ cflb ljsNkx?sf] cfwf/df ljZn]if0f ul/Psf] 5 . cWoogaf6 k|fKt ljsNksf] ljZn]if0f ubf{ ljsNkx?df pBf]u ;~rfng gug]{ ljsNknfO{ cl:jsf/ ul/Psf] 5 . jftfj/0f ;+/If0fsf pkfox?

v


o; pBf]usf] ;~rfngaf6 o; If]q j/k/ ;sf/fTds tyf gsf/fTds b'j} k|sf/sf k|efjx? kg]{ b]lvG5g\ . ;sf/fTds k|efj a9fpg] pkfox? tyf gsf/fTds k|efj Go"lgs/0f ug]{ pkfox?sf] k|efjsf/L sfof{Gjogn] ubf{ ;sf/fTds k|efj a9\g hfg'sf ;fy} gsf/fTds k|efj Go"g ug{ ;lsg] jf x6fpg ;lsg] 5 . o;n] cfof]hgfnfO{ jftfj/0f d}qL agfpg ;d]t d2t ub{5 . pBf]uaf6 pTkflbt kmf]x/d}nf Jojl:yt ug{ plrt tf}/ tl/sf ckfgfO{ clwstd ¿kdf jftfj/0f d}qL k|ljlwsf] k|of]u ul/g] 5 .

jftfj/0fLo Joj:yfkg of]hgf o; jftfj/0fLo k|efj d"NofÍg k|ltj]bgdf k|efjx?sf] Joj:yfkg of]hgf, cg'udg of]hgf tyf jftfj/0fLo k/LIf0f ;d]t ;+nUg u/L jftfj/0fLo Joj:yfkg of]hgf tof/ ul/ pNn]v ul/Psf] 5 . o; of]hgfdf g]kfndf ljBdfg k|b'if0f dfkb08x?nfO{ ;d]t dWogh/ /fvL ;f] ;DalGwsf] Joj:yf ;d]t pNn]v ul/Psf] 5 . To:t} jftfj/0fLo k|efj d"NofÍg k|ltj]bg :jLs[t ePsf] b'O{ jif{ kZrft jftfj/0fLo n]vf k/LIf0f tyf ;f] sf] nflu cfjZos /sd ;d]t :ki6 ;fy pNn]v ul/Psf] 5 . jftfj/0fLo cg'udgsf nflu aflif{s ?= #,)),))). tyf jftfj/0fLo k/LIf0fsf nflu ?= #,%),))) . ljlgof]hg ul/Psf] 5 . lgisif{ o; jftfj/0fLo k|efj d"NofÍg cWoogsf] l;nl;nfdf pBf]usf] lgdf{0f tyf ;~rfng cjlwdf x'g;Sg] jftfj/0fLo k|efjx?sf] n]vfhf]vf u/L To:tf jftfj/0fLo k|efjx?nfO{ 36fpg ljleGg Go"gLs/0fsf pkfox? ;'´fOPsf] 5 . o; k|ltj]bgdf pNn]v eP cg';f/sf] jftfj/0fLo k|efj Go"gLs/0fsf pkfox? cjnDag tyf jftfj/0f Joj:yfkg of]hgf clgjfo{ ?kdf nfu" u/L kfngf ug]{ bfloTj pBf]usf] /xg] 5 . ;fy} jftfj/0fLo cg'udg ;d]t o; k|ltj]bgdf pNn]v eP cg';f/ ;do ;dodf ug'{ kg]{ 5 . o; pBf]u sflnsf l/kmfOg/L k|f= ln= n] :yfgLo k|efljt JolQmx?, ;/f]sf/jfnf ;+3 ;+:yfx?;Fu cfk;L ;dGjo sfod /fvL o; jftfj/0fLo k|efj d"NofÍg k|ltj]bgdf pNn]v ePsf k|efj Go"gLs/0fsf pkfox? cjnDag ug]{] 5 .

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Executive Summary Proposal/Proponent The proposal of the project is Environmental Impact Assessment (EIA) of establishment of oil processing industry of Kalika Refinery. Kalika Refinery Pvt. Ltd is the proponent of the project. Ministry of Forest and Environment is the concerned authority for the approval of final EIA Report.

Project description The major objective of the proposal is construction and operation of industry. Kalika refinery Pvt. Ltd. was register under office of company registration on date 2075/10/08. The construction of industry will be completed in six months after starting. The main production of this industry is RBD Palm oil, refined sunflower oil, refined soybean oil, rice bran oil with annual production capacity of 80,850 MT Refined Oil. This industry will be operated in 3 shifts: morning, day and night in the industry is located at Gaidakot Municipality-7, Nawalparasi, Gandaki Province. The proposed site is accessible from east-west highway within 450 m through gravel road and within 6.6 km from Narayanghat chowk.

Objectives of the EIA Study The objective of the EIA is to ensure sustainability of the industry by avoiding or minimizing impacts associated with construction and operation on the physical, biological, socio-economic and cultural environments.

Rationale of EIA Environment Protection Act (EPA) 1997, and schedule 2 section A (7) of Environment Protection Rule (EPR), 1997 and its subsequent amendments requires an environmental assessment study for establishment of industry with construction activities inside forest area, National Park, Conservation area and buffer zone. Kalika Refinery has planned to established RBD Palm oil, refined sunflower oil, refined soybean oil, Rice bran Oil industry inside Chure conservation area, EIA study is mandatory. Methodology This EIA study is carried out in accordance with the EPR, 1997 and Terms of Reference (ToR) and Scoping Document (SD) approved by Ministry of Forest and Environment on date 2076/08/03. This study has identified the impacts regarding physical, biological, socio-economic and cultural environment and the long term effects of the project. Both primary data and secondary data were collected to understand the existing condition of the project area. Secondary information was collected from various literatures, journals and profile of Nawalparasi district and Gaidakot Municipality. Primary data were collected with different methods like interview, public hearing and field observation for EIA study.

Review of Acts, Regulations, Policies, Strategies and Conventions The relevant Act, Rules, Regulations, Policies, Strategies and International Conventions that are related with the proposed project have been included in this report. The lists of related by laws that can interrupt the implementation of the project have been included.

Existing environmental condition Physical

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The proposed industry construction and operation site lies in Gaidakot Municipality-7, Nawalparasi district, Gandaki Province. The land adjacent to construction site is highly productive alluvial land covered by agricultural land. The air is fair as industrialization is fairly developed with maximum no of dust and particulate matter due to road dust and construction dust. Biological Environment The project site is not populated area. The project site lies in Chure conservation area. Some of common birds present in the project areas area are Pigeon, Kalij, Ruppi, Dhobi, Crow etc. Socio-Economic Environment Since the project site lies at ward no 7 of Gaidakot Municipality, Nawalparasi. The total population of ward no 7 of Gaidakot Municipality is 2,383 residing in 523 household. The main occupation of the people living in the project vicinity is agriculture, service, foreign employment etc. Cultural Environment The project site is ethnically dominated by Brahmin, Chhetri, Magar and Dalit whereas religiously by Hinduism.

Impact analysis The impacts were categorized into two main issues of concern, namely beneficial impacts and adverse impacts. Impacts that can arise from the implementation of the project were predicted based on the baseline study. Several possible impacts were determined in term of their magnitude (low, moderate, and high), extent (site specific, local, regional), duration (short term, medium term, long term) and nature (direct, indirect). These impacts were then ranked to determine its significance as low, medium and high. The impacts with high significance that would arise after project implementation would be promotion of tourism, employment generation, increase in trade and business. In case of adverse impacts, solid and liquid waste generation, impacts on culture, health and sanitation are adverse impacts of medium significance that could occur after project implementation. All the adverse impacts are either of medium or low significance but numerically the number of impact with low significances are greater than impacts having medium significance. Alternative analysis The alternatives for the proposed project were analyzed as described by EPR, 1997. The alternatives considered for this EIA study are: Design; Project Location, Design and Construction Approach; Schedule and Process; Resources; Environmental Management System and No Action Alternative. The consequences of implementation versus on implementation of the project were also analyzed. The analysis revealed that the total rank of positive impacts after the implementation of the project is far greater than non-implementation of the project. All the analysis indicated that implementation of the project was the best option for the site.

Mitigation measures Based on the environmental condition and impact analysis, site specific mitigation measures are for the proposed project for reducing negative impacts and enhancing positive impacts. Reducing, mitigating and enhancing measures include:

Managed waste with latest available technology

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Manage safety instruments for workers and visitor etc

Environmental Management plan (EMP) The Environmental Management Plan has been prepared for the industry with clear provision of arrangements to ensure implementation of mitigation measures, formulation of monitoring plan and provision of environmental audit. The EMP also highlights the Environmental Audit provision, agencies responsible for auditing and provided estimated cost of environmental audit. Environmental Audit will be done once after two years of operation. A total of NRs. 300,000.00 is allocated annually for environmental monitoring and additional NRs. 350,000.00 is allocated for the purpose of environmental audit. Conclusion As per schedule 2 section A (7) under rule 3 of EPR 2054 has provision of Environmental Assessment for establishment of industry with construction activities inside forest area, National Park, Conservation area and buffer zone. Since Kalika Refinery has planned to establish an oil processing and production industry inside Chure conservation area, EIA study is mandatory. The environmental and social impacts associated with the industry construction and operation phase have been thoroughly assessed based on design, existing environmental conditions of the industry vicinity. The environmental and social impacts will be effectively mitigated with strict implementation of mitigation measures along with monitoring prescribed in this EIA study. The proposed mitigation and management plans are practicable but require additional resources. Any unforeseen impacts not predicted in this EIA report, if appear during course of operation, will also be mitigated by the proponent. Monitoring activities will need to focus on compliance to address unexpected impacts. The industry will be constructed and operated with due consideration and implementation of all the mitigation measures complying existing legislations and environmental standards.

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TABLE OF CONTENT Table of Contents

ACRONYMS .................................................................................................................................................................................... i sfo{sf/L ;f/f+z …………………………………………………………………………………………………………………………….… iii Executive Summary ....................................................................................................................................................................... vi CHAPTER I: INTRODUCTION............................................................................................................................................... 1

1.1 Background ................................................................................................................................................................ 1 1.2 The institution preparing the report .................................................................................................................. 1 1.3 Rationality of EIA Study ...................................................................................................................................... 1 1.4 Objective of the EIA Study .................................................................................................................................. 2

CHAPTER II: SUMMARY OF THE PROPOSAL ........................................................................................................... 3 2.1. Objectives of the proposal .................................................................................................................................... 3 2.2. Impact on land use................................................................................................................................................... 3 2.3. Impact on environment, human life and population pressure ................................................................. 3 2.4. Damages to be suffered by local goods and objects ................................................................................... 3

CHAPTER III: EIA STUDY METHODOLOGY ............................................................................................................... 4 3.1. Impact Area Delineation ....................................................................................................................................... 4 3.2. Desk Study ................................................................................................................................................................. 4 3.3. Field Study ................................................................................................................................................................. 5 3.4. Impact Analysis ........................................................................................................................................................ 6 3.5. Public Hearing .......................................................................................................................................................... 6 3.6. Preparation of Environment Management Plan ........................................................................................... 7 3.7. Final Report Submission ....................................................................................................................................... 7 3.8. Study Team ................................................................................................................................................................ 7

CHAPTER IV: DESCRIPTION OF THE INDUSTRY ................................................................................................... 8 4.1 Project Features ........................................................................................................................................................ 8 4.2 Project activities ....................................................................................................................................................... 9

4.2.1 Construction procedure ...................................................................................................................................... 10 4.2.2 Activity under Corporate Social Responsibility (CSR) ......................................................................... 10 4.2.3 Energy consumption ............................................................................................................................................ 11 4.2.4 Emergency Preparedness ................................................................................................................................... 11 4.2.5 Human Resources ................................................................................................................................................. 11 4.2.6 Water requirement ................................................................................................................................................ 11 4.2.7 Rain water harvest ................................................................................................................................................ 11 4.2.8 Open space and Parking area............................................................................................................................ 11 4.2.9 Solid Waste management ................................................................................................................................. 11 4.2.10 Waste water treatment ..................................................................................................................................... 12 4.2.11 Greenery around industry ............................................................................................................................... 12 4.2.12 Soil Quality .......................................................................................................................................................... 12 4.2.13 Project Location and Accessibility ............................................................................................................. 12

CHAPTER V: EXISTING ENVIRONMENTAL CONDITION ............................................................................... 14 5.1. Physical Environment ...................................................................................................................................... 14

5.1.1. Administrative unit ........................................................................................................................................... 14

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5.1.2. Physiography and Topography .................................................................................................................... 14 5.1.3. Geology and Soil ............................................................................................................................................... 15 5.1.4. Climate .................................................................................................................................................................. 15 5.1.5. Drainage and Hydrology ................................................................................................................................ 15 5.1.6. Land Use ............................................................................................................................................................... 15

5.2. Biological Environments ................................................................................................................................. 16 5.3. Socio Economic and Cultural Environment ......................................................................................... 16

5.3.1. Demographic Characteristics ........................................................................................................................ 16 CHAPTER VI: IMPACT IDENTIFICATION, PREDICTION AND EVALUATION .................................... 18

6.1.1 Pre-construction Phase ........................................................................................................................................ 18 6.1.2 Construction Phase ............................................................................................................................................... 18 6.1.3 Operational Phase ................................................................................................................................................. 18

CHAPTER VII: ALTERNATIVE ANALYSIS ............................................................................................................... 27 7.1 No Action Alternative ......................................................................................................................................... 27 7.2 Alternative Technology and Machinery ...................................................................................................... 27 7.3 Project Location .................................................................................................................................................... 27 7.4 Alternative Design and Construction Approach ....................................................................................... 27 7.5 Alternative Schedule and Process .................................................................................................................. 28 7.6 Alternative Resources ......................................................................................................................................... 28 7.7 Raw materials and production process ......................................................................................................... 28 7.8 Environmental Management System ............................................................................................................ 28

CHAPTER VIII: MITIGATION MEASURES AND BENEFIT AUGMENTATION MEASURES ......... 29 8.1 Benefit Augmentation ......................................................................................................................................... 29 8.2 Mitigation Measures for adverse impacts.................................................................................................... 30 8.3 Cost for benefit augmentation and mitigation cost .................................................................................. 35

CHAPTER IX: ENVIRONMENTAL MANAGEMENT PLAN ............................................................................... 37 9.3.1 Baseline Monitoring ............................................................................................................................................ 37 9.3.2 Impact Monitoring ................................................................................................................................................ 37 9.3.3 Compliance Monitoring ..................................................................................................................................... 38

CHAPTER X: ENVIRONMENTAL POLICIES, LEGISLATIONS AND GUIDELINES ............................ 42 10.1. Legislation ............................................................................................................................................................... 42 10.2. Plans and Policies ................................................................................................................................................. 42 10.3. Act .............................................................................................................................................................................. 44 10.4. Rules and Regulation .......................................................................................................................................... 46 10.5. Manual and Guidelines ....................................................................................................................................... 48 10.6. Standards .................................................................................................................................................................. 48

