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DECCAN CEMENTS LTD Mahankaligudem, Neredcherla Mandal, Nalgonda District, Telangana

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DECCAN CEMENTS LTD Mahankaligudem, Neredcherla Mandal, Nalgonda District, Telangana PRE FEASIBILITY REPORT Of BHAVANIPURAM LIMESTONE MINE – 3 (Area: 183.11 Ha) Neredcherla Mandal, Nalgonda district. Telangana. For INCREASE OF LIMESTONE PRODUCTION FROM 0.3 TO 2.3 MTPA Of DECCAN CEMENTS LTD Mahankaligudem, Neredcherla Mandal, Nalgonda District, Telangana. Table of Contents 1. Executive summary 2. Introduction of the project/ Background information 3 Project Description. 4 Site Analysis 5. Planning Brief. 6 Proposed Infrastructure 7. Rehabilitation and Resettlement (R & R) Plan. 8. Project Schedule & Cost Estimates 9. Analysis of Proposal (Final Recommendations). CHAPTER – 1 EXECUTIVE SUMMARY 1.0 Executive Summary DECCAN CEMENT LIMITED., DCL is one of the cement producing business houses having installed production capacity of about 1.5 MTPA Cement Production in the state of Telangana. The limestone requirement of the cement plant is met from Bhavanipuram Limestone Mine – 2 (ML-2) at rated production of 2.0 MTPA and from Bhavanipuram Limestone Mine – 3 (ML-3) at rated production of 0.3 MTPA. Both the mining leases are adjacent to each other. DCL now proposes to enhance Limestone production of Bhavanipuram Limestone Mine – 3 from 0.3 to 2.3 MTPA to meet the limestone requirement of Cement Plant due to exhaust of reserves at Bhavanipuram Limestone Mine – 2 BHAVANIPURAM limestone mine – 3 is spread over an area of 183.11 Ha. with about proved mineral reserves of 80.62 Million Tonnes which will last for 35 years with proposed production capacity of 2.3 MTPA. Fully Mechanized method of mining is adopted. The benches are 6 m height. The limestone produced from the mine transported from the mines to the crusher inside the plant by dumpers of 19 t capacity. 183.11 Ha is part of Saidulnama Reserved Forest (Compartment No. 26 & 27). Forest Clearance was obtained vide letter No. Rc.No.31015/2007/F2, dated 13.08.2013. No top soil or waste is envisaged from the mine. The soil as and when generated from the mining will be used for greenbelt development. Hence stocking of top soil/waste in the form of dumps is not envisaged. Water requirement for the mine at 2.3 MTPA limestone production is about 120 m3/day for dust suppression, plantation and domestic purposes. This requirement is sourced from River Krishna. The capital Investment Cost is estimated as Rs 2.0crores. CHAPTER – 2 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. PROJECT: DECCAN CEMENT LIMITED proposes to Increase limestone production from 0.30 to 2.3 MTPA from Bhavanipuram Limestone Mine – 3 mine located at jurisdiction of Saidulnama Reserved Forest (Compartment No. 26 & 27), Mahankaligudem Village, Nereducherla mandal, of Nalgonda District Telangana. DCL has earlier obtained EC (vide Letter No: J-11015/642/2007-IA.II (M) Dated October 18 2007) for 0.3 MTPA of Limestone production. Mine was opened on 23rd March 2015. The present proposal is for obtaining Environmental Clearance for Increase of limestone production from 0.3 to 2.3 MTPA from Ministry of Environment & Forests & Climate Change (MoEF&CC) under 1(a) category of EIA notification SO1533 dated 14th Sep. 2006 and subsequent amendments dated 01.12.2009 & 04.04.2011. A copy of the mining lease letter is enclosed as Annexure – 1 PROJECT PROPONENT: DECCAN CEMENT LIMITED., DCL is one of the cement producing business houses having installed production capacity of about 1.5 MTPA Cement Production in the state of Telangana. DCL was promoted by Sri M.B.Raju and associates in 1979 to set up a mini cement plant with an installed capacity of 66000 tonnes per annum in Nalgonda District of Telangana. The company commenced it’s commercial production in the year 1982. DCL was the first mini cement plant in the country to adopt the dry process Rotary Kiln Pre-calcinatory technology for the manufacture of Ordinary Portland Cement (OPC) in technical collaboration with Onoda Engineering of Japan. DCL also diversified into manufacturing ‘special grade cements’ like Sulphate Resistant Cement, Low Heat Cement, Low Alkali Cement, Pozzolona Portland cement and other customized cements for use in various projects such as Thermal Power Plants, Bridges, Fertilizer Plants, Hydro Power Plants, etc. DCL is presently manufacturing 0.3 MTPA of these cements. DCL has also been manufacturing and marketing Slag cement, with various compositions of clinker and slag, as per market requirements, for which purpose it has setup a separate unit for production of slag cement up to 0.3 MTPA As a part of its corporate diversification plans, DCL ventured into power generation. DCL has put up a Hydro Power