LOK CEMENTS LTD Chinnadandlur and Kallamalla Villages, Yerraguntla Mandal Y S R Kadapa District, Andhra Pradesh

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1 Table of Contents PRE FEASIBILITY REPORT 1. Executive summary 2. Introduction of the project/ Background information 3 Project Description. 4 Site Analysis Of 5. Planning Brief. 6 Proposed Infrastructure 7. Rehabilitation and Resettlement (R & R) Plan. LIMESTONE MINE 8. Project Schedule & Cost Estimates (AREA: 575 Ha) 9. Analysis of Proposal (Final Recommendations). For 3.0 MILLION TONNES PER ANNUM OF LIMESTONE PRODUCTION CAPTIVE LIMESTONE MINE Of PROPOSED 2.0 MTPA CEMENT PLANT LOK CEMENTS LTD Chinnadandlur and Kallamalla Villages, Yerraguntla Mandal Y S R Kadapa District, Andhra Pradesh Prepared By B.S. ENVI-TECH (P) LTD., Secunderabad

2 1. EXECUTIVE SUMMARY CHAPTER 1 EXECUTIVE SUMMARY LOK Cement is a subsidiary Company Birla Corporation Ltd in MP Birla Group of Companys. Birla Group, is a multi-product Conglomerate. The company manufactures cement, jute goods, auto trims (car interiors), PVC floor coverings and steel castings. The company is in the field of cement manufacturing since the past 55 years and the total installed capacity of our cement manufacturing units is 9MTPA. The company has nine cement plants, Satna Cement Woks and Birla Vikas cement at Satna (MP), Birla Cement Works, Chanderia Cement Works and New Chanderia Cement Works at Chanderia (Rajasthan), Durgapur Cement Works and Durga Hitech Cement at Durgapur (WB) and Raebareli Cement Works and Raebareli Hitech Cement works, Raebareli (UP). LCL was granted New Mining Lease over an area of 575 Ha falls under Jurisdiction of Chinnadandlur and Kallamalla Villages, Y S R Kadapa District, Andhra Pradesh with about 90 Million Tonnes of proven reserves (approx.) which will last for 30 years with proposed production capacity of 3.00 Million Tonnes Per Annum (MTPA). Mechanized method of mining will be adopted. The limestone produced will be transported to cement plant by trucks. About 30 % of the mining lease is under rainfed cultivation. Balance area is with outcrops of limestone and shrubs. The top soil is covered the entire area with varying thickness (from 0.5 to 1.5m). Top soil of about 0.48 million m 3 is expected to be generated during the life of the mine which will be utilized for plantation and development of greenbelt. Waste generation from the mine is 25.2 million tonnes for the life of the mine. Water requirement for the proposed mine is about 200 m 3 /day for dust suppression, plantation and domestic purposes. Initially, this water requirement will be met from cement plant and after development of the mine pit, the pit water will be used. The capital Investment Cost is estimated as Rs. 25 crores. All the infrastructural facilities will be provided.

3 CHAPTER 2 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION 2.0 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION i. IDENTIFICATION OF PROJECT AND PROJECT PROPONENT. IN CASE OF MINING PROJECT, A COPY OF MINING LEASE / LETTER OF INTENT SHOULD BE GIVEN. M/s Lok Cemets Limited (LCL), an industry of Birla Corporation (BC). BC is one of the leading cement manufacturers in Eastern India and had setup Cement Plants at Satna in Madhya Pradesh, Chittorgarh in Rajasthan and at Baikunt in Chhattisgarh. LCL was granted new Mining Lease over an area of 575 Ha falls under Jurisdiction of Chinnadandlur and Kallamalla Villages, Y S R Kadapa District, Andhra Pradesh with about 90 Million Tonnes of proven reserves (approx.) which will last for 30 years with proposed production capacity of 3.00 Million Tonnes Per Annum (MTPA). Mining lease letter is enclosed as Annexure -1 PROJECT PROPONENT M/s Lok Cemets Limited (LCL), an industry of Birla Corporation (BC). BC is one of the leading cement manufacturers in Eastern India and had setup Cement Plants at Satna in Madhya Pradesh, Chittorgarh in Rajasthan and at Baikunt in Chhattisgarh. ii. BRIEF DESCRIPTION OF NATURE OF THE PROJECT The proposed project is a limestone mine is spread over 575 ha with about 90 Million tonnes of mineable reserves (approx.) to produce 3.0 MTPA of Limestone at Chinnadandlur and Kallamalla Villages, Yerraguntla Mandal, Y S R Kadapa District of Andhra Pradesh.

