environmental impact assessment of proposed fsru...

National Environmental Engineering Research Institute

(Council of Scientific and Industrial Research) Nehru Marg, Nagpur – 440 020

(QCI / NABET Accreditation : Sr.No.102 as per the list published on May 05, 2013)

October, 2014

Sponsor: Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad

Environmental Impact Assessment of Proposed FSRU Based LNG Terminal at Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh

Executive Summary

Draft Report

Sponsor

Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad

Environmental Impact Assessment of Proposed FSRU Based LNG Terminal at Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh

National Environmental Engineering Research Institute

(Council of Scientific and Industrial Research) Nehru Marg, Nagpur – 440 020

(QCI / NABET Accreditation : Sr.No. 102 as per the list published on May 05, 2013)

October, 2014

Draft Report

Executive Summary

Executive Summary

1.0 Introduction

Andhra Pradesh Gas Distribution Corporation Limited (APGDC) is a Joint Venture

Company of Andhra Pradesh Gas Infrastructure Corporation Pvt. Ltd (APGIC), [a wholly owned

company of APGENCO & APIIC] and GAIL Gas Limited, [a wholly owned subsidiary of GAIL

(India) Limited, a Public Sector Undertaking under the Ministry of Petroleum & Natural Gas,

Govt. of India]. The Government of AP has mandated APGDC for development of LNG terminal

at an existing port in Andhra Pradesh.

M/s APGDC together with M/s GDF SUEZ and M/s Shell (MNCs) propose to develop

LNG import, storage, regasification and bulk natural gas supply terminal at existing Kakinada

Deep Water Port (KDWP). Based on the Feasibility Study for the Project, a near shore island

jetty & Floating Storage and Re-gasification Unit (FSRU) based LNG terminal has been found

most suitable to meet the immediate demand of natural gas in A.P state in the shortest time

period, with an optimum Capital Expenditure (CAPEX) as well as with all necessary safety

measures.

1.1 Need of Proposed Project

The government of India in its policy document “Hydrocarbon Vision 2025” outlined

India’s goal to significantly increase gas usage by 2025. This ambition is mainly an effort to

wean the overall Indian economy off its dependence on coal and Liquid fuel for environmental

reasons. Currently gas based power generation is around 9% of total power production in India,

which is much below world average of 22%.

There is substantial gap in demand and supply of Natural Gas in India in general and

within Andhra Pradesh in particular. Existing gas based power plants in A.P. having around

2700 MW capacity are running on very low Plant load factor (around 26%) due to non-

availability of gas, while the new units to the tune of 1000 MW are waiting for commissioning.

Further additional capacity of approx. 2800 MW is under installation. Apart from the above,

Natural Gas demand exists from fertilizer and other industries as well as for city (domestic) gas

distribution.

In view of existing shortage in natural gas in the country, the natural gas import is

unavoidable to fill up the increasing supply-demand gap. Since the proposed project is initiated

by Govt. of Andhra Pradesh through joint venture Company, this project shall have priority to

supply natural gas within the state of Andhra Pradesh. Accordingly, the proposed project would

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CSIR-National Environmental

Engineering Research

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Sponsor: Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad ES.2

meet the need of natural gas in the coastal region and the Andhra Pradesh and its surrounding

states in substantial way.

1.2 Advantages of FSRU based LNG Terminal

Reduced project schedule: FSRU based terminal is generally commissioned in 2

years, whereas a land based LNG Terminal typically takes 4-5 years.

Requirement of land is minimal, limited to metering station with control room/ ORF.

FSRU is flexible to re-location.

Capital Expenditure (CAPEX) is considerably less when compared to land based

LNG terminal.

In a cyclone prone area, in case of cyclone alert, the FSRU based LNG terminal

can cast off and leave the danger zone and come back after the cyclone.

1.3 Proposed Project – Prior Environmental Clearance

As per MoEF Notification of 14th September 2006, the proposed FSRU based LNG

Terminal falls under ‘Category-A’ and ‘7(e)’ project activity as per the Schedule for which prior

Environmental Clearance from MoEF is a mandatory requirement. The Ministry of Environment

& Forests (MoEF) has issued Terms of References (TORs) vide letter no.11-70/2012-IA.III

dated 6th November 2012 for undertaking EIA study. The present EIA report has been

prepared in compliance with the EIA guidelines as well as MoEF approved ToR.

1.4 CRZ Status

The CRZ demarcation study has been carried out by National Institute of Oceanography

(NIO), Goa through its Regional Center at Vishakhapatnam at the proposed project site and in

the vicinity. As per the study results, the proposed project activities are permissible in different

CRZ classifications prescribed in the MoEF CRZ Notification 2011.

2.0 Project Description

The design capacity of the proposed LNG terminal will be 3.5 MMTPA (Million Tonne

per Annum) with appropriate operational flexibility up to maximum 5.25 MMTPA. The proposed

LNG terminal project consists development of marine LNG import facilities (island Jetty

Platform); berthing / mooring of FSRU for LNG import, storage and regasification within KDWP

harbour; a high pressure subsea pipeline to transport re-gasified LNG (RLNG) to coast, and an

onshore receiving facility (ORF) / landfall station for gas metering, control room and supply to

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gas grid.

2.1 Summary of Project Design Details

LNG Terminal

Design capacity Max. 5.25 MTPA (million tonnes per annum)

Peak send out Approx. 750 MMSCFD / 21 MMSCMD

Operating Pressure 65-98 bar(g)

Operating Temperature 0 - 500 C

FSRU

LNG Storage Capacity Max. 217,000 m3

Regas technology Open loop

Spare philosophy Operating + Standby for all critical equipment

Flaring ‘Zero’ Flaring under normal conditions

Staff/crew Operation phase – 35 persons on board FSRU

Island Jetty

Location 16° 58’ 57” N, 82° 18’ 00” E;

16° 58’ 51” N, 82° 18’ 03” E

16° 59’ 03” N, 82° 18’ 12” E;

16° 58’ 57” N, 82° 18’ 15” E;

Marine area 35.4 Ha (approx.)

Jetty Dimension 90m x 25m

Jetty height 9.5m above CD (initial studies)

LNG unloading from carrier to FSRU

Ship to Ship transfer using cryogenic flexible hoses – 8 Nos.

