PRE-FEASIBILITY REPORT FOR

BUILDING STONE QUARRYING

Sy. No. 95/1p1 & 129/3 Andinje Village, Belthangadi Taluk Dakshina District, State

By Sri D Harshendra Kumar S/o. Lt. Ratnavarma Hegde Beedu, , Belthangadi Taluk Dist.

Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report C O N T E N T S

Sl. Description Page No. No. 1 Executive Summary P-2 2 Introduction P-3 3 Project Description P-4 4 Site Analysis P-6 5 Planning P-8 6 Proposed Infrastructure P-10 7 Rehabilitation & Resettlement Plan P-12 8 Project Schedule & Cost Estimates P-14 9 Analysis of Proposal & Conclusions P-15

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 1.0 Executive Summary

Owner’s Name : Sri D Harshendra Kumar Quarry Site Area : 6.50 Acre of Govt. land Quarry Type : Semi-mechanized open cast method Material : Building Stone Survey No./ Plot No. : 95/1p1 & 129/3 Region : Andinje Village

Taluk/ Tehsil : District : Dakshina Kannada District State : Karnataka Status of lease : New Govt. land Total Area 6.50 Acre

Estimated Reserves (Tons) : Type Mineable(T) Geological(T) Total 7,64,268 7,84,275 Proposed Production : Year Saleable Waste (Tons) (Tons) 1st 38,168 463 2nd 38,201 387 3rd 38,052 473 4th 38,106 463 5th 38,107 640 Total 1,90,634 2426 Average 38,127 485

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 2.0 Introduction

2.1 General: Building Stone is one of the major materials being used in infrastructural projects, mainly as an aggregate in concreting. In addition, it also finds its applications in stone masonry constructions, as railway ballast, filler material, water treatment plants as filter media etc. etc.

Depending on the size of the material, building stones are being classified as size stones, coarse aggregate, fine aggregate etc. Even the fine powder, which is the resultant of crushing of building stone, finds its usage as finishing coat for black top roads.

2.2 Present Proposal: Considering the abundantly available building stone source and the growing demand in the market, Sri D Harshendra Kumar, was proposing Quarrying of building stone in a Govt. land of 6.50 Acre area, in Sy. No. 95/1p1 & 129/3 Over An Extent Of 6.50 Acres Belongs To Andinje Village, Belthangadi Taluk And Dakshina Kannada District, Karnataka State., Karnataka. The said lease is proposed to quarry, with an annual production rate of 38,127 tonnes/annum (Avg.), with latest and state-of-the-art quarrying facilities.

2.3 Promoters’ Background: The Building Stone Quarrying project will be operated by Sri D Harshendra Kumar, who is an experienced entrepreneur from Dakshina Kannada District of Karnataka State. He is an expert having immense experience, in the fields of building stone quarrying and allied business.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 3.0 Project Description

3.1 General Quarrying of building stone is not very cumbersome unlike other stone materials. Generally, with simple machines, it can be excavated and can be crushed to required size and specification, at specialized stone crushers. In some cases, even the sized stones are cut to the required size, for usage in stone masonry works.

The actual block splitting from the sheet rocks or boulders is mainly done manually or in some cases by semi- mechanized methods, whereas the other operations, such as removal of overburden, lifting and transporting of cut blocks, etc. are carried out by mechanized method. The various activities involved in building stone quarrying are briefed below:

3.2 Method of Quarrying

The proposed method of quarrying to be practiced at the building stone quarry is of “OPEN CAST” method, by manual way. However, care has to be taken to make it environmental friendly by constantly adopting suitable mining techniques. The quarrying will be carried-out by deploying manual labour and transportation by tractors. Sometimes, they may use the front end loader (JCB) for activities like loading of blocks, removal of jungle bushes etc. The mining techniques being used in the area is in excavation followed by splitting of the rock manually.

3.3 Mining Quarrying shall be done by Semi-mechanized open cast method in Govt. land. The quarry has the approach roads, drivable in all seasons of the year. Production & development shall be carried with systematic and scientific approach. The salient features are given in Table below.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report

Sl. No. Items Proposed

1. Mineable Material Building Stone

2. Method of Mining Semi-mechanized open cast method

3. Estimated Reserves Type Mineable(T) Geological(T) Total 7,64,268 7,84,275 4. Production Year Saleable Waste (Tons) (Tons) 1st 38,168 463 2nd 38,201 387 3rd 38,052 473 4th 38,106 463 5th 38,107 640 Total 1,90,634 2426 Average 38,127 485 5. Cost of the Project 20 Lakhs

6. Manpower Required 18 Persons (Total)

7. Water Requirement 3,500 Liters/Day

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 4.0 Site Analysis

4.1 Location of Site

“Building Stone Quarry” is located over an area of 6.50 Acre in Govt. Land bearing Survey No. Sy. No. 95/1p1 & 129/3 Over An Extent Of 6.50 Acres Belongs To Andinje Village, Belthangadi Taluk And Dakshina Kannada District, Karnataka State. .

