In Sy No. 716, Mudgal Village, Lingasugur Taluk, Raichur District

Pre- Feasibility Report

Proposed Grey Granite Quarry Project

Area 4-00 Acres (1.6188 Ha.),

in Sy No. 716,

Mudgal Village,

Lingasugur Taluk, Raichur District,

Karnataka State.

Sri. Mallikarjuna Patil S/o Doddanagouda Patil, Amareshwara Nilaya Basaveshwara Circle, Ilkal, Hungund Taluk, Bagalkote Dist., Karnataka State. PRE-FEASIBILITY REPORT

1. INTRODUCTION OF THE PROJECT/BACK GROUND INFORMATION

Sri. Mallikarjuna Patil S/o. Doddanagouda Patil has applied for Quarry Lease of ‘Mudgal Grey Granite Quarry’ to win Grey Granite in Private Patta Land at Survey No. 716, Mudgal Village, Lingasugur Taluk & Raichur District, over an extent of 4-00 Acres.

Originally, the patta land belongs to Sri. Mahanthagouda S/o. Mallanagouda Patil, Baiyapura, Lingasugur taluk of Raichur Dist., who given lease to Sri. Mallikarjuna Patil S/o. Doddanagouda Patil for the purpose of quarrying the agreement letter is enclosed. Subsequently, in pursue of our application, Form-AQL filled for the grant the office of Department Mines & Geology Raichur, after the examination and processing the application has required under KMMC, 1994 had issued a notice regarding obtain approval of Quarrying Plan from Dept. of Mines and Geology and accord Environmental Clearance from the DEIAA Raichur through vide letter no. ಗಭೂಇ: : : :ಕಗಪ:2017-18/1030 dated 05.08.2017, enclosed. The District Task Force Committee meeting held on 17.07.2017 and the above said ornamental quarry license is recommend to State Government subsequently above mentioned notice issued Proceedings of the District Task Force Committee is enclosed.

In virtue of Notification grant, the “No Objection Certificate” obtained from the Deputy Commissioner, Assistant Commissioner, Tahsildar & Forest Department NOC’s are enclosed.

The application for land conversion for Non Agriculture purpose was submitted to the Deputy Commissioner of Raichur, after processing the application the Office of the Dy. Commissioner, had ordered for land conversion for Non agriculture purpose vide letter no.

ಸ0.ಕ0/ /155/2008-09 dated 19.01.2009 is enclosed.

Now the Quarrying Plan including Progressive Quarry Closure Plan is prepared under the rule 8F & 8H (1) of KMMC (Amendment) Rule, 2013 for proposed maximum production capacity of 12,089 Cum /annum and is approved.

1 The subject land is patta land as per the RTC records and does not belong to Government land, Gomala land or reserved for any other purpose. The subject area is also not fit for agriculture and is about more than 3.5 km away from Public Properties and there is no objection of the Public or any litigation.

India is one among the leading countries in Quarrying and export of granite and is rich in granite reserves. Geologically, the southern and eastern belts of the Nation are abundant in granite deposits. Different shades of granites are available in abundance in Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Assam, Bihar, Rajasthan, Odisha, Meghalaya and Madhya Pradesh. Indian Granite Stone has become the most sought-after and extensively used stone material and massive structural works throughout the world, and it is well known in the International market, not only for its elegance and aesthetic quality, but also for its durability.

Granite is a very hard crystalline, igneous or metamorphic rock primarily composed of feldspar, quartz and lesser amounts of dark minerals. India has vast resources of granite with about 110 varieties of different colours and textures such as Black, Grey, Pink, Himalayan Blue, Multi Colored, etc. These varieties are used to produce monuments, building slabs, titles, surface plates etc. However, popular varieties are mainly found in South India.

Granite in the form of slabs and tiles has several attractive features, which, inter alia, includes extra-fine mirror-polish, scratch-free glossy surface and durability. Granite can be compared very well with other floor and wall application materials such as ceramics and marble.