HP gas arms 2 Nos. (operation + standby)

Power Requirement 250 KVA

Navigation Exclusion Zone 350m (above FSRU manifold)

Safety Exclusion Zone (MEZ) 500m (from FSRU manifold)

Staff Unmanned, operations are controlled from ORF and FSRU

Subsea Pipeline

Diameter 28”

Design pressure 98 bar (g)

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Pipeline Length (Jetty to ORF)

3.6 km(approx.) subsea and 0.5 km onshore

Connectivity to Existing Gas Grid

Pipe Diameter 28”

Operating Pressure 50-92 bar (g)

Pipeline length 1.1 km (approx.)

Onshore Receipt Facility (ORF)

ORF location 17°0'32.6"N, 82°17'0.3"E

17°0'31.1"N, 82°17'5.4"E

17°0'17.9"N, 82°17'1.5"E

17°0'18.8”N, 82°16'56.1"E

Plot Dimensions 400m x 200 m (8 Hectare)

Present Status Ownership: Revenue Department Govt. of AP. Allotment of land is under process.

Gas Handling Capacity Max. 21 MMSCMD

Power Requirement 550 KVA (grid power)

Staff Operation phase – 12 persons (4 on general shift, 2 for each shift)

Dredging

Navigation channel width 265m (existing channel width 160m)

Turning basin diameter 600m

Depth (Navigation channel , Turning basin and berthing area)

Max. 15.5m below CD

Capital Dredging Estimated about 19 million m3

Maintenance Dredging FSRU basin: 1.5million m3 (approx.)

Resource requirement

Sea Water At maximum capacity: 15000 m3/h sea water as LNG heating medium for LNG vaporization and 4500m3/h for machinery cooling (open loop mode)

Domestic (potable) water 20 KLD

Power 800 KVA (for ORF and Jetty) to be taken from Grid Power.

FSRU will have captive power generation on board.

Construction Material :

Cement concrete

ORF – approx. 1000 m3

Jetty - approx. 7000 m3

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Construction steel ORF – approx. 250 MT

Jetty - approx. 17000 MT

Additional Ship Traffic

Visiting LNG carrier Ships Max. of 217,000m3 (Q-Flex); 50-60 ships/year

Project Cost And Schedule

Estimated Capital expenditure

Rs. 1800 crores (assuming FSRU is leased)

Project Schedule 24 months from the date of financial closure (after receipt of Environment Clearance)

2.2 Project Location

Different alternative locations of existing ports, namely Vishakhapatnam, Gangavaram

and Kakinada have been evaluated for the proposed project and Kakinada has been chosen, in

view of tranquility conditions on the lee side of the existing constructed breakwater for

positioning the FSRU for round the year operation, low sea traffic at present, availability of

Government land and proximity to existing natural gas distribution grids/ networks as well as

bulk consumers.

The Kakinada Deep Water Port (KDWP) location (16°58.37’ N, 82°17.06’ E) harbour has

been chosen for the proposed LNG import facilities under the protection of existing breakwater.

Floating Storage and Regasification Unit (FSRU) will be berthed at proposed island jetty on the

lee side of breakwater. The KDWP is presently operated by M/s Kakinada Seaports Limited

(KSPL) as concessionaire.

Project location accessibility:

Village : Kakinada

Mandal : Kakinada

District : East Godavari

State : Andhra Pradesh

Nearest railway station : Kakinada Port / Kakinada Town

Nearest airport : Rajahmundry (Approx. 65 Km)

Nearest city : Kakinada (Population – 0.312 million)

The land identified for the proposed LNG terminal is only 8 Ha. for the ORF within

Kakinada port limit. The identified land is at present vacant with sparse casuarina plantation.

The ground elevation at the site is 1-2 m above mean sea level.

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3.0 Description of Environment

3.1 Study Area

As per EIA guidelines 10 km radius study area around the project site has been

considered for primary data collection through field studies and 15 km radial distance for

secondary data compilation from authentic sources. The topographical features of the onshore

study area within 15 km radial stretch consists of coastal flat terrain, agriculture fields, Kakinada

town, industrial area, sea ports activities etc. Coastal activities are mainly fisheries including

aquaculture ponds.

The 10 km radial study area consists of Kakinada town (populated built up area), existing

sea port, various industries viz. NFCL, Corromondal fertilizer, gas based power plants etc. and

Hope Island (natural sand spit) offshore in the east of the project site. Coringa Sanctuary

(dense mangrove forest) notified by A.P. state Govt. and Uppada coast (notified as high erosion

coastline) are situated beyond 10km and within 15 km radial distance.

Existing status of environmental quality (baseline data) with respect to land, water,

marine, biology (ecology), air quality, noise and socio-economic components are monitored

within 10 km radial distance during October-December 2012 representing predominant post-

monsoon season. The marine studies including Hydrodynamics bathymetry, marine water

quality and seabed sediments sampling, were conducted in February 2013. The baseline data

for other two seasons have been compiled from the recent past studies carried out by M/s

KSPL in the project region.

3.2 Marine Environment

The coastal marine studies have been carried out with respect to hydrography

(bathymetry, tides and currents), marine water quality and seabed sediment characteristics at

and around the proposed marine facilities as well as designated dredge material dump site. The

mean sea level at project site is 0.9 m above CD. As per the continuous data recorded during

study period (February 2013) the extreme tide levels are 0.39 m CD at neap tide and1.5 m CD

at spring tide near Vakalpudi (proposed Jetty site). The currents at this site were recorded as

0.2 knots at bottom and 0.7 knots at surface. While currents near dredge material dump site

were recorded in the range: 0.3 knots to 0.7 knots.