CHAPTER XI: CONCLUSION ............................................................................................................................................. 52 REFERENCES .............................................................................................................................................................................. 53

PHOTOGRAPHS .................................................................................................................................................................... 54 Annex 1: Approved SD/ToR/Letter ................................................................................................................................... 55 Annex 2: Public Notice for Public Hearing ..................................................................................................................... 56 Annex 3: Recommendation Letter ....................................................................................................................................... 57 Annex 4: Minutes of Public Hearing .................................................................................................................................. 58 Annex 5: Project Design .......................................................................................................................................................... 59 Annex 6 : Declaration and CV of study Team ................................................................................................................ 60

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List of Tables Table 1: Legal provision of EIA ............................................................................................................... 2 Table 2: Impact Identification Matrix ....................................................................................................... 6 Table 3: Impact Significance .................................................................................................................... 6 Table 4: Salient features of proposal ......................................................................................................... 8 Table 5: Details of Material Requirement ............................................................................................... 10 Table 6: Population distribution by ward and gender .............................................................................. 16 Table 7: Evaluation of beneficial impacts ............................................................................................... 19 Table 8: Evaluation of adverse impacts .................................................................................................. 24 Table 9: Issues raised by public and stakeholders during public hearing ................................................. 26 Table 10: Augmentation measures for beneficial impacts ....................................................................... 29 Table 11: Mitigation measures for adverse impacts ................................................................................ 33 Table 12: Estimated cost for augmentation and mitigation measures ...................................................... 35 Table 13: Impacts monitoring plan for Kalika Refinery .......................................................................... 37 Table 14: Compliance monitoring plan for Kalika Refinery .................................................................... 38 Table 15: Environmental Monitoring Cost.............................................................................................. 38 Table 16: Environmental Auditing Plan .................................................................................................. 40 Table 17: Summary of Environmental Audit Costs ................................................................................. 41 Table 18: Summary of the Environmental Costs of Industry ................................................................... 41 Table 19: Standard on Emission for Industrial Boiler, 2069 .................................................................... 49 Table 20: Permissible Exposure Limit (PLE) of noise at workplace ........................................................ 49 Table 21: Threshold limit of air pollution level by individual pollutant ................................................... 49 Table 23: Threshold limit of noise level by sector .................................................................................. 49

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List of Figures Figure 1: Production flowchart of refined edible oil................................................................................ 10 Figure 2: Goggle location of industry ..................................................................................................... 12 Figure 3: Access map of Kalika Refinery Industry ................................................................................. 13 Figure 4: Physiographic Location of the Project ..................................................................................... 15

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CHAPTER I: INTRODUCTION 1.1 Background Industry is the core element of economic development and is crucial for the developing countries because of their high unemployment rate. Industry can minimize the unemployment rate by enforcing job opportunities. It further helps economic development by acquiring the foreign currency through exporting their products. Production and processing of different types of oil is one of the major industries in Nepal which could be mile stone for the economic development, it has proven that it can decrease unemployment rate as well as can contribute to the national growth. The Government of Nepal (GoN) had initiated the implementation of the President Chure Conservation Program in the Fiscal Year (FY) 2066/67, and in order to drive it in powerful manner, the GoN formed the President Chure-Terai Madhesh Conservation Development Board on 2nd Ashad, 2071 being sensitive towards the adverse impacts upon the Chure-Terai Madhesh Landscape due to the deteriorating status of the Chure region. The standard for environmental conservation on development activities in Chure conservation area 2072 has provision of EIA study for establishment of any sort of industries in Chure region. Kalika Refinery has planned to establish an industry at ward no 7 of Gaidakot Municipality, Nawalparasi District for extracting, refining, packaging and marketing of edible oil; namely: Refined, Bleached and Dried (RBD) Palm oil, refined sunflower oil, refined soybean oil, Rice bran oil with annual capacity of 80,850 MT Refined Oil.

1.2 The institution preparing the report The name of Proposal is Environmental Impact Assessment (EIA) Study of oil processing and Production Industry of Kalika Refinery. Kalika Refinery Pvt. Ltd is the proponent of this project. The company is a private sector organization, which is responsible for the production of various types of edible oil. The full address of the project proponent is: Kalika Refinery Pvt. Ltd. Gaidakot Municipality-07, Kalikanagar, Nawalparasi, Gandaki Province, Nepal Contact no: 9803751716 Email: [email protected] Greenwich Environmental and Engineering Consult Pvt. Ltd. is entrusted to conduct EIA study of the industry. The address of the consulting firm is as below: Consultant Greenwich Environmental and Engineering Consult Pvt. Ltd. New-Baneshwor, Kathmandu, Province Number 3 Phone: +977-9841531582 Email: [email protected]

1.3 Rationality of EIA Study According to schedule 2, section A (7) under rule 3 of EPR 2054 has provision of Environmental Assessment for establishment of industry with construction activities inside forest area, National Park, Conservation area and buffer zone. Since Kalika Refinery has planned to establish an oil processing and production industry inside Chure conservation area,

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EIA study is mandatory. Table 1: Legal provision of EIA

S.N. EIA provision Project Actual Remarks 1 Establishment of any sort of industry

inside Conservation Area Establishment of oil processing industry inside Chure Conservation Area

EIA applicable

1.4 Objective of the EIA Study The primary objective of the EIA study is to ensure sustainability of the industry by avoiding or minimizing impacts associated with construction and operation on the physical, biological, socio-economic and cultural environments. The objectives of the proposed EIA study include:

To document physical, biological, socio-economic and cultural baseline environmental conditions of the proposal development areas;

To identify and adequately assess potential adverse and beneficial environmental impacts due to proposal development;

To elucidate environmental issues and predict environmental impacts and their significance in terms of nature, extent, duration, and magnitude for the selected development option;

To propose appropriate, practical and cost effective mitigation measures for the identified environmental impacts to avoid or minimize or compensate adverse impacts and capitalize maximum beneficial impacts;

To prepare a comprehensive environmental management plan comprising of mitigation, monitoring and auditing plans associated with proposal;

To present the study findings to the concerned stakeholders of the proposal development area in a public hearing meeting and take their concerns and suggestions with regard to the proposal development and

To prepare an EIA report as per the format stipulated in the EPR incorporating the concerns and suggestions of the concerned stakeholders to facilitate objective decision making by the concerned decision makers of the Government of Nepal (GoN).

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CHAPTER II: SUMMARY OF THE PROPOSAL 2.1. Objectives of the proposal

Project activities will be confined to construction of new building and operation of extracting, refining, packaging and marketing of edible oil; namely: RBD Palm oil, refined sunflower oil, refined soybean oil, Rice bran oil. Main objective of industry is to provide quality cooking oils in Nepal in economic cost.

2.2. Impact on land use The area where industry will be situated is chure conservation area. The industry will have open space for garden and parking space. Hence there will be significant impact on land use pattern.

2.3. Impact on environment, human life and population pressure The predicted environmental and social impacts will be both beneficial and adverse during the construction and operation phase, impacts are limited to occupational and health safety issues, minor solid and liquid waste generation and increased noise level due to machinery operation such as generators, water pumps. The most beneficial impact of the industry during operation phase is availability of quality products, employment opportunity, and enhancement of local economy. The adverse impacts during the operation phase are generation of solid and waste water. Similarly, due to increased construction vehicles, in and around vicinity and associated increased vehicles movement etc. will increase the baseline noise level. Regarding air pollution, the significant emission is not predicted however, minor emission is predicted due to operation of generators and vehicular exhaust. The higher water demand may deplete ground water level. Regarding impact on biological environment, no any impacts are envisaged. Regarding impact on human life and wellbeing, the major impacts are health and sanitation issue in and around industry area and occupational health risks. In addition, disaster related risks like earthquake and fire hazards which could threat life and damage of properties if occurred.

2.4. Damages to be suffered by local goods and objects The impact on local goods and objects is not envisaged.

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CHAPTER III: EIA STUDY METHODOLOGY

In order to meet the objectives of the EIA study, a systematic and integrated methodology was followed in accordance with the legal requirements of GoN. The EIA Scoping Document and Terms of Reference (ToR) of Kalika Refinery have already been approved by Ministry of Forests and Environment (MoFE). This EIA study report is prepared as per the approved ToR and considered scopes determined during scoping exercise. The EIA study process has followed existing legislations viz. EPA (1997 A.D.), EPR (1997 A.D.) and its subsequent amendments, National EIA guidelines (1993) and Guide to Environmental Management Plan (MoFE, 2006 A.D.). In addition, the EIA is prepared in compliance with other sectoral legislations and guidelines of GoN, Local Government Operation Act (2017 A.D.). The field visit by expert team was conducted in 22th – 24th November, 2019 which assessed the field based situation, assessment of probable impacts. The public hearing was conducted on 26th November 2019 as provisioned by EPR, 1997 A.D. The principal steps that have been undertaken during the preparation of EIA Report are briefly discussed below: 3.1. Impact Area Delineation a) Project Influence Area

The area under project influence would be project implementation local government as practiced in EIA studies in Nepal. Gaidakot Municipality is considered as the project influenced area. b) Indirect Impact Area (Within the Project Influence Area)

National EIA Guidelines 1993 has defined an indirect impact area as the areas with environmental components having repercussions by other environmental components affect/changed by the project component or its activity. Details of this area will be further elaborated upon at a later stage of the EIA finalization. For this proposal, ward no 7 of Gaidakot Municipality is considered indirect impact zone.

c) Direct Impact Area (Within the Project Influence Area) Direct impact area refers to a direct alteration in the existing environmental condition as a consequence of project activity (National EIA Guidelines, 1993). The area of industry construction and operation and up to 150 m distance is therefore considered as the direct impact area.

3.2. Desk Study During the desk study, environmental statutory legal provisions, National EIA Guidelines, the approved EIA Scoping Documents, approved ToR and the design drawings and technical reports of the industry were reviewed in detail to come up with the study requirements both at the desk level and field level. Similarly, topographic map produced by Department of Survey and satellite image extracted from Google Earth were used to assess surrounding environment, land use and physical structures. Literatures of the industry area pertaining to physical and socio-economic and cultural environments through maps and reports etc. from various sources were reviewed to get information on the coverage of the studies and data gaps that need to be fulfilled to accomplish the EIA requirements.

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3.3. Field Study The field investigation was carried out by a multidisciplinary team, which comprised of an environment expert, environment engineer, sociologist and field assistant. The study team visited the industry site in a regular basis to collect the baseline information and impact assessment. Required baseline information on physical, biological, and socio-economic & cultural conditions of direct & indirect impact areas of the industry area was collected. The information on different environmental components was collected by using the following methods.

3.3.1. Physical Environment In order to collect baseline information on physical environment, field investigation along the area where the industry will be established was carried out using a checklist. The details of existing buildings were collected. The field visit team collected the site-specific information on following areas:

Land use pattern, landscape disturbance

Slope stability

Climate and hydrology

Seismicity

Quality of Air, water (of river crossing) and noise level (if possible)

Ground water table (existing)

Road safety measures

Construction materials, quarry, borrow and disposal

Infrastructures (Canals, roads, trail bridges, water supply, telephones, public buildings and other public facilities) along road alignment

The consultant was sourced physiographic information from the topographic map published by the Department of Survey. Similarly, the information on geology and soil was referenced from the Geological Map published by the Department of Mines and Geology. While the land use of the industry area was also referenced from the topographic map, that is updated based on field verification. Epicenter map of Nepal published by DMG was used to obtain information on seismicity. Information from credible sources was referenced to obtain information regarding solid waste management, ground water availability, traffic management and energy consumption.

3.3.2. Biological Environment The normally reported vegetation, birds and animals in and around vicinity have been collected through interview with locals and walkthrough in the direct impact area.

3.3.3. Socio-Economic and Cultural Environment The following methods were used to collect information on socio-economic and cultural resources of the area:

a. Key informant survey: Key informant interviews were conducted to acquire the condition of financial, social profit or loss of these types of industry. The key informants were selected based on expert judgments and with the help of proponent and local people. Such key informants included the people from the stakeholder committee, local elites and industrialist etc.

b. Walkthrough survey: The information on the local business, economy of the area

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and walkthrough survey is conducted to gather the information about the area. This survey is mainly devoted to the directly affected area by the industry.

c. Project Affected Families: Project affected families are grouped into two categories based on the magnitude of impacts that project will have on their livelihood and property. Since the project lies in private land and there are not houses within direct impact zone of project, it is not applicable.

3.4. Impact Analysis After the full documentation of baseline environmental data of the industry area, each of the environmental parameters were examined against the industry activities using various methods and tools as required. By using the procedure and format provided in National EIA Guidelines, the impacts were categorized as direct and indirect. Each of the direct and indirect impacts was further evaluated in terms of their extent (site specific, local or regional), magnitude (high, moderate and low) and duration (short-term, medium-term and long-term). While categorizing the impacts into significant and insignificant depending on the nature of impact, the impact identification matrix was prepared. The following aspects were taken into account to each of the identified issues:

Table 2: Impact Identification Matrix Magnitude Extent Duration High 60 Regional 60 Long term 20

Moderate 20 Local 20 Medium term 10 Low 10 Site specific 10 Short term 5

(Source: National EIA Guidelines, 1993) The significance was determined based on cumulative results of Magnitude, Extent and Duration. Impacts with cumulative score below 45, is termed as Insignificant, impacts with cumulative score 45 to 75, is termed as Significant, and for the impacts with cumulative score above 75, is termed as Highly Significant.

Table 3: Impact Significance S.N. Cumulative Score Description

1 < 45 Insignificant 2 45 to 75 Significant 3 > 75 Highly Significant

(Source: National EIA Guidelines, 1993) 3.5. Public Hearing

To ensure public participation in the process of EIA study as well in development for quality, comprehensiveness and effectiveness of the proposal, public views were taken adequately in decision-making process through following procedures:

Publication of notice – A public notice for public hearings was pasted in a public places and letter of invitation was given to stakeholders inviting them to participate in public hearing on date 2076/08/07.

Public hearing was conducted in presence of chairperson of ward no 7 of Gaidakot Municipality and local communities on date 2076/08/10 with total participants of 43 to collect public concern and suggestions on finding of EIA study, awareness about the project plan and

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programmed building of mutual consensus about the implementation of the project identification of the key issues and consideration of these issues in EIA report. Issue raised like employment to local and CSR during public hearing were integrated in EIA report. The approved EIA report was made available or accessible to general public and interested parties through information center and website of Industry. Recommendation letter was collected from the project affected ward of Municipality after public hearing and attached in Annex.

