PRE-FEASIBILITY REPORT Of KOWLAPALLI LIMESTONE MINE Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. AREA OF MINING LEASE – 556.938 HA NON-FOREST LAND For LIMESTONE PRODUCTION – 2.3 MTPA By M/s. PENNA CEMENT INDUSTRIES LIMITED Prepared By B.S. ENVI-TECH (P) LIMITED Secunderabad – 500 017 PRE – FEASIBILITY REPORT 1. Executive Summary Penna Cement Industries Limited (PCIL) proposes to produce 2.3 MTPA of Limestone from its new mine i.e., Kowlapalli Limestone Mine spreading over an area of 556.938 Ha. in survey nos. 1 to 124, 151 to 173, 175 to 189, 233 to 274, 276 to 304, 316 to 351, 359 to 363, 369 to 376, 380 to 382, 391 to 394 & 897 of Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. The limestone from the subject area is proposed to cater the requirement of captive cement plant near Boyareddypalli. The mineable reserves in the subject mining lease area are estimated to be about 180 million tonnes. With the above reserves and at the planned production rate of 2.3 MTPA, the deposit will have life of 78 years. PCIL proposed to adopt opencast mechanised method of mining in the mining lease area to win the limestone production. The limestone from the mine will be transported to the crusher located at a distance of about 2.0 km. The crushed limestone will be transported through existing closed belt conveyor to the cement plant. The waste generated from the mine is only small quantity of black cotton soil and will be used for afforestation. The soil generated will be completely used for spreading in the barrier zone for Plantation. No overburden waste is generated from the mine The mined out area of Kowlapalli Limestone Mine will be converted into water reservoir to store the rain water. Total water requirement in the mining lease will be 200 m3/day. Water requirement will be met from existing mine pits of PCIL/ Private Tankers. The power requirement will be obtained from dedicated power supply from the State Grid of APSEB located at Gooty with a substation established near the plant. 30 persons will be employed at different levels. The Mines Manager shall be in charge of the mine holding First Class Manager’s certificate of competency issued under MMR, 1961. The capital cost of the project is estimated to be about Rs 30 crores. 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. PCIL is one of the largest privately held cement companies in India, with an installed cement capacity of 7 Million Tonnes Per Annum. Founded in 1991, Penna Cement has established itself as one of the most trusted cement brands, with significant footprints in southern and western India. Our clientele ranges from small house owners to established real estate developers and from various state governments to global construction majors. Over the last two decades, we have grown organically by developing in-house expertise and capabilities, across the entire value chain in the cement industry. All our cement plants are equipped with state- of-the-art technology, enabling the company to deliver the superior quality products. On August 10th 1994, PCIL commissioned first plant in Talaricheruvu, Ananthpur with an initial capacity of 0.2 MTPA. Over the last two decades, PCIL have installed 4 cement plants and one captive power plant and increased our capacity to more than seven million tonnes. Four cement plants are strategically located, to cater to customers all across Southern India. PCIL is accredited with ISO: 9001- 2008, IS: 18001:2007 and ISO:14001:2004. It is a professionally managed and well established cement manufacturing company enjoying the confidence of consumers because of its superior quality product and excellent customer service. PCIL is running cement plants and mine with latest eco-friendly technology. PENNA CEMENT INDUSTRIES LTD BOYAREDDIPALLI CEMENT PLANT PENNA CEMENT INDUSTRIES LTD., (PCIL), is operating a Cement Plant at Boyareddypalli Village, Yadiki Mandal, Anantapur District, Andhra Pradesh with the following production capacities 1.5 MTPA Clinker production capacity 2.0 MTPA Cement production and 10 MW Waste Heat Recovery based captive Power Plant The limestone requirement of the cement plant is met from captive limestone mine. PCIL proposes to increase Clinker production capacity of the Cement Plant from 1.50 MTPA to 4.0 MTPA which requires limestone of 5.3 MTPA. M/s. Penna Cement Industries Limited, Hyderabad have been granted Prospecting License initially and later Mining Lease for exploring limestone in the Kowlapally area with the objective of catering this limestone to the needs for the expanding capacity from 2 to 4 million tonnes per annum cement plant near Boyareddipalli village, Yadiki Mandal, Anantapur district, which is just 5 kms