Seasonal variations in waves and currents

During November – March predominantly from Northeast;

March – September predominantly from Southeast direction

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In October month waves from SW as well as NE are common (transition period)

The marine water column as well as sediment samples in study area were collected at

24 Nos. grid points. The observed marine water quality during study period is given in the

following table:

Parameter Units Observed levels

pH - 7.1 - 8.1

Temperature 0C 26.0 - 28.0

Turbidity NTU 0.5 – 8.0 (except along coastline: surfzone)

Chloride mg/l 17562 – 20355

Salinity ‰ 32 – 37

D.O. mg/l 6.1 – 7.7

B.O.D. mg/l < 3

Oil & Grease mg/l 0.3 – 1.5

Heavy metals :

Ni mg/l BDL – 0.0096

Cd mg/l BDL – 0.005

Cr mg/l BDL – 0.0099

Pb mg/l BDL – 0.081

The seabed sediment characteristics observed during study period are:

The silt (0.002 – 0.02 mm) and clay (<0.002 mm) content is predominant (about 50-60% in

harbour / bay area, while the sand (>0.02 – 2.0 mm) content is predominant (>60%) in

dredge material dump area

Total organic carbon (TOC) in sediment samples vary from 0.01% in deeper area (>15m

depth) to 1.92% towards coastline except the extreme levels of 4.17% and 11.82% at locally

influenced locations.

Heavy metals Cd : 0.07 – 0.18 mg/100 g; Ni: 1.3 – 5.04 mg/100 g; Cr : 1.2 – 5.8 mg/100 g ;

Co: 1.78 – 3.68 mg/100 g

3.3 Land Environment

Land Use

The land use & land cover analysis has been carried out within 15 km radius (706.5 sq.

km) around the proposed project site, using satellite imagery (IRS P6 LISS III) of April 04, 2012

procured from National Remote Sensing Data Centre, Hyderabad and based on Survey of India

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toposheets as well as field survey for ground truth. From the classified image, it could be found

that almost half (47.33%) of the study area is covered by sea; natural vegetation / mangroves:

6.53%, Agricultural land: 35.99%, built-up area: 5.81%, sand cover: 1.25% and balance 3.09%

correspond to water bodies/ river/ waste land.

In the landward study area land-use is marked by urban development (Kakinada town),

large and medium scale industries, intensive agriculture activities with majority of double

cropping paddy fields as well as coconut, banana, mango orchards etc.. Coastline areas have

mix of mangroves, aquaculture ponds and saltpans.

Soil Quality

Soil samples were collected at 9 locations within the study area. Predominant soil

texture observed is loamy sand followed by sandy loam and sandy clay. At all locations, as per

observed organic carbon content the soil falls in fertile category. The observed levels of heavy

metals indicate Hexavalent chromium, Mercury, cadmium, arsenic and nickel are below

detectable limits. The other metals like Zinc, Iron, Copper etc. were found as in conventional

soil samples. The Nitrogen levels were observed in range of 62 – 289 kg/Ha; Potassium:

29.92 - 293.9 kg/Ha; Phosphorous: 11.65 – 85.49 kg/Ha.

3.4 Water Environment

The water environment in the surrounding villages has been studied through surface

water quality monitoring at 2 locations and groundwater quality at 13 locations to represent the

existing (pre-project/baseline) status of water quality within the study area. The ground water

samples are collected from dug / open wells as well as tube wells / hand pumps.

Surface Water Quality

Surface water quality (2 locations) observed during the study period is presented in

following table:


Ph - 6.6 - 7.4

Conductivity µS/cm 340 - 370

TDS mg/l 240 – 280

Fluoride mg/l 1.01 – 1.14

Sodium mg/l 3.9 – 4.0

Nitrate mg/l 1.0 – 2.0

All water samples were analyzed for 12 heavy metals including Cr, Hg, Cd, Co, As etc.

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The results indicate that all metals were below detection limits except Fe and Mn which were

observed as Fe: BDL – 1.03 mg /l and Mn: BDL - 0.49 mg/l.

Ground Water Quality

Ground water samples were collected from 13 locations (10 bore wells + 3 dug wells).

The ground water quality status observed during the study period (December 2012) is

presented in the following table:


pH - 6.8 - 8.1

Conductivity µS/cm 790 – 3000

TDS mg/l 652 – 2010

Chloride mg/l 78 – 476

Sodium mg/l 54 - 508

Nitrate mg/l 0.53 – 7.18

Fluoride mg/l BDL – 1.2

The baseline water quality status in the study area indicate no pollution stress on water

resources except the high TDS in ground water samples, which is a natural phenomenon in

coastal area.

3.5 Terrestrial Biology

Coastal Sensitivity

The Coringa Sanctuary (dense mangrove forest) is beyond the 10 km radial

distance and within 15 km radial distance in south direction.

The Hope Island (natural sand spit) on the eastern side of the Kakinada bay

consists of extended reserve forest at about 4 km distance from the proposed jetty

location.

As per MOEF Office Memorandum dated 03.11.2009, Uppada is one of the high

erosion coastal locations, which is at about 11 km distance on north side of the

project location.

Inland Ecology

The site (8 Ha) identified for proposed onshore receiving facilities/RLNG landfall station

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is in CRZ-III area as per MoEF notification, within the Kakinada port limits. This site consists

sparsely distributed Casurina plantation and at present there is no human habitat at identified

site.

The land ward study area (10 km radius) around project site consists urbanization,

industrial/commercial activities and predominantly agricultural activities apart from fisheries

activities. The major Khariff crops in this region are paddy, red gram, Jowar, sugarcane

whereas paddy, maize, tobacco, black gram, green gram, mango are the Rabi crops. The

horticulture/ crop: Coconut.

The most dominant trees in this region are Bomax ceiba, Artocarpus chaplasa, Albizzia

process, Azadirachta indica, Magniferaindica, Tamarindus indica, Caesealpinia spries, Achrus

sapote etc.

3.6 Air Environment

As per climatological and oceanic data records at IMD, there were 33 storms and 50

depressions in Bay of Bengal which have hit the coast near Kakinada port during 1971 - 2011.

The micrometeorological data were recorded continuously on hourly basis during study

period using battery operated weather station at project site. The windrose corresponding to

study period shows that predominant winds from NE, E and NNW directions with 2% calm

conditions. Accordingly the impact zone shall be in W-SW-SSE sector w.r.t. project site in post-

monsoon season. The hourly meteorological data recorded by remote sensing weather satellite

was procured for the period of January-December 2012 and analyzed for seasonal variations in

prevailing wind pattern.