The lessee is in the Granite Quarrying Industry for more than two decades meeting the domestic demand and export of Granite to industries which is found to have use for Monuments, Flooring slabs/tiles, Kitchen articles, sculptures & for domestic use.

The proposed lease area is found to have prominent exposures of Grey Granite covering most of the applied Quarry lease area. Detailed study of the area has been done by the applicant by sampling exposed blocks of Granitic Gneisses and depth of the existing working pit. In view of the proposal for development and production of Grey Granite, the lessee intends to produce maximum 12,089 cubic meters/annum by carrying out medium scale quarrying by engaging machineries i.e. Semi-mechanized Open cast method of quarrying.

2 The Quarrying Plan was prepared & approved for grey granite production over an extent of 4-00 acres and the application for Environmental Clearance along with this report is herewith submitted to DEIAA constituted by MoEF for obtaining Environmental Clearance.

Present Proposal:

The Quarrying Plan was prepared & approved for maximum production of 12,089 Cum of grey granite. The present proposal is submitted to the District Environment Impact Assessment Authority, Constituted by Ministry of Environment & Forests under the EIA Notification 2016 as per the Orders of the Honorable Supreme Court dated 27.02.2012 directing that leases of minor minerals including their fresh/renewal for an area of less than 5.0 Ha. To be granted/renewed after getting environmental clearance from MoEF.

Need for the project:

Rapid industrialization and growth in infrastructure has made global as well as domestic demand for Granite. So number of Granite manufacturing quarries & industries are coming up in this sector. Granite is the chief material in this sector, for the export industries like monuments, flooring slabs, Kitchen articles, sculptures & export. The size & quality parameters for supply of the mineral will be as per the requirements of the user industry.

Based on the demand of Granite, the lessee intends to produce the required quantum of Grey Granite for domestic & international market. As per EIA notification 2006 project proponent is submitting the proposal to get Clearance for production capacity of 4,515 cubic meters/annum of granite blocks from District Level Environmental Appraisal Committee/ District level Impact Assessment Authority of Karnataka constituted by MoEF, GOI for the purpose of enhancement of grey granite production from this quarry lease. The extent of the area is small and shall be worked by semi-mechanized method of working.

3 Karnataka constituted by MoEF, GOI for the purpose of Grey Granite production from this quarry lease. The extent of the area is small and shall be worked by semi-mechanized method of working.

Employment Potential:

The proposed Manpower is about 38 including Technical & Professional competent staff experienced in quarrying & allied activities. The employees will be assigned the job relating to production of granite and waste handling & others routine works in the Quarry. The Quarry shall provide direct & indirect employment for 152 people. The working hours at the quarry will be 8 hours/day for 300 days/year.

4 2. PROJECT DESCRIPTION

Zone falls in the Survey of India Topo sheet No. 57A/5. The site is geographically located between North Latitude 15° 59' 24.40" to 15° 59' 29.71" and East Longitude 76° 28' 01.58" to 76° 28'06.88". From the field studies, it is observed that the Quarry lease area is located in uncultivable agriculture land and non forest area i.e. in Patta lands. The area in essence consists of plain land, flat ground with gentle slope/gradient in all directions. The height of the quarry lease area ranges to an elevation of about 560m to 553m above the MSL. The subject area falls within this region confining to a part of Mudgal village.

The Other details are given below:

Topo sheet No. 57A/5 Quarry Lease No. Applied Quarry Lease Latitudes 15° 59' 24.40" to 15° 59' 29.71" Longitudes 76° 28' 01.58" to 76° 28'06.88" Elevation 560m to 553m above MSL Survey No. & Villages 716 Mudgal Village Taluk & District Lingasugur & Raichur Extent Area 4-00 Acres (1.6188 Ha.) Type of Land Private Patta land Road Connectivity The quarry lease area is located 3 .3 km (Aerial) from the approach road Nearest Railway station The nearest Rail head on Broad-guage is Koppal is at distance of 78 kms SW. Method of Quarry Semi Mechanized Opencast quarrying (Category - B)

Geology of the Area/Regional Geology:

The Dharwar Craton is one of classical and well studied Archean granite greenstone terrains of the world and is principally composed of low k-tonalitic to trondhjemitic gneisses (peninsular gneiss) with infolded supracrustral (Sargur Group) and capped by younger series of volcano sedimentary sequences (Dharwar super group). Clac-alkaline granites form the latest Archean magmatic event in the craton. The pronounced N-S elongation of regional grain in the craton is one of the most important and conspicuous feature.

