Pre- FEASIBILITY REPORT

Pre- FEASIBILITY REPORT In Respect Of SARANKOTE STONE QUARRY OVER 2.40 ACRES OR 0.971 HA IN VILLAGE SARANKOTE, BARKOTE TAHASIL OF DEOGARH DISTRICT, ODISHA (For the Financial Year-2015-16 to 2019-20) Prepared on Behalf of SRI SANJAY KUMAR PRADHAN At/Po-Sarankote,Saida Dis.- Deogarh, Odisha PREPARED BY The Techno Chamber, Plot No. 16/5, Cuttack Road, Bhubaneswar, Odisha

1.0 EXECUTIVE SUMMARY Sarankote Stone Quarry, over an area of 2.40 Acres or 0.971 Ha. is located in village Sarankote under Barakote Tahasil of Deogarh District, Odisha. In accordnance to the provisions of OMMC (Ammendment) Rule, 2014. Sri Sanjay Kumar Pradhan, Sarankote, Saida, Deogarh, Odisha have been declared as highest bidder against long term stone sairat lease for a period of five years (2015-16 to 2019-20). Tahsildar Barkote issued a letter to deposit EMD, preparation and approval mining plan and to obtained environment clearance in the stipulated time. In accordance of rule 27- A(3) of OMMC Rule, 2004 (ammended on 2014) the mining plan has prepared and approved by Deputy Director Geology, Zonal Survey, Sambalpur, Odisha. For obtaining environment clearance the pre-feasibility report is being prepared and submitted. The proposed lease area is bounded by latitude N 21 30 19.00 - N21 30 24.10 and longitude E 85 04 48.40 - E 85 04 52.70 & It is a part of the area covered in the Survey of India Toposheet No E 45 N 2(73 G / 2). Lease area can be accessed 1.50 km from Sarankote and nearly 2.50 Km from N.H-6. The lease area is about 25 km away from the district head quarter Deogarh and is about 350 Km away from the state capital Bhubaneswar. There is no existence of public road or railway line within the lease area. Most of the commercial transportation is done through road networks. The nearby market is at Kala located at a distance of 4.50 km from the lease area. Telecommunication facilities have vastly improved with the advent of mobile phones. The District Headquarter Telecom office is running at Deogarh. The proposed Sarankote Stone Quarry, over an area of 2.40 Acres or 0.971 Ha. bearing Khata No. 133, Plot N. 962. The total lease area is Non forest land, with nof road metal rock exposures and Soil & Alluviums. The area is not fit for agriculture as there is neither seasonal nor perennial nala within the lease area. Drainage system in the region is dendritic. The surface run off likely to be generated will be channelized through surface natural gradient. 2

The Project will bring economical benefits to the state by way of royalty on the mineral excavated and dispatched. It provides employment to the people residing in vicinity directly or indirectly. The mine management will also help nearby villages by providing aid to school, conducting medical and social awareness camps, helping in formation of self help groups, etc. Thus the project is viable and will bring about socioeconomic improvement of the area and will prove beneficial to the area. 2.0 INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION 2.1 Identification of project and project proponent In case of mining project, a copy of mining lease / letter of intent should be given. Sarankote Stone Quarry has been applied for 5 (Five) years, over an area of 2.40 Acres or 0.971 Ha. in village Sarankote under Barakote Tahasil of Deogarh District, Odisha. The Tahsildar Barakote have been declared as highest bidder for long term sairat to Sri Sanjay Kumar Pradhan, Sarankote, Saida, Deogarh, Odisha. ( The copy of the letter from Tahasildar is enclosed as annexure in the approved Mining Plan). 2.2 Brief description of nature of the project. Sarankote Stone Quarry is located in village Sarankote under Barakote Tahasil of Deogarh District, Odisha over an area of 2.40 Acres or 0.971 Ha. The lease area of 2.40 Acres or 0.971 Ha. bearing Khata No. 133, Plot No. 962. The total lease area is Non forest land and of Pathar Chatan Kissam. The project site is located at a distance of 25 Km from the district head quarter Deogarh and is at a distance of 350 Km from the state capital Bhubaneswar. The nearest railway station is at Barsuan located at a distance of 72 Km from the lease area. Lease area can be accessed 1.50 km from Sarankote and nearly 2.50 Km from N.H-6. The proposed ML area concession is for five years i.e. 2015-16 to 2019-20. The project for production of road metals (minor minerals) from Sarankote Stone Quarry has been proposed for a production of 6325 cum within the five year period. 2.3 Need for the project and its importance to the country and or region. Due to the increase urbanization now days, there is an increase in demand of minor 3

