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India - Coal Sector Environmental and Social Mitigation Project
 
Country:India ; Credit No:2862
Document Date:2004/04/10Doc Name:India - Coal Sector Environmental and Social Mitigation Project
Document Type:Implementation Completion and Results ReportLanguage:English
Major Sector:Energy and mining ; Health and other social servicesRel. Proj ID:IN-Coal Env & Social Mitigation -- P043310 ; 
Region:South AsiaRep Title:India - Coal Sector Environmental and Social Mitigation Project
Report Number:25021Sector:Mining and other extractive ; Other social services
SubTopics:Environmental Economics & Policies ; Banks & Banking Reform ; Health Monitoring & Evaluation ; Mining & Extractive Industry (Non-Energy) ; ICT Policy and StrategiesTopics:Health, Nutrition and Population
TF No/Name:TF032804-ASIA- SOCIAL ASSESSMENT(EAST & SOUTH ASIA REGION) ; TF022583-PHRD-COAL SECTOR REHABILITATION PROJECT ; TF022670-MANPOWER DEVELOPMENT AND TRAINING ; TF024160-SOUTH ASIA-SOCIAL CAPITAL DEV. IMPLMENTATION STUDY ; TF036623-INDIA - COAL SECTOR ENVIRONMENTAL AND SOCIAL MITIGATION PROJECTUnit Owning:Soc., Env. & Water Resources (SASDI)
Volume No:1 of 1  

Abstract: Ratings convey an unsatisfactory project outcome, unlikely sustainability, and modest institutional development impacts, in addition to unsatisfactory performances by both the Bank and Borrower. A number of lessons are drawn from the project experience as follows. Although the cancellation of the main investment loan for the Coal Sector Rehabilitation Project (CSRP) could not have been anticipated, it was a contributing factor in diminishing the different subsidiaries independence against the development of a strong central authority in implementing changes; rather agreements should be made directly with the implementing agencies, not simply with their parent holding companies. The planning and targets for organizational change should be informed by a comprehensive, and realistic institutional assessment, undertaken at project preparation, built into the project design, to allow a more deliberate phasing of activities, and more systematic learning from those activities. This could have allowed that issues requiring decisions by ministries other than those responsible for project implementation (e.g. the Law Ministry regarding decisions on security of tenure for plots in resettlement sites, and mine land allocated for land based income generation) be made conditions of appraisal, not left to be resolved during project implementation. Safeguard policy frameworks agreed with the borrower, should be specific and detailed on the obligations of the Borrower regarding assistance and entitlements. Determination of Borrower obligations cannot be left to decisions during project implementation. Thus, Coal of India Ltd. -CIL's resettlement policy would have benefited from more detailed description of the entitlements of project affected people (PAP) concerning self-employment, i.e. effective self-employment assistance cannot consist only of skills training, rather should include investment assistance, and assistance to establish market linkages. Similarly, community development activities such as the Indigenous Peoples Development Plans, need to incorporate a clear time-bound exit strategy for external support, enabling an assessment of the organizational performance arrangements to promote sustainability. Moreover, mitigation activities (e.g., environmental protection) should be in compliance with national laws, and monitored by state agencies, with the Bank actively involved in complying with such policies. to this end, air quality improvements cannot be achieved solely by dust suppression measures implemented by the CIL mines, but rather through coordinated efforts involving the Thermal Power Stations, local industries, non-CIL mines, together with proper road maintenance by the relevant state authorities.
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