4 The mining of the deposit is proposed to be worked by deep hole drilling & blasting with fully mechanized open cast mining method. The limestone produced from the mine will be transported to the crusher located in mining lease area by dump trucks and after crushing to the desired size in the crusher will be transported to the plant by a covered belt conveyor. The benches shall be of 10 m height with a width of 20 m. The benches shall be sloped at 70 o to 85 0 to the horizontal. Since, the formations are very hard and near horizontal with dip angle between 0 o 3 o, there will not be risk of any slope failures. Overburden exists above limestone deposit to a thickness of 2-10m. The top soil is covered the entire area with varying thickness (from 0.5m. to 1.0m). Top soil of about 0.48.million m 3 (approx.) and is expected to be generated during the life of the mine which will be utilized for plantation and development of greenbelt. During the life of the mine, about 480ha will be developed into water reservoir, 27ha will be under afforestation and 68ha will remain undisturbed iii. NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION. To conserve the low grade limestone, the limestone produced from the subject mining lease will be used. DEMAND SUPPLY GAP Limestone is the main raw material for cement production, the demand is always there with that of cement. Moreover, the subject mine produces good grade limestone leading to conservation of mineral resources. iv. IMPORTS VS INDIGENOUS PRODUCTION. The limestone produced from LCL is meant for the captive consumption in the cement plant.

5 v. EXPORT POSSIBILITY. No exports of limestone are proposed. vi. DOMESTIC / EXPORT MARKETS The limestone produced from LCL is meant for the captive consumption in the cement plant. vii. EMPLOYMENT GENERATION (DIRECT AND INDIRECT) DUE TO THE PROJECT. Mechanized method of mining will be adopted. The limestone produced will be crushed in the mine for transport to cement plant by conveyor. The workmen employed from local villages at different levels. The Managerial, Supervisory, Skilled, Semi-skilled and Unskilled labor totaling to 85 will be engaged as per requirement.

6 CHAPTER 3 PROJECT DESCRIPTION 3.0 PROJECT DESCRIPTION i. Type of project including interlinked and interdependent projects, if any. The proposed project is a limestone mine of 575 ha with production capacity of 3.00 MTPA. Flaggy limestone will be produced and the same will be blended with high grade limestone. Will be used in the existing cement plant. ii. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. The mining lease area comprising 575 ha is situated at at Chinnadandlur & Kallamalla Villages, Yerraguntla Mandal, Y S R Kadapa District of Andhra Pradesh. The site falls between to East longitude and to North latitude with an average altitude of 175 m above msl. The area is covered in the Survey of India Toposheet nos. 57 J/5, 57 J/6, 57 J/9, 57 J/10 [1:50000 scale]. The location map of the Mining Lease area is shown in Fig 1. Fig 2 shows the Key Map of the Mine site. The area is well connected by road and rail. National Highway - NH- 18 connecting Chittoor Kurnool is at 21.8 km in NE direction to the Mine site. Nearest Railway line connecting Tadpatri to Y.S.R Kadapa of South Central Railway line is at a distance of 1.4 km in Northern direction to the site. Nearest Railway station is Kalamalla is at a distance of 1.7 km in SW to the site. Major Railway station is Y.S.R Kadapa which is at a distance of 50 km in SE to the Mine site. Uppu Vagu is at a distance of 6.7 km in NE direction. Penneru River is at a distance of 2.7 km in NE, with flow from NNW to NE to site. Pageru River is at a distance of 9.4 km in SSE, with flow from SSW to E direction with respect to the site. Pedda Vanka is at a distance of

7 2.8 km in S, with flows within the mine site from W to SE. Mailavaram Cuddapah Right Bank Canal is at a distance of 7.5 km in NW with respect to the mine site. Yerraguntla is the nearest town at 6.6 km in SE to the site. Nearest Settlements from the Mine are as follows Chinnadandluru 1.6 km N Keshavapuram 0.2 km W Kalamalla 0.4 km W Mekalabalavapalle km - W Nearest Reserved Forests: Rameshwaram RF km - ENE Niduzuvvi RF 5.1 km - S Kosinepalle RF km - W There are no wild life sanctuaries, national parks, elephant/tiger reserves within 10-km radius of the study area. Fig - 3 shows the 10 km radius of the study area around Mine site.