3.6. Preparation of Environment Management Plan

With the assessment of impacts, the pragmatic mitigation measures were prescribed along with responsible authority and time of action. The Environment Management Plan (EMP) has been prepared to guide implementation of mitigation measures and monitoring requirements. Being the integral part of the EIA study, systematic management system is required which gets fulfilled by the preparation of EMP ensuring the effectiveness of mitigation measures and enhancement measures. The pragmatic and realistic EMP is prepared. Similarly, monitoring plan and environmental auditing plan was also designed to verify the environmental performance during operation.

3.7. Final Report Submission The final EIA report was prepared by incorporating all suggestions and comments received from the public hearing and consultation meetings. The final report was formatted in such a way that it minimizes duplication in write ups, makes the report a concise and easily understandable form and doesn't omit issues and concerns mentioned in Schedule-6 of EPR, 1997 and the approved ToR. The final report contains information on baseline environmental conditions & review of environmental related policies, legislation, and guidelines. As a part of EIA report, alternatives were evaluated and environmental impacts of best option were identified, predicted and evaluated. In order to increase the beneficial impacts and minimize the adverse impacts, this EIA report also contains elaborated benefits augmentation measures and mitigation measures, monitoring parameters, methods & schedules and also a framework for environmental auditing as a part of the EMP. Eventually, the final report was submitted to MoFE through concerned ministry as per EPR, 1997.

3.8. Study Team The following experts were involved during the EIA study:

Team Leader Mr. Sajan Puri Environmentalist Ms. Pratibha Pokharel Research Assistant Mr. Shivaram Sapkota Biological Environment Dr. Arjun Thapa Food Technologist Mr. Anup Adhikari Engineer Er. Madan Gorathoki Sociologist Mrs. Benu Jyoti Bhatta

Apart from above key professionals, number of local enumerators and staff consultant have provided their input in this study.

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CHAPTER IV: DESCRIPTION OF THE INDUSTRY 4.1 Project Features The proposal of project is the establishment of refinery industry with objectives of production and marketing of sunflower, soybeans, rice bran and RBD palm. Kalika Refinery was registered in office of company registrar on 2075/10/08 BS (2019/01/22 AD) under the name of Kalika Refinery Pvt. Ltd pursuant to sub-section 1 of section 5 of companies’ act 2006. The industry will install a plant with modern equipment in order to produce 16500 MT of RBD Palm oil, 16500 MT of refined sunflower oil, 33,000 MT of refined soybean oil, 9900 MT of Rice brand Oil, 4950 MT of Mustard Oil, 26730 MT of De-Oiled Cake annually with by-product of 1518 MT of Acid Oil. The product of the industry will be certified by ISO as per requirement. Besides enhancing economic growth, it will also provide job opportunity to 110 human resources.

Table 4: Salient features of proposal Name of the Project Kalika Refinery Pvt. Ltd. Location Gaidakot Municipality-07, Nawalparasi District, Gandaki

Province, Nepal

GPS Location 27°42’13” N and 84°22’0” E Products Refined Oil Raw materials: Import from India and within Nepal Rice Bran 19305 MT Mustard seed 8415 MT Crude Palm/ Palmoelin Oil 17242.5 MT Crude Soybean Oil 34485 MT Crude Sunflower Oil 17242.5 MT Annual Production Capacity: 80,850 MT of Refined Oil Palm/ Palmoelin 16,500 MT Refined Soybean Oil 33,000 MT Refined Sunflower Oil 16,500 MT Rice Bran Oil 9,900 MT Mustard Oil 4,950 MT DE-Oiled Cake 26,730 MT By-product a. Acid Oil

1,518 MT

Investment Details Fixed Assets NRs. 350,000,000.00

Working Capital NRs. 214,000,000.00

Total Assets NRs. 564,000,000.00 (Five hundred sixty four millions only)

Working Schedule 330 days/annum, 3 shifts/day and 8 hours/shift

Total Manpower Requirements Construction phase - 135

Operation Phase - 110

Water requirement per day 10,000 liters

Waste generation Organic waste: 100 kg/day Inorganic waste: 50 kg/day

Total: 150 Kg/day

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Electricity 600 KVA

Diesel generator 250 KVA

Total land area 6,424.83 m2

Open space 46% of total land is open space

Plot no 135,137, 206, and 207 (Private Land) (Detail Project Designed of Kalika Refinery, 2076)

4.2 Project activities Project activities shall be confined to construction of new building and operation of edible oil processing and refining industry. Main objective of industry is to process and produce refined edible oil from raw material from Nepal and India. The manufacturing process will follow degumming, alkali refining, bleaching, de-odourization/de-acidification and de-waxing/ winterization etc as follows: a) Degumming Removal of gum (phospholipids) present in the oil is the first important step in edible oil refinery. It is done through micro-mixing of the oil with phosphoric acid, caustic soda and water in the hydration tank, in which the gums get hydrated. Hydrated gums are then removed from the oil through centrifugal separation. b) Alkali Refining Chemical neutralization is done to the degummed oil by addition of caustic alkali at required temperature. Free fatty acid are saponified and separated through centrifugal separators followed by boiling water washed to remove even the last trace of soap present in oil. c) Bleaching The process of removal of color from the oil is called bleaching in this process activated bleaching clay (5-15 kg/ton depending upon color and bleach ability of the neutralized and vacuum dried oil) is used as gents to adsorb colors physically on its surface from the oil. d) De-odorization /De-acidification This is final process of edible oil refining; removing odor from the oil. Oil is heated to high temperature of 240°-260° under high vacuum (1 torr to 3 torr) in SS vessel. The organic aldehydes and ketones responsible for the odor are steam distilled. e) De-waxing It is a process for removing solids/semi-solid saturated glycosides or waxes from the oil in order to make oil clear without haziness or without cloudiness even at lower temperature.


1.2 1.3

1.4 1.5

1.6 1.7

Figure 1: Production flowchart of refined edible oil

PET bottle manufacturing process: The process of manufacturing is shown below:

4.2.1 Construction procedure Construction of industry infrastructure will be completed within six months from start of work. The building will be frame structure type. The construction work will involve approximately 30 skilled, 45 semi-skilled and 60 unskilled task forces for six months. Detail of construction material required for construction of building will be as follows:

Table 5: Details of Material Requirement Particulars Quantity ( Approximate) Reinforcement 18 Ton Cement 1900 bag Brick 3,20,000 nos

Aggregate 22,000 cub ft. Sand 22,000 cub ft. (Source: Detail Project Design of Kalika Refinery, 2076) The required construction material shall be brought from local register supplier in order to ensure environment friendly extraction from source. 4.2.2 Activity under Corporate Social Responsibility (CSR)

Kalika Refinery is committed to perform at least one program for social development in coordination with Gaidakot Municipality and other (public and private institutions) annually. The social development will cover cleaning campaign, general health campaign etc.

Collection of seeds

Crude oil extraction plant 1. Sterilization in large pressure

vessels 2. Stripping in rotation drum 3. Homogenous oil mash 4. Purification in clarification

tank

Degumming

Alkali refining Alkali Neutralization Bleaching

Deodorization De-Waxing Refined Oil

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4.2.3 Energy consumption The NEA supply electricity will be main source of energy for the operation of machinery parts and plants during the load shedding generator (capacity of 250 KVA) will be use to for the operation of machinery.

4.2.4 Emergency Preparedness To prevent from the possible fire hazard, the industry shall have firefighting water sprinkle system connected with high pressure water supply. The industry has provisional opening for emergency exits system in order to avoid and reduce accidental hazard, and the industry building was earthquake resistance as per provision of Building Code 2060. 4.2.5 Human Resources

The industry will have following categories of human resources during operation phase Skilled (Operator, Manager and Account): 20 Semi-skilled (Driver, reception): 35 Unskilled (Labor): 55 4.2.6 Water requirement

Daily requirements of water for smooth operation of the industry were estimated 10,000 liters. Tube well with size of 3 mm diameter, other local water resource is main source of water. The industry will have the storage capacity of 30,000 liters in three separate underground tanks. The industry will also develop a rainwater harvest system in order to reduce use of ground water. The industry will develop a recharge pit where rainfall water accumulated on roof of building will be discharged into it.

4.2.7 Rain water harvest Recharge pit and soak pit will be made in premises of industry. Recharge pit allows rainwater to replenish groundwater. It can be built to recharge a bore-well.

4.2.8 Open space and Parking area The front of industry (North-West side of land) will be used for parking which has space for parking of 7 heavy vehicles, 9 light vehicles and 15 motorbikes. The industry also has enough open space as only 54% of land is coverage by building which will be used for maintenance of urban greenery and space for birds net.

4.2.9 Solid Waste management The industry is expected to generate 150 kg/day among them about 100 kg will be organic waste and 50 kg will be inorganic waste. The industry waste will be segregated into two categories i.e.

Organic waste (bio-degradable)

Inorganic waste (non-biodegradable) Organic and inorganic wastes are non-hazardous or less risky in nature. The segregated waste will be collected separately in colored container as bio-degradable and non-bio degradable. Generally, inorganic waste and wastes from manufacturing plastic and tin containers including plastic bottles, plastic bags, plastic pipes, metal cans, glass bottles and waste papers will be sold to scrap collectors. Also, some reusable will be reused in the industry and some will be sold to rag collectors and remaining waste will be given to municipality waste collector.


Where, the industry will commit to prohibit complete deported of mercury, lead etc. Organic wastes like wax, gums etc type of waste will be separated to the wax tank and will put in leachate proof landfill site.

4.2.10 Waste water treatment Huge amount of water is required in degumming, neutralization and deodorization steps of refining of crude vegetable oil. The liquid waste water will discharge into inland surface water only after treatment in effluent treatment plant that will be installed within industry. The chemical level of effluent to be discharge from EPT will be within national standard. 4.2.11 Greenery around industry

The industry will be located far from the settlement area so, industry will not affect the local people directly. For the maintenance of greenery around industry area, industry will plant the tree around its compound area (15%-20%) of its own land which also helps to absorb the carbon produced from the surrounding environment.

4.2.12 Soil Quality In this industry, there will be production of by-product (Acid Oil) which is nitrogen rich substance. If it is left in inland without treating, it will affect the quality of soil. So it is stored in the cemented pond and treated to formed solid and is used as Pina (in Nepali).

4.2.13 Project Location and Accessibility The proposed Kalika Refinery Pvt. Ltd. is located at Kalikanagar, Gaidakot Municipality-07, Nawalparasi District, Gandaki Province of Nepal. The proposed site is accessible from east- west highway within 450 m through gravel road and within 6.6 km from Narayanghat chowk.

Figure 2: Goggle location of industry


Figure 3: Access map of Kalika Refinery Industry

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CHAPTER V: EXISTING ENVIRONMENTAL CONDITION The description of the existing environmental conditions of the proposed project is mostly derived from the review and analysis of the topographic maps supported by regional, district and local level secondary literatures and field reconnaissance survey. Information on existing environments is of fundamental importance for the evaluation existing baseline and likely potential issues of environmental and social concern while reconstruction and operation of industry.

5.1. Physical Environment 5.1.1. Administrative unit The proposed project lies at ward no 7 of Gaidakot Municipality of Nawalparasi District of Gandaki Province.

5.1.2. Physiography and Topography Gaidakot Municipality lies in the Cure region on right of Narayani River. On the regional Physiographic setup the project development site lies in the Siwalik Physiographic Zone of Hagen (1998). The topography of the area is plain to gentle slope. Composition of Chure is dominated by extensive coarse gravel sheet sand thick debris flow deposits and loose soil. The city of Narayanghat (28° 13' N, 83° 59' E, 670 m above sea level) is located at the foot of the >8000 m peaks of the Annapurna Massif in the Seti Khola valley (This steep orographic gradient receives monsoonal rainfall of 4000 mm year. Narayanghat’s geological features primarily Precambrian metamorphic sandstones, shale, and dolomites. Other rocks include Paleozoic Phillies and schist of the Lesser Himalayan Series (LHS). Higher Himalayan Crystalline (HHC) rocks north of the Main Central Thrust (MCT) are Precambrian high-grade metamorphic quartzite, schist, and gneisses (1617). Marine calcareous Meta sediments of the Tethyan Sedimentary Series (TSS) prevail north of the South Tibetan Detachment Zone (1819). Narayanghat sits on a large sediment fan built by the upper Seti Khola that drains the partly glaciated and debris-filled Sachem Cirque in the Annapurna Massif. The fan head near the MCT grades into a 60 km long flight of prominent terraces downstream that rise up to 140 m above the river bed and envelop several LHS bedrock hills. The fan has three stratigraphic units called the Tallakot, Ghachok, and Narayanghat Formations. We focus on the youngest Narayanghat Formation composed of extensive coarse gravel sheets, numerous boulders >10 m in diameter, and thick debris flow deposits. Digital topographic data confirm damming of the more than a dozen tributaries along Seti Khola’s course of > 60 km by Narayanghat formation sediments These deposits dip upstream into tributary valleys or >1 km and upto7 km along the Magdi and Sarau Khola featuring several meters of inter- collated gravel, sand, and silt beds. We sampled enclosed peat beds, charcoal lenses, and plant macro fossils for radiocarbon dating and for any earthquake-related sedimentation in eight different tributaries (Bayesian calibration of 2614 C ages with a prior informed by stratigraphic relationships between the samples returned a pooled posterior distribution with three distinct peaks that match, within error, the timing of three large medieval earthquakes in 1100, 1255, and 1344 C.E. Our oldest 14C dates offer support for the timing of the 1100 C.E. earthquake, which has so far been inferred from.


Figure 4: Physiographic Location of the Project

5.1.3. Geology and Soil The Dune valley consists of loose sedimentary rock dominated by unconsolidated and porous rocks like sand, sandstone, boulders, pebbles, etc. The valley is dominated by alluvial and co-alluvial deposit forming highly fertile agricultural land. The valley is highly sensitive and fragile due to tectonic position and geological formation.

5.1.4. Climate Nepal experiences remarkable difference in climatic conditions because of the topographic variations. Climate of Narayanghat is classified as warm and sub-tropical. The summers here have a good deal of rainfall, while the winters have very little. The average annual temperature in Gaidakot is 16.3°C. The precipitation in the project area is greatly influenced by the monsoon. Nearly 80 percent of the annual precipitation occurs in this period. The averages rainfall is 2474 mm. The least amount of rainfall occurs in November with average of 6 mm monthly rainfall. July is month with highest rainfall measuring 776 mm. July is hottest month with average temperature of 35.3°C whereas January is coldest with average temperature of 13.1°C.

5.1.5. Drainage and Hydrology The project site is drained into Jayshree khola which ultimately flow into Narayani River within 600 meter. The valley has numerous seasonal rivulets (Khahare khola) originating from chure and flow in the northward direction joining Narayani River. Jayshree khola and Narayani River are nearest water body to the industry which is around 400 m from industry.