Site Details

District & State Dakshina Kannada District, Karnataka

Taluk Belthangady

Village Andinje

Sy No. / Plot No / Block 95/1p1 & 129/3

Quarry Lease Area (proposed) 6.50 Acre

Type of the Area Govt. land

Survey of Toposheet No. 48O/4 Point No. Latitude Longitude A N 130 03' 13.80" E 750 08' 37.30" B N 130 03' 14.90" E 750 08' 41.20" C N 130 03' 18.60" E 750 08' 42.40" D N 130 03' 22.70" E 750 08' 40.60" E N 130 03' 22.90" E 750 08' 38.60" F N 130 03' 20.91" E 750 08' 37.85" G N 130 03' 20.10" E 750 08'39.10" H N 130 03' 19.60" E 750 08' 38.50" I N 130 03' 18.70" E 750 08' 39.50" J N 130 03' 18.00" E 750 08' 39.20" K N 130 03' 18.40" E 750 08' 37.60" L N 130 03' 17.70" E 750 08' 37.90"

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 4.2 Accessibility

The area is situated at 1.5 Km NW of Peradi village & 13 km from Belthangady Taluk where all the welfare amenities are available. The nearest railway station is at a distance of 21 km.

4.3 Physiographic Features:

Belthangady Taluk comes under western slopes, highly undulating topography covered by hillocks and mounds overlaid by lateritic soil followed by peninsular gneiss. The ground is sloping towards west. The altitude of the area is 117 m above MSL.

4.4 Land-Use Planning

The proposed quarry area is Govt. land. It is barren and the sheet rock is fully exposed in the area and also sheet rock is seen at the surface level. The existing land-use pattern is as below:

Type of Activity End of the five year plan period Extent of area (Hect.) Quarrying Workings 0.875 Buffer Zone 0.543 Dump Yard 0.060 Mineral Stock Yard 0.060 TOTAL 2.630

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 5.0 Planning

5.1 General

Mining shall be carried out in a descending order from top to bottom. The mining operations were being carried out all along the strike length of the mining lease area. The area is found to have prominent exposures of Building Stone deposit in the entire area. The building stone is fine grained rock of even texture and melanocratic composed of quartz and feldspar, small quantity of mica, hornblende and other Ferro-Magnesium minerals. 5.2 Present Status of the Area: The land is barren/waste, covered with boulders of the granite rock. The area will be developed by forming benches to work the area systematically as per KMMC Rules, 1994. The details of working dump yards, roads are as shown map in the quarry plan. 5.3 Proposed year wise Development and Production (in Tons):

The development and production programme is confined to the entire area for the first 5 years. The scheme has been planned by taking into consideration of the nature of the deposit within the sanctioned area. It is observed that the sheet rocks are exposed in the neighboring quarries. The proposed year-wise working plan is furnished below:

Year Saleable Waste (Tons) (Tons) 1st 38168 463 2nd 38201 387 3rd 38052 473 4th 38106 463 5th 38107 640 Total 190634 2426 Average 38127 485

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 5.4 Anticipated Life of the Mine For the proposed quarry, the details estimated geological and mineable reserves are given below:

Type Mineable(Tons) Geological(Tons) Total 7,64,268 7,84,275 Average Annual Production (Tons/ Year) 38,127 Life of Quarry in Years (based on only Proven 20 Years Mineable Reserves) (Approx.)

After completion of the proposed first Five Year Plan, the reserves will be updated and re-estimated. 5.5 Extent of Mechanization The mine is proposed to produce 38,127(Avg.) Tons/year of Building Stone and 485 Tons of waste/annum (Avg.). The machineries required to achieve the proposed production level are listed below: Table: Requirement of Mining Machineries Unit Cost in INR Total Cost # Machineries Nos. (Lakhs) INR (Lakhs) 1. Tippers 2 Hired -- 2. Excavator 1 Hired -- 3. Air Compressors 1 Hired -- 4. JCB 1 Hired - 5. Jack Hammers 1 Hired 0.20 6. Tractor Mounted Compressor 1 Hired -- 7. Water Tanker 2 1.00 2.00 8. Generator 1 0.30 Total 10 2.20 5.6 Man-Power Required for Operation of the Quarry: The following man-power will be required for operating the quarry, to achieve the required production level(s): Permit Mines Manager 1 Operators 3 Drillers 3 Skilled Labors 8 Clerk Cum Computer Operator 1 Security 2

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 6.0 Proposed Infrastructure

6.1 General To carry-out quarrying of building stone, various infrastructural facilities are required for the main activity as well as for environmental protection & pollution prevention. The basic infrastructural facilities that are required for the proposed quantity of quarrying are described below.