5 Dharwar supergroup with profound unconformity, rocks of Dharwar supergroup in WDC are divided into lower Bababudan and upper Chitradurga groups (Radhkrishna and Vaidynadhan, 1997) and exposed in two large belts that may be called as super belts viz., (1) Bababudan-Western Ghats-Shimoga and (2) Chitradurga-Gadaga ( Ramakrishanan and Vaidyanadhan, 2008).

Geology of the Quarrying/Mining Area:

The quarry lease area is composed of Grey granite of about 35% and remaining about 65% is soil with defective blocks of Grey granite. The granites, medium to fine grained igneous rock of even texture and Pink in color, composed chiefly of quartz and feldspars. It usually contains small quantities of mica or hornblende, and minor accessory minerals may be present. Depending on the feldspar present, granite may be Pink, dark gray or light gray. It is commonly believed to have solidified from molten rock (called magma) under potential origins but it must intrude other. Most granite intrusions are emplaced at depth within the crust, usually greater than 1.5 km and up to 50km depth within thick continental crust. The grey granite and soil cover in the rock units as exposed in the quarry lease area can be made out from the map.

Topography:

The applied lease area is located in Topo sheet No. 57A/5. Following topographic features can be observed.

• The Quarry lease area is a patta land. • The terrain is a plain area. • No major roads pass through the lease area. • No human settlements within or in the vicinity of the lease area. The nearest village is Mudgal is 3.5 km (Aerial). • The drainage pattern of the buffer zone is dendritic to sub-dentritic in nature. No perennial nallahs or streams are seen within the lease area. • The highest elevation is 560m RL and Lowest 553m RL with respect to MSL.

6 Exploration & Reserves

Estimation of reserves in the project area is carried out by utilizing the information from the Quarry workings and the granite deposits around the adjacent quarry leases in addition to the field survey. These studies are made use of in interpreting continuous Granite blocks in the strike direction.

The Reserves are estimated by Cross sectional method. Total estimated Mineable reserves are 71,545 Cubic Meters of Grey Granite out of the total Geological resources of 1,82,091 Cubic meters. At a maximum rate of proposed production of 12,089 Cubic meters/annum the life of the Quarry is calculated for 6 years.

Summary of category-wise Resources & Reserves of Grey granite are furnished in below table.

Category Grey Granite ( Quantity in Cub m) Mineable Reserves (A) 71,545 Blocked Resource (B) 1,10,545 Geological Resources (A+B) 1,82,091

Mineable Reserves:

Of the above Geological resources of 1,82,091 cum, only 71,545 cum of reserves can be exploited /mineable, while the balance of 1,10,545 cum of reserves is getting blocked which cannot be mined due to the boundary and practical constraints. Hence for all practical purpose (for production and future planning) only Mineable reserves are considered.

7 Production & Development

The Year wise Production and Development proposed for five years are presented in the table below:

Year Pit Total Total OB/SB/ ROM (Cum) Mineral ROM/ no. Tentative Soil IB Grey Waste (Voids & Reject Waste Excavation (Cum) (Cum) Granite @ defective Ratio (Cum) 30% Materials) @ (Cum) 70% (Cum) 1 2 3 4 5 6 7 8 9 I Year 1 49,178 -- 14,637 12,089 22,452 -- 1:3.07 II Year 1 35,884 -- 1,372 12,079 22,433 -- 1:1.97 III Year 1 34,441 -- -- 12,054 22,387 -- 1:1.86 IV Year 1 34,514 -- -- 12,080 22,434 -- 1:1.86 V Year 1 34,500 -- -- 12,075 22,425 -- 1:1.86 Total 1,88,517 -- 16,009 60,379 1,12,133 -- 1:2.12