The pre-project ambient air quality was monitored at 9 locations within the study area

during October-December 2012. The summary of observed air quality levels during the study

period is as follows:

Parameter Observed Range ( µg/m3)

Post monsoon season

Observed Range ( µg/m3)

Winter season

RPM/PM10(24 Hrs.) 10-58 30 – 94

PM2.5 (24 Hrs.) 7-37 15 – 31

SO2 (24 Hrs.) 2-14 5 – 13

NOx (24 Hrs.) 5-20 7 – 16

O3 (3 Hrs.) 10-31 12 – 35

MHC (spot / grab samples) 0.62 – 1.08 ppm _

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NMHC (spot / grab samples) 0.01 – 0.06 ppm _

The baseline ambient air quality status in the project area during study period as well as

the seasonal variations in recent past (2011-’12) complies with prescribed NAAQS-2009.

3.7 Noise Environment

Ambient noise levels were monitored during the day time as well as night time at 19

locations covering residential, commercial, industrial activities and at different villages in study

area. The equivalent noise levels (Leq) recorded at all locations during study period are

summarized as follows:

Day Time Leq (dB(A)) Night Time Leq(dB(A))

Residential 42.1 - 53.4 40.1 - 43.8

Commercial 56.4 - 62.1 (Vehicular Traffic) 43.2 - 51.7

Industrial 50.8 - 71.9 56.7 - 67.5

The noise levels at all locations found to be within the standards prescribed by CPCB

(11thApril 1994). The commercial areas and industrial area in Kakinada town have been found

relatively noisy due to vehicular movement and urban/commercial activities.

3.8 Socio-Economic Environment

The East Godavari district has population density of 477 persons/sq. km (as per the

Provisional Census of India 2011).

The study area (10 km radius) consists of 18 villages / wards of Kakinada Town.

Schedule caste population – 12.1% while Schedule Tribe population – 0.6%.

Kakinada urban agglomeration total population is 4,42,936 (provisional Census data

2011) with the sex ratio 1044 female / 1000 male. The decadal population growth rate

in this area fall in 10-20% growth category.

The literacy in the study area is about 74% (2011).

Fisheries and agriculture are major occupations in rural areas.

There will be no private land acquirement for proposed project.

Marine Fisheries is one of the major professions in coastal villages in the study area.

The commercial fishing is permitted outside the port limits. Kakinada has full-fledged fishing

harbour. Fishermen in this region use country boats as well as mechanized boats. As per the

district statistics, during 2008-2010 the marine fish and shrimp catch has been recorded at

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about 52,000 tonne. The Elasmobraches, Mackerels, Catfish and Clupinoids are predominant in

fish catches while the peniled prawns are major components in shrimp.

3.9 Anticipated Environment Impacts and Mitigation Measures

Any major developmental project is expected to have interference with the surrounding

environment and cause some environmental impacts which may be inevitable. Keeping in view

environmental sustainable practice, the environmental impacts from the proposed project are

identified and predicted for assessing the level of impacts and incorporating necessary

preventive / mitigatory (precautionary) measures in different phases of proposed project.

Accordingly, the impacts during construction and operation phases of project at the proposed

location are predicted and necessary mitigation measures are delineated to minimize adverse

impacts on all environmental components.

Different mathematical models relevant to coastal marine environment, air and noise

components are used in this study to predict the impacts from proposed project activities based

on the available design details.

As per the details given in the project description, the major components correspond to

development of marine facilities (jetty platform for FSRU and LNGC, turning circle and berth

pockets) within the harbour covering 35.4 Ha marine area. The proposed marine facilities (jetty

& FSRU) will be at about 1.4 km distance from existing fishing harbour and at more than 2.0 km

from coastline and proposed on land activities would be limited to 8 Ha for ORF.

There will be no private land acquisition for the proposed project and it will deal with

cleaner fuel, i.e. LNG/RLNG with no sulfur and ash contents.

4.0 Impacts During Construction Phase

The construction of the facilities include, Capital Dredging, dredge material disposal,

construction of island jetty platform with berthing / mooring dolphins, navigation related facilities,

and laying of subsea gas pipeline (buried in sea bed) from jetty to landfall point and construction

of onshore receiving facilities.

The potential adverse impacts resulting from the construction activities were assessed

as having either a low or a medium significance as given below and no adverse impacts of high

significance are envisaged. It is expected that the noise impact would be of low significance as

the piling activity would be localized and temporary in nature. The effects of underwater noise

from pile driving hammer, capital dredging and pipeline laying on benthic fauna / marine fauna

would be temporary. The effects on health and well-being of construction workers would be

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moderate in the event that sanitary conditions during construction activities are not adequately

managed. However, with the implementation of appropriate mitigation measures, the

significance of these potential impacts could be minimized to low / insignificant.

The proposed widening and deepening of entry channel will be on the north side of

existing channel, i.e. away from Hope Island, hence the impact on the Hope Island will

be negligible. The existing sand trap would also prevent any adverse impact on the

Hope Island.

The total capital dredging at Jetty, berthing basin, turning circle, widening & deepening

of entry channel, has been estimated about 19.0 million m3.

The estimated dredge material disposal rate of 30,000 - 60,000 m3/day is considered at

designated dumping area with maximum discharge of 10,000 m3 at the intervals of

about 4 hrs has been considered for prediction of marine impact. Due to existing high

wave / tidal currents and sufficient (800-1000 times) dilution factor at designated

offshore dumping area, the planned discharge of dredge material will get dispersed /

diluted rapidly. Under no circumstances mud plume would reach to coastline,

accordingly the impact at coastline will be insignificant.

Installation of about 240 steel piles will take place using jack up rigs, which will need to

be repositioned to cover the entire satellite jetty area including morning dolphins. The

piles driving during construction phase could result in the temporary resuspension of

seabed sediments and increased turbidity in the close vicinity of the works.

The excavation of the area for pipeline laying could have negative impact on the benthic

species / habitat along the proposed pipeline route and also in the vicinity, which require

adequate mitigation measures during construction.

The fugitive dust generation during construction of ORF / landfall station and

transportation of construction material by road (through vehicular emissions) would

cause impacts on local air quality.

The fugitive dust emissions generated due to vehicular movement are expected to settle

within 200-300 m distance. There is no human habitation or ecological sensitivity in the

immediate vicinity of proposed ORF site. The impact on air environment during the

construction phase is not expected to be significant.