8 FIG - 1 LOCATION MAP INDIA ANDHRA PRADESH Srikakulam Vizianagaram Vishakhapatnam East Godavari West Godavari Krishna Guntur Kurnool Prakasam LEGEND DISTRICT BOUNDARY RIVER & CANAL STREAMS Anantapur YSR Kadapa Chittoor SPSR Nellore Y.S.R.KADAPA 18 NATIONAL HIGHWAY STATE HIGHWAY ROAD RAILWAY TRACK DISTRICT HEADQUARTER TALUK HEADQUARTER TOWN MINE SITE Talamanchipatnam Peddapasupula Koduru Jammalamadugu Duvvuru Payalakunta Lavanuru Proddatur Maidukuru Badvel Muddanuru Kondapuram Balapanuru Lingala MINE LEASE AREA Erraguntla Khajipeta Kamalapuram Chennur Gangireddipalle Y.S.R Kadapa Kumbhagiri Pellagiri Obalam Pulivendla Vellaturu Simhadripuram Tanduru Vempalle Polatala Guvvalacheruvu Konapeta Lakkireddipalle Virapalle Rayachoti Kottapeta Galivedu Kalasapadu Porumamilla Maddimadugu Tsundupalle Chinnamandem 18 Nandalur Erraguntlakota Koduru Mudumpadu Tangaturu Penagaluru Rajampet Chitvel Pullampet Mgilipenta Settigunta

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11 Feature Altitude Longitude Latitude Village, Mandal, District, State TABLE - 1 SALIENT FEATURES OF THE MINE SITE. Details Maximum Temperature o C 46.1 Minimum Temperature o C 10.6 Relative Humidity, % Annual rainfall, mm Topography Soil Type Nearest IMD Station Nearest River Nearest Highway Nearest Railway station Nearest Industries Nearest Village Nearest Town Nearest Inter State Boundary Nearest Air port Nearest Forest Historical places 175 m above msl Between to East Between to North Chinnadandlur & Kallamalla Village, Yerraguntla Mandal, Y.S.R.Kadapa district of Andhra Pradesh Plain Clayey YSR Kadapa 44.3 km SE. Penneru River 2.7 km - NE National Highway - NH-18 connecting Chittoor Kurnool is at 21.8 km in NE direction to the Mine site. Kalamalla RS km - SW India Cements Limited (Nidizivve) 5.1 km SE India Cements Limited (Chilamakuru) km - SE Zuari Cements 8.0 km SSE Rayalaseema Thermal Power Station 1.4 km WNW Chinnadandluru 1.6 km N Malepadu 1.4 km - E Chhatram (Kalamalla RS) 1.7 km - SW Keshavapuram 0.2 km W Kalamalla 0.4 km W Mekalabalavapalle km - W Yerraguntla 6.6 km - SE Andhra Pradesh Karnataka 96.5 km SSW, Andhra Pradesh Telangana km - SSE Hyderabad (Shamshabad) Airport km N, Kadapa Airport 36.1 km SE, Bengaluru International Airport km SSW Renigunta Aitrport-163km - SE Rameshwaram RF km - ENE Niduzuvvi RF km - S Kosinepalle RF km - W None Within 10 Km Radius. *all distances mentioned in the above table are aerial distances

12 i. Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. No alternate sites were considered as the project is mineral specific. ii. Size or magnitude of operation. Mine area is about 575 ha. The proposed rate of production of limestone is 3.00 MTPA. iii. Project description with process details (a schematic diagram/ flow chart showing the project layout, components of the project etc. should be given) The mining will be opencast mechanized mining, employing DTH drilling for blast holes, after blasting the mineral will be loaded into the tippers using hydraulic excavator. The limestone after crushing to the desired size in the crusher will be transported to the plant by dumpers. The benches shall be of 10 m height with a width of 20 m. The benches shall be sloped at 70 o to 85 0 to the horizontal. Since, the formations are very hard and near horizontal with dip angle between 0 o 3 o, there will not be risk of any slope failures. Drilling Latest hydraulic drills will be used in combination with the dieseloperated compressors. The diameter of drill hole will be of mm diameter. Primary Drilling Bench Height As per the deposit characteristics the bench height will be kept at 10.0 m.

13 Burden 30% to 40% of the bench height i.e. 3.0 m depending on the height of the bench and also depends upon the thickness of individual litho unit. Spacing A spacing of 5.0 m shall be maintained based on nature and stratigraphic sequence of the rock. Angular Holes The blast hole shall be sloped at angle of 10 0 to 15 0 from vertical. Depth of Holes The depth of the hole shall be kept at 8.5 m equal to bench height with sub grade drilling. Secondary Blasting No secondary blasting will be carried out. The boulders will be broken by deploying rock breaker or by using secondary blasting if required. However with the precise method of blasting and adopting the method of decking in between the fractured zone, shall try to avoid the boulder formation. ii) Blasting Blast holes of 115 mm will be drilled and primary blasting will be done by using 83 mm slurry explosives % and ANFO mixture in which 80-85% will be the usage of ANFO mixture. The base booster will be slurry explosive. The blast will be initiated by using Milli Seconds delay detonators and cordtex fuse. The blasting will be carried out using sequential blasting machine/nonel to reduce ground vibration and to control the fly rock.