project of 3.75 MW installed capacity on the Guntur Branch Canal near Narsaraopet, Guntur District and Wind Farm Power project of 2.025 MW capacities at Ramagiri, Ananthapur District, both in Andhra Pradesh. These projects were the first of its kind in the state of Andhra Pradesh and also the first to enter into Wheeling Agreements with the erthswhile APSEB for captive utilization of energy at its cement plant. These power plants have been successfully operating and have generated over 23 million units per annum during the last ten years. DCL has also installed and successfully commissioned a 1.650 MW Wind Mill Project at Surandai, in Tirunelveli District of Tamilnadu, in September, 2006, at a total project cost of Rs. 10.40 crores. This unit is now operational and will generate about 5 million units per annum. DCL has setup a new cement plant of 1.50 MTPA at Mahankaligudem village, Neredcherla Mandal of Nalgonda district in Telangana adjacent to the existing cement plant. ii. Brief description of nature of the project The limestone mine is spread over 183.11 Ha with about proved mineral reserve of 80.62 Million Tonnes to produce 2.3 MTPA of Limestone from Mahankaligudem Village, Nereducherla mandal, Huzur Nagar Taluk of Nalgonda District Telangana. The mining of the deposit is worked by deep hole drilling & blasting with fully mechanized open cast mining method. The benches are 6 m height. The limestone produced from the mine is transported from the mines to the crusher inside the plant by dumpers of 19 t capacity. No top soil or waste is envisaged from the mine. The soil as and when generated from the mining will be used for greenbelt development. Hence stocking of top soil/waste in the form of dumps is not envisaged. iii. Need for the project and its importance to the country and or region. Cement industry is one of the main beneficiaries of the infrastructure boom. While on the one hand several big and small cement companies are actively considering expansion plans in anticipation of further growth in demand for cement, on the other, a phase of acquisitions and mergers among the existing players is also going on. In India, the south consumes maximum of 30% followed by East at 17%, North at 19%, central at 16%, and West 18%. Also, there is an increase in the consumption of PPC cement from 48% to 50%. Weaker sections’ housing, construction of public toilets, schools in rural area apart from several private and public infrastructure projects will also give tremendous boost to the cement consumption in the state As per the industry sources, demand has mainly come from the construction sector with the three main cities in the South - Bangalore, Chennai and Hyderabad - witnessing hectic construction activity, be it for the information technology sector, shopping malls or integrated townships. The construction of AP new capital coming up in the vicinity raised the demand for more cement in the region. The growth in demand has prompted many cement industries to consider expanding their capacities, both in present locations and in Greenfield locations. To meet the limestone requirement of the plant, DCL proposes for increase of limestone production from 0.3 to 2.3 MTPA from this mine. Since 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. Demand– supply Gap Since 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. The cement market has growth due to the central government liberalization policies and new schemes for housing, road projects. iv. Imports Vs Indigenous production. The limestone produced from the Deccan Cements Limited is meant for the captive consumption in the cement plant. v. Export possibility. No exports of limestone are proposed. vi. Domestic / export markets The limestone produced from the Deccan Cements Limited is meant for the captive consumption in the cement plant. vii. Employment generation (direct and indirect) due to the project. Mechanized method of mining is adopted. Manpower Requirement 39 CHAPTER – 3 PROJECT DESCRIPTION i. Type of project including interlinked and interdependent projects, if any. The project is for Increase of 0.30 MTPA to 2.3 MTPA from Bhavanipuram Limestone Mine – 3 spread over an area of 183.11 Ha. With about proved mineral reserve of 80.62 Million will last for 33 years. The limestone produced from the mine is of good grade limestone and is directly utilized for the cement production It is categorized as Category ‘A’ Project under Schedule 1(a) as the mining lease area is more than 50 Ha hence it necessitates obtaining Environment Clearance from Ministry of Environment & Forest (MoEF). ii. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. The mining lease area comprising 183.11 Ha is situated at Neredcherla Mandal, Huzur Nagar Taluk, Nalgonda district.
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