Method of Quarrying:

The quarrying is proposed to be worked by semi-mechanized method of working. As per the proposed mining/quarrying plan, the production of grey granite, is planned to be worked by deploying machineries for development & production. The separation /segregation of grey granite is based on physical parameters both manually with conventional tools like Crowbars, Hammers, Pickaxes, Steel pans etc. and mechanically using drilling equipments, block cutting by wire saw, excavator, cranes, loaders and tippers. The parameters will be, bench height of about 3mtrs & width is more than height of bench and jack hammers drilling carried with dust proof drilling machineries & no blasting will be proposed to be carried out.

Solid Waste Management:

The area selected for dumping is plain land, where dumping will be carried out for a maximum height of 5mtrs with 28° dump slope. Proper terracing will b e done along dump slopes to provide better slope stability. The total waste likely to be generated for quarrying of Grey Granite over a period of 5 years is about 1,28,142 Cubic meters of waste (voids and defected material/blocks and OB) is generated. The waste (voids and defected material/blocks)/overburden produced will be stored separately for future use and the overburden/waste generated during quarrying operations will be dumped in the spoil banks earmarked specifically for this purpose. These yards is moderately sloping hard and barren land easily access road within lease boundary.

8 As a part of zero waste Quarrying concepts, it is proposed to stock the defective Granite blocks separately till demand arises or can be sold according to user specification.

The Quarrying pits after extraction of the granite will be reclaimed by suitable afforestation techniques and portion of the pit may be backfilled by overburden and part of pit will be left as water reservoir, since this region is dry, storage of rain water shall help in recharging the ground water table and improve the water regime of the area. Proper fencing of the lease area shall be taken up to avoid entry of animals & trespassing into the Quarry lease area.

Hydrology

There are no natural springs in the area. The surface water is in the form of seasonal rainfall and the ground water bodies encountered below 80m depth in the area from the surface level. The area is small, so, far no report on hydrological studies has been carried out in the area under question. There is no potential of acid quarry drainage.

9 3. SITE ANALYSIS

• Connectivity The area is approachable by all weather roads and Mudgal village is about 3.5 kms and Lingasugur is about 19.0 kms from the Quarry lease area. The Taluk & District headquarters is Lingasugur & Raichur and has all the facilities viz., Police Stations, Post Offices, Dispensary facilities, Phone & College and Nearest Railway station is Koppal about 78.0 kms (Aerial) from the Quarry lease. There are no sensitive areas for ecological reasons within 10 kms.

Land Form, Land Use and Land Ownership:

The Core zone consists of proposed 4-00 acres. Open shrubs marks the general topography of the region. The Proposed land use Pattern of the Core zone is given below:

The details of present and proposed land use are furnished as follows.

Land Use in Acres & Guntas Existing Land Proposed plan Conceptual Particulars Use period Period Area of excavation 1-00 2-37 2-37 Overburden dump -- 0-23 0-23 Granite Block storage -- 0-03 0-03 Safety Zone Area/green belt -- 0-01 0-01 Area for Future Use 3-00 0-16 0-16 Total 4-00 4-00 4-00

• Topography

The topograpghy of the quarry area is a flat & Plain land. The highest point in the area is 560m above M.S.L and the lowest elevation is about 553 m above M.S.L. There are no streams or nallhas flowing in the lease area. Drainage pattern is denritic to sub dentritic in nature in the buffer zone.

10 Present land use pattern: The present land use and terrain patterns of the study area can be observed as follows:

Land use in Acres & Guntas SI. No. Head Existing Land Use 1 Area of excavation 1-00 2 Area for future use 3-00 Grand Total 4-00

The proposed area to be worked during the plan period is shown in the Quarry Layout plan. The future proposed reclamation is by suitably sloping the quarry benches at the end of Quarry lease period and by way of afforestation on the dumps and open places outside the working and lease areas.