5.1.6. Land Use Land use in the project area is basically agriculture and forest type with scatter urban settlements. Majority of the land within 200 m from industry is agriculture with scattered settlement.

5.1.7. Air Quality and Noise Levels The operation of standby generator, vehicular emissions and the road dust are the major source

Project Area

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of pollution in the area. The air quality of Gaidakot Municipality seems to be clean on visual inspection. The noise level monitoring, eight hours average of day time, in the proposed area is 55-59 dB.

5.2. Biological Environments a. Plant/vegetation diversity The proposed project site lies at tropical forest. These tropical forests are dominated by Hill Sal and associated trees. Associated major trees are Saaj (Terminalia alata), Sal (Shorea robusta), Khair (Acacia catechu), Amba (Psidium gaujava), Amala (Phyllanthus emblica), Bamboo sps, Bar (Ficus benghalensis), Bayer (Zizphus mauritiana), Simal (Bamboxceiba), Bakaino (Melia azederach), Nim (Azadiractah indica), Bel (Aegle marmelos). b. Ethno-Botany, Medicinal Plants and Non-Timber Forest Products (NTFPs) There are many non-timber forest products used in the project areas. Majority of plant species includes Raajbriksha (Cassia fistula), Harro (Terminalia chebula), Barro (Terminalia bellirica), Amala (Phyllanthus emblica), Dhayenro (Woodfordia fruticosa), Charcharelahara, Bel (Aegle marmelos), Bayar (Zizyphus mauritiana), Tejpaat (Cinnamomum tamala), Ramchhari, Amaro (Spondias pinnata), Sikarilahara, Nimpatti (Murraya koenigii), Bhorlako lahara (Bauhinia vahlii), Karkalo (Colacasia sp.), Badahar (Artocarpus lakoocha) and so on. c. Wildlife and Fauna Among wild animals, major mammals were Dhendu (Semnopithecus entellus), Bandar (Macaca mulata), Lokharke (Funambubulus sp.), Bandel (Sus scrofa), Bagh (Panthera tigris), Chituwa (Panthera pardus) and Fyauro (Vulpes bengalensis) in the project area. Similarly, Gohoro (Varanus bengalensis), Dumsi (Hystrix indica), Bhyaguto (Rana sp.), different snakes, Malsapro (Martes flavigula), Kachuwa, Chheparo (Hemidactylus frenatus), Thotari etc. were other wild animals in the area. Dhukur (Streptopelia sp), Ruppi (Acridotheres tristis), Bhangera (Passer domesticus), Bakulla (Egretta garzetta), Kalij (Lophura eucomelanos), Luiche (Gallus gallus), Kaag (Corvus splendens), Jureli (Pycnonotus cafer), Dhobi (Copsychus saularis), Koili (Cuculus sp.) etc are common birds found in the area.

5.3. Socio Economic and Cultural Environment The socio-economic and cultural information mostly based on the secondary literature available is furnished below to give a snap shot of the socio-economic environment of the project development area.

5.3.1. Demographic Characteristics Population: The total population of Gaidakot Municipality is 58,841 out of which 28,209 are male and 30,632 are female population resident in 13,623 households. The details of population and household of the award is given below:

Table 6: Population distribution by ward and gender Ward Households Population

Total Male Female 7 523 2,383 1,154 1,229

Ethnic Composition: Nepal is a country of ethnic minorities and the case is similar in the project area. Brahmin, Chhetri, Magar and Dalit are dominant cast in the project direct influence wards.

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Religion: Followers of Hindu religion are dominant among other religion in the project wards.

4.3.2 Basic Infrastructure Services Public Health There are 5 medical centers and health care institutions at Gaidakot Municipality. Energy and Electricity All of the families use electricity for lighting purposes in ward no. 7. The facility of electricity is available in Gaidakot Municipality through national gridline. Fuel wood is the major source of HH energy used for cooking purposes.

Communication Various means of communication like postal service, telephone/mobile services (i.e. landline, CDMA, Namaste, N-Cell) newspaper, cyber centers are there in ward no. 7 of Gaidakot Municipality.

Major Economic Activities Major economic activities in the area include agriculture, service, foreign employment etc.

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CHAPTER VI: IMPACT IDENTIFICATION, PREDICTION AND EVALUATION

This section deals with the environmental issues identified by the scoping process for the prediction and assessment of the environmental impacts (both beneficial and adverse) in without mitigation scenario. The adverse impacts/issues are further categorized into Physical Environment, Biological Environment, Socio-economic and Cultural Environment. This section ranks the predicted environmental impacts in accordance with its extent, magnitude and duration. The prediction is based on the methodology suggested by National EIA Guidelines (1993).

6.1. Beneficial Issues 6.1.1 Pre-construction Phase

No significant issues.

6.1.2 Construction Phase a) Employment opportunity to locals

During construction of industry building, skilled, semi-skilled and unskilled manpower are required. The proponent considers using local people for human resource so it will create employment opportunity to local people. The envisaged direct impact is high in magnitude, local in extent, short term in duration and hence very significant in nature. b) Skill and knowledge development of locals

Peoples’ involvement in the construction will enhance the skill as well as the knowledge of local employees. The envisaged indirect impact is high in magnitude, local in extent, long term in duration and hence highly significant in nature. c) Increase in cash flow in the project vicinity

During the construction of industry, local suppliers will get an opportunity to supply construction materials like cement, steel, bar, gravel, sand etc which definitely benefits the local market and help to boost the economy of the local people. The envisaged direct impact is medium in magnitude, regional in extent, short term in duration and hence very significant in nature.

6.1.3 Operational Phase a) Boost in local economy

The project operation will increase the daily activities of the local people. The demand of local goods, markets and other basic requirement certainly increases at the project site. The large numbers of staff will significantly increases the economic transaction in and around the vicinity. The envisaged indirect impact is medium in magnitude, local in extent, long term in duration and hence Significant in nature. b) Availability of quality multinational products in Nepal

At present situation, there is limited oil processing industry in Gaidakot. Operation of Kalika Refinery will provide good quality products and consumers will be benefited by such facility. The envisaged direct impact is high in magnitude, regional in extent, long term in duration and hence Highly Significant in nature. c) Employment opportunity to locals and community development

Operation of the industry generates large number of employment opportunity for both skill as well as unskilled man power. Besides this, the industry will also require indirect or short term employment for periodic maintenance services. The proponent considers hiring local people as

Page 19


much as possible so local people will get employment opportunity in the industry. The industry will be allocating budget in future as well for several social programs and campaigns designed in close consultation with the communities. Such programs will be one of the parts of Corporate Social Responsibilities of industry. Such programs may include health, education, water supply and sanitation, support to conserve religious and cultural heritage, allocation of cost for maintenance of nearby access roads etc. The envisaged direct impact is high in magnitude, regional in extent, long term in duration and hence Highly Significant in nature. d) Skill development of locals

For continues improvement in the service of the industry, the management will provide different sorts of training to the employed which will enhance the skill of skilled, semi-skilled and unskilled human resources used in industry operation. The envisaged direct impact is high in magnitude, regional in extent, long term in duration and hence Highly Significant in nature.

e) Increase in land and property value in project areas Valuation of land and property will be on the basis of available service or facility as well as economic activities in the area. Establishment of industry will increase economic activities which ultimately increase valuation of land and local property. The envisaged direct impact is low in magnitude, local in extent, long term in duration and hence Significant in nature.

Table 7: Evaluation of beneficial impacts

Project Activity

Impacts Nature of Impacts

Significance of Impact Type

Magnitude

Extent Duratio

n Beneficial Impact

Con

stru

ctio

n Ph

ase Increase in cash

flow in the locality D M (20) R (60) ST (5)

Very Significant

Employment opportunity to local

D H (60) L (20) ST (5) Very

Significant Skill and

knowledge development of local people

ID H (60) L (20) LT (20) Highly

Significant

Ope

rati

on P

hase

Boost in local economy

ID M (20) L (20) LT (20) Significant

Availability of quality multinational products in Nepal

D H(60) R(60) LT(20) Highly

Significant

Employment opportunity to local and community development

D H (60) R (60) LT (20) Highly

Significant

Skill development of local people

D H (60) R (60) LT (20) Highly

Significant

Increase in Land and Property valuation in the project vicinity

D L (10) L (20) LT (20) Significant

Page 20


D: Direct ID:

Indirect

H: High (60) M: Medium (20) L: Low (10)

R: Regional (60) Lo: Local (20) SS: Site Specific (10)

LT: Long Term (20) MT: Medium Term (10) ST: Short Term (05)

6.2. Adverse Impacts Physical Environment 6.2.1 Pre-construction Phase Air pollution and noise pollution due to site clearance During site clearance, the sound of vehicles for the removal of stumps, bushes etc causes noise pollution and the dust particles pollutes the environment around the construction site. The envisaged direct impact is medium in magnitude, local in extent, short term in duration and hence significant in nature.

6.2.2 Construction phase a) Change of agricultural land into buildup area

Construction of work will bring land use change in the project area. The construction of the buildup area will change agricultural portion into industrial built up area and associated facilities. It will also bring some temporary change in land used in the surrounding due to construction activities which will be restored with time. The envisaged direct impact is high in magnitude, local in extent, long term in duration and hence Highly Significant in nature.

b) Air, water and soil pollution Use of transportation vehicles and excavator during the construction period will cause air pollution. Excavation works, wastes generated by the construction workforce will increase the water and soil pollution. The envisaged direct impact is medium in magnitude, local in extent, short term in duration and hence Significant in nature.

c) Noise pollution due to construction related activities Use of excavator, generator as well as handing metallic construction material will produce noise in the project site. The envisaged direct impact is medium in magnitude, local specific in extent, short term in duration and hence Significant in nature.

d) Spoil disposal During construction of building and leveling of sloping land will generate large volume of soil and stone material which will create problem if not managed properly. The envisaged direct impact is medium in magnitude, site specific in extent, short term in duration and hence Insignificant in nature.

e) Stock piling of construction material Large volume of construction material will be needed during construction period which should be properly managed in the site. The envisaged direct impact is medium in magnitude, site specific in extent, short term in duration and hence Insignificant in nature.

f) Water availability issues Construction of building and other structure requires large volume of water. The demand in large volume of water for construction will create problem in locality. The envisaged direct impact is high in magnitude, local in extent, short term in duration and hence Very Significant in nature.

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g) Drainage management The strong surface runoff during rain if pass through the young and unstable soil in project site will create drainage within the site that will damage the proposed construction. The envisaged direct impact is medium in magnitude, site specific in extent, short term in duration and hence Insignificant in nature.

6.2.3 Operation Phase a) Solid waste management issues

When wastes are not treated separately and carefully it would bring highly significant adverse impact not only to the industry but also to the Zone of Influence. The envisaged direct impact is high in magnitude, local in extent, long term in duration and hence highly significant in nature. b) Waste water production

The wastewater generated from toilet, kitchen and bathroom from the industry will create additional pressure on the public infrastructure such as drainage and waste disposal due to the increased generation of waste water, waste and could cause pressure on utility nearby industry. The envisaged direct impact is high in magnitude, local in extent, long term in duration and hence highly significant in nature.

c) Water quality and availability For the operation of oil processing in smooth and proper way, estimated water required is about 10,000 liters every day. This high volume demand of water will not be fulfilled by local water resource. So the availability of water as well as quality of this water will be always in concern. The envisaged indirect impact is medium in magnitude, local in extent, long term in duration and hence Significant in nature.

d) Higher energy requirements High amount of energy will be required for running machineries, lighting, heating as well as cooking in the industry. The high demand of this energy will be fulfill by NEA supply electricity and diesel generator. The envisaged direct impact is high in magnitude, site specific in extent, long term in duration and hence Very Significant in nature.

e) Fire hazard Different activities within industry may cause fire hazard if proper care is not taken. The envisaged direct impact is medium in magnitude, site specific in extent, long term in duration and hence Significant in nature.

f) Air Pollution Operation of generator and boiler which produces ash, dust is the source of air pollution in the industry. The envisaged direct impact is low in magnitude, site specific in extent, long term in duration and hence Significant in nature.

g) Water Pollution Solid waste and waste water generated from industry are source of water pollution. The waste if not managed properly may pollute nearby water source. The envisaged direct impact is low in magnitude, local in extent, long term in duration and hence Significant in nature.

h) Noise Pollution Operation of industry comprise of daily operation of different types of machineries. Noise is default outcome of any industrial activities. It will create disturbance to the surrounding

Page 22


environment. As project site is in isolated place with no settlements, the noise pollution from it will not be a major public concern. Hence, the impact of this type in the project site will be low, site specific and long term in duration and hence insignificant in nature.

i) Source of odor, attracts flies, rodents and other pests The waste of raw materials and material flow is huge loss for the industry as it will be valuable product for the industry. Raw products attract flies, rodents. The impact will be significant, low in magnitude, local and long term in duration.

j) Drainage management The industry will manage its wastewater in septic tanks and soak pits. The storm-water will be drained through separate internal drainage system. The possible hazards that could occur are blockage of the pipeline, leakage and malfunction of mechanical parts and in worst case, oozing out wastewater on the surface. The envisaged impact is low in magnitude, site specific in extent and long term in duration and hence insignificant in nature.

k) Disaster management issues (Earthquake, fire hazards, electric short-circuit etc.) The earthquake, fire hazards and electrocution are the probable disaster envisaged during operation phase. The buildings will be designed to meet the mandatory requirements for the earthquake and the fire fighting. The emergency exit, fire-fighting mechanisms and earthquake resistant design (according to the NBC) are the few preparedness activities for the possible disaster. The envisaged impact is indirect, high, site specific and long term, hence very significant in nature.

l) Traffic Congestion Movement of more vehicles in the road due to the operation of industry may create additional pressure on stability and management problem. But traffic density will not increase significantly as the industry is in isolated area. The envisaged direct impact is low in magnitude, site specific in extent, medium in duration and hence insignificant in nature.

Biological Environment 6.2.4 Pre-construction phase

No significant issues.

6.2.5 Construction Phase a) Disturbance on migratory route of wild life

The proposed site is in Chure Conservation Area. So construction of the industry disturbs the habitat and migratory route of wild life. The envisaged direct impact is moderate in magnitude, local in extent, short term in duration and hence significant in nature.

b) Loss of crops and vegetation The project site is surrounded by agricultural land. Construction of an industry will create loss of vegetation and crops. The envisaged direct impact is medium in magnitude, local in extent, short term in duration and hence significant in nature.

6.2.6 Operation Phase a) Maintenance and protection of greenery in the project periphery

The proposed industry lies in such a position that there is agricultural land in all the directions. The envisaged indirect impact is low in magnitude, local in extent, short term in duration and hence Insignificant in nature.

b) Watershed pollution

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The leachate from waste deposition and throw of waste may cause watershed pollution. The envisaged direct impact is high in magnitude, local in extent, long term in duration and hence Highly Significant in nature.

c) Impacts on nearby forests Different illegal activities may be taken by workers of industry which may affect the diversity of nearby forest. The envisaged indirect impact is low in magnitude, local in extent, long term in duration and hence Significant in nature.

d) Impact on aquatic lives due to effluent discharge As nearby water resources is about 400 m far from the project site. The impact from the effluent and other waste are not significant. The envisaged direct impact is low, site specific and long term in duration and hence insignificant in nature.