6.2 Site Services: As the size of the quarry is very small, and is very near to the village, certain facilities like rest shelters, first aid room, etc. are constructed in the nearby village. Drinking water is being provided in water cans at the quarry site.

6.3 Facilities for Environmental Management

Generally building stone quarrying is expected to cause air pollution leading to breathing problems. However, in the present quarry, majority of the activities are manual hence, not expected to cause severe air and noise pollution. However, movement of quarry vehicles generate dust and aggravate air pollution in addition to noise pollution. For mitigating the adverse impacts of the above, suitable control measures are planned, which are more detailed in the enclosed Environmental Management Plan.

For meeting the drinking needs of the employees/ workers, water will be required. For the disposal of the sanitary wastewater (sewage), septic tank with soak pit is constructed at a suitable place, within close vicinity of the proposed area.

To take care of the occupational health and safety of workers at site, engaged at strategic locations/dust generation points like loading and unloading points, dust masks would be provided. Dust masks would prevent inhalation of Respirable Particulate Matter (RPM) thereby reducing the risk of lung diseases and other respiratory disorders. Regular health monitoring of workers will be carried out.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report

The solid waste that is likely to be generated from the proposed activity will be mainly from the excavation process. This will be in the form of flakes, of irregular shape. This will be collected and broken into pieces and can be sold as aggregates for civil works, because of its hard nature.

Most of the area is of sheet rock and the present proposed working is confined to sheet rocks. Less than 5% of materials are being treated as waste in this area. The rejected waste material is stacked in the Waste Dump as shown in the Mining Plan. A JCB will used to remove the over burden from the surface. When the dump reaches optimum height, suitable greenery will be grown on this dump to stabilize them.

In addition, as a proactive measure, the following activities will be initiated: Ø The rainwater accumulating in the work area will be collected and will be drained-out to the downstream properly with guide drains, so that it can be used by the downstream fields for their agriculture and allied purposes. Ø To avoid soil erosion, rain water entering into the mine pit, carryover of the material with rain water, suitable garland drains will be provided all along the active mine area.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 7.0 Rehabilitation & Resettlement (R & R) Plan

7.1 General

The area is situated at 1.5 Km NW of Peradi village & 13 km from Belthangady Taluk where all the welfare amenities are available. The nearest railway station is Bantwal at a distance of 21 km. In the core area, there are no houses/hutments etc. Hence the R & R Plan for the proposed quarry site is limited to the environmental protection and other social measures planned, as part of the proposed activity.

7.2 Human Settlements

There is no human settlement in the core zone.

7.3 Socio-Economic Benefits Spurt in industrialization and mining activities have invariably brought a drastic change in the environment including the society connected with region. Mostly remote areas tucked away from urbanization and influence of modern civilization fall within the limits of mine development.

A natural corollary to this the socio economic aspects of the local inhabitants who have dwelling this region for generations, get suddenly and probably a radical change, consequent to their abrupt exposure to the mining.

The local people will get employment opportunities, better medical and educational facilities etc., mainly due to the mining operation from this project. In addition to this the literacy rate and better living standards shall increase due to the enhanced earning capacity of villagers.

7.4 Storage and Preservation of Topsoil There is little soil cover occurring, as the area is exposed with building stone. Wherever the topsoil generated, shall be collected and stacked separately for use in afforestation.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 7.5 Reclamation of land Land restoration or reclamation of the area is very essential in any mining industry. Proper measures adopted during restoration will control most of the adverse environmental impacts of mining and also improve the aesthetic beauty of the area. Due to the Mining activities in this area, the profile of the ground will change due to formation of pits. At the end of the mining operations, all solid wastes generated will be used in back filling of quarry pits in order to bring back original contour of the terrain as for as possible. The separately stacked top soil will be used to spread over on the compacted back filled area in order to facilitate the re-vegetation process, which in turn controls silt flow towards the downstream.

7.6 Environmental Aspects: The environmental aspects associated with the proposed activity, along with the suggested mitigation/ control measures are more clearly elaborated in the Environmental Management Plan.

7.7 Implementation of EMP & Monitoring Programme The environmental management plan is detailed on the basis of impact assessment. Control and mitigation measures for the adverse impacts envisaged.

