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. 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.
 

II. INDIGENOUS PEOPLE

2. Indigenous peoples (IP) are defined as those having a distinct social, cultural, economic, and political traditions and institutions compared with the mainstream or dominant society. The Asian Development Bank (ADB) defines IPs as those with the following characteristics: (i) descent from population groups present in a given area before territories were defined; (ii) maintenance of cultural and social identities separate from dominant societies and cultures; (iii) self identification and identification by others are being part of a distinct cultural group; (iv) linguistic identity different from that of dominant society; (v) social, cultural, economic, and political traditions and institutions distinct from dominant culture; (vi) economic systems oriented more toward traditional production systems rather than mainstream; and (vii) unique ties and attachments to traditional habitats and ancestral territories.

3. In India, Schedule Tribes (STs) have characteristics covered by the above definition. The Indian Constitution (Article 342) defines Scheduled Tribes (STs) as those with special characteristics such as (i) primitive traits, (ii) distinctive culture, (iii) shyness with the public at large, (iv) geographical isolation, (v) social and economic backwardness. Constitutional protection and programs for tribal development have brought significant changes since 1947 which played a major role in bringing STs into mainstream society. According to the Census of India 2001, 8.2 percent of the Indian population is classified as ST. In comparison to the national figure, Himachal Pradesh has only 4.00 percent of its populations classified as ST. The STs in Himachal Pradesh, based on the 2001 census, comprised 244,587 of the total State population of 6,077,900. The STs in Himachal Pradesh are not distinct tribal groups since they are mainstreamed. Since the constitutions identification of scheduled tribes, there has been continuous movement of populations and tribal communities have been a part of this historical process. Tribal and non-tribal communities have lived side-by-side leading to acculturation and assimilation to mainstream societies. Many STs no longer keep their traditions/cultures and individuals and groups of STs have have settled amongst non-tribal populations.

4. Potential impacts of the Investment Program's Tranche 1 sub-projects were evaluated for potential impacts on IPs. Kashang stage-1 subproject falls under the district of Kinnaur which has been declared as Notified Tribal Districts. However, they are the dominant group and they are not distinct from the main stream population since all their activities are very much developed and most of them are well off economically. Therefore, they can not qualify for IPs as per the definition of ADB. It is also screened that there are no impacts on IPs in case of the Sawra Kuddu sub project. Extensive consultations were undertaken during the preparation of Tranche 1. Though classified as STs, their social, cultural, economic, and political characteristics do not differ from non-IP groups. These are the same conditions in other subproject areas. Therefore, it is not expected that the Investment Program will have any IP impacts. However, to ensure that impacts on IPs are addressed consistent with ADB's Policy on Indigenous Peoples (1998), an Indigenous Peoples Development Framework (IPDF) has been prepared for the Investment Program and its future tranches.