Socio-Economic Environment 6.2.7 Pre-construction Phase

Public anxiety due to site clearance There is scattered house far from the project site with no other settlements. So, site clearance will not create much public anxiety. The envisaged direct impact is low, site specific and long term in duration and hence insignificant in nature.

6.2.8 Construction Phase a) Social Conflict and dispute

Increase in economic activities facilitates immigration of people from comparatively least developed parts of the districts or region. People from different parts bring various opinions and interest may result into increase of social conflict. The envisaged indirect impact is medium in magnitude, local in extent, long term in duration and hence significant in nature.

b) Ethnic conflict of local with workers Construction of industry require large number of workers, these workers may come from different parts of nation. People from different society have different ethic; the difference in ethic of worker with local people may cause conflict. The envisaged indirect impact is low in magnitude, local in extent, short term in duration and hence Insignificant in nature.

c) Health and sanitation in and around project sites Various types of waste will be generated from construction activities as well as camp for workers. Proper management of this waste is important as it is directly concerned with health and sanitation around the project site. The envisaged indirect impact is medium in magnitude, local in extent, short term in duration and hence significant in nature. d) Occupational health and safety of workers

Construction activities include the use of machinery equipments and if adequate care is not taken, there may be risk of accidents and the primary victims may be the workers involved in the construction. The envisaged direct impact is medium in magnitude, local in extent, short term in duration and hence significant in nature. e) Grievances management

Good understanding between owner and worker of industry is important. During construction period, the chance of misunderstanding is less as employees are on daily basis. The envisaged direct impact is low in magnitude, site specific in extent, short term in duration and hence Insignificant in nature.

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6.2.9 Operation Stage a) Occupational safety and health hazards

Health of worker will be in risk during operation as any accident may lead to damage the health of workers as well as visitors. The envisaged direct impact is high in magnitude, local in extent, Long term in duration and hence Highly Significant in nature. b) Pressure on existing infrastructures

Operation of Kalika Refinery requires large amount of water as well as huge energy for different purpose which may cause increase in pressure in the utilities of local. The envisaged indirect impact is medium in magnitude, local in extent, long term in duration and hence Significant in nature. c) Grievances management

Good understanding between owner and worker of industry is important for smooth operation of industry. Standard mechanism for receiving the demand and complaint of employees should be established. The envisaged direct impact is medium in magnitude, site specific extent, long term in duration and hence Significant in nature. d) Issues of wage and child labor

During operation of the industry, both gender workers need to be paid equal value for their jobs which may have gender discrimination and child labors may be involved with other labors. The envisaged direct impact is medium in magnitude, site specific extent, long term in duration and hence Significant in nature. e) Issues of security and safety

During operation of the industry, guests and visitors will come to visit the industry. If industry has no proper security system, there may cause the events of robbery, stealing, mugging and others. The envisaged indirect impact is medium in magnitude, site specific in extent and long term in duration and hence significant in nature.

Table 8: Evaluation of adverse impacts Project Phase

Likely Impacts Nature of Impacts Total Score

Significance of Impacts Type Magnitude Extent Duration

Pre

-co

nstr

ucti

on Physical Impacts

Air pollution and noise pollution due to site clearance

D M(20) Lo(20) ST(05) 45 S

Socio-economic Impacts

Public anxiety due to site clearance D L(10) SS(10) LT(20) 40 IS

Con

stru

ctio

n

Physical Impacts

Change of agricultural land into buildup area

D H (60) Lo (20) LT (20) 100 HS

Air, water and soil pollution D M (20) Lo (20) ST (05) 45 S Water availability issues D H (60) Lo (20) ST (05) 35 VS

Noise pollution D M(20) Lo (20) ST (05) 45 S

Spoil disposal D M(20) SS(10) ST(05) 35 IS

Stockpiling of construction material D M (20) SS (10) ST (05) 35 IS

Drainage management ID M(20) SS(10) ST(05) 35 IS

Biological Impacts

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Disturbance on migratory route of wild life

D M(20) Lo(20) ST(05) 45 S

Loss of crops and vegetation D M(20) Lo(20) ST(05) 45 S

Socio-economic Impacts Social conflict and dispute ID M (20) Lo (20) LT (20) 60 S

Ethnic conflict of local with workers

ID L(10) Lo (20) ST (05) 35 IS

Health and sanitation in around project site

ID M (20) Lo (20) ST (05) 45 S

Occupational health and safety of workers

D M(20) Lo(20) ST(05) 45 S

Grievance management D L(10) SS(10) ST(05) 25 IS

Ope

rati

on

Physical Impacts

Solid waste management issues D H (60) Lo (20) LT (20) 100 HS Waste water production D H(60) Lo(20) LT(20) 100 HS Water pollution D L (10) Lo (20) LT (20) 50 S Noise pollution D L(10) SS(10) LT(20) 40 IS Air pollution D L (10) SS (10) LT (20) 40 S High energy requirement D H (60) SS (10) LT (20) 90 VS Water quality & availability ID M(20) Lo (20) LT (20) 60 S Source of odor, attracts flies, rodents and other pests

D L(10) Lo(20) LT(20) 50 S

Drainage management D L (10) SS (10) LT (20) 40 IS Disaster management issues ID H (60) SS (10) LT (20) 90 VS Fire hazard D M (20) SS (10) LT (20) 50 S Traffic congestion D L(10) SS(10) MT(10) 30 IS

Biological Impacts Maintaining of greenery in the project site

ID L (10) Lo (20) ST (05) 35 IS

Water shed pollution D H(60) Lo(20) LT(20) 100 HS Impacts on nearby forest ID L(20) Lo(20) LT(20) 60 S Impact on aquatic lives due to effluent discharge

D L(10) SS(10) LT(20) 40 IS

Socio-economic Impacts Occupational safety and health hazards

D H (60) Lo (20) LT (20) 100 HS

Issues of security and safety ID M (20) SS (10) LT (20) 50 S Pressure on existing infrastructures ID M(20) Lo(20) LT(20) 60 S Grievances management D M(20) SS(10) LT(20) 50 S Issues of wage and child labor D M(20) SS(10) LT(20) 50 S

D:Direct ID: Indirect

H: High (60) M: Medium (20)

L: Low (10)

R: Regional (60) Lo: Local (20)

SS: Site Specific (10)

LT: Long Term (20) MT: Medium Term (10)

ST: Short Term (05)

HS: Highly Significant VS: Very Significant

S: Significant IS: Insignificant

6.3. Issues raised by public and stakeholders during public hearing During EIA study, the public hearing was carried out in the industry on Mangsir 2076 B.S. there were 43 participants including stakeholders, locals from the DIA zone, among which 37 of them were male and 6 of them were females. The major issues raised by the stakeholders and participants are given in the table below:

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Table 9: Issues raised by public and stakeholders during public hearing S. No. Issues Remarks 1. It is a matter of pride for the people of Gaidakot Municipality (GM) that a multinational

industry is going to establish in GM-7. 2. Local skilled manpower should be given first priority for establishment

and operation of the industry Incorporated in page number 29

3. Waste generated should be well managed in scientific way Incorporated in page number 31

4. During establishment of the industry, noise pollution should be controlled

Incorporated in page number 30

5. Water management during establishment of industry and management of recharge pit should be done


6. Industry should work for social welfare every year with involvement of ward office

Incorporated, page number 29

7. During establishment and operation of the industry, workers should be given proper safety equipments like helmet, mask, boot, gloves etc

Incorporated, page number

32,33 8. Greenery should be maintained within the boundary of industry Incorporated in

page number 32

9. No wage discrimination should be done to both male and female workers


10. Child labor should be strictly prohibited Incorporated in page number 33

11. Insurance should be done to each worker of the industry Incorporated in page number 33


Page 27

CHAPTER VII: ALTERNATIVE ANALYSIS Alternative analysis has been considered as an integral part of the EIA study. The technical feasibility, economic viability and environmental acceptability govern the alternative analysis. It helps to ensure all the opportunities considered in the industry at early phases. This also helps to select the best possible alternative that will boost the beneficial impacts and avert the adverse impacts associated with the construction and operation of the industry. The best alternative among the inventory is selected. The present EIA study considers no action alternative as well as other possible alternatives of the industry. In general, the following alternatives are considered: No Action Alternative Alternative Technology and Machinery Project Location Alternative Design and Construction Approach Alternative Schedule and Process Alternative Resources Environmental Management System

7.1 No Action Alternative Industry in Nepal is regarded as the pillar of development of Nepalese economy. Establishment and operation of standard industry promotes business which enhances national economy as well as create job opportunities to both skilled and non–skilled man power. Application of no action alternative will not give any significant for healthier environment. So establishment and continues operation of the project is recommended.

7.2 Alternative Technology and Machinery Kalika Refinery will be constructed and operated in designated areas. Hence the design is prepared meeting land shape and size. The construction approach selected is labor based approach with minimum utilization of the machine power. Development of operation will be done in closure technology. Boiler, thermic fluid heater, air compressor, filter press, PET bottle/Tin manufacturing machine etc will be used as important machineries. Online instrumentation and feedback control will be done for successful operation. The industry will use LP gas for cooking purposes and electricity for lightening purposes. Beside this generators will be used during load shedding or power shortage period.

7.3 Project Location Kalika Refinery Pvt. Ltd is located at ward 07 of Gaidakot Municipality of Nawalparasi district. The proponent considers the present location as best alternative location.

7.4 Alternative Design and Construction Approach The project designed to construct a building with different types of structure for various purposes. The proponent accepts this as best design among various design suggested by engineering consult as it provides separate villa for different purpose. The construction approach selected is labor based approach with minimum utilization of the machine power. The approach is considered beneficial as it provides maximum job opportunity to the local residing in the project area.


Page 28

7.5 Alternative Schedule and Process The construction of the industry building is estimated to complete within six months. The construction activities will only perform in day time. Construction material available in the local market will be used as much as possible. Excavator will be used to level the sloppy land for constructing building; the soil spoilage will be used as much as possible.

7.6 Alternative Resources In term of resource, the proponent considers using local resource as much as possible. For energy, alternative source of energy like solar is considered as the best alternative for lighting and heating purpose whereas LP gas will be used for cooking purpose.

7.7 Raw materials and production process Raw material (collection of seeds) will be imported from India and within Nepal. The manufacturing process will follow collection of seeds, crude oil extraction, degumming, alkali refining, bleaching, de-odourization/de-acidification and de-waxing.

7.8 Environmental Management System The proposed industry will commit to follow all rules and regulations; and guidelines related to environment. The proponent is also committed to implement all the benefit augmenting and mitigation measures for adverse impacts as listed in the succeeding chapters of this study report. The industry will adopt viable and beneficial environment related concepts and systems like 3R (Recycle, Reuse and Reduce) and cleaner production as per the requisite and for continuous sanitation.


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CHAPTER VIII: MITIGATION MEASURES AND BENEFIT AUGMENTATION MEASURES

The beneficial impacts should be enhanced in order to get more benefits whereas mitigation measures are designed to minimize the adverse impacts as identified and predicted. The mitigation measures are prioritized in the level of curative as first order followed by mitigation measures and compensative measures. The beneficial impacts augmenting measures and the adverse impacts mitigating measures have been presented in the following sub sections:

8.1 Benefit Augmentation 8.1.1 Construction Phase Employment opportunity to locals Augmentation measures: The industry will also provide part time as well as full time employment for qualified engineer, supervisor, labor etc. To enhance the benefits to more local people, priority will be given to local people for employment if they have the required qualification and expertise. Skill and knowledge development of locals Augmentation measures: Local people involve in the construction activities will increase the knowledge as well as skill. To enhance the benefit, some sorts of training will be managed as per requirement. Increase in cash flow in the project vicinity Augmentation measures: Construction of industry requires huge amount of sand, stone and other construction material. To enhance the benefit, local supplier will be given priority to supply goods. 8.1.2 Operational Phase Boost in local economy Augmentation measure: The industry will facilitate local businesses to be vendor for supplying goods and services. The economic activities will sharply increase in and around the project area from the operation of the industry. Availability of quality multinational products in Nepal Augmentation measures: Costumers will be benefited and proponent will be encouraged to produce more good quality products (various type of refined oil). Employment opportunity to locals and community development Augmentation measures: The industry will also provide part time as well as full time employment for qualified cook, waiter/waitress, security guards and other positions in industry. To enhance the benefits to more local people, priority will be given to local people for employment if they have the required qualification and expertise. Industry will work for social welfare every year with involvement of ward office. Skill development of locals Augmentation measures: Employs develop their skill through continuous enrolment in work. To augment the benefit, industry will provide training to employees for better service in the industry. Increase in land and property value in project areas Augmentation measures: Operation of industry increase in economic activities of locality which ultimately increase land valuation.

Table 10: Augmentation measures for beneficial impacts Phase Likely Impacts Significance of

impacts Augmentation measures


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8.2 Mitigation Measures for adverse impacts Physical Environment

8.2.1 Pre-construction Phase Air pollution and noise pollution due to site clearance

Mitigation measures: Proper and prior planning and appropriate sequencing of all major construction activities.

8.2.2 Construction Phase

Physical environment Change of agricultural land into buildup area Mitigation measures: Minimum 10% of the project site will be maintained as open space and proponent will try to limit construction activities within project site. Air, water and soil pollution Mitigation measures: Use of excavator will be limited to control air pollution. Worker camps will be managed with proper sanitary and disposal site. Noise pollution due to construction related activities Mitigation measures: Use of excavator will be limited. Generator as well as sound producing machineries will be insulated to control noise pollution. Spoil disposal Mitigation measures: The spoil will be disposed within open land of project site. Stock Piling of construction material Mitigation measures: Stock piling of construction material will be stored within project premises. Water availability issues Mitigation measures: Deep boring will be installed before beginning of construction activities. Consent letter will be taken from concerned authorities as per requirement. Drainage management Mitigation measures: Surface runoff around the project site will be managed so that it will not enter into the project site. 8.2.3 Operation Phase

Con

stru

ctio

n ph

ase

Increase in cash flow Very Significant Priority will be given to local supplier to supply goods

Employment opportunity to local Very significant Priority will be given to local people as per their qualification

Skill and knowledge development Very Significant Proponent will manage training as per requirement

Ope

rati

on P

hase

Boost in local economy Significant Industry will buy goods from local farmers as much as possible

Availability of quality multinational products in Nepal

Highly Significant

Costumers will be benefited and proponent will be encouraged to produce more good quality products

Employment opportunity to local

Highly Significant

Priority will be given to local people as per their qualification

Skill development Highly Significant

Proponent will manage training as per requirement

Increase in land and property valuation

Significant Facilitated the economic activities in locality


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Solid waste management issues Mitigation measures: The Kalika Refinery Pvt. Ltd will follow standard practice for waste management. General waste will be segregated at source into organic and inorganic. Separate bucket with different color will be used for segregation of waste at source.