The potential adverse impacts predicted as above will be limited to construction period

and purely localized. It is expected that disturbed marine benthic communities are expected to

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recolonize / re-establish themselves in the project area after completion of dredging /

construction works.

Positive local economic impacts of medium significance are expected during the

construction and operation phases of the project due to local expenditure on supplies and

equipment, employment creation and potential rental opportunities.

Mitigation Measures

All relevant / necessary conditions will be included in the EPC contract to implement

pollution mitigation measures and comply prescribed environmental regulatory

standards during construction phase. All construction equipment / machinery operated

at site shall comply with prescribed environmental standards such as emissions, noise,

waste management etc.

The contractors would employ careful and regulated excavation, back filling (sub-sea

gas pipeline route) and environmental compatible construction methods to minimize and

localize the adverse impacts.

The dredging to be carried out using suction type dredgers to minimize the turbidity

impact at dredging location. There will be no blasting required as per geotechnical

details at proposed dredging area.

Prior to commencing dredging works, a dredging management plan will be prepared;

usage of sophisticated dredgers to avoid or minimize scattering of sediments during

dredging; turbidity and suspended sediments concentration will be monitored and

dredging operations will be avoided at the time of natural disturbances;

All dredged material will be disposed in designated offshore dumping area.

Positioning of jack-up barge would be primarily in areas where the seabed has recently

been dredged, rather than in previously less disturbed areas to avoid unnecessary

disturbance to natural benthic habitat. In addition, regular monitoring of marine water

and sediment quality will take place. Installation of piles at the time of high tidal

disturbances will be avoided and a method statement will be developed for the piling

activity

Monitor the marine construction barges / vessels movement and maintain no hindrance

the movement of fishing boats / trawlers

Dust suppression during site grading construction of ORF / landfall station

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Greenbelt plantation along approach roads and on the boundary of project site

Use of cleaner (Euro-III / IV quality) fuels and meeting relevant emission standards

(Bharat-III / IV)

The proposed greenbelt development, CSR activities including construction of sanitary

facilities with water provision in schools shall be initiated contemporarily along with

project construction

Occupational Health Aspects

Maintenance of marine safety, occupational health & safety standards at workplace

along with usage of PPEs.

Adequate quantity of potable water shall be provided to the workers through contractors.

Adequate number of community toilets with necessary sewage management (septic

tanks) shall be provided for the use of entire migrated labour force and their families.

Medical facilities need to be provided in association with local hospitals and health

centers including immunization for children.

To ensure that all the workers are paid not less than minimum wages as per government

norms so that their sustenance requirements can be taken care of.

4.1 Impacts During Operation Phase

In operation phase also, the major part of project, i.e. LNG import, storage, re-

gasification and RLNG send out by FSRU, through continuous operation, will be in offshore

area, i.e. KDWP Harbour (Approx. 2 km from shoreline). The FSRU will come with built-in

modular waste management (bilge, sanitary effluent, solid waste), air pollution control and noise

mitigation systems complying with international standards like MARPOL, ISO etc...

The operation of proposed land based ORF will have limited operations corresponding

to gas metering & quality check, control room, emergency DG set and intermittent pigging of

gas pipeline. The operation staff will be about 12 persons only.

Marine Environment

The project would result in the discharge of cooled and warm water from the FSRU to

the sea. The thermal plume dispersion modeling studies show that there will be no

significant impact on the surrounding environment due to the cold water discharge at the

proposed outfall location in the sea. Because of the strong sea currents, the nearly

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ambient condition shall be reached at a very short distance from the discharge location.

The LNG regasification process at the FSRU will be through open loop system, i.e.

using sea water, estimated around 15000 m3/h, which is to be discharged back to sea at

lower temperature (cooler than ambient sea water) after regasification. The temperature

difference of maximum 30C w.r.t. sea water temperature at 100m from the outfall (as per

the Environment, Health and Safety Guidelines for Offshore Oil and Gas Development

of International Finance Corporation under World Bank) will be maintained. As per the

modeling study, estimated discharge shall have negligible impact on marine ecology due

to fast dissipation (heat transfer) with the existing currents and dynamics within the

harbour. It is clear from the study that the tidal hydrodynamics of the area are conducive

for rapid dissipation of the drop in temperature due to the discharge from the outfall

location. The resultant maximum temperature drop of the surrounding waters 100 m

distance from outfall location is only around 0.80C, hence, it can be concluded that the

fall of the temperature in the surrounding waters due to the proposed outfall is very

nominal and would not cause any adverse impact on the surrounding marine

environment.

The option of LNG regasification through close Loop will also be explored (as per

availability of FSRU in the market).

Marine Fisheries

The proposed marine facilities will be located within port harbour (Non Fishing Zone).

However, marginal impact envisaged on movement of fishing boats / trawlers during the

movement (temporary) of LNG carrier ships (additional sea traffic).

Biological Environment

As per coastal hydrodynamic study carried out by Andhra University, the proposed

project does not cause any adverse impact on coastline dynamics up to and beyond

Uppada, i.e. MoEF notified area.

As per the prediction results through modeling studies (marine, atmospheric, noise) the

proposed project does not cause any adverse impacts on Coringa Sanctuary ecological

sensitive area the mangroves at about 12.5 km distance and extended Coringa forest on

Hope Island at 4.0 km distance from project site.

The land on which the project will be established is at present vacant land with sparse

casuarinas plantation. Thus it can be concluded that the proposed project is unlikely to

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cause any adverse impact on terrestrial ecology

Air Environment

The floating Storage and Regasification Unit (FSRU) will be the main process unit to be

operated on continuous basis at proposed project. The FSRU shall be berthed / located

offshore at satellite jetty within port harbour on lee side of existing breakwater.

During operation phase, the FSRU will contribute atmospheric emissions on continuous

basis principally through fuel combustion. Air quality modeling results indicate that even

in the highest design capacity operational scenario for the FSRU, the NOx maximum

GLC will be less than 15 µg/m3 (24hrs.) in all seasons. Hence, the predicted maximum

NOx, SO2 and CO concentrations from proposed project will be well within the

prescribed NAAQS during normal operation.

The proposed project (operation phase) will not cause any additional road traffic as the

total RLNG (gas) will be transported through pipeline from proposed terminal up to

consumers.

