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Pre-Feasibility Report

1. Executive Summary: The Department of Mines and Geology (DMG) – , granted the Building Stone Quarry Lease, over an extent of 5.00 Acres (2.023 Ha) in Sy. No. 04 of Hussainpur Village, Koppal Taluk, . Subsequently Quarry Lease executed under QL No. 306/11-12 by the Department of Mines and Geology – Koppal, for the term of 5 years lease period with effect from 28-05-2011. In accordance with the amended Minor Mineral Concession Rules 1994, the Department of Mines and Geology – Koppal, directed the lessee to obtain the necessary approvals including Environmental Clearance for continuation of Quarry Operations.

In accordance with the statuary obligation this project needs Environmental Clearance from the Department of Environment & Ecology, GoK to execute the lease renewal. Accordingly Project Proponent has submitted 1) Form- I, 2) Pre-Feasibility Report, 3) Quarry Plan approved by Department of Mines and Geology, Koppal 4) Land documents, 5) Lease Deed, 6) Statutory Clearances, 7) Survey of Toposheet duly marking the lease area and 8) Google Imagery duly marking the project site, to the State Environment Impact Assessment Authority of Karnataka constituted by MoEF, GoI for grant of Environment Clearance as per the Notification.

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:

Identification of project: Project proponent:

Hussainpur Building Stone Quarry, M/s Shree Sheshadri Steels and Metalics Pvt. Ltd. Extent:5.00 Acres(2.023 Ha) D.No.45, Ward No. 224, Sy. No: 04, Hussainpur Village, Opp M.B.T. Petrol bunk, 1st Floor, Koppal Taluk, Koppal District. Bellary Road, – 583201 Bellary District, Karnataka. 2

It is an existing Building Stone Quarry, a copy of quarry lease deed executed by the Department of Mines & Geology, Koppal is enclosed.

ii) Brief description of nature of the project: Rapid industrialization and growth in infrastructure has made global as well as domestic demand for the building stone and its aggregates. So, number of building stone quarries and industries are coming up in this sector. Based on the demand, the lessee intends to produce the required quantum of building stone for domestic marketing.

The proposed operations are aimed to produce Building Stone. Blasted sheet rock can be termed as raw Building Stone material which further segregated in to different fractions depending on the nature/purpose of construction and market requirements. Building Stone is the principle raw material for the infrastructural engineering projects such as Road projects, Railway projects, Building construction, etc. Proposed Building Stone quarrying operations are in small scale and limited to the core zone area of 5.00 acres with annual production capacity of 60,000 tons/ year.

iii) Need for the project and its importance to the country and or region: The quarry lease area consisting the potential deposit of Building stone which can be used as raw material in the development of infrastructural engineering projects such as roads, railways, building construction, etc. As the infrastructural development of the region is in raising phase, Building Stone Material poses good domestic market and the applicant intended to market the entire production of Building Stone locally in the domestic market. Although, the project is in small scale it plays an important role in the development of the region and country as building stone and jelly are used for construction of Buildings, Roads and Railway projects.

iv) Demand- Supply Gap: Building stone poses good demand in domestic market and to fulfill these market demands number of new quarries coming up in the sector. Hence, the lessee will 3

market entire material produced from the Building Stone Quarry in the local market only. v) Imports vs. Indigenous production: Not applicable. vi) Export Possibility: No possibility. vii) Domestic/ export Markets: Only domestic market. viii) Employment Generation (Direct and Indirect) due to the project: About 17 people will get direct employment and equal number or more will get indirect employment.

3 Project Description i) Type of project including interlinked and interdependent projects, if any: It is only Quarry and there will not be any interlinked and inter dependent projects.

ii) Location (map showing general location, specific location, and project boundary & project site layout) without coordinates:

Location of the project site marked on Survey of India toposheet no. 57 A/7. (1:50,000 scale) is enclosed.

The project site located at following geographical coordinates

Map Datum:- Indian – Bangladesh Points Latitude Longitude

A 150 21’ 54.7” 760 22’ 12.3”

B 150 21’ 55.0” 760 22’ 19.5”

C 150 21’ 51.4” 760 22’ 19.9”

D 150 21’ 51.2” 760 22’ 14.5”

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iii) 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 considered.

iv) Size or magnitude of operation: The Building Stone Quarry project is in small scale with proposed production capacity of 60,000 tons/ year.

v) Project description with process details (a schematic diagram/ flow chart showing the project layout, components of the project etc. should be given):

The Building Stone project involves extraction of Building Stone material from the hard rock formation by adopting semi-mechanized opencast quarrying method.

vi) 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 materials required. Produced Building Stone will be transported to the destination with valid mineral permits by deploying tippers.

vii) Resource optimization /recycling and reuse envisaged in the project , if any, should be briefly outlined:

No recycling and reuse of material is envisaged as entire broken Building stone rock will be transported.

viii) Availability of water its source, Energy /power requirement and source should be given:

Required water of 3 KLD will be sourced from nearby existing sources such as surface water bodies and bore wells. No additional energy /power requirements for this.

ix) Quantity of wastes to be generated (liquid and solid) and scheme for their Management /disposal : 5

No liquid wastes to be generated. Small quantity of 2,452 tons of intercalated waste shall be handled during the plan period. An estimated quantity of around 22,102 tons of waste will be generated during entire life of the quarry. Entire waste generated from quarry shall effectively utilized for the periodical maintenance of haulage/approach roads and as foundation filling material in minor building construction.