Green Container – for bio-degradable general organic waste

Blue Container – for non-biodegradable inorganic waste. The organic waste like wax, gums will be put in leachate proof landfill site within industry premises whereas inorganic waste will be separated into recyclable and non-recyclable. The recyclable inorganic wastes like aluminum, tin, plastic etc will be used as raw material for making cans, bottles etc whereas non-useable metallic waste generated will be sold to the vendor. Waste water production Mitigation measures: The organic liquid, semi-liquid and chemical waste from toilet, bathroom and blenders will be collected in industry’s septic tank. Water quality and availability Mitigation measures: Deep boring will be installed before beginning of construction activities with permission from local authorities. The industry shall install water treatment plant to ensure quality of water to be used in industry as well as for drinking, cooking and washing. High energy requirement Mitigation measures: The industry will use diesel generator, capacity of 250 KVA as per the requirement. Fire hazard Mitigation measures: Fire-fighting water hydrant shall be installed in each compartment of industry. Air Pollution Mitigation measures: Operation of machinery, generator, boiler and vehicle used by industry will be repaired in time to maintain good condition. In order to reduce pollutant in air, minimum height of 11 m of chimney shall be maintained for dilution and dispersion with scrubbing techniques to control air pollutant from machinery. Ash from the boiler will be properly land filled and smoke from the chimney will be released after gas phase filtration. Noise Pollution Mitigation measures: Operation of Machinery, Generator will be repaired and will be encapsulated as much as possible to ensure the national standard of industrial noise within industry premiere. The equivalent noise level will not cross 75 dB in day and 70 dB in night. Water Pollution Mitigation measures: Organic waste produce in the industry shall be collected in septic tank whereas inorganic waste shall be collected in burial pit. These structures shall be leakage proof so that the chance of water source contamination from the leachate is negligible. The inorganic waste collected in burial pit will be disposed scientifically to environmentally safe location in co-ordination with the municipality. Source of odor, attracts flies, rodents and other pests Mitigation measures to control flies, rodents and other pets are as follows: -Minimize the surface of manure in contact with air -Closed storage (bags or closed sheds) will be made Mitigation measures to control odors: -Proper ventilation will be provided to the industry -The rotten raw products will be stored in pit or pile with air tight cover that can be further used as


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fertilizer for agriculture. Drainage management Mitigation measures: Sock pit will be made to store or dump the litter with no disturbance on drainage system and compensatory drainage. Disaster management issues (earthquake, fire hazards, electric short-circuit etc.) Mitigation measures: Earthling will be adopted for the effect of lightning. There will be emergency exit door in backyard in case of earthquake. Insurance Provision will be made for workers. First aid kits will be available in each compartment. Traffic Congestion Mitigation measures: Proponent will allocate front side of industry for parking purposes. Effective traffic management should be done to avoid the road congestion. Additional securities will be kept to control haphazard parking. Sign and Direction will be dispatched in hoarding boards for proper parking of vehicles. Biological environment 8.2.4 Construction Phase Disturbance on migratory route of wild life Mitigation measures: Construction activities shall be confined within industry boundaries. Loss of crops and vegetation Mitigation measures: Construction materials will be kept within industry premises and deforestation will be kept minimum. 8.2.5 Operation Phase Maintenance and protection of greenery in the project periphery Mitigation measures: 10% of land will be used for maintenance of greenery in the project site. Watershed pollution Mitigation measures: Waste generated from industry will be properly disposed within site. Waste water treatment plant will be installed within industry premise. Impacts on nearby forests Mitigation measures: Visitor will not be allowed to enter into nearby forest. Attraction of wildlife due to the smell from industry Mitigation measures: Industry will be well fenced with boundary wall. Impacts on aquatic lives due to effluent discharge Mitigation measures: As project site is away from the major rivers and water body having aquatic animal, the impact of industrial effluents and other solid waste to the aquatic life is not significant. Socio-economic Environment 8.2.6 Construction Phase Social conflict and dispute Mitigation measures: The local people will be consulted before the start of the construction works to develop consensus on the different project activities and timings. The construction workforce will be instructed to respect local people, especially the female members and observe/follow the local culture and tradition with humanity. Health and sanitation in and around project sites Mitigation measures: Maintenance of clean and hygienic environment and safe drinking water will be provided. Occupational health and safety


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Mitigation measures: Provision of insurance for any case of accident in industry for the workers will be given. Emergency preparedness plan will be prepared, implemented and documented. Grievances management Mitigation measures: Will develop special mechanism to develop harmonious relation with workers. 8.2.7 Operation Phase Occupational safety and health hazards Mitigation measures: For the safety of the workforce, site will be monitored regularly. Safety gears for the staff and workers will be provided by the client. Safe drinking water will be provided to the entire employee. For the emergency health services, medical treatment facility will be kept. In addition, the worker group who are involved in daily operation of industry will be given training in the health and safety measures and preventive measures from the industrial accidents. Issues of security and safety Mitigation measures: The industry management will co-ordinate with administration. Provision of insurance will be given to the workers for any case of accident in industry. Issues of wage and child labor Mitigation measures: Workers will be paid equal value for their jobs at scheduled intervals with no gender discrimination. Industry will raise awareness program among workers against child labor with an importance of sending their children to school. Pressure on existing infrastructures Mitigation measures: Will lobby for increase in facilities. Grievances management Mitigation measures: It is very essential to incorporate grievances, comments and suggestions received from public community or stakeholders in timely manner. In order to receive lower numbers of grievances, the proponent has to implement all prescribed mitigation measures in this study. Special mechanism will be developed for harmonious relation with workers.

Table 11: Mitigation measures for adverse impacts

Phase

Impacts Significance of impacts

Mitigation measures

Pre

-con

stru

ctio

n P

hase

Physical Environment Air pollution and noise pollution due to site clearance

S Proper and prior planning and appropriate sequencing of all major construction activities.

Socio-Economic Environment Public anxiety due to site clearance

IS NA (as there is only one settlement within the project site that will be relocated)

Con

stru

ctio

n ph

ase

Physical Environment

Change of agricultural land into buildup area

HS -10% of the project site will be maintained as open space -Concise the construction activities within project site

Air, water and soil pollution S -Use of excavator will be limited -Worker camp will be managed with proper sanitary and disposal site

Water availability issues VS Deep boring plant will be installed with permission from local authorities

Spoil disposal IS Will be disposed within open land of project site Stock pilling IS Will be stored within project premises Drainage management IS Surface runoff will be drained outside the project site


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Biological

Disturbance on migratory route of wild life

S Construction activities shall be confined within industry boundaries

Loss of crops and vegetation S -Air, noise pollution will be controlled -Construction will be concise within project site

Socio-economic and cultural environment

Social conflict and dispute S The construction workforce will be instructed to respect local people. Co-ordinate with local administration

Health and sanitation in around project site

S Maintenance of clean and hygienic environment and safe drinking water

Occupational safety and health

S -The workers will have insurance. -Awareness will be developed among workers

Grievance management IS Will develop good relation with workers

Ope

rati

onal

pha

se

Physical Environment Solid waste management issues

HS -segregation at source -composting for organic and burial for non-recyclable waste -reuse of metallic waste

Waste water production HS The organic liquid, semi-liquid and chemical waste from toilet, bathroom and blenders will be collected in industry’s septic tank.

Water pollution S -Organic liquid waste will be collected in the septic tank in industry premises whereas inorganic waste shall be collected in burial pit.

Air pollution S -Machinery, Generator and industry vehicle will be kept in good condition -11 m of height shall be maintained for discharge of air pollutant - Ash from the boiler will be properly land filled smoke from the chimney will be released after gas phase filtration

Noise Pollution IS The equivalent noise level will not cross 75 dB in day and 70 dB in night.

Higher energy requirement VS -Generator will be used in case of high energy requirement

Water quality and availability S - Deep boring plant will be installed with approval of concern authorities. -Water will be monitored seasonally.

Source of odor, attracts flies, rodents and other pests

S -Proper ventilation will be provided to the industry - Minimize the surface of manure in contact with air -frequent collection of litter will be done -closed storage (bags or closed sheds) will be made

Drainage management IS Sock pit will be made to store or dump the litter Disaster management issues VS Earthling, emergency exit doors will be made.

Insurance Provision will be made for workers. First aid kits will be available in each compartment.

Fire Hazard S -Fire-fighting water hydrant will be installed as per requirement

Traffic congestion IS Proponent will allocate front side of industry for parking purposes. Effective traffic management should be done to avoid the road congestion

Biological Environment


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8.3 Cost for benefit augmentation and mitigation cost The consultant team has estimated following cost for benefit augmentation and mitigation of adverse impacts for operation of the industry:

Table 12: Estimated cost for augmentation and mitigation measures Cost Items Investment

NRs. Annual

Expenses NRs.

Benefit Augmenting Measures Greenery Maintenance 1,00,000 120000.00 On-the-job trainings 50,000 250000.00

Sub Total 1,50,000 3,70,000 Mitigation Measures for Adverse Impacts

Industry boundary wall Included in industry cost Disaster risk mitigation 0 1,00,000

Trainings on occupational health and safety issues (once year) 0 20,000 Insurance for workers 5,00,000 1,00,000

Water hydrant (1) and fire extinguishers (20) 3,50,000 * Lead jackets, gloves, boots, caps and masks for construction workers 25,000 *

Maintenance of greenery in the project site

IS 10% of land will be used for maintenance of greenery in the project site.

Watershed pollution HS -waste generate in industry will be properly dispose within site. -Waste water treatment plant will be installed within industry premise.

Impacts on nearby forest S - Visitor will not allow to enter into nearby forest Attraction of wildlife due to the smell from industry

S Industry will be well fenced with boundary wall

Impact on aquatic lives due to effluent discharge

IS As project site is away from the major rivers and water body having aquatic animal, the impact of industrial effluents and other solid waste to the aquatic life is not significant.

Socio-economic environment

Occupational safety and health hazards

HS - Safety gears for the staff and workers will be provided by the client -For the emergency health services, medical treatment facility will be kept

Issues of security and safety S -The industry management will co-ordinate with administration. -Provision of insurance for any case of accident in industry.

Issues of wage and child labor

S -Workers will be paid equal value for their jobs at scheduled intervals. -Will raise awareness program among workers against child labor with an importance of sending their children to school

Pressure on existing infrastructures

S Will lobby for increase in facilities

Grievance management S Will develop special mechanism to develop harmonious relation with workers.


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Encapsulation of generator 2,000 0 Concrete burial pit construction 30,000 *

Monitoring water quality( seasonal test and purification mechanism) 50,000 1,00,000 Sub Total 9,57,000.00 3,20,000.00

Total 11,07,000.00 6,90,000.00

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CHAPTER IX: ENVIRONMENTAL MANAGEMENT PLAN

9.1. Environmental Management Plan (EMP) This Environmental Management Plan (EMP) for Kalika Refinery has been prepared pursuant to Schedule 6 of the EPR 1997. Schedule 6 of the EPR 1997 requires mentioning matters concerning the EMP in EIA report. The EMP is based on findings of the EIA study and applicable standards to which the industry should be adhered with.

9.2. Objectives of the EMP The objectives of preparation of this EMP are to

Establish arrangements to ensure implementation of mitigation measures. Outline monitoring framework for the baseline, compliance and impact

monitoring. Formulate basis for the environmental auditing after the completion of industry.

9.3. Types of Monitoring There are different types of practice in environmental monitoring. The national EIA Guidelines 1993 proposes the following three types of monitoring: 9.3.1 Baseline Monitoring This monitoring, also sometimes referred as pre-audit study, is conducted to know the pre-project baselines condition of environmental parameters. This will be carried out just before the construction of the project. 9.3.2 Impact Monitoring This monitoring detects environmental change and estimated inherent variation within the environment, establishes long term trends in the natural system and derives conclusion by making comparison against a standard or target. The parameter, indicator, methods schedule of impact monitoring shall be applicable for both construction as well as operation phase.

Table 13: Impacts monitoring plan for Kalika Refinery

Parameters Indicators Methods Schedule Responsibility Physical and biological

Solid waste Waste collection, segregation, disposal

methodology

Inspection and Review of records

Thrice a year

Proponent

Water pollution Discharge of effluent Inspection/ Laboratory analysis

Thrice a year

Proponent

Air pollution Height of chimney/use of control measures

Inspection/ measurement

Thrice a year

Proponent

Noise Sound Level Measurement Thrice a year

Proponent

Socio-economic and cultural impacts Priority for

local employment Employment record Employment Record Yearly Proponent

Formation of coordination committee

Document committee formation and meetings

Review of record and minutes

Yearly Proponent

Facilitating local business and suppliers

Number of local supplies Review the list of suppliers Yearly Proponent

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Involvement in social services

/CSR Activities

Documented evidences of the efforts made

Review of document Yearly Proponent

Awareness training on emergency preparedness

Number of trainings and list of participants

Review of training program Yearly Proponent

9.3.3 Compliance Monitoring Implementation of environmental requirements as documented in EIA report is examined in compliance monitoring. They should be complied during pre-construction, construction and operational stages of the projects as appropriate. It will employ periodic sampling or continuous recording of certain parameters, and ensures implementation of condition set during the EIA report approval. The parameter, indicator, methods schedule of compliance monitoring shall be applicable for both construction as well as operation phase.