Mitigation Measures

The emission sources will be equipped with adequate air pollution control systems;

Installation of Online Flue Gas Monitors & Emergency Stop Systems;

CH4, a greenhouse gas, shall not be vented out during normal operation;

Use of Low sulphur diesel in DG sets;

Regular maintenance of diesel generators / engines;

The ORF site will have greenbelt to help in attenuating fugitive emissions and also act

as noise barrier.

Noise Environment

All the LNG unloading regasification equipment including DFDE, GCU, on FSRU as well

as Emergency DG sets, cranes etc. on jetty platform, backup generator (Dual Fuel) at

ORF shall comply to prescribed Indian Standards of Noise Generation.

The design of the terminal will be such that the noise levels in the operators (major)

working area will not exceed 90 dB (A).

The Noise levels will be well within 75 dB(A) at the perimeter of the LNG terminal

facilities.

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As per the noise modeling / prediction results the noise impact from proposed project at

nearest habitat will be negligible and well within the prescribed ambient noise standards.

Water Environment

The potable water requirement for the LNG terminal is estimated to be 20m3/day

(approx.).

Keeping in view the availability of water from existing port allocation and the ability to

produce potable water by onboard FSRU, there will not be any additional burden on

water resources in the region.

The wastewater generated at the FSRU will be treated and managed in accordance with

International (IMO-MARPOL) regulations and also to meet Indian Standards.

The insignificant domestic effluent at ORF is planned to manage through soak pit /

septic tank.

No ground water abstraction or use envisaged at proposed project, hence negligible

impact on ground water.

Land Environment

The ORF site being on the sea coast, it will be prone to natural disasters like cyclones /

storms waves Tsunami surges etc.

The hazardous waste comprising empty barrels, spent oils / lubricants, pipeline, pigging

wastes etc. shall be managed as per Hazardous Waste Rules 2008 including latest

amendments

The Recyclable wastes like metallic scraps, used batteries etc. shall be disposed

through APPCB / CPCB authorized agencies

The proposed greenbelt development at ORF would improve the local aesthetics and

biodiversity.

Mitigation Measures

Project proponent should introduce appropriate clauses in the contract so that the entire

contractor related activities – onsite and offsite, are done in environment friendly

manner.

Socio-Economic Environment

A key impact associated with community health and safety pertains to adverse impacts

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on marine users in the event of a serious oil spill. KSPL has already prepared an Oil

Spill Contingency Plan for existing Port which will be extended for the proposed project.

There will be no private land acquirement for the project, hence there will be no direct

project affected people.

The proposed marine facilities jetty & FSRU will be at about 1.4 km distance from

existing fishing harbour and will not have any interference on ongoing marine fisheries

activities.

Although there is possibility of some temporary impact on marine fish population due to

increased turbidity during dredging and disposal (construction period), it will be purely

temporary, and will get normalized within short time after commissioning of the project.

In operation phase, direct employment would be very limited hence there is no scope for

additional stress on local infrastructure.

The CSR interventions by the project will result in positive impacts on the neighboring

communities.

The proposed project will supply cleaner fuel, which would facilitate improvement in air

quality in the supply area.

The overall socio-economic adverse impact would be insignificant.

Decommissioning Phase

At the end of its useful life, the FSRU will be decommissioned by disconnecting the gas

loading arms and the mooring lines before leaving the port. Consideration will be given to the

potential reuse of the jetty. A decommissioning plan will be prepared before decommissioning

operations commence to determine the potential health, safety and environmental impacts that

the removal of jetty, piles and pipelines may have.

5.0 Environmental Management Plan

Environmental Management Plan (EMP) for proposed project is to make the project

environmental compatible throughout its life cycle. An EMP comprises the policy towards

environmental protection, pollution mitigation measures, implementation and monitoring system

along with institutional measures which are required to be adopted to minimize the adverse

environmental and social impacts. Initial proposals for mitigation measures have been

considered and evaluated for technical feasibility and have been subsequently translated into

commitments by proponent. These commitments will be implemented as part of the Company’s

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Health, Safety, Security and Environmental & Social Performance Management System

(HSSE&SP-MS).

The EMP specific to the proposed project will be implemented and maintained by project

proponent, while the overall environmental management of KDWP will remain with KSPL

(operator of KDWP). However, the proposed LNG terminal project operations become part of

existing KDWP operations, so the project proponent shall coordinate with port operator for

overall EMP aspects and it shall be ensured that the total port operations including proposed

project (cumulative impacts) shall comply with the prescribed environmental regulatory

standards.

HSSE & SP Management System

The project proponent’s commitment towards environmental, health, safety and social

responsibility in the form of well defined HSSE&SP (Health, Safety, Security,

Environment and Social Performance) policy will be used as a framework for planning

and implementation;

Procedures and systems for monitoring and reporting of HSSE&SP shall be set up in

line with the Indian regulatory requirements and acceptable standards;

Environmental and social management audits and reviews shall be conducted at

periodical interval’s reporting and documentation.

The EMP is a dynamic system which would be reviewed periodically and amended for

necessary improvements depending on the requirement.

Project proponent will invest in community development across areas of health,

education and skill development during construction and operation phases and will also

include a set of specific plans addressing some specific issues:

Dredging Management Plan

Health and Safety Management System

Waste Management Plan

Greenbelt Development and Maintenance

EMP - Construction Phase

The pollution control and waste management plan will be developed for proposed project

during both construction and operation phases for environmental compatibility. This plan shall

be in accordance with the latest MARPOL Regulations and also as APPCB/ CPCB/ MoEF

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guidelines with respect to all environmental and social parameters.

Following impact control measures are proposed:

Water sprinkling in construction area to mitigate fugitive dust impacts;

Proper maintenance of vehicles and construction equipment complying to PUC norms;

Avoid additional vehicular traffic (construction material) related to project during local

peak road traffic hours;

Use of sophisticated dredgers to avoid or minimize scattering of benthic sediments;

The dredge material disposal at only designated dumping area at specific time

intervals to minimize impacts on local marine ecology.

Provision of earplugs and earmuffs to workers;

Sewage management through septic tanks with soak pits;

Tree plantation in the area earmarked for greenbelt development (33% of ORF site);

Tree plantation in green belt area should be undertaken at the time of site preparation.