• Existing Infrastructure:

The infrastructure proposed to be established is of temporary structures for Quarry office, Rest shelter, First aid station, sanitation & etc., and are proposed to be provided in the non mineralized area of Quarry lease.

The details of other existing infrastructure are collected from the core and Buffer zone of the lease. The Drinking water, electricity and primary education facilities are available in almost all the villages. The Police Stations, Post Offices, Dispensary facilities, Phones, College, and Railway station are present in Taluk and District head quarters of Lingasugur & Raichur. There are good approachable weather roads are present in the buffer zone of the area. State highway passing through major towns and nearby villages. No Sensitive areas for ecological reasons within 10 kms.

Soil Classification

The quarry lease area mainly comprises the Cuddapah system and exposed different litho-units belonging to Lingasugur series. The Stratigraphy of Quarry lease block is as follows:

Soil cover

The surface is covered by soil cover to an average depth is less than 0.5 mtrs to 1.0 mtrs.

11 4. PLANNING BRIEF

• Conceptual Quarry Plan:

The quarry lease area comprises of Grey Granite, which are cut across by thin pegmatitic veins. The quarry is proposed to be worked forming benches of 3.0 mtrs height with a general pit slope of 45°. The ultimate pit limit is marked as shown on the Geological Plan & Sections. Conceptual plan period production & development details as furnished in the Conceptual Plan. However, when the Grey Granite is proved to its full depth, the conceptual plan will be duly modified. Dumping will be carried within the lease area. At the end of the Conceptual Period complete dumps will be afforested and wherever possible and along road sides afforestation will be carried out. Safety bunds, fencing & retaining walls shall be constructed as per the directions and guidelines of Directorate General of Mines Safety.

• Population Projection

The man power of quarry include Mines manager, Engineer, Geologist, skilled and unskilled Labours and medical officers etc. As for the socio-economic is concerned from the Quarry activity nearby villagers shall get direct & indirect employment for about 152 persons. The proposed Quarry activities also shall bring the positive change in the villages as the quarry shall provide socio-economic activities in the region.

• Land use Planning

The Land use and Land cover for the Ensuing Plan Period and Conceptual Period.

12 • Afforestation:

It is proposed to develop a green belt in 7.5m buffer zone of the portion of the lease boundary. In addition, the place around the haul road, outside the lease area and slopes of the dumps shall have plantation. During the plan period it is proposed to carry out afforestation over 0-4 Guntas by planting 98 saplings & 220 saplings will be planted along approach road. Total 318 saplings per annum till the end of plan period will be planted. Proper care will be taken for projection & growth of these sampling. The bio-fuel saplings like Pongamia pinnata (Honge), Thespesia populnea (Bugari),Madhuca Indica (Hippe), Holoptelia integrifolia (Tapaswi), Acacia ferruginea (Bannimara) and other fruit bearing and flowering local species etc. In order to maintain the ecological balance of the area, the lessee shall obtain necessary permission to take up Plantation outside the lease area as avenue plantation, nearby schools, etc., The details of the afforestation program are as given below:

Year Area Within Lease area Out Side Lease area Survival Guntas Plants Location Plants Location rate Nos. Nos. I Year 0-04 98 220 II Year 0-03 97 220 Along the approach III Year 0-03 97 7.5m Safety Zone 220 road 60% IV Year 0-03 97 220 (5m x 5m) V Year 0-03 97 220 Total 0-16 486 -- 1,100 -- --

During the afforestation work, the combination of different species shall be done. This selection shall be made on the basis of the local plant growth in the surrounding areas. It is always better to plant mixed species together. Guidance from the local forest department shall be taken in the selection of species and their maintenance. The plantation work requires considerable quantities of seeds, seedlings and saplings of different species; Nursery stock for this plantation will be available from the local forest and horticulture department.

• Assessment of Infrastructure Demand:

The existing road network will be sufficient to meet the proposed production capacity. However, required infrastructure for transport within the leasehold area will be further strengthened and improved. No new routes or alternations are required in this regards.