Table 14: Compliance monitoring plan for Kalika Refinery Parameters Indicators Methods Schedule Responsible

Solid waste Compliance to guidelines Inspection Thrice a year Proponent

Liquid Waste Compliance to generic standard (laboratory assessment of

sample)

Inspection/Laboratory analysis

Thrice a year Proponent

Discharge of effluent Compliance to generic standard Inspection/Laboratory analysis


Water quality Compliance to National Water Quality Standard

Sampling and laboratory test


Noise Noise level Measurement Thrice a year Proponent Air pollution Height of chimney / use of

control measures Inspection / measurement Thrice a year Proponent

Insurance to workers Compliance to labor act Inspection and check records

Yearly Proponent

Local employment Number and type of employees Review of records Yearly Proponent Facilitation to

local business Number of local suppliers Review of procurement Yearly Proponent

Health and safety Accidents and complaints records

Review of records Yearly Proponent

9.4. Environmental Monitoring Cost

The laboratory analysis of water quality, noise level and air quality will be monitored thrice a year (January, June and October) in the industry periphery. The parameters to be tested are according to national environmental standard. The estimated annual environmental monitoring cost during compliance and impacts monitoring is given below:

Table 15: Environmental Monitoring Cost

Items Amount(NRs) Items Amount (NRs)

Compliance monitoring Impact/ compliance monitoring

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Laboratory analysis ( effluents, water quality, air quality and Noise level)

90,000.00 Laboratory analysis (Water quality and noise)

90,000.00

Administrative costs 40,000.00 Administrative cost 40,000.00 Miscellaneous 20,000.00 Miscellaneous 20,000.00 Sub-total 1,50,000.00 Sub-total 1,50,000.00

Total 3,00,000.00

9.5. Industry Environmental Management Framework

The Industry Environmental Management Framework of the industry is prepared to show linkages with different parties to be involved directly or indirectly during the different phases of industry development and operation in compliance with the existing Act and Rules. Overall industry environmental management is the responsibility of Project Management Unit (PMU) of the industry. Key stakeholders to be involved for industry environmental management in the hierarchy order are:

Ministry of Forests and Environment (MoFE); Ministry of Industry, Commerce and Supplies (MoICS) Department of Industry (DoI) Department of Environment (DoEnv) Project Management Unit (PMU) Gaidakot Municipality (GM) and Ward no. 7 Office Local Community, Non-government Organizations (NGOs), Community

Based Organizations (CBOs) etc. It is critical that the recommendations and mitigation measures for the industry are included in the bidding documents to reduce residual impact to acceptable levels and achieve the expected outcomes. The EMP matrix shows the need for mitigation measures throughout the design and the operational phases. Thorough implementation of the EMP will require an independent dedicated team of experienced environmental managers to be engaged to provide depth of experience to guide PMU. This EMP team will ensure that the contractor and proponent/PMU will implement their respective responsibilities under the EMP at all stages of the Industry. This EIA, including the EMP will be basis for an environmental compliance program and will be included in the contract documentation for the execution of the industry and operational activities of industry. Continued monitoring of the implementation of mitigation measures and monitoring of the environmental impact and compliance of implementation of mitigation measures will be properly carried out and reported. For this, the PMU needs to strengthen its capacity by having a dedicated team of experts. The PMU will also consist of environment expert and field assistant to implement EMP requirements. To ensure the implementation of EMP, the proponent is committed to recruit Environmental professional during its operation phase. The function of environmental expert, a constituent of PMU is depicted as below:

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9.6. Environmental Auditing

Auditing refers to the general class of environmental investigations that are used to verify past and current performances and environmental management. Environmental auditing is conducted to know the pre and post industry state of environmental condition by assessing performance of mitigation measures and actual impacts perceived due to industry intervention. As per the provision of EPR 1997, environmental auditing is required after two years of industry operation and will be conducted accordingly. 9.6.1 Agencies Responsible for Auditing The Ministry of Forests and Environment (MoFE) will be responsible for environmental auditing of the industry. However, line agencies like Ministry of Industry, Commerce and Supplies (MoICS), Department of Industry (DoI) and other relevant organizations will be consulted during audit. 9.6.2 Constituents of Environmental Audit Report The environmental audit report will include

Assessment of effectiveness of the mitigation measures adopted by the industry

Assessment of actual impacts in industry site against predicted impacts in EIA report and its deviations

Implementation status of mitigation measures in the industry as prescribed in Environmental Management Plan of approved EIA document

Measurement of industry activities whether in compliance or non-compliance with the EMP, Guidelines and National Standards

Any corrective actions suggested or undertaken to mitigate the impacts of the defined activities.

9.6.3 Environment Audit Plan

Table 16: Environmental Auditing Plan Parameters Location Methods Indicators

Physical Environment

Waste water Inlet of municipal sewerage

Sampling and analysis

Physical and chemical parameters of waste

Industry Management Unit

1. EMP Implementation 2. Assure Environmental and

social compliances 3. Conduct Compliance and Impact

Monitoring

Environment Expert

4. Coordinate the execution of

sectoral functions of MoFE, MoICS, DoI, DoEnv, LMC

5. Support implementation of CSR and Community Support Program

1. Briefing of EMP status to PMU and other stakeholders

2. Status, submission of periodic report

3. Support proponent in Env. & social matters

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Noise In and around industry area

Inspection and measurement

Noise level (dB)

Quality of water Boring water, Treated water

Analysis of water samples

Drinking water parameters

Traffic Industry periphery

Inspection and traffic count

Traffic congestion and density

Biological Environment Covered area and greenery

Industry sites Observation Percentage of covered area

Socio-Economic Environment Occupational safety and health hazard

Industry site Review of records and Interviews

Number and type of accidents/diseases

Employment opportunity

Within industry site

Interviews Numbers and status of employees

Pressure on social services

Around the industry site

Social survey Schools, health centers records

Grievances

Around the industry site

Social survey

Records, Grievances in PMU, Municipal

Authority

9.6.4 Estimated cost for Environmental Audit Environmental Audit will be carried out after two years of the industry operation. The total cost for environmental auditing is estimated to be NRs. 350,000.00

Table 17: Summary of Environmental Audit Costs Item Quantity Rate per

month Months Total

A. Environmental Audit 1. Environment Expert 1 100,000.00 1 100,000.00 2. Sociologist 1 100,000.00 0.5 50,000.00 3. Support Staff 1 60,000.00 1 60,000.00 4. Miscellaneous (Lab Test,

Stationeries etc.)

LS

100,000.00 Subtotal 310,000.00

Contingency (15%) 40,000.00 Grand Total 350,000.00

9.7. Summary of Environmental Cost Table below presents the summary of the industry environmental costs including mitigation, monitoring, management and audit cost.

Table 18: Summary of the Environmental Costs of Industry S.N Particulars Costs (NRs)

1 Environmental Mitigation and Enhancement (CSR) Cost

a One Time Cost 50,000.00 b Annual Management Cost 1,400,000.00

2 CSR Cost (Annual) 300,000.00 3 Environmental Monitoring Cost (Annual) 459,000.00 4 Environmental Audit 350,000.00

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CHAPTER X: ENVIRONMENTAL POLICIES, LEGISLATIONS

AND GUIDELINES Government of Nepal has adopted various Plans, Policies, Acts, Guidelines and Standards to ensure the maximum protection of the environment while carrying out the development activities. The different Plans, Policies, Acts, Guidelines and Standards relevant to the operation of the industry are described below:

10.1. Legislation Constitution of Nepal It has ensured the provision of environmental protection and right to live in clean environment. The article 30 (1) of the constitution has granted ‘every person shall have the right to live in clean environment’ as a fundamental right for the people while the article 51 (f) (2) of the constitution in its Development policy gives priority for under-developed regions for balanced, environment-friendly, qualitative and sustainable physical infrastructure development. Similarly, Article 51 (g) (5) of the constitution in the conservation, management and use of natural resources policy, negative impacts of industrialization and physical development should be minimized for environmental cleanliness and protection.

10.2. Plans and Policies Fifteenth Five Year Plan (FY 2076/77-2080/81) The fifteenth periodic Plan aims at decreasing the share of agriculture in the economy and increasing the share of industry aims at notching up the economic growth of 10.1 percent, for which a whopping sum of Rs. 9,777.75 billion will be spent. The average growth is projected at 5.6 percent in agriculture, 17.1 percent in industry and 9.9 percent in the service sector. The contributions of the agricultural, industrial and service sectors to the economy are 27.6 percent, 14.8 percent and 57.6 percent respectively. The concept paper has envisioned the scenario during the fiscal year 2080-81 BS when the contribution of the agricultural sector will be down to 21.9 percent and that of the industrial sector will increase to 20.7 percent, while that of the service sector will be more or less the same at 57.4 percent.

National Environment Policy, 2076 Its goal is to protect the right of the citizens to live in clean and healthy environment by promoting greenery, pollution control and waste management. It aims for the sustainable use of natural and man-made resources for present and future generation and also ensures environmental justice for pollution victims. Also, it suggests for the recycle and reuse of resources available. Furthermore, it ensures research, abilities for environmental management and conservation using public participation.

National Climate Change Policy, 2076 The Government of Nepal prepared and promulgated a Climate Change Policy in 2076. Climate Change Policy is the newest addition to Nepal’s legislative framework. The policy is being prepared in the wake of global climate change awareness and the need for urgent responses to the impending adverse impacts of climate change. The main goal of Climate Change Policy is to improve livelihoods by mitigating and adapting to the adverse impacts of climate change, adopting a low-carbon emissions socio-economic development path and

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supporting and collaborating in the spirits of country’s commitments to national and international agreements related to climate change. The Climate Change Policy adopted a two-pronged approach, both adaptation and mitigation to address adverse impacts of climate change. However, the policy has given thrust on adaptation, stating that Nepal has to implement adaptation program. Land Use Policy, 2072 The ministry of land reform and management launched this policy to ensure the optimum use of land and fragmentation and aims to encourage optimal use of land for agriculture. The policy also talks of adopting land pooling concept to acquire land for development projects. Since, the Industry is using the private land; this project does not attract the objective of the policy.

National Wetland Policy, 2069 The primary goal of the National Wetlands Policy is to conserve and manage wetlands resources wisely and in a sustainable way with local people’s participation. The policy also aims to put the conservation and management aspects of wetlands conservation within the framework of broader environmental management.

President Chure-Terai Madhesh Conservation and Management Master Plan, 2074 It has been prepared with the objective to supplement the existing sector-wise policies, strategies and plans adopted by the GoN from the environmental perspective. Being sensitive towards the environmental aspect, this MP encourages the integration of the environmental and developmental aspects for enhancing development and environment in balanced manner keeping into consideration the various developmental activities carried out in the Chure-Terai Madhesh Landscape. The programs incorporated in the will be implemented in the Chure-Terai, Bhavar including Dun Landscape keeping the Chure Conservation region at the centre. The programs have been such fixed that these could also be implemented in the Mahabharat region if any river system is severely affected upon by the sediments coming from the Mahabharat region. Besides, some targeted programs have been determined for the continuation of the on-going programs in the protected area system (PAS which includes national parks, wildlife reserves, protected areas and buffer zones) as it is the mainland for biodiversity conservation.

National Land Policy, 2075 It has empathizes on the sustainable management of land for development and prosperous life. The long term goal of this policy is to bring out qualitative change in the country’s economic prosperity and peoples’ standard of living thorough judicial distribution of land, maximum utilization and good governance. Its main objectives are to provide the protection and assurance of land tenure, land ownership and land right and for the developmental works easily land availability. Industry Policy, 2067 The policy aims to make remarkable contribution in national economy through sustainable and broad-based industrial development in an effective, coordinated and collaborative partnership

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of public, private and cooperative sectors thereby to support poverty alleviation. Five basis objectives are set in the policy.

10.3. Act

Environment Protection Act, 2053 The environment protection act compels the project proponent to prepare an IEE or EIA report in relation to prescribed plans, programs or projects which may cause changes in the exiting environmental conditions from physical activity, development activity or change in land use, socio-economic changes, chemical changes and so on. Under section 6 (1) of the Act, the relevant agency is authorized to approve for its implementation, only if it recommends that no significant adverse impact will be caused to the environment by the implementation of the project. Otherwise, it can be recommendation for EIA study. The act has also provision that nobody can create pollution and cause significant adverse impacts prescribed standards.

Environment Protection Act, 2076 To protect the fundamental rights of every citizen to live in a clean and healthy environment, to provide compensation to the sufferers for damage caused by environmental pollution or degradation; to maintain proper balance between environment and development; to minimize adverse environmental impacts on nature, environment and biodiversity and to challenge climate change the federal parliament has made this Act to amend and integrate prevailing laws.

Labor Act, 2074 It deals with manual labor. Clause 46 under Section 7 deals particularly with Construction industry. The Act defines working time as eight hours a day and a weekend leave. A half an hour break should be given as snack and tea break before continuous work of maximum five hours. Attendance Registry should be maintained properly. Clause 27 to 32 under Section 5 gives details for occupational health and safety requirement to be maintained for labors. Child labor (below 16 years) is prohibited putting them in work. It calls for insurance and safety management of labors. It also directs to establish camp near temporary working sites with drinking water, food, sanitation and residential facilities if numbers of labors are fifty or more in construction projects. Child Labor (Prohibition and Regulation) Act, 2057 The Act has made the provision of prohibition of engagement of child in factory, mining and similar other risky work and to make necessary provision for health, child's safety and services and facilities while engaging them in other work.

Water Resources Act, 2048 Based on the Article 19 (1) of the Act, GoN through notification in Nepal Gazette shall prescribe pollution tolerance limits for water resources.

Soil and Watershed Conservation Act, 2039 Soil and Watershed Conservation Act, 2039 was enacted to manage the watersheds of Nepal. Section 3 empowers the government to declare any area as a protected watershed area. Section 4 provides that a watershed conservation officer has the authority to implement the following works in protected watershed areas: Construction and maintain dams, embankment, terrace improvements, diversion channels and retaining walls, Protect vegetation in landslide-prone

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areas and undertake afforestation programs, and Regulate agricultural practices pertinent to soil and watershed conservation. Under Section 10 of SWCA, power is extended to the watershed conservation officer to grant permission to construct dams, drainage ditches and canals, cut privately owned trees within any protected areas. The Act is applicable only to protected watersheds.

Building Act, 2055 This Act was enacted to make necessary provisions for the regulation of building construction works in order to protect building against earthquake, fire and other natural calamities, to the extent possible. Any person, body or government body shall, in making a building, build it in consonance with the standards set forth in the building code.

Local Government Operation Act, 2074 The Local Government operation Act, 2074 image local level as independent government and empowers for the conservation of natural resources, conflict management and monitoring of project activities. The Rural /municipality, Metropolitan city has the authority to prepare development plans and establish basic community infrastructures including public health. The municipality has the authority for the management of public convenience, means of transportation, parking system of vehicles, pollution control, waste management etc. Likewise, municipality has the authority to protect areas for drinking water as well as protection of natural and cultural heritage sites. Solid Waste Management Act, 2068 This Act outlines the duties of local government to take action to control haphazard waste generation, disposal or collection and has provisions for various punitive measures against those engaged in activities detrimental to the intentions of the Act. As per the Section 9, rule 38, (Ta and Tha) and rule 39 (8), haphazard generation, discard or collection of hazardous waste from industrial sector will be considered as guilt and has the provision by the local government to penalize the fine of Rs 50,000 to 100,000 for the first time and the penalty will be double for the repetition and will be recommended to concerned bodies for revoking the permission.

Industrial Enterprise Act, 2073 Enterprise relating to establishment of industry has been defined as service industry. GoN may issue directives to any industry in the matters relating to the pollution of environment and it shall be the duty of the concerned industry to follow such directives.

Food Act, 2023 It is expedient to make legal provisions to maintain proper standard of foodstuffs and to prevent any undesirable adulteration in foodstuffs or prevent from reducing in, or extracting, any natural quality or utility from food stuffs in order to maintain health and convenience of the general public.