Fishing activity is prohibited in the navigation channel and port harbour. However as

precautionary measure Port's Patrol boats are constantly on the vigil and guides fishing

boats from straying into the channel.

If any loss of fishing net occurs due to the dredging activity, then same to be suitably

compensated.

EMP- Operation Phase

Primary operation activities include Maintenance Dredging, Berthing and Mooring of

LNG carrier, berthed/ moored FSRU operations on continuous basis and operation of ORF.

Primary sources of air pollution are:

Emissions from FSRU funnel, DFDE and emergency generator sets

Emissions from Tug boats for Piloting and berthing of LNGCs

Emissions from LNG Carrier funnel

Emissions from generator sets (NOx, SO2 , HC, CO etc.) for operation of Dredgers/

barges as well as at ORF

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Impacts on marine environment are due to Maintenance Dredging (increased turbidity),

Discharge of cold water from FSRU, domestic effluents &sewage of FSRU operating personnel,

ballast water etc. Since FSRU ballast water will be from Kakinada Port, the ballasting operation

entails no possibility of non-native invasive algae etc..

Primary solid wastes from FSRU are food waste, general (domestic/ commercial) solid

waste, plastic wastes, spent oil and paints containers, spent filters, spent batteries, empty

chemical containers etc.

With the objective to have minimum adverse impacts during the operation phase,

impacts on various environmental parameters have been identified and suitable

management plans devised to mitigate the adverse effects.

Use of Low sulphur fuel and also with adequate air pollution control system;

Regular maintenance of diesel generators engines;

Monitoring of stack emissions through online flue gas monitoring system

Regular Ambient air quality monitoring and at around project site

Mechanical safety precautions (safety valve pressure tests) shall be followed to ensure

the containment of the natural gas.

Automatic gas Detection System and Emergency Shut off systems

Maintenance of rubber padding underneath high noise and vibration generating

machines.

Personnel working onsite in high noise generating areas will use ear plugs /ear muffs;

Green Belt maintenance & strengthening at and around the ORF;

Confined method for maintenance dredging by cutter suction dredger;

Constant check on Turbidity Levels & Dissolved Oxygen levels;

Kitchen waste will be collected and sent to shore for management by approved vendor;

Plastic bottles, glass bottles and plastic bags will be stored in the separate bins and will

be sold to recyclers;

All the hazardous waste generated will be handled and managed as per the Hazardous

Waste Rules, 2008;

Marine traffic management by the port authorities;

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Harbour Master will control vessel movements and implement the necessary

spacing between LNG carriers (including the FSRU) and other traffic;

Risks of potential gas leaks and measures installed will be communicated to the local

communities and authorities;

Necessary measures to be taken to prevent the spillage of diesel oil, lubes while fuelling

of barges, dredgers, workboats etc.

General solid waste (packaging, glass, paper, cardboard etc) will be collected

from jetty and delivered onshore for disposal on a regular basis;

Plastic bottles, glass bottles and plastic bags will be stored in the separate bins and will

be sold to recyclers;

The greenbelt plantation as per guidelines issued by CPCB will be completed within the

construction period of the project.

Provision of Personal Protective Equipments (PPE) such as earplugs, earmuffs to the

workers working in high noise working area; and

Oil Spill Contingency Plan

The existing KDWP operator, M/s KSPL have prepared and maintaining a

comprehensive oil spill response plan for the port activities. The FSRU based LNG terminal will

be provided with spill containment system, fire protection system, multiple (gas, flame, smoke

and low- and high-temperature) detectors and alarms as well as the automatic and manual

shut-down systems. Prior to project commissioning, all personnel will be required to undergo

extensive training program to ensure safe operating.

The emergency (oil spill) response plan will include spill notification, procedure to

contain/ collect spill, cleanup equipments, organizational setup etc.

The capital cost of EMP including provisions for Corporate Social Responsibility (CSR)

is estimated as INR 9.5 Crores. The annual recurring expenditure towards EMP maintenance is

envisaged about INR 1.5-2.0 Crores.

6.0 Environmental Monitoring Programme

Post project environmental monitoring is important in terms of evaluating the

performance of pollution control measures implemented at proposed project. The sampling and

analysis of the environmental attributes will be as per the guidelines of CPCB / Andhra Pradesh

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Pollution Control Board. The following attributes will be covered for environmental monitoring at

and around the project site:

The marine and terrestrial environmental quality monitoring will be carried out at

project site in the impact zone.

The Project will undertake monitoring of SO2, NOx, PM10 / PM2.5,CO and HC

in ambient air as per NAAQ standards / CPCB norms at locations identified in

consultation with APPCB / KSPL (port operator)

Marine water quality monitoring shall be as per APPCB / MoEF stipulations.

The seabed sediments will be monitored on quarterly basis. Temperature

monitoring of the cold water discharge shall be done on continuous basis.

Noise levels in the work zone environment and ambient noise levels will be

monitored as per statutory requirement;

All the results will be compiled and thoroughly analyzed to assess the

environmental performance of the project

An Environmental Management Apex Review Committee (EMARC) shall be

constituted to review, assess and monitor the progress of Environment

Management Plan implementation.

Project proponent will allocate aforementioned budgetary provision, human resources as

well as infrastructure facilities for monitoring of environment and social welfare activities in the

study area.

7.0 Additional Studies

Risk assessment study has been carried out by M/s Shell, partners of proposed project.

CRZ demarcation study for the project were conducted by National Institute of Oceanography,

one of the MoEF authorized agencies.

The coastal Hydrodynamics including coastline dynamics (erosion / accretion) modeling

study has been conducted by CWPRS, Pune Govt. of India.

7.1 Risk Assessment

The risk analysis for proposed project is aimed to answer the following questions, also to

quantify the risks and ranking them according to their severity :

What can go wrong?

What are the causes?

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What are the consequences?

How often? and

What is the significance of the resulting risk?