14 iii) Loading Loading of limestone will be carried out with the help of hydraulic excavators of 1.9 m3 bucket capacity. iv) Hauling Dumpers of 25 tonnes capacity will be used for transport of limestone from pit to crusher. v) Raw material required along with estimated quantity, likely source, marketing area of final product/s, mode of transport of raw material and finished product. No raw material is required. Resource optimization / recycling and reuse envisaged in the project, if any, should be briefly outlined. The top soil/overburden will be used for afforestation development along the lease periphery. Availability of water its source, energy /power requirement Water requirement for the proposed mine is about 200 m3/day for dust suppression, plantation and domestic purposes. This requirement will be supplied by existing pits of other captive Mine-I initially and after formation of the mine pit, rain water collected in the mine pit will be used. The power required for illumination will be supplied from grid iv. Quantity of wastes to be generated (liquid and solid) and scheme for their management / disposal. Waste generation from the mine is about 25.8 million tonnes..this waste will be disposed to the dumps. Wastewater generated from domestic use will be treated in septic tank followed by soak pit.

15 v. Schematic representations of the feasibility drawing which give information of EIA purpose.

16 CHAPTER 4 SITE ANALYSIS 4.0 Site Analysis i. Connectivity. The National Highway (NH-18) connecting Chittoor Kurnool at 21.8 km in NNE direction. The nearest railway station is kallamalla at 1.7 km in SW direction. Nearest Railway line connecting Tadpatri to Y.S.R Kadapa of South Central Railway line is at a distance of 1.4 km in Northern direction ii. Land form, land use and land ownership. Mining Lease covers an area of 575 Ha. is private patta land About 30 % of the mining lease is under rainfed cultivation. Balance area is with outcrops of limestone and shrubs. Topography (along with map) The mine is an undulated terrain. Map showing the topography is enclosed as Figure 4

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18 iii. Existing land use pattern (agriculture, non-agriculture, forest, water bodies (including area under CRZ), shortest distances from the periphery of the project to periphery of the forests, national park, wild life sanctuary, eco sensitive areas, water bodies (distance from the HFL of the river), CRZ, in case of notified industrial area, a copy of the Gazette notification should be given. Mining Lease covers an area of 575 Ha. is private patta land About 30 % of the mining lease is under rainfed cultivation. Balance area is with outcrops of limestone and shrubs. One stream passing through the lease area will be suitably diverted to see that the hydrology is not effected. No sensitive areas or National parks are located within 10 km of the mine area. iv. Existing infrastructure. None v. Soil classification The top soil is sand clayey and loamy type. The top soil is covered the entire area with varying thickness (from 0.5m to 1.0m). vi. Climatic data from secondary sources The tropical climate of the region is manifested in hot and humid summer, moderately monsoon and mild winter seasons. May is the hottest month in the year. The maximum temperature during the day time was recorded as C and December the coldest with the temperature during the day time falling down to about 31 0 C. The night temperature in winter can be as low as C. The months of December, January & February are considered to have pleasant climate.

19 vii. Social infrastructure available. Most of the villages are dependent on the ground water sources such as bore well and Tube wells for drinking water purposes. Educational facilities upto primary school only are available in many villages,. Better educational facilities like Secondary schools, ITI, Arts & science college are available in Yerrakuntla. Almost all the villages are electrified. Electricity is used for domestic as well as for agricultural purposes. However, quality of power is poor and there is frequent power fluctuation in this region. There is Primary Health Centers (PHC) in almost all the major rural villages Government Hospital and private clinics are available in Yerrakuntla..

