PRE FEASIBILITY REPORT O f Erragudi-Hussainapuram-Yanakandla Limestone Block (LEASE AREA: 131.586 Ha) Erragudi, Hussainapuram, and Yanakandla Villages, Banaganapalli Mandal, Kurnool District, Andhra Pradesh For 0.6 MILLION TONNES PER ANNUM OF LIMESTONE PRODUCTION CAPTIVE LIMESTONE MINE O f SREE JAYAJOTHI CEMENTS PRIVATE LIMITED Yanakandla Village, Banaganapalle Mandal Kurnool District, Andhra Pradesh 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. EXECUTIVE SUMMARY M/s. Sree Jayajothi Cements Private Limited (SJCPL) located at Yanakandla Village, Banaganapalle Mandal, Kurnool District, Andhra Pradesh was acquired by M/s. My Home Industries Private Limited, Hyderabad in 2013. SJCPL present clinker and cement production capacity is 2.2 MTPA and 3.2 MTPA respectively. SJCPL cement plant is supported by two captive limestone mines viz, Yanakandla Limestone Mine and Palkur Limestone Mine located in Banaganapalle Mandal, Kurnool District. The subject new Mining Lease (Erragudi- Hussainapuram-Yanakandla Limestone Block) over an area of 131.586 Ha is located in villages Erragudi, Hussainapuram & Yanakandla, Mandal Banaganapalli, District Kurnool District, Andhra Pradesh. The subject mining lease area of 131.586 ha. is USHB and Govt land. No forest land involved. The method of mining will be open cast mechanized method and proposed production capacity is 0.6 Million Tonnes Per Annum (MTPA). The salient features of the project are given Table 1. Limestone resources in the ML area are about 9.037 million tonnes. It is proposed to excavate 0.60 million TPA limestone maximum from this mine every year. It is planned to extract mineral from this mine upto 6th five year mining plan period i.e. about 30 years. After detailed exploration the resources will be reassessed. The limestone produced from this mine will be transported to the existing crusher by tippers and mainly used for blending of sub-grade limestone produced from existing Yanakandla Limestone Mine & Palkur Limestone Mine to meet the quality requirements of cement plant and increase life of existing mines and also continuous resources availability to the cement plant. The entire area under EHY block comprise outcrops of Limestone. No topsoil and over burden generation is envisaged during the life of the mine. Peak water requirement for the proposed mine is about 47 m3/day for dust suppression, plantation and domestic purposes. This requirement will be supplied by existing mine pits of captive Limestone Mine i.e., Yanakandla Limestone Mine initially and after formation of the mine pit, rain water collected in the mine pit will be used. The capital cost of the project is estimated as Rs. 10.0 crores. TABLE - 1 SALIENT FEATURES OF THE MINE SITE Feature Details Mining lease area 131.586 ha Altitude 300 m above msl (average) Longitude Between 78° 09' 25.43278" E - 78° 11' 35.43709" E Latitude Between 15° 22' 33.83583" N -15° 22' 59.21049" N Erragudi, Hussainapuram, and Yanakandla Villages, Village, Tehsil, District, State Banaganapalli Mandal, Kurnool District, Andhra Pradesh. Sy. No. USHB of Erragudi Village, Sy.No 20 of Location / Sy.Nos. Hussainapuram Village Sy.No 390 of Yanakandla Village, Banaganapalli Mandal Max. Temp. oC 45.6 Min. Temp. oC 6.7 Relative Humidity, % 25-77 Annual rainfall 725.9 mm IMD Station Kurnool - 51.0 km - NNW Jurreru River – 6.0 km - S Nearby water bodies Lotu Vagu – 8.0 km – WSW National Highway (NH-18) - Kurnool – Kadapa - 21.0 km - NE Nearest Highway National Highway (NH-7) - Kurnool – Anantapur - 34.0 km - W, Nearest Railway station Betamcherla RS - 7.5km - NW Nearest Industries Sree Jayajothi Cements Private Limited – 3.0 km - SE Erragudi – 0.2 km – N Nearby Villages Hussainpuram – 1.2 km – NE Yannakondla – 2.5 km – SE District Head Quarter Kurnool - 51.0 km – NNW Nearest Port Area Krishnapatnam Port – 240.0km – SE National Parks/Bird Rollapadu Bird Sanctuary – 44.0 km – NE Sanctuaries Inter State Boundary Karnataka - Andhra Pradesh - 97.0 km – NW Nearest Air port YSR Kadapa – 114.0 km – SE Nearest Forest Rangapuram Block BRF – 3.5 km – N Panyam RF – 6.0 km – N Ramatirtham Extension Block II RF – 4.7 km –NNE Ramavaram RF – 6.8 km - S Historical places None within 10 km radius *all distances mentioned in the above table are aerial distances CHAPTER – 2 INTRODUCTION OF THE PROJECT / BACKGROUND INFORMATION 2.0 INTRODUCTION OF THE PROJECT / BACKGROUNDINFORMATION i. IDENTIFICATION OF PROJECT AND PROJECT PROPONENT. IN CASE OF MINING PROJECT, A COPY OF MINING LEASE / LETTER OF INTENT SHOULD BE GIVEN. The proposed Mining Lease (Erragudi- Hussainapuram-Yanakandla Limestone Block) over an area of 131.586 Ha is USHB and Govt land located in villages Erragudi, Hussainapuram & Yanakandla, Mandal Banaganapalli, District Kurnool District, Andhra Pradesh. Letter of intent for grant of Mining lease issued by Govt of