minerals like sand and stone. Hence the execution of mining activities for extraction of minor minerals is in process. The main objective of the project is to fulfill the growing demand of the minor minerals in the field of development and construction. Road metal/building stone is mainly used in construction or road and buildings. Further they are also required by railway projects for track laying and other construction activities. In current times, governments emphasizes on rapid improvement of basic infrastructure like roads, railways, dams and other social infrastructure - both in rural and urban areas, there is a constant requirement for ensuring regular supply of these minor minerals. The increasing mining of minor mineral (Stone Quarry) has uplifted the economy of minor mineral producing localities which has resulted into up-liftment of the standard of living of the people in the adjoining area, besides contributing to the exchequer of the State and Central Government. The project also generates revenue and provides employment to the people of nearby locality. 2.4 Demand- Supply Gap. Now a days Government has given a special emphasize on growth of infrastructure industrial development. Minor minerals like road metal/stone/ boulders/aggregates are one of the basic inputs in any kind of construction work. Since these are low value items and is voluminous - the users of this basic input- looks for local supply sources instead of transporting the material from far away areas. Thus any efforts for increasing minor mineral production in the locality must be encouraged to ensure smooth supply of aggregates to match the pace of developmental activities in the area. Further, from the mineral conservation point of view, focus is to develop systematic mining for known small and medium size deposits. 2.5 Imports vs. Indigenous production. There are no imports of such low value mineral. In fact since these minerals are low value - high volume items- efforts are made to source the material from the nearest point of supply. This is to avoid high cost of transportation and keeping the cost within 4

reasonable limits. 2.6 Export Possibility. The excavated materials will be marketed in the local market only. There is no export possibility for the stone excavated from the lease area. 2.7 Domestic/ export Markets. The excavated materials will be marketed in the local market only. 2.8 Employment Generation (Direct and Indirect) due to the project. Keeping in view of semi-mechanized method of mining, a total of 07 nos (Both skilled & non-skilled) of workers are to be employed in mine during the tenure of the plan period. Indirect employment through creation of shops, hired vehicles, etc also can be generated to full fill the day to day requirements of the mining personals. 3.0 PROJECT DESCRIPTION 3.1 Type of project including interlinked and interdependent projects, if any. The project has been proposed for extraction of road metal from the Sarankote Stone Quarry. It is estimated that the amount of total production of road metal during the plan period is 6325 cum which is to be extracted by semi-mechanized method of mining. This project is not linked or dependant on any other project. 3.2 Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. The project site is located in Survey of India Toposheet No E 45 N 2(73 G / 2)and bounded by latitude N 21 30 19.00 - N21 30 24.10 and longitude E 85 04 48.40 - E 85 04 52.70. The description of the project site has been given in surfacal geological plan along with the mining plan. Lease area can be accessed 1.50 km from Sarankote and nearly 2.50 Km from N.H-6. The lease area is about 25 km away from the district head quarter Deogarh and is about 350 Km away from the state capital Bhubaneswar. There is no existence of public road or railway line within the lease area. Most of the commercial transportation is done through road networks. The nearby market is at Kala located at a distance of 4.50 km from 5

the lease area. Telecommunication facilities have vastly improved with the advent of mobile phones. The District Headquarter Telecom office is running at Deogarh. The vegetation is scanty with small bushes exist in the lease area. There is no human settlement within the quarry lease. 3.3 Details of alternate sites considered and the basis of selecting the proposed site, particularly the environmental considerations gone into should be highlighted. As it is a mining project, no alternate site has been considered for the project. 3.4 Size or magnitude of operation. Total lease area is of 2.40 acres or 0.971 Ha. of non-forest Govt. land and the applicant will work within the said area for the plan period of 5 years, 2015-16 to 2019-20 with a total production of 6325 Cum of road metals/building stones for construction Roads and buildings with the nearby locality. 3.5 Project description with process details. Based on the topographical survey of the entire lease area, geological mapping was carried out and Geological plan has been prepared on a scale of 1:1000 with contour interval of 2m. The existing features have been marked. Based on the exposures, opened working quarries, attempts have been made to mark the mineralized zones in the Surface Geological Plan. Based on the geological plan and the contour base plan, the Geological cross sections have been prepared which are enclosed as Plate No-2. Geological Resources From the geological study and from the exposed quarry faces it can be expected that the deposit may extend further 15 m below. Proved, Probable and Possible reserves have been estimated during the preparation of this mining plan. Proved has been estimated by taking 5 m from the existing quarry bottom. Probable reserve has been estimated by taking 5 m below the proved limit. Similarly a depth of 5 m below the probable reserve limit has been considered as possible reserve. The details section-wise calculation or geological reserve is given below; GEOLOGICAL RESERVE 6

