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India: Haryana Orbital Rail Corridor Part B Project

SUMMARY

STATUS
Proposed
MEMBER
India
SECTOR
Transport
E&S CATEGORY
Category A
PROJECT NUMBER
000741

FINANCING

PROPOSED FUNDING AMOUNT
USD266.64 million
FINANCING TYPE
Sovereign

TIMELINE

APPRAISAL REVIEW / FINAL REVIEW
Q3 2023

OBJECTIVE

To improve rail connectivity in the National Capital Region and decongest the rail corridor in Delhi.

DESCRIPTION

The Haryana Orbital Rail Corridor (HORC) Part B project (the Project) comprises the development of a 96.48-kilometer (km) electrified dual-track broad-gauge railway line traversing the districts of Palwal, Nuh, Gurugram, Jhajjar, and Sonipat in the state of Haryana, India. It includes civil works, electrification, signaling and telecommunications systems, development of 12 new railway stations, and approximately 13.422 km of connectivity lines to the Indian Railways (IR) network at three designated interchange points.

The Project constitutes Part B of the HORC investment program. The program reaches from New Prithla to New Harsana Kalan and encompasses a total alignment of 125.98 km (chainage 0.00 km to 125.98 km). The program also involves the construction of 17 new railway stations, and 24.822 km of interchange linkages to both IR and the Dedicated Freight Corridor at six connection points, bringing the total network length under the program to 150.802 km. Part A of the program, approved on December 20, 2022, is currently under implementation.

The Project will finance two key components:

Component 1 – the construction of 96.48 km of the HORC and 13.422 km of connectivity lines (from chainage km 0.00 to 32.00 and km 61.5 to km 125.98), including civil works (earthwork, bridges, 12 stations buildings, retaining walls, a 4.7 km-long twin tunnel and other miscellaneous works) and the design, supply, installation, testing and commissioning of high-rise overhead equipment (OHE), general electrical services, signaling and telecommunication (S&T) and the laying of new broad gauge double railway track.

Component 2 – Institutional strengthening and capacity building, which will provide project-related consulting, railway knowledge exchange and training to the implementing entity. Possible areas of focus include station development, exchange of project management experience, and training on safe mobility for vulnerable groups.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. The Asian Infrastructure Investment Bank (AIIB) Environmental and Social Framework (ESF), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), apply to the Project. Environmental and Social due diligence (ESDD) determined that ESS1 (Environmental and Social Assessment and Management) and ESS2 (Involuntary Resettlement) are applicable. ESDD confirmed there are no Scheduled Tribes in the project districts and within the administrative boundary of the State of Haryana. Therefore, ESS3 (Indigenous Peoples) is not applicable. The Project is classified as Category A under AIIB’s ESF due to the scale and significance of the environmental and social (ES) risks and impacts of the Project activities. 

Environmental and Social Instruments. To mitigate the ES risks, an Environmental Impact Assessment and a Social Impact Assessment have been carried out covering both Parts A and B of the proposed HORC investment program. An Environmental and Social Management Plan (ESMP), Resettlement Planning Framework and a Resettlement Plan (RP) inclusive of a Livelihood Restoration Plan (LRP) and Stakeholder Engagement Plan were prepared. In addition, a Gender and Social Inclusion (GESI) Framework has been developed for both Part A and Part B, consolidating and strengthening measures to reduce risks to women and vulnerable groups as well as ensure equitable shares in project benefits, through integrating gender-sensitive design considerations into the Project. 

Environmental Aspects. The environmental risks anticipated include (i) noise and vibration impacts to the receptors along the alignments during both construction and operation stages; (ii) construction phase impacts such as solid waste disposal, increased water use, air pollution, impacts on borrow areas, occupational and community health and safety, and disturbance to communities and public utilities. A noise and vibration study, including more detailed baseline monitoring and noise modeling, has been carried out by Haryana Rail Infrastructure Development Corporation Limited (HRIDC) which outlines no exceedance at identified receivers. Operational stage noise will be further monitored and assessed and any exceedance in noise levels will be controlled by implementing the operational and maintenance manual of IR, which is standard practice in India. Other negative impacts of the Project during the construction phase are temporary and reversible, that can be mitigated through the implementation of ESMP and good practices. In addition, the biodiversity assessment undertaken confirms that there are no protected species or areas of conservation value. 