away from plant. The subject area is expected to cater the reserves available to meet the increased demand of the expansion of captive cement plant near Boyareddypalli. The lease area has been sanctioned by Government Of Andhra Pradesh under Sec 10A(2)(B) of MMDR act 2015. The Director of Mines and Geology, A.P., Vijayawada, has informed that as required under Sec 10 A (2) (b) of MM (D&R) Amendment Act, 2015 as the total P.L. granted area is 556.938 Hectares (1,375.63 Acs), the consent of the Company has been obtained for processing their M.L. Application. The Company has stated that they intended to utilize the mineral for captive purpose for their existing Cement Unit of 2 MTPA and also for further proposed expansion of another 2 MTPA near Boyareddypalli (V), Yadiki (M), Anathapuramu Dist. The DM&G while furnishing the check list information and the connected ROE has therefore requested the Government for issue of Notice in favour of M/s.Penna Cement Industries Ltd., Hyderabad to submit AMP, E.C.,CFE & CFO for grant of M.L. for Limestone for captive purpose over an extent of 556.938 Hectares in Sy.Nos.l to 124, 151 to 173, 175 to 189, 233 to 274, 276 to 304, 316 to 351, 359 to 363, 369 to 376, 380 to 382, 391 to 394 & 897 of Kowlapalli (V), Peapully (M), Kurnool Dist as per Sec 10 A (2) (b) of MM (D&R) Amendment Act, 2015.The mining lease over an area of 556.938 ha. in survey nos. 1 to 124, 151 to 173, 175 to 189, 233 to 274, 276 to 304, 316 to 351, 359 tp 363, 369 to 376, 380 to 382, 391 to 394 & 897 of Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh was granted by the Govt. of Andhra Pradesh, Industries and Commerce (M-III) Department to M/s Penna Cement Industries Limited vide Memo No. 5417/M.III(1)/2018, Dt.29.06.2018. The copy of the Memo from Govt of Andhra Pradesh is enclosed as Annexure- 1. Lease Sketch approved by Department of Mines & Geology is enclosed as Annexure-2. SUBJECT PROPOSAL Penna Cement Industries Limited (PCIL) proposes to produce 2.3 MTPA of Limestone from its new mine i.e., Kowlapalli Limestone Mine spreading over an area of 556.938 Ha located at Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. Kowlapalli Limestone Mine is covered in an extent of 556.938 ha is agricultural non irrigated PCIL’s own land. DETAILS OF MINING LEASE Mining Area Reserves Jurisdiction Lease Acres Ha. (Million (Village) Tonnes) Kowlapalli 1375.64 556.938 180 Kowlapalli Limestone Mine ii. Brief description of nature of the project PCIL proposes to produce 2.3 MTPA of Limestone from the Kowlapalli Limestone Mine by adopting opencast mechanized method of mining. iii. Need for the project and its importance to the country and or region. The limestone produced from Kowlapalli Limestone Mine is meant for the captive consumption in the cement plant of PCIL. iv. Imports Vs. Indigenous production. The limestone produced from Kowlapalli Limestone Mine is meant for the captive consumption in the cement plant of PCIL. v. Export possibility. No exports are proposed. vi. Domestic / export markets The limestone produced from Kowlapalli Limestone Mine is meant for the captive consumption in the cement plant of PCIL. Hence no exports are proposed. vii. Employment generation (direct and indirect) due to the project. 30 persons will be employed at different levels for operating the mine. 3. Project Description i. Type of project including interlinked and interdependent projects, if any. The project is for limestone production of 2.3 MTPA from Kowlapalli Limestone Mine which is spreading over an area of 556.938 ha and falls under the jurisdiction of Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh with about proved mineral reserve of 180 Million Tonnes will last for 78 years. The limestone produced from the mine is of good grade limestone and can be directly utilized for the cement production Status of the interlinked/interdependent projects:- Project Location Capacity Approvals Cement Boyareddypalli Increase Of Environmental Plant Village, Yadiki Production Clearance obtained for Mandal, Clinker: 1.5 to expansion Anantapur 4.0 Million District, Andhra Tonnes per Pradesh. Annum CEMENT: 2.0 to 4.6 Million Tonnes per Annum It is categorized as Category ‘A’ Project under Schedule 1(a) as the mining lease area is more than 100 Ha hence it necessitates obtaining Environment Clearance from Ministry of Environment & Forest and Climate Change (MoEF&CC). ii. Location (map showing general location, specific location, and project boundary & project site layout) with coordinates. Kowlapalli Limestone Mine is falling under the jurisdiction of Kowlapalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh and is located at about 4 km from the cement plant of PCIL.