INDIA: Vishnugad Pipalkoti Hydro-Electric Project—Third Request for Inspection - June 2023

THE REQUEST
The Request for Inspection was submitted on July 12, 2022, by 83 community members living in the Project area in Chamoli, Uttarakhand, India. The Requesters asked the Panel to keep their identities confidential and authorized three representatives from India to represent them in the Panel process. 

The Requesters claimed that they had suffered or may suffer harm from the Bank-financed Vishnugad Pipalkoti Hydro Electric Project (VPHEP) due to its alleged non-compliance with the Bank’s safeguard policies on Physical Cultural Resources (OP/BP 4.11), Involuntary Resettlement (OP/BP 4.12), Environmental Assessment (OP/BP 4.01), and Safety of Dams (OP 4.37). The Requesters claimed that Project-related muck-dumping had damaged their physical cultural resources and complained that the Project had not explored alternative dumping sites. The Requesters alleged the resettlement of Haat village households and consequent loss of livelihoods, and claimed that the grievances of the affected community members had not been heard. Furthermore, they feared losing a reliable supply of fresh water and questioned the safety of the dam once constructed.

The Panel has previously received two Requests for Inspection for this Project. The first came on July 23, 2012, and the second on March 1, 2022. The Panel issued an Investigation Report on the first Request on July 1, 2014. It issued a Notice of Non-Registration concerning the second Request on April 20, 2022. The Panel noted that this third Request presented new evidence and describes new circumstances relating to physical cultural resources and the allegations that muck-dumping threatened the stability and existence of the Lakshmi Narayan Temple, that the economic conditions of community members were worsening, and that community members had limited accessibility to water sources. The Panel noted the Requesters’ claim that they had not been heard on these issues. The Panel registered the Request on August 19, 2022. 

MANAGEMENT RESPONSE
Management submitted its Response to this Third Request on September 21, 2022. It stated that the Project had complied with Involuntary Resettlement (OP/BP 4.12) and was in line with Physical Cultural Resources (OP/BP 4.11), and claimed the Lakshmi Narayan Temple had been unaffected by the works already on site and was at no risk from future works. It stated that the implementing agency, THDC India Limited (THDC), had committed to preserve the Lakshmi Narayan Temple and to respond to access and aesthetic concerns raised by the local community by restoring land and landscaping once the Project facilities were dismantled. Management claimed that the 2019 end-term evaluation of the five-year RAP implementation had reported that the community’s socio-economic situation had improved and that the livelihood restoration plan and other activities had been implemented. Management explained that several households in resettled locations had installed individual household water pumps to tap the service delivery line to fill their personal water tanks, which affected the water pressure and volume available for houses at the end of the pipe network. Management also reported that a VPHEP GRM established in 2009 was functional, as grievances were being received and resolved. 

Management agreed with THDC on two actions to address some of the concerns raised by the Requesters: i) THDC would bring forward its plan to plant vegetation to cover fully all dumping sites and areas adjacent to the Lakshmi Narayan Temple, and had agreed to  construct additional drainage along the access road, and ii) in consultation with the community, THDC would support the community to set up an appropriate mechanism for monitoring/regulating water use in the resettled locations to deliver water more equitably to all households.

PANEL RECOMMENDATION/BOARD APPROVAL 
A Panel team visited India in October 2022 to inform its Eligibility Report and Recommendation. The team met with Bank staff and Government officials in New Delhi and Dehradun, and traveled to Haat and the neighboring villages—the Project area of this Request. The team spent a day-and-a-half with the community in Haat and their resettled locations in Daswana, Eldana, Mayapur, and Scheduled Tribe colony, and spoke to approximately 100 people. The team also met with VPHEP officials and completed a site visit with them. 

Although the Request met the technical eligibility criteria set forth in the Panel Resolution, the Panel determined that the Project caused no harm to the Lakshmi Narayan Temple complex. The Panel noted the strong commitments by the Project and Management to preserve the complex. The Panel also noted that some community members incorrectly equated “permanent job” with “livelihood restoration.” The Panel believed that household-level economic losses are not supported by the data in the end-term resettlement evaluation report that concluded in 2019 and that several external factors may have influenced the alleged losses in the three years since the end-term evaluation. The Panel considers that any alleged losses cannot be linked to the Project. The Panel noted that the community chose where to relocate, and that water was being supplied to Daswana and Eldana. The Panel also noted that the Project and Management recognized the water supply shortcomings and had committed to address them. The Panel considered the current GRM to be a Project weakness. However, Management and the Project had acknowledged this and committed to address it. For these reasons, the Panel recommended no investigation into the matters raised in the Third Request for Inspection.  

The Board of Executive Directors approved this Recommendation on November 4, 2022.

Learn more about the case here.