Social and Gender Aspects. The alignment passes through 95 villages across five districts of Haryana (Palwal, Nuh, Gurugram, Jhajjar and Sonipat) and is located primarily along a greenfield alignment. The land requirement for Part B is 418.49 hectares, of which 91.72 hectares are public land and 326.77 hectares are private land. The impacts of land acquisition include the loss of agriculturally productive land, structures (residential, commercial and other structures), trees and crops, and community and religious properties. In Part B, 10,876 households are affected, comprising 10,873 titleholders and three non-titleholders. The RP prepared for the Project includes a detailed Entitlement Matrix that identifies the categories of loss, entitled persons, units of entitlement, and provides the corresponding entitlements, including both compensation and rehabilitation and resettlement assistance. The RP also includes long-term rehabilitation measures in the form of an LRP. Stakeholder engagement consultations were carried out during the ESIA and RP preparation, as well as during the implementation of Part A and the preparation of Part B. These consultations contributed to formulating effective strategies that are being implemented for livelihood restoration under Part B. Monitoring arrangements for livelihood restoration are integrated within the overall RP implementation framework. In addition, the Project has embedded gender equality and social inclusion dimensions throughout the entire project life cycle, including in the preparation, design, construction, and operation stages. A Gender Action Plan was prepared for the HORC program in consultation with HRIDC. A GESI framework has been designed to further strengthen measures aimed at reducing risks to women and vulnerable groups and enhancing the opportunities the Project presents for promoting gender equality and social inclusion. 

Occupational Health and Safety, Labor and Employment Conditions. The contractors are required to follow Safety Health and Environment (SHE) guidelines for railway projects in India. The SHE Manual, which also covers worker safety, is included as part of the contractual obligations of the selected civil works contractors (EPC) and subcontractors. Design and precautionary measures are included for reduced disease spreading risks. Workers’ accommodation will include the standard Health and Safety measures.  Worker relations with the community will be managed and controlled by the EPC contractors through a Code of Conduct for workers and the Project will conform with the national labor laws and the ESF. 

Stakeholder Engagement, Consultation and Information Disclosure: As part of stakeholder engagement, meaningful consultations with diverse groups of stakeholders were conducted during the preparation of the ES instruments for the HORC program, with emphasis placed on women and vulnerable groups. This included 20 sessions across five districts focusing on project details and safeguard measures. Ongoing consultations during implementation of Part A and preparation of Part B have helped integrate relevant aspects and improvements in Part B. HRIDC continues to conduct additional consultations before and during implementation so that the land acquisition, resettlement, and rehabilitation processes are carried out in a participatory manner reflecting the aspirations and feedback of affected persons. The ESIA, ESMP and RP, both in English and Hindi, were disclosed on March 25th 2022. The ESIA addendum (update) for Part B was disclosed in February 2025. Executive Summaries of these documents in Hindi have also been disclosed from AIIB’s website. Hard copies of the reports will be kept in HRIDC Offices and site offices, concerned with District Collector’s Office for public information and disclosure. 

Project Grievance Redress Mechanism (GRM). A project-level GRM has been established for the program, covering both Part A and Part B. The GRM has been designed to receive, acknowledge, evaluate, and facilitate the resolution of complaints related to ES issues and project-contracted workers, and provides for timely and appropriate corrective actions. Grievance Redress Committees (GRCs) have been set up to hear and redress the grievances of the affected and other interested persons at the project level (Tier 1) and at HRIDC headquarters in Gurugram (Tier 2). Tier 1 GRC (at the field level) comprises HRIDC field staff, representatives of the General Consultant (GC), the contractor, and representative(s) of project-affected peoples. A Grievance Redressal Cell has been established in HRIDC, and a nodal officer has been designated to handle ES related grievances and complaints. Information about the GRMs and AIIB’s Project-affected People’s Mechanism is disseminated to the local communities in local languages on an ongoing basis. 

Monitoring and Supervision Arrangements: The Project’s ES issues, including ESMP implementation, are monitored by HRIDC with the support from qualified experts of the GC. The GC prepares quarterly and semi-annual ES monitoring reports based on an agreed format and submits to AIIB through HRIDC. In addition, AIIB conducts on-site implementation support missions twice a year to supervise the Project’s ES aspects. Beyond these biannual visits, the Bank may engage local technical and ES consultants to supervise implementation activities during key stages of project implementation.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Anne Ong Lopez

Investment Officer

anne.onglopez@aiib.org

BORROWER

Republic of India

Anu P. Mathai

Additional Secretary, Department of Economic Affairs, Ministry of Finance

anu.mathai@nic.in

IMPLEMENTING ENTITY

Haryana Rail Infrastructure Development Corporation Ltd.

Sukhvinder Singh

Manager Director, Haryana Rail Infrastructure Development Corporation Ltd.

md-hridc@hridc.co.in