As the major environmental attributes have been confined to the project area alone, implementations of the proposed control measures and monitoring thereof will be undertaken on the regional basis. The Building Stone Quarry will ensure the implementation of the measures within the mine area and carryout efficient monitoring.

In order to implement the measures suggested for mitigating the adverse impacts on the environment, it is suggested to monitor the environmental parameters regularly.

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 8.0 Project Schedule & Cost Estimates

8.1 General Any developmental activity needs to have adequate resources, be in the form of man-power or machinery. Careful planning and timely deployment adequate funds to have the required resources, is of paramount importance for any successful project implementation. In the following paras, it is explained about the mobilization schedule of resources and the capital expenditure estimates.

8.2 Mobilization Schedule The proposed quarry, being an new quarry, doesn’t need elaborative planning for mobilization of man-power, machinery & equipment etc.

8.3 Cost of the Project: Considering the fluctuating export market scenario and present domestic market conditions of the products, the cost of the project estimated to be around 18 Lakhs Rupees, with the concept of outsourcing some of the machineries.

Summary of Capital Cost of the Quarry

# Description Amount (INR in Lakhs) A Plant & Machinery 2.5 B Environmental Management Works 15.5 C Statutory Payments (like Env. 1.5 Protection Fee, Advance Royalty etc.) D Miscellaneous Expenses 1.0 Total Capital Cost for Quarry Works 20.00

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 8.4 Cost for Implementation of Environmental Management Works: The quarrying activity is likely to result in some minor adverse impacts of the environment. To overcome such impacts, certain mitigative measures have been planned. The cost provision towards the same is given below:

Provision for Environmental Management in Capital Cost

Activity Proposed Total Annual Expenditure Remarks Quantity Amount 1st 2nd 3rd 4th 5th Year Year Year Year Year Capital Expenditure Fencing 655 m 196,500 196,500 - - - - @ Rs. 300/m Garland 655 m 131,000 131,000 - - - - @ Rs. Drain 200/m Subtotal 327,500 327,500 - - - - Recurring Expenditure Greenery 700 Nos. 560,000 175,000 175,000 70,000 70,000 70,000 Plantation Dev. & in initial 2 Maintenance years & maint. in next 3 years Dust Lumpsum 200,000 40,000 40,000 40,000 40,000 40,000 Suppression Env. Lumpsum 300,000 60,000 60,000 60,000 60,000 60,000 Once in 6 Monitoring months CSR Lumpsum 350,000 70,000 70,000 70,000 70,000 70,000 Activities Lumpsum 135,000 27,000 27,000 27,000 27,000 27,000 18 Miscellaneous employees (PPE, Insurance, @ Rs. Employee Health Check- 1,500/ per up etc.) person per year TOTAL 1,545,000 372,000 372,000 267,000 267,000 267,000

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Sri. D Harshendra Kumar Building Stone Quarry Pre-Feasibility Report 9.0 Analysis of Proposal & Conclusions:

This upcoming project will meet the development needs of the surrounding community without causing any negative influence on the environment. It can be summarized that the development of ’Building Stone Mining‘ will have a positive impact on the socio-economics of the area and lead to overall sustainable development of the region.

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Sri D Harshendra Kumar

Unit Production Cost Sl. Rate Description No. (Rs./ Ton) 1 Raw Material (Boulder) Production Cost including 110 2 Royalty & Other Statutory Payments 90 3 Cost of crushing, screening etc. 65 4 Salaries & Wages 25 5 Maintenance of Machinery 25 6 Other Miscellaneous Expenses 15 TOTAL PRODUCTION COST 330

Total Sl. Description 1st Year 2nd Year 3rd Year 4th Year 5th Year (For 5 No. Years) Expected production 1 38,168 38,201 38,052 38,106 38,107 190,634 (TPA) Expected production cost 2 330 357 386 417 451 _ (Rs./ Ton) with 8% increase/Yr Expected Sales price 3 (Rs./ Ton) with 5% 400 420 441 464 488 _ increase/Yr Expected Revenue through 4 152.67 160.44 167.81 176.81 185.96 844 Sales (Rs. Lakhs/ Annum) Expected production 5 expenses 125.95 136.38 146.88 158.90 171.86 740 (Rs. Lakhs/ Annum) Annual EMP 6 Expenditure 3.72 3.72 2.67 2.67 2.67 15 (Rs. Lakhs/ Annum) Operating Margin 7 23.00 20.35 18.26 15.24 11.43 88 (Rs. Lakhs/ Annum) Provision for Tax 8 7.67 6.78 6.09 5.08 3.81 29 (Rs. Lakhs/ Annum) Profit After Tax 9 15.33 13.56 12.17 10.16 7.62 59 (Rs. Lakhs/ Annum)