13 • Amenities/Facilities

Applicant proposes to employ about 38 persons. This employment has a positive impact on the socio-economic conditions of the surrounding as most of the work force employed will be from the nearby areas. Local persons will be hired for meeting the requirement of trucks loading, plantation, construction of check dams, retaining walls etc.

The following are the benefits due to Quarry to the local population: Direct and indirect employment opportunities. Improved road and communication network.

14 5. PROPOSED INFRASTRUCTURE

The proposed method of Quarry operation will be semi-mechanized opencast Quarry with drilling & by use of wire saw cutting, use of excavators & cranes with tippers for internal transport. The lease area does not have any public roads, railways lines, telephone lines, public buildings etc.

Present infrastructure will meet the requirement of the project. The conditions of the roads in the buffer zone are unlikely to be impacted due to the proposed small scale expansion. The project authorities in association with the adjacent quarry owners & district administration will also contribute to development & maintenance of roads.

• Green belt Development

It is proposed to develop a green belt along roadside, near proposed office premise of the portion of the lease around the working spots and the places around the roads in the lease area. The saplings shall have deep roots, fast growth and optimum penetrability. To stand firmly against the wind, species of plants which form dense vegetation and maximum canopy shall be selected otherwise the gap in the canopy will act as wind tunnels. Dense vegetation will litter on the floor and improve the quality of the soil, and also act as dust and sound barriers. It is also taken into consideration that the different species of plant include flower bearing, fruit bearing plants and also plants forming food for herbivous animals to attract the wild life Out of the above trees, the subabul stands excellent for dust filtering, based on its height, quick growth, leaf density and drought tolerance. This will be able to filter the dust by 80%.

• Social Infrastructure

The area is approachable by all weather roads and Mudgal is about 3.5 kms from the lease area. The Taluk & District headquarters Lingasugur & Raichur and has all the facilities. The Nearest public road is Mudgal which is about 3.5 kms and railway station is Koppal 78 kms (Arial distance). The nearest airport is Hubli which is about 164 kms. The nearest Sea port is Harbour Belikere (Karwar) which is about 276 kms from the lease area.

15 • Drinking Water Management

There are no water courses within or adjacent to the quarry lease and hence there is no possibility of disturbance & rainwater will continue to flow in the same direction as it is in existence. Since the water is not withdrawn (from any sources outside the lease area) for quarrying operations, no adverse impact is foreseen on the existing water regime. The rainwater stored in the pits shall be utilized for mitigating dust and other activities.

The surface water in the buffer zone is in the form of seasonal rainfall and the ground water bodies encountered below 8 0 m depth in the area from the surface level. The area is small, so, far no report on hydrological studies has been carried out in the area under question. There is no potential of acid quarry drainage. The drinking water available for nearby bore wells and water can be stored in to syntax tanks. During the course of Quarry operation no diversion of water course is considered as it doesn’t exists.

• Sewerage System

The existing watercourses shall not be disturbed and rain water will continue to flow in the same direction. Check dams will be constructed at the toe of the O.B Dumps, water will percolate in the premises of the Quarry area. There is no generation of domestic sewage.

• Industrial Waste management

There is no generation of affluent/toxic substance; hence treatment of Quarry water doesn’t arise.

• Solid waste management

There is little top-soil in the Quarry lease area proposed to be handled. As such there is no generation of waste, whatever little is produced may be of low grade Grey Granite and intercalated waste to the tune of 35%, which is proposed to be dumped and some portion of material is used to make road & bund around the lease area. Defective Grey Granite produced shall be stacked separately and marketed for tiles or slabs as and when the demand arises. No toxic or hazardous elements are reported in the waste & hence, no effect on the surface/ground water.

16 • Power requirement and Supply

There will not be any requirement of power supply to the project site. The Quarry activities are envisaged to be carried out only during day time by manually for drilling and machinery for cutting by wire saw, loading, unloading by excavators & cranes with tippers/dumpers for transport & and all the equipment shall be operated with diesel as motive power.