Category Section Line Sectional Area (m 2 ) Length of Influence (m) Volume (Cum) Recoverable Volume @90% (Cum) a b c d e= c x d f = e x 90% Proved A-A' 629.00 70.00 44030.00 39627.00 Probable A-A' 429.00 70.00 30030.00 27027.00 Possible A-A' 429.00 70.00 30030.00 27027.00 GRAND TOTAL 104090.00 93681.00 Mineable Reserves The mineable reserve has been calculated by considering ultimate pit slope of the working quarry and leaving 7.5m from the lease boundary for safety zone. While assessing the mineral reserves of the deposit measured and indicated categories of mineral resources have been considered and accordingly the mineral reserves are calculated assuming loss due to pit slope and its proximity with the lease boundary. The details of mineable reserve is given below; MINEABLE RESERVE Category Section Line Sectional Area (m 2 ) Length of Influence (m) Volume (Cum) Recoverable Volume @90% (Cum) a b c d e= c x d f = e x 90% Proved A-A' 497.00 60.00 29820.00 26838.00 Probable A-A' 254.00 60.00 15240.00 13716.00 GRAND TOTAL 45060.00 40554.00 Open cast semi-mechanized method will be adopted during the mining operation within the plan period. The proposed mining will be done in a single shift basis. During the plan period, it has been planned to a quarry within the lease area to achieve the targeted production. Open cast semi-mechanized method will be adopted considering 7

various technical parameters like surface topography, deposit, quality variations, and geotechnical aspects, to produce the targeted quantity of aggregates. During the plan period a systematic development of benches of 5 m height and the width of the benches will be kept at more than height.. Drilling and blasting will be adopted to loosen the hard materials. Excavation will be done by using 0.9 m³ capacity excavators. Drilling and blasting will be done by jack-hammer drill driven by compressor. Loading will be done excavator and transporting will be done by trucks. The detail of Year-wise production and extent of mechanization are given below; Summary of Production Schedule during the Plan period Year Volume (Cum) Recoverable Volume @90% (Cum) Mineral Rejects Volume @10% (Cum) 2015-16 1120.00 1008.00 112.00 2016-17 1215.00 1093.50 121.50 2017-18 1320.00 1188.00 132.00 2018-19 1320.00 1188.00 132.00 2019-20 1350.00 1215.00 135.00 Total 6325.00 5692.50 632.50 Details of Extent of Mechanization Sl. No Machine Capacity No. of Units 1 Excavator with breaker 0.9 cu.m. 2 no. 2 Wheel loader 1.2 cu.m. 2 no. 3 IR HP 450 compressor (450 CFM) & 110mm 1 no. each 4 Tipper Taurus 10 T 02 nos The lessee will process the raw material through the crushing unit established near to the lease area and the raw material from the lease will send to the crusher unit to get different 8

sized road metal i.e. 0-4mm, 4-6mm, 6-12mm, 12-20mm and 0-55mm, which will be sold the finished product to the local consumers as per their requirement. 3.6 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 for the extraction of stone. 3.7 Resource optimization / recycling and reuse. Not applicable in the present case as all size of minerals will be extracted and transported to destined place. 3.8 Availability of water its source, energy / power requirement and source. Water Requirement This is a mining project to produce sized road metal as a raw material for civil, railway constructions etc. As such no raw material is required for the purpose. However, total water approx.100 liters/day will be required for different purposes like Domestic, Dust suppression, Plantation purposes and the water will be supplied from the pre-existing ground water sources from the nearby villages. Power requirement No electrical power shall be required for operations as the mining will be worked out during day time only. Minimal power required for office shall be taken from the State Eclectic Supply Unit, Odisha. 3.9 Quantity of wastes to be generated (liquid and solid) and scheme for their management / disposal. Solid waste generation & its disposal During the plan period a total 10% of total mineralized zone has been considered as mineral reject.a total of 632.50cum of mineral reject are likely to be generated during plan period. The year-wise generations of rejects are given below. Year Volume (Cum) Rejects @ 10% (Cum) 2015-16 1120.00 112.00 2016-17 1215.00 121.50 9