Land use Act, 2075 As per the act, land has been classified into 10 categories: agricultural; residential; commercial; industrial; mining and mineral; forest; river, stream, pond and wetland; public use; cultural and

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archaeological; and others. The land classification is based on the composition and use of the land. The act has been introduced based on the condition of land, population growth, requirements of land for various purposes like food and habitation and the need for economic development and infrastructure building, among others. The main aim of the act is to ensure that land is properly used and managed and that land set aside for one purpose is not used for other.

Children’s Act, 2075 The act paving the way to respect, protect and fulfill the rights of children in Nepal. The Act provides a framework to design and implement child-focused programs that hold duty bearers accountable to children. In Nepal, we are often quick to make policies but often lag in its implementation, and so this act resolves this issue. If there is no implementation, the lives of children will not change.

Social Security Fund Act, 2074 Social Security Fund Act 2074 was passed by the Parliament on July 24, 2017 (Shrawan 09, 2074) and accorded the assent by the President on 13 August, 2017 (2074-04-29). This Act is applicable to any industries, business or service sector. The Social Security Act provides that the government publishes the notice in Nepal gazette prescribing the sector, industries, business, service or employer undertaking certain transaction to whom the Social Security Act applies. The Fund is authorized to introduce different Scheme based on the nature of work and the requirement of the contributor. Again, there is a limitation such that the Scheme cannot be operated in such a manner that the contributor with the similar nature or making same contribution will have different benefits. This applies for this particular Hotel project as well. The proponent has strongly committed to provide the service and incentives to the hotel workers as prescribe by Labor Act and Social Security Fund Act during the hotel construction and operation.

Consumer Protection Act, 2075 The fundamental rights also provide for the right to enjoy a dignified life. At the same time, reasonable restrictions have been imposed on freedom to carry on trade, business or any occupation with a view to protect public health. The act is an umbrella act aimed at protecting consumer rights as well as restricting unfair trade practices. The provisions of these Acts can help protect the interests of the consumer and also foster a competitive business environment. The clauses in the Consumers’ Rights Protection Act specify that consumer products and services should, in no way, affect their health; consumers should have freedom of choice and the right to information about the composition of goods and their side effects. The act also says that consumers have the right to compensation if the services and goods cause harm to their health or are fake.

10.4. Rules and Regulation Environment Protection Rules, 2054 It obliges the proponent to inform the public on the contents of the proposal in order to ensure the participation of stakeholders. According to Schedule 2-L-3 of EPR, 1997, EIA study is mandatory while construction and operation of Kalika Refinery.

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Labor Rule, 2075 The Labor Rule guarantees equal wage for male and female. It also lists the percentage of compensation for different types of accidents during work at site.

Food Rules, 2027 Food Rules provision is under the section 13 of the food act 2024 where the provision of role responsibility and authority of DFTQC, provision of public analyst, provision of food inspector, provision of analysis of food, filing of case, food labeling and mandatory standard of 113 food products.

Building By-Law, 2072 Government has formulated and implemented new fundamental regulations for planning and construction of houses, the Urban Planning & Development Act, Building Code for Nepal, 2072. The building buy laws Nepal 2072 has paid special attention to reconstruction after the earthquake and required open space. For proposals concerned with residential construction planning, the area in such planning shouldn't be less than specified in Land Rules, 2021. Similarly, adjacent houses can only be constructed if at least three houses of same height are there. Similarly, while applying for the Building Construction Permit in case of constructing adjacent buildings, the responsibilities to be borne by owners of such houses while repairing such houses, should be submitted together. If a 6 meter wide public road touches the land under proposal for residential construction, the permit shall only be given to those proposed planning that includes construction of 10 meter high residential constructions. The new building code 2072 requires maintaining at least 1.5 meter of setback (distance between two houses), in case if the building is up to 10 meter in height. If the building are sharing the boundary with a public building, and if the building is above 10 meter but below 17meter in height, a minimum setback of 3 meter should be maintained, which, however, is 2 meter in case of the other buildings adjacent to your construction. Construction of boundary wall above 4 feet is prohibited; however, the building has the wall net up to 1.2 meter on the top.

Solid Waste Management Regulation, 2070 Government of Nepal, Ministry of Federal Affairs and Local Development (MoFALD) has

enacted Solid Waste Management Regulation 2070 (फोहरमलैा यव थापन नयमावल , २०७०) as

per the power conferred by the section 50 of Solid Waste Management Act 2068. Rule three of the regulation has the provision about the segregation and management of solid wastes. The rule legal obliges to segregate the hazardous and chemical wastes while segregating the degradable and non-degradable waste at source. Sub-rule 2 of Rule three requires the waste producing body to manage the chemical and hazardous waste by the producers themselves. Rule 5 requires that the hazardous, chemical, degradable and non-degradable waste be not mixed together, that collection, deposition and handling of such wastes should be carefully done. Rule 4 of the act mentions about the role of local government in disposal of solid waste. Rule 24 has the provision that local authority can direct the waste producers to adopt the measures and techniques for reduction the waste at source, to adopt the certain method for minimizing the waste, to pay the fee in due time and sub-rule 3 of rule 24 obliges the waste producers to follow such direction. Rule 25 of the regulation has the provision for monitoring of such matters.

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10.5. Manual and Guidelines National EIA Guidelines, 2050 The guidelines provide the procedural guideline for integrating environmental aspects in the development proposals. The guidelines contain objective, criteria for proposal screening, IEE, scoping, preparation of ToR, format for EIA report, impact identification and prediction, mitigation measures, report review, monitoring, evaluation and auditing. Community participation, schedules and annexes to IEE and EIA.

Guideline for construction and operation of physical Infrastructure within Conservation Area, 2065

Guideline 2065 aim to assist the national parks and reserves for the sustainable protection and conservation, and for the sustainable utilization and conservation of natural resources in the Buffer zone as well as to carry out community development programs with the local people through users, in an effective and uninterrupted manner in the buffer zone.

10.6. Standards National Drinking Water Quality Standard, 2062 Nepal's Drinking Water Quality Standards came into force in Nepal after its publication in Ministry of Physical Planning and Works, Nepal Gazette (B.S. 2063/03/12). The standards provide the maximum concentration limits of fifteen physical parameters, ten chemical parameters and two micro germs for drinking purpose. Ministry of Environment has published waste water standards for various sectors of industries and also for discharging to common waste water treatment plant. However, the generic standard or the tolerance limits for discharge to surface water will be taken as the guidelines for discharge from the proposed industry.

Industry Specific Standard for vegetable oil and ghee, 2058 Ministry of Environment has published standard for vegetable oil and ghee discharge of industrial effluent into inland surface water in 2058. The standard have specific limits for BOD5 at 20°c, max to be 100 mg/l, COD to be max 250 mg/l, pH should be between 6-9, oil and grease to be max 10 mg/l and nickel to be max 3 mg/l. Kalika refinery will follow the standard.

Environment Conservation Guidelines for Development Activities in Chure Area, 2072 It provides the guidelines for various activities within Chure Area. In section 2 (2.3) of the Standard, it clearly mention the requirement of EIA for village road and also provides required construction Guidelines for environmental conservation.

National Building Code, 2060 The national building code of Nepal was endorsed in Government building after cabinet decision in 2060/4/12. The code was endorsed in 58 municipalities, districts head quarter VDCs and urbanizing VDCs in the country in 2005. The code deals primarily with the matters relating to the strength of the building sites considerations safety during construction and fire hazards, construction materials, electrical designs etc. it has provisioned that while designing

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the multi-storey building in Metropolitan city, municipalities and rural municipality, the developers must follow the NBC.

Table 19: Standard on Emission for Industrial Boiler, 2069 Steam generation capacity of boiler (kg/hr)

Pollutant Mg/Nm3

Less than 2000 Particulate matter 1200 2000 to less than 10,000 800 10,000 to less than 15,000 600 15,000 and above 150

(Source: Moste 2012) Threshold limits (OSH)

Table 20: Permissible Exposure Limit (PLE) of noise at workplace Total time of exposure (continuous or a number of short term Exposures) per day, in hours

dBA (Sound Pressure Level in dBA) (decibels A-weighted)

8 10 4 15 w 2 100 1 105 30 min 110 15 min 115

Source: ILO, 2017

Ambient Air quality Standard, 2069 The construction of industrial building and operation of transportation vehicle and industry emit considerable amount of gas which should not cross the limit of ambient air quality standard.

Table 21: Threshold limit of air pollution level by individual pollutant

(source: Moste 2012)

Noise Quality Standard, 2069 The threshold limit of noise for Leq in decibel as prescribe by the National Standard of Noise 2069 B.S. has for different sector in day and night are as follows:

Table 22: Threshold limit of noise level by sector

Sector Threshold limit of noise Leq (dB)

Parameter Units Averaging Time Maximum Concentration TSD (total suspended particulars)

µg/m3 Annual -

24-hours 230 PM 10 µg/m3 Annual -

24-hours 120 Sulphur Dioxide µg/m3 Annual 50

24-hours 70 Nitrogen Dioxide µg/m3 Annual 40

24-hours 80 Carbon Monoxide µg/m3 8-hours 10,000

Lead µg/m3 Annual 0.5

Benzamene µg/m3 Annual 5

PM2.5 µg/m3 8-hours 40

Ozone µg/m3 8-hours 157

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Day Night Industry 75 70 Business 65 55 Rural residential area

45 40

Urban Residential area

55 50

Mixed Residential area

63 55

Peaceful area 50 40 (source: Moste 2012)

Nepal Vehicle Mass Emission Standard, 2069 This standard provides guideline for operation of vehicle in environmentally friendly manner. The limit of emission in different phase is given below:

Phase Exhaustion emission Limit value (gram per kilometer) First (passenger car)

Mass of carbon monoxide 2.3 Mass of hydrocarbon 0.2 Mass of Nitrogen oxide (NOx)

0.15

Second phase (CO emission )

At ideal speed 0.3% by volume At Increase ideal speed 0.2% by volume

Third phase of test Crankcase Gases None (Source: Moste 2012)

Generic standard for discharge of effluent to Inland surface water, 2058 Kalika Refinery shall comply the generic standard for the tolerance limits for discharge to surface water.

Characteristics Tolerance limit Total Suspended Solids, mg/L 30-200 Particle size of total suspended particles

Shall pass 850-micron Sieve

pH 5.5 to 9.0 Temperature Shall not exceed 40ºC in any of stream within 15

meters downstream from effluent outlet. Biochemical oxygen demand for 5 days at 200ºC, mg/L

30-100

Oils and grease, mg/L, Max 10 Phenolic compounds, mg/L, Max

1.0

Cyanides (as CN), mg/L, Max 0.2 Sulphide (as S), mg/L, Max 2.0 Radioactive material a. Alpha emitters, c/ml, Max=10-7

b. Beta emitter, c/ml, Max=10-8

Insecticides Absent Total residual chlorine, Mg/L 1

Fluoride (as F), mg/L, Max 2.0

Arsenic (as As), mg/L, Max 0.2

Cadmium (as Cd), mg/L, max 2.0

Hexavalent chromium (as Cr), mg/L, max

0.1

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Copper (as Cu), mg/L, Max 3.0

Lead (as Pb) mg/L, Max 0.1

Mercury ( as Hg), mg/L, Max 0.01

Nickel (as Ni), mg/L, Max 3.0

Selenium (as Se), mg/L, Max 0.05

Zinc (as Zn), mg/L, Max 5

Ammonical nitrogen, mg/L, Max

50

Chemical oxygen demand, mg/L, Max

250

Silver, mg/L, max 0.1

(Source: Moste 2071)

Limits for Effluents to be Discharged from Non-Alcoholic Industry, 2069 Kalika Refinery shall comply the limits for effluents to be discharged from such non-alcoholic industry:

Parameters Tolerance Limit pH 5.5-9.0 TSS (mg/L) 200 Oil and Grease (mg/L) 10 BOD5 at 20ºC (mg/L) 100 COD (mg/L) 250

(Source: Moste 2012)

Vegetable Oil and Ghee Industry Standard, 2058 Kalika Refinery shall comply the limits:

Parameters Tolerance Limit BOD 5 days at 200 C mg/L, max 100 COD, mg/l, Max 250 pH 6-9 Oil and Grease, mg/l, Max 10 Nickel, mg/l, Max 3 (Source: Moste 2012) The above mentioned plans, policies, acts, guidelines and standards; and other relevant laws for the industry will be accepted by the proponent during operational phase of industry.

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CHAPTER XI: CONCLUSION

As per the regulation of Nepal, EIA study of the project is performed to understand the possible environmental consequences of the project establishment. The study has predicted and outlined the beneficial impacts and the adverse impacts of the project. The adverse impacts are considered to be minimal as compared to the beneficial impacts. The benefit augmentation measures for beneficial impact and mitigation measures for adverse have been proposed along with the possible mitigation measures. This EIA study of Kalika Refinery examined existing environmental management practice and mitigation measures adopted at the study time and prescribed additional environmental mitigations to be carried out. All their impacts of project are confined to the project site and pose less threat to the surrounding environment. EMPs of the report clearly state the role and responsibilities of the stakeholders towards the mitigation measures. The project proponent will be focused on better execution of impact related to these issues for operation of the industry and imitate the philosophy of sustainable development. Hence, construction and operation of the industry will have a positive step towards the economic development of the country. The proponent promises to meet all the recommended mitigation measures as foresee during the EIA process. Similarly, Environment management plan will be integral part of the industrial activities. Industry will be prepared for any type of environmental audit to ensure its sound performance of environment mitigation measures. For the environment monitoring, industry will appoint a staff to activity perform the monitoring activities. All the monitoring cost will be part of the industry budget.

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REFERENCES ADB, (2013). Solid Waste Management in Nepal, Kathmandu: Asian Development Bank. CBS, (2013). Environment Statistics of Nepal 2013: Kathmandu. Kathmandu:

Government of Nepal. CBS, (2014). National Population and Housing Census 2011: Kathmandu. Kathmandu:

Government of Nepal. DHM, (2015). Climatological & Agro-Meteorological Records of Nepal, Kathmandu:

Government of Nepal, Ministry of Environment Science and Technology. EPA, (1997). Environment Protection Act 1997; Law Commission, New Baneshwor,

Kathmandu, Nepal. EPR, (1997). Environment Protection Rules 1997; Law Commission, New Baneshwor,

Kathmandu, Nepal. GoN, (1993). Nepal Environmental Impact Assessment Guideline 1993, National

Planning Commission, GoN/IUCN, Kathmandu.


PHOTOGRAPHS

Fig: Public Hearing of Kalika Refinery

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Annex 1: Approved SD/ToR/Letter

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Annex 2: Public Notice for Public Hearing

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Annex 3: Recommendation Letter

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Annex 4: Minutes of Public Hearing

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Annex 5: Project Design

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Annex 6 : Declaration and CV of study Team