4 Site Analysis

i) Connectivity: Bandi Harlapura to Arlapura road passing in the southern direction of the Quarry Lease area at 2.3 km distance. NH-13 passing in the western direction of the Quarry Lease area at aerial distance of 5.82 Km. Quarry Lease area is well connected with road network can be approached by road in all seasonal conditions. Bandi Harlapura is the nearest Village situated 2.4 km away from the Quarry Lease area in southwestern direction.

ii) Land Form, Land use and Land ownership:

Quarry Lease area comprising of a small mound showing gentle slope towards northern direction and is trending in NE-SW direction. The entire area is characterized with sheet rock and nonagricultural barren land (Govt. revenue land).

iii) Topography(along with map): The topography of the Quarry Lease area comprises part of moderate hill trending in the NE-SW direction. Terrain is a rugged and undulating. The minimum and maximum elevation of 500 m and 517 m above MSL had been marked on the Surface Plan during topographical survey of the Building Stone quarry lease area. The general slope of the terrain is moderate and towards southern direction. The drainage pattern of the terrain is sub-dendritic with moderate drainage density and is formed by the network of several small rain-fed runoff channels originating from the elevated areas. No major rivers or perennial drains has been noticed in 6

the core zone and immediate buffer zone of the subject Building Stone quarry area.

iv) 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:

Existing Land Use of the core zone:

Quarrying Area …. 0.385 Ha. Roads …. 0.050 Ha. Area for safety zone ….. 0.435 Ha. Area to be quarried ….. 1.149 Ha. Total ….. 2.023 Ha

Distance from the ecologically sensitive areas:

Nearest Sensitive Area Name Distance from the Project

a) Reserve Forest Reserved Forest 4.13 Km in the NW direction

b) National Park -- -- c) Wild life Sanctuary -- -- d) Eco sensitive areas -- -- Harlapur Village Surface e) Water bodies 1.25 Km in SE water tank f) CRZ, -- --

v) Existing Infrastructure: The construction of temporary structures for quarry office, rest shelter, first aid station etc., are proposed to be provided within the quarry lease. The details are collected from the core and buffer zone of the quarry lease. The drinking water, phone, electricity and primary education facilities are available in the nearest 7

village Bandi Harlapura. The police station, post office, dispensary and college facilities are available at Taluk and District headquarter Koppal. The lease area is well connected with road network and approachable in all seasonal conditions. vi) Soil classification: The soils of the district are derived from Granites, Gneisses and Schistose rocks. The Sandy loam soil mixed with black and grey soil occurs along the stream beds. These are originated from gneisses and granites. They are permeable and mildly alkaline in nature. The thickness of the soil varies from 0.2 to 1.00m in the region. The Red soils are the major type of soil in the district, found mainly at elevated places especially at fringes of hills due to decomposition of rocks and surrounding granitic and gneissic hills. These soils are with high permeability and neutral PH. Adjoining lands of Quarry Lease area comprises Red Soil. Little amount of soil if any generated during quarrying will be utilized for the afforestation purpose proposed all along the approach road.

vii) Climatic data from secondary sources: Climate is dry and hot. Area receives limited rain fall.

viii) Social Infrastructure available: The area is approachable by road in all seasonal conditions and the details of habitations within 10.00 Km radius is as follows.

Bandi Harlapura – 2.40 Km – SW Shivpur – 3.69 Km – SW – 7.50 Km – SW Igalkere – 5.13 Km – SW – 7.11 Km – SW Guddanahalli – 8.93 Km – West Danakkanadoddi – 9.48 Km – NW Budagumpa – 6.56 Km – NW Chandrageri – 2.86 Km – NW Halekumta – 3.74 Km – NE Mukkumpi – 6.83 Km – NE Rangapura – 8.22 Km – East – 7.18 Km – SE 8

Arlapur – 2.89 Km – SE Kallaghatti – 7.11 Km – SE

Nearest railway station at Koppal - 23.00 Km Nearest Air Port at Bangalore - 363.00 Km Nearest Sea Port at Belekeri - 288.00 Km

5 Planning Brief

i) Planning Concept (type of industries, facilities, transportation etc.) Town and country Planning/ Development authority classification. The lease area comprises of building stone characterized with thin pegmatite and quartz veins. The quarry is proposed to be worked by forming benches with general pit slope of 450. During the plan period production and development details as furnished in quarry plan. At the end of the conceptual period afforestation all along buffer zone and approach road, safety bunds, fencing and retaining walls shall be constructed as per the directions and guide lines of DMG and DGMS.

ii) Population Projection. The man power required for quarry operations include quarry manager, engineer, skilled and semi-skilled labourers etc., As for as the socio-economic is concerned from the quarrying activity nearby villagers shall get direct and indirect employment. The proposed quarry activities shall bring positive change in the villages as the quarry proponent shall provide socio-economic activities in the region.