17 6. RECLAMATION & REHABILITATION

Surface Quarry will make alteration in the topography of the area by way of excavation and surface dumps. This will lead to water pollution, silting of agricultural lands, air pollution etc. The primary objectives of reclamation are to restore the affected area to the original state as near as possible.

The various reclamation proposals planned during the plan period as well, rest of the Quarry period such as broad working benches with safe angle of slope, stabilization of dumps, installation of effective drainage system, prevention of erosion and excessive run off, & re-vegetation or afforestation.

Since it is a fresh lease, no Quarry area is matured or completely exhausted. Hence, the measures like Retention walls, drainage system and afforestation works etc., shall be taken up.

18 7. PROJECT SCHEDULE AND COST ESTIMATES

The estimated total cost of the project is Rs. 75 lacks. The land is owned by pattadar including the cost of the machinery and additional preliminary works and working capital i.e. for the application and processing fee, etc.,

The return on the investment is by way of sale of mineral. All the minerals shall be marketed. The machinery is of the Company and additional required if any shall be on hire basis as per the requirement for production.

The proposed production of Grey Granite is 12,089 Cubic meters/annum. The major components required to project the financial status of a project are • Cost of the project • Means of financing • Cost of production • Tax burden and flows • Profitability

• Cost of the Project

The cost of the project consists of the following major components: • Land and site development • Buildings and civil works • Machinery • Processing charges and Consultancy charges for preparation of Quarry Plan, Environment Monitoring, etc • Provision for contingencies • Margin money for working capital

19 Sl Activity Proposed Unit Price (in Capital Cost Recurring Cost/Yr. No. Quantity Rs.) (Rs.) in (Rs) Afforestation/ Green belt 317 Saplings/ 1 250/ sapling -- 80,000 development yr 2 Construction of Gully Plugs 2 Nos 20,000/Unit 40,000 -- Barbed Wire Fencing 540 mtrs 250/m 1,35,000 -- i) Barbed Wire fence ii) Poles (for every 2m 270 Nos 300/Pole 81,000 -- 3 distance) iii) Concrete and lime for 270 Nos 900/Cum 2,43,000 -- filling pits Water for Drinking, Dust 4 12.4KLD 300/trip -- 2,70,000 suppression & Plantation 5 Environmental Monitoring Half Yearly -- -- 70,000 6 CSR Activities Annual -- -- 2,00,000 7 Miscellaneous costs Annual -- -- 1,00,000 Total 4,99,000 7,20,000

The total estimated cost of the project is Rupees 75 lacks. The applied Quarry lease area is Private Patta land.

• Cost of Production

The maximum proposed production of G r e y Granite during the first five years is around 12,089 Cubic meters per annum. The proposed m a x i m u m ROM to be excavated is 1,72,512 Cubic meters per annum.

The cost of the project includes the following components

Sl No. Parameters 1 Mineable Reserves: (in Cum) 71,545 2 Nature of Minerals Grey Granite 3 Production: Grey Granite cum/annum 12,089 4 Strip Ratio: 1:2.12 5 Maximum Handling during Plan period (in Cum) 49,178 6 Cost per one cum (in Rs) 1,600 7 Capital cost in Rs 78,684,800 8 Total Pit head cost per cum of Grey Granite (in Rs) 17,000 9 Realization for Grey Granite/cum (in Rs) 18,000 10 Profit per cum (in Rs) 1,000 11 Production per Annum (in Cum) 12,089 12 Gross profit per annum 12,089,000 13 Net profit after taxation @ 35% 7,857,850 14 Profit per cum 650

20 9. ANALYSIS OF PROPOSAL (FINAL RECOMMENDATION)

The grey granite quarry is yet to be sanctioned and proposed rate production is 12,089 cum per annum of grey granite. The financial estimates reveal high rate of returns. The project is economically viable. The estimates have also taken into consideration the occupational health expenses, environmental protective measures, social welfare activities etc., the Form-1, Pre-Feasibility Report and Quarrying Plan are prepared and Annexes with this documents.