20 CHAPTER 5 PLANINIG BRIEF 5.0 Planning Brief i. Planning concept (type of industries, facilities, transportation etc.) Town and country planning / development authority classification. Not applicable. The subjected mine is the captive limestone mine of over an area of 575 Ha falls under Jurisdiction of Chinnadandlur and Kallamalla Villages, Yerraguntla Mandal, Y S R Kadapa District, Andhra Pradesh. The proposal is for 3.00 MTPA limestone production. ii. Population projection About 85 workers will be deployed. iii. Land use planning (breakup along with greenbelt etc.,) During the life of the mine, about 480ha will be developed into water reservoir, 27ha will be under afforestation and balance area will remain undisturbed. iv. Assessment of infrastructure demand (physical & social ) The mining operations would aid in the overall social and economic development of the region. The mine will give employment to about 85 people, in addition there will be indirect employment to many more people, in the form of contractual jobs, business opportunities, service facilities etc. This will enhance the economic status. v.amenities / Facilities. LCL will provide all the facilities, as required for the mines under Mining Laws, like Rest Shelter,Canteen,Occupational Health centre,vocational training centre etc..

21 CHAPTER 6 PROPOSED INFRASTRUCTURE 6.0 Proposed infrastructure i. Industrial area (processing area) No processing is involved The mine will be operated by means of opencast fully mechanised method of mining which includes deep drilling and blasting, loading the broken material by heavy machinery like hydraulic excavators and tippers for transporting the limestone to crusher at cement plant. ii. Residential area (non-processing area) No residential area is proposed at mine. iii. Green belt. 7.5 m of mine periphery will be under plantation Afforestation will be done covering an area of 27 ha with saplings at the boundary of mine. iv. Social infrastructure. The mining activity carried out in the area rather has a positive socio-economic impact upon the nearby human settlement as indirect employment potential is created due to mining and allied activities in the area. Apart from these, the company promotes health and education awareness in the area time to time by organizing health and education camps.

22 v. Connectivity (traffic and transportation road/ rail/ metro/ water ways etc.,) The Mining Lease area is connected by road National Highway (NH-18) connecting Chittoor -Kurnool Nandyal at 21.8 km in NE direction, The nearest railway station is Kallamalla at 1.7 km in SW direction. Nearest Railway line connecting Tadpatri to Y.S.R Kadapa of South Central Railway line is at a distance of 1.4 km in Northern direction. vi. Drinking water management (source & supply of water) Water requirement for the proposed mine is about 200 m 3 /day. Initially, this water requirement will be met from cement plant and after development of the mine pit, the pit water will be used. vii. Sewerage system Domestic waste water from mines office will be treated in septic tank followed by soak pit. viii. Industrial waste management Not Applicable ix. Solid waste management. Waste generation from mine is million tonnes. Waste will be disposed to dumps The top soil generated will be used for afforestation and bench reclamation. x. Power requirement & supply / source. The power required for illumination will be supplied from Grid

23 CHAPTER 7 REHABILITATION AND RESETTLEMENT (R & R) PLAN 7.0 Rehabilitation and resettlement (R & R) Plan i. Policy to be adopted (central / state) in respect of the project affected persons including home oustees, land oustees and landless labourers (a brief out line to be given). Mining Lease covers an area of 575 Ha. is private patta land About 30 % of the mining lease is under rainfed cultivation. Balance area is with outcrops of limestone and shrubs. The mining activities involve displacement of human settlement. The state R&R policy will be followed in relocating them No public buildings, places, monuments etc., exist within the lease area or in the vicinity. The land oustees will be enumerated and compensation will be paid as per the Govt. Policy

24 CHAPTER 8 PROJECT SCHEDULE & COST ESTIMATES 8.0 Project schedule & Cost Estimates i. Likely date of start of construction and likely date of completion (time schedule for the project to be given). Mine will be started after getting EC, CTE, CTO and all other regulatory clearances. Life of the 3.0 million tonnes per annum for the mineable reserves of 90 million tonnes would be 30years ii. Estimated project cost along with analysis in terms of economic viability of the project. The estimated project cost for the limestone production will be about Rs. 25 Crores.

25 CHAPTER 9 ANALYSIS OF PROPOSAL (FINAL RECOMMENDATIONS) 9.0 Analysis of proposal (Final Recommendations) i. Financial and social benefits with special emphasis on the benefit to the local people including tribal population, if any, in the area. Economic development of the region depends largely upon the nature of activities undertaken in the surrounding region. Corporate development invariably contributes towards acceleration of the process of socio-economic upliftment of the rural society by means of employment, health & study programme, medical camps etc., Employment: Preference will be given for locals for employment based on qualifications & requirement. Medical facilities: Medical facilities will be provided for employee as well as people of nearby villages. Educational facilities: Basic educational and vocational facilities will be provided for the children of employees as well as nearby villages. Infrastructure facilities: Approach roads will be developed at par with mine roads. Additional: The establishment of factory will facilitate additional auxiliary facilities like banking, post office & recreation facilities.

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