iii) Land use planning (breakup along with green belt etc.) The total lease area of 5.00 acres is required for quarrying and related works.

iv) Assessment of Infrastructure Demand (Physical & Social): The existing road network will be sufficient to meet the proposed production capacity. Only approach road making is required to reach the quarry. However, 9

required infrastructure for transportation within the lease hold area will be further strengthened and improved. No new routes or alternations are required in this regard. v) Amenities/ Facilities Around 17 persons will get direct employment, similar or more number of persons will employed indirectly. This employment has a positive impact on socio economic conditions of the nearby villages as most of the work force will be from the nearby areas. Local persons will be hired for meeting the requirement of trucks loading, plantation, Construction of check dams and retaining walls etc., drinking water, rest shelter and first aid will provided to workers at quarry site.

6 Proposed Infrastructure Present infrastructure will meet the requirement of the project. The conditions of the roads in the buffer zone are likely to be impacted due to the proposed quarrying and transportation of building stone. The proponent and district administration will also contribute to development and maintenance of roads.

i) Industrial Area(Processing Area) : Nil

ii) Residential Area (Non Processing Area) :Nil

iii) Green Belt: About 100 saplings will be planted every year, along approach road and buffer zone area.

iv) Social Infrastructure Connectivity (Traffic and Transportation Road/Rail/Metro/Water ways etc): Bandi Harlapura to Arlapura road passing in the southern direction of the Quarry Lease area at 2.3 km distance. NH-13 passing in the western direction of the Quarry Lease area at aerial distance of 5.82 Km. Quarry Lease area is well connected with road network can be approached by road in all seasonal conditions. Bandi Harlapura is the nearest Village situated 2.4 km away from the Quarry Lease area in southwestern direction.

The nearest railway station located at Koppal which is at road distance of 23 Kms from the Quarry Lease area.

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The nearest airport is Bangalore is at road distance of 363 km. The nearest sea port is Belekeri which is at road distance of 288 km.

v) Drinking Water Management (Source & Supply of water): There are no water courses within or adjacent to the quarry lease except some rain-fed run-off channels, hence, there is no disruption of the water course involved and rain water will continue to flow in the same direction as in existence. The surface water in the buffer zone is by means of seasonal rainfall and the ground water encountered 25-30m depth below from the general ground level. Purified mineral water will supplied for mine workers for drinking purpose and the water available nearby bore wells and surface waterbodies shall be used for dust suppression and plantation purpose. During the course of quarry operations no diversion of water course is considered as it does not exists.

vi) Sewerage System: The existing water courses shall not be disturbed and rain water will continue to flow in the same direction. Drains will be established to connect the working benches surface runoff with existing drains and gully plugs shall be constructed to settle down the suspended particles in the runoff. There is no generation of domestic sewage.

vii) Industrial Waste Management: There is no generation of effluents/toxic substance involved in the quarrying operations. The waste rock produced from the quarry is inert in nature, hence, treatment of quarry water does not arise.

viii) Solid Waste Management: Solid waste from the proposed operations mainly comprised of soil, weathered and defective stony material. If any soil generated during quarrying operations shall utilize for afforestation purpose proposed all along the approach road (Ref. Plate No.5 of Quarry Plan). Intercalated waste is produced may be of defective 11

material along the emplacements of pegmatite/epidote veins and deformed material along the fractures. It is estimated that 2% of entire excavation shall account for the intercalated waste, which shall be used for maintenance of haulage/approach roads and used as foundation filling material for minor building constructions. No toxic/hazardous elements are reported in the waste & hence, no effect on the surface/ground water.

ix) Power Requirement & Supply /source: 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. All the equipment shall be operated with diesel as motive power.

7 Rehabilitation and Resettlement (R & R) Plan Opencast quarry operations 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., if proper care is not taken. As there is no proposal of waste dumps water pollution chances would be very minimal and can be mitigated by implementation of proper preventive measures. 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, establishment of effective drainage system, prevention of erosion and excessive run off and afforestation.

As the quarry area is concerned, so far none of the Quarry Lease area is matured or completely exhausted as this is new lease in the process of grant. Hence, the measures like retention walls, drainage system and afforestation works etc., shall be taken up. 12

8 Project Schedule & Cost Estimates The estimated total cost of the project is 35 lakhs. The land is owned by Govt. (revenue land) including the cost of machinery and additional preliminary works and working capital etc.

The return on the investment is by way of sale of mineral (Building Stone). All the mineral 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 average proposed production of building stone is 60,000 tons/ annum. The major components required to the project are 1. Cost of the project 2. Means of financing 3. Cost of production 4. Tax burden and flows 5. Profitability

 Cost of the project

The cost of the project consists of the following major components:

1 Land and site development

2 Building and civil works

3 Machinery and maintenance

4 Processing charges and consultancy charges for preparation of quarry plan, EMP reports etc.

5 Margin money for working capital

 Cost of production The average proposed production of building stone during the 2 years plan period is 60,000 tonnes per annum. The cost of production includes the following parameters.