AP is enclosed as Exhibit -1. The method of mining will be open cast mechanized method and proposed production capacity is 0.6 Million Tonnes Per Annum (MTPA). Limestone resources in the ML area are about 9.037 million tonnes. It is proposed to excavate 0.60 mtpa limestone maximum from this mine every year. Accordingly the available established limestone resources estimated under G3 category exempted by the Government and converted into G2 Level of exploration and the limestone resources after convertion of the entire area into G1 Level of exploration. It is planned to extract from this mine upto 6th five year mining plan period i.e. about 30 years. After detailed exploration the resources will be reassessed. The limestone produced from this mine will be transported to the existing crusher by tippers and mainly used for blending of sub-grade limestone produced from existing Yanakandla Limestone Mine & Palkur Limestone Mine to meet the quality requirements of cement plant and increase life of existing mines and also continuous resources availability to the cement plant. PROJECT PROPONENT M/s. Sree Jayajothi Cements Private Limited (SJCPL) located at Yanakandla Village, Banaganapalle Mandal, Kurnool District, Andhra Pradesh was acquired by M/s. My Home Industries Private Limited on 27th September 2013. My Home Industries Private Limited is part of a leading 4000cr business conglomerate- “My Home Group”. M/s. Sree Jayajothi Cements Private Limited, continues to be separate entity under Companies Act 2013 with its registered office at 9th Floor, Block-3, My Home Hub, Madhapur, Hyderabad. The Company’s cement is marketed under the brand “MAHA”. ii. BRIEF DESCRIPTION OF NATURE OF THE PROJECT The proposed project is a limestone mine spread over an area of 131.586 Ha is USHB and Govt land located in villages Erragudi, Hussainapuram & Yanakandla, Mandal Banaganapalli, District Kurnool District, Andhra Pradesh. The method of mining will be mechanized open cast mining method with deep hole drilling & blasting and proposed production capacity is 0.6 Million Tonnes Per Annum (MTPA). Limestone resources in the ML area are about 9.037 million tonnes. It is proposed to excavate 0.60 mtpa limestone maximum from this mine every year. Accordingly the available established limestone resources estimated under G3 category exempted by the Government and converted into G2 Level of exploration and the limestone resources after convertion of the entire area into G1 Level of exploration. It is planned to extract from this mine upto 6th five year mining plan period i.e. about 30 years. After detailed exploration the resources will be reassessed. The limestone produced from this mine will be transported to the existing crusher by tippers and mainly used for blending of sub-grade limestone produced from existing Yanakandla Limestone Mine & Palkur Limestone Mine to meet the quality requirements of cement plant and increase life of existing mines and also continuous resources availability to the cement plant. The subject applied area is a hilly terrain, the Erragudi-Hussainapuram- Yanakandla (EHY) Limestone block comprise of a chain of hillocks separated by a wide stretch of flat and rocky land. In general, the elevation of EHY Block ranges from 255 m AMSL to 330m AMSL. The base contour (in the EHY Block) is 255Mts above MSL. The highest point is 330Mts above MSL. The benches shall be of 8 m height with a width of 20 m. The benches shall be sloped at 75o-80o to the horizontal. Since, the formations are very hard and near horizontal with dip angle between 15 o – 20o, there will not be risk of any slope failures. The entire area under EHY block comprise outcrops of Limestone. No topsoil and over burden generation is envisaged during the life of the mine. The total area, which will be broken for mining by the end of 30 years, is 80.9353 ha out of 131.568 Ha. After complete extraction of Mineral, 80.9353 Ha. of area will be levelled to surrounding ground level and used for development of grazing land/ cultivation Further about 12.00 Ha. of non- mineralized area will be used for afforestation development. iii. NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE COUNTRY AND OR REGION. The main raw material - limestone for cement plant is presently supplied from the existing captive limestone Mine viz, Yanakandla Limestone Mine and also planned to supply from Palkur Limestone Mine. Both these mine are having sub grade / low grade limestone. Hence, it is proposed to blend limestone from the subject mine, with the limestone produced from existing mines to meet the quality requirements of cement plant and increase life of both mines and also continuous resources availability to the cement plant. DEMAND– SUPPLY GAP Limestone is the main raw material for cement production, the demand is always there with that of cement.