1. The proposed Program will be provided under a multi-tranche financing facility lending approach over a span of 5 years. The Program, Himachal Pradesh Clean Energy Development Investment Program (HCEDIP) will facilitate clean power generation, transmission, distribution, and sector reforms in HP with minimum adverse environmental and social impacts. HCEDIP initially will support selected investments in hydropower generation and associated transmission system expansion to facilitate sector sustainability. The program will have six components, i.e., (i) Sawra Kuddu, 111MW, (ii) Kashang Hydroelectric Plant, Stage I, 65 MW, (iii) Kashang Hydroelectric Plant, Stage II,130 MW, (iv) Sainj Hydroelectric Plant, 100 MW, (v) Shongtong Karcham Hydroelectric Plant, 402 MW, and (vi) Capacity Development Program for HPC and other sector agencies.

2. The hydropower development components will provide a total capacity of 745 MW with a combined generation of 3,045 GWh/year at 90% dependability. The capacity development program will provide support for development of the operating departments, e.g., technical, finance and accounting, environment and social, procurement, personnel and for carrying out specific tasks such as physical investments and sector reforms and restructuring. The first tranche will cover component (i) and (vi) and (vii).

3. The Investment Program will minimize resettlement by adopting adequate engineering solutions in the design through proper involvement of all stake holders. There are no significant dislocations anticipated since all the subprojects are based on run-off-the-river schemes. Tranche 1 sub-projects will involve permanent land acquisition without any major dislocation. Land Acquisition for Sawra Kuddu sub project has already been in process and most of the land acquisition is already done. The resettlement impact is significant for Sawra Kuddu sub project. Resettlement planning undertaken during program preparation shows that for Kashang Stage-I subproject under Tranche 1, the main resettlement impacts will be due to the widening of the approach road to the intake site and for staff colony. A total of 3.67 hectare of private land will be affected for the Kashang stage-1 subproject which will impact 30 households. The resettlement impact is insignificant. Therefore, a short Resettlement Plan (RP) is being prepared for Kashang Stage I subproject. Sawra Kuddu sub project will require a total of 44 hectare of private land for acquisition which will affect 163 households. The RP has already been prepared for the Sawra Kuddu sub project by the Executing Agency (EA). The entitlements provided in the resettlement plan are comprehensive and mostly complying with the ADB’s Policy on involuntary resettlement. However, the resettlement plan is not in proper shape as far as ADB’s documentation requirement is concerned. Therefore, the RP is being revised and a full resettlement plan is being prepared along with a due-diligence which will focus on the gaps and adequate monitoring system for implementation. The RPs for Tranche 1 sub-projects will be used as models for the preparation and implementation of future sub-project RPs which will be consistent with this Resettlement Framework (RF).