2017-18 1320.00 132.00 2018-19 1320.00 132.00 2019-20 1350.00 135.00 TOTAL 6325.00 632.50 The generated rejects will be stacked over the temporary dump within the lease area in the non working area. Proper safety precaution will be taken care for the stacked rejects. Periodically that will be utilized for road construction and maintenance of approach road and existing public use road of surrounding areas. Liquid effluent No liquid effluent will be generated at the mine site due to the mineral excavation. 4.0 PROJECT DESCRIPTION 4.1 Connectivity Lease area can be accessed 1.50 km from Sarankote and nearly 2.50 Km from N.H-6. The lease area is about 25 km away from the district head quarter Deogarh and is about 350 Km away from the state capital Bhubaneswar. There is no existence of public road or railway line within the lease area. Most of the commercial transportation is done through road networks. The nearby market is at Kala located at a distance of 4.50 km from the lease area. Telecommunication facilities have vastly improved with the advent of mobile phones. The District Headquarter Telecom office is running at Deogarh. 4.2 Land form, land use and land ownership The project site is located in Survey of India Toposheet No E 45 N 2(73 G / 2) and bounded by latitude N 21 30 19.00 - N21 30 24.10 and longitude E 85 04 48.40 - E 85 04 52.70 The lease area is a Non-Forest land (Pathar Chatan) and the total lease hold area is barren not fit for agriculture as the area is covered with out-crops of road metal rock exposures. Therefore forest clearance is not required under F.C. Act 1980. The Lessee is a private limited company. 4.3 Existing infrastructure 10

There is no existing infrastructure within the proposed lease area. Workshop: A well equipped workshop will be constructed and adjoining to the lease area. Site office: A site office will be constructed nearby the lease area. Rest/Shelter/ Rest room: A Rest shelter/ Rest room will be constructed in the lease area; further drinking water will be made available in the site office. 4.4 Soil classification During mining operation no toxic substance will be generated or involved, the impact on soil quality is not likely to be more intensive than the existing level. 4.4 Climate data from secondary sources The area experiences sub tropical climate with abundant rainfall during monsoon months. The summers are not very hot due to thick forest in the area. April-May is the hottest months and December-January the coolest months. The area enjoys high precipitation during the monsoon season. The area may be divided into four seasons. Hot season starts from March to May, period from June to September are the monsoon season and the cold season is from December to February. The average temperature in summer ranges between 35-43.5 C and during winter the temperature ranges 7-12 C. 4.5 Social infrastructure available The general living condition of the people in the nearby area is below poverty line. Agriculture has not been developed in the region to the extent it should have been. People, therefore, depend mostly on this type of mines or other local work for their livelihood. This has got a positive impact on the living condition of the local inhabitants. Besides the direct employment in the mines, indirect engagement may be two to three times. Mining activity in the area has brought some positive effect like better employment potentiality, better health care, better living, better sanitation conditions, better education facilities etc. 5.0 PLANNING BRIEF 11

5.1 Planning concept (Type of industries, facilities, transportation etc) town and country planning / development authority classification Open cast Semi mechanized mining method will be adopted for Stone Quarry mining. Project will produce 6325.00 cum of road metals/building stones, which will be utilized for domestic use only (in order to fulfill the local requirement). 5.2 Population projection Keeping in view of semi-mechanized method of mining, a total of 07 nos (Both skilled & non-skilled) of workers are to be employed in mine during the tenure of the plan period. 5.3 Assessment of Infrastructure Demand (Physical & Social) Necessary approach & mine roads will be constructed. 5.4 Amenities / facilities The management of the mine will extend facilities like a) Safety tools and implements that are required will be used during blasting. b) Provision of drinking water c) Direct and indirect employment opportunities d) Conducting medical camps for workers and nearby villagers at regular intervals. e) Arrangement of safety and healthy working conditions f) Misfires will be handled carefully as per stipulated procedures. 6.0 PROPOSED INFRASTRUCTURE 6.1 Industrial area (Processing area) Temporary arrangements like site office, rest shelters & approach roads etc shall be provided. No permanent infrastructure is proposed. 6.2 Residential Area (Non processing area) As the local person shall be employed, no residential building is proposed. 6.3 Green Belt 12