The elements of the risk assessment study consist of the following steps:

Identify the hazards associated with the FSRU and associated facilities and equipment

including external hazards;

Model and appraise the risks associated with all flammable and toxic hazards resulting

from potential loss of containment accident scenarios;

Identify onsite and offsite risks posed by the project and its associated operations to

obtain and document satisfactory safety; and

Perform a risk assessment to confirm that risk can be reduced consistent with the ‘as

low as reasonably practicable (ALARP) Principle

Risk assessment has been carried out through HAZID, Risk matrix, HAZOP – Desktop

process Safety Review (DSR). The project area experiences tropical storms and

cyclones therefore careful considerations are to be made in the design aspects.

The HAZID was performed based on a structured brain storming session using an

appropriate list of guidewords. The project was split into small systems (“Nodes”) to

facilitate brain storming as given below. The hazards associated with each element were

reviewed by the HAZID participants for following elements:

LNGC

FSRU

Jetty

ORF

Subsea Pipeline and electric cabling

The DSR (HAZOP) technique is a systematic, line-by-line review of the latest Process

Engineering Flow Schemes (PEFS) with respect to all technical safety and operability

aspects (including equipment fire protection), until every piece of equipment within the

scope of the study has been reviewed. This is to ensure that the plant will handle all

foreseeable operating conditions, including maintenance, start-up and shut-down (both

normal and emergency), in a safe, healthy and reliable manner, with minimum

environmental impact.

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Consequence Analysis;

Frequency Analysis; and

Risk Analysis and conclusion

A navigation exclusion zone of 300 m between berthed / moored FSRU / LNGC and the

nearest possible passing ship shall be maintained. Fishing trawlers and other small

crafts shall not be allowed near FSRU, i.e. within the navigation exclusion zone.

In quantitative Risk Assessment (QRA), the level of risk has been predicted for four

different categories of fatalities that could occur following the hydrocarbon release:

Immediate Fatalities: The personal located in the incident area at the time of

release / ignition.

Muster Fatalities: Resulting from personnel being unable to muster because

the escape ways to TR are impaired and conditions on FSRU are life

threatening.

Post-muster Fatality Event Tree and

TR Fatalities

A detailed analysis of security of the facility is required to be conducted to safeguard the

project from external security (terrorism / war) related threats.

The lower risk levels extend a maximum of 850m. Accordingly for even the worst case

events there is no risk potential at the shore.

The control room Operator and the onshore workers are at highest risk with an IRPA of

9.85x10-5 fatalities per annum. This includes risk related to periodic trips to the offshore

island jetty.

To further minimize effects of associated hazards, a detailed emergency response

strategy framework has been delineated.

7.2 Emergency Management Plan

An effective emergency Management Plan (EMP) been prepared to mitigate the

potential risks due to proposed project. This plan defines the responsibilities and resources

available to respond to the different types of emergencies envisaged. Training exercises to

ensure that all personnel are familiar with their responsibilities and that communication links are

functioning effectively.

Emergency Response Plan

The project proponent will develop an Emergency Response Plan (ERP) corresponding

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to major incidents including LNG / oil spillages, Fire accident, Ship Collision etc. It will also deal

with possible environmental hazards on land and possible social risks. The ERP will also

address the kind / level of co-operation with existing port operator as well as local coast guard

authorities in emergency services.

Key Emergency Response Teams:

Incident Commander (IC)

Control Room Operator (CRO)

Facility Security Officer

Incident Command Post ( ICP)

Port Emergency Release officer

Mutual Aid / External Help Arrangements

7.3 Hydrodynamic Study – Coast line changes

The coastal water and power research station (CWPRS), Pune, a Government of India

agency, conducted detailed hydrodynamic study as per approved / additional TOR issued by

MoEF. The study covered an area of 72 km x 35 km using MIKE – 21 SW model. The wave

propagation study indicates the predominant waves from East South East (ESE – 74 %)

direction. There will be no significant change in the wave height, frequency, distribution of wave

height and wave direction near Uppada coast due to deepening and widening of the entry

channel for proposed project.

The proposed LNG terminal project is within KDWP harbour, i.e. on the leeside of the

break water, will not have any significant effect on the adjacent coast line.

7.4 CRZ Demarcation Study

The National Institute of Oceanography (NIO), one of the authorized agencies by MoEF

for CRZ studies, has conducted CRZ study for proposed project.

NIO prepared CRZ map for project site and vicinity consisting LTL, HTL, creeks along

with setback lines of 200 m, 500 m for open coast and 100 m from HTL along back water

creeks.

Based on the study, NIO concluded that proposed project activities fall in CRZ – IV,

CRZ- III and CRZ – I areas, which are permissible activities as per MoEF notification.

8.0 Project Benefits

The proposed LNG Terminal will result in improvement in the social infrastructure in

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• following manner:

Help in meeting the growing energy requirements of major consumers of natural

gas, particularly power plants and other industries such as fertilizer and

petrochemicals units and CGD business and thus reduce air pollution from burning

of coal, other fuels.

Generation of employment for unskilled people during construction phase and

skilled people during operation phase of the LNG terminal.

Generation of revenue for the state Government.

Development of the basic amenities viz. roads, transportation, electricity,

drinking water, proper sanitation, educational institutions, medical facilities,

supporting sports and cultural activities.

Overall the project would change living standards of the people and improve the

socio-economic conditions of the area.

The project commits to undertake socio-economic development programs near the

proposed LNG project in the areas of education, entrepreneurial development, creating civic

amenities, health care and supporting sports and cultural activities. A commitment to support

water management and disaster relief will also be made.

Project proponents propose to spend about INR 4 Crores during construction

phase and will allocate required budget in the operation phase on CSR activities.

As a part of socio-economic development following CSR activities are proposed:

Some of the proposed CSR activities are outlined as follows:

S. No. List of proposed CSR Activities

1 Construction of Fish Drying Platform

2 Support sports and cultural activities

3 Skill development programmes for youth, women and

Fishermen

4 Health and awareness camps

Enhancement of Medical facilities in the surrounding areas

5 Drinking water provision for neighboring villages

6 To provide (develop/maintain) the sanitary and water

facilities at schools in neighboring villages

7 Environmental initiatives (tree plantation and tree guards

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in nearby villages)

8 Adoption of the neighboring village depending upon the

condition for socio-economic development

9 Development of new main/approach road, and proper

drainage system in nearby villages

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environmental impact assessment of proposed fsru...

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