It is proposed to develop a green belt in and along the periphery of the Quarry lease area of during the plan period. The species chosen for green belt are fast growing with good canopy and dense leaf density. The avenue plantation shall have fruit and flower bearing and some ornamental plants to give good aesthetic look. The scheme of afforestation is as given below: Year Location Extent (m²) No. of Saplings Species 2015-16 to 2019-20 Safety Zone 3000 480 Mango, Chakunda, Cashew, Krushnachuda, Banyan,etc. 6.4 Connectivity Lease area can be accessed 1.50 km from Sarankote and nearly 2.50 Km from N.H-6. The lease area is about 25 km away from the district head quarter Deogarh and is about 350 Km away from the state capital Bhubaneswar. There is no existence of public road or railway line within the lease area. Most of the commercial transportation is done through road networks. The nearby market is at Kala located at a distance of 4.50 km from the lease area. Telecommunication facilities have vastly improved with the advent of mobile phones. The District Headquarter Telecom office is running at Deogarh. 6.5 Drinking Water Management Water required for drinking purpose will be obtained through tankers from the nearby available sources. 6.6 Sewerage System Does not arise 6.7 Industrial Waste Management Does not arise 6.8 Solid Waste Management The generation of overburden is proposed to be nil. However about 10% of total rock 13

exposed zone has been considered as reject.a total of 632.50 m³ of reject are likely to be generated during plan period. The generated rejects will be utilized for road construction and maintenance of existing road of surrounding areas 6.9 Power requirement & Supply / sources The mine will work in day time only, so no lighting arrangement will be required and the other equipment will be run by diesel. 7.0 REHABILITATION AND RESETTLEMENT (R&R) PLAN 7.1 Policy to be adopted (Central / State) in respect of the project affected persons including home oustees, land oustees and landless labourers (a brief outline to be given) No human settlements are existing in the ML area and no humans will be displaced from the area, so the proposed project does not involve any rehabilitation and resettlement. 8.0 PROJECT SCHEDULE & COST ESTIMATES 8.1 Likely date of start of construction and likely date of completion (Time schedule for the project to be given) The project will commence once the Environmental Clearance and other necessary statutory clearance certificates are obtained from the respective departments / authorities. 8.2 Estimated project cost along with analysis in terms of economic viability of the project Capital Cost The capital cost covers the expenditure incurred towards Mine development, cost involved towards land, infrastructure, plant and machineries etc. Besides the interest during development stage insurance, margin money on working capital, contingencies etc have also been included in the figures. The details of the break ups are furnished below. 14

Sl. No Major Head Rs. In Lakh 1 Cost of infrastructure 3.00 2 Cost of Machinery & Plant 10.00 3 Contingency 2.00 TOTAL 15.00 Cost of Production of Road Metal Sl. No. Material Description Production Cost Rs. Per Ton 1 GSB ( 0 60mm) 355.00 2 60mm (20-60 mm) 420.00 3 40mm (20-40 mm) 425.00 4 20mm (12-20mm) 544.00 5 12mm (6-12mm) 500.00 6 6mm (4.75-6mm) 340.00 7 CRF (0-4.75mm) 130.00 Present rate of sell price Sl. No. Material Description Selling Price @ Ex-Crusher Rs. per Ton 1 GSB ( 0 60mm) 400.00 2 60mm (20-60 mm) 450.00 3 40mm (20-40 mm) 490.00 4 20mm (12-20mm) 640.00 5 12mm (6-12mm) 545.00 6 6mm (4.75-6mm) 345.00 7 CRF (0-4.75mm) 135.00 15

Cost Benefit Analysis Sl. No. Material Description Selling Price @ Ex- Crusher Rs. per Ton Production Cost Rs. Per Ton Profit in Rs per Ton 1 GSB ( 0 60mm) 400.00 355.00 45.00 2 60mm (20-60 mm) 450.00 420.00 30.00 3 40mm (20-40 mm) 490.00 425.00 65.00 4 20mm (12-20mm) 640.00 544.00 96.00 5 12mm (6-12mm) 545.00 500.00 45.00 6 6mm (4.75-6mm) 345.00 340.00 5.00 7 CRF (0-4.75mm) 135.00 130.00 5.00 Considering cost of production in all aspects and selling price of the produced building stone, the project is economically viable. 9.0 ANALYSIS OF PROPOSAL (Final Recommendation) The project operation will provide livelihood to the poorest section of the society/ economically backward population and tribal s in the area. It provides employment to the people residing in vicinity directly or indirectly. The mine management will also help nearby villages by providing aid to school, conducting medical and social awareness camps, helping in formation of self help groups, etc. Thus the project will bring about socio-economic improvement of the area and will prove beneficial to the area. With progress in mine development activities, the per capita income of local people will increase which will reduce the public expenditure of the Govt. on social consumption need. Ultimately, it will add to the Govt. exchequers in the form of various taxes & returns. On the whole, overall development of the area will be there. 16

However, the feasibility report indicates that the mining of road metal is technically and economically viable under foreseeable operating scenario. Hence, the minor mineral road metal as a raw material for domestic use, civil work etc from surface mining is economically viable. ********** 17