PRE-FEASIBILITY REPORT

Of

GRENFIELD CEMENT PLANT Kallamalla Village, YSR Kadapa District,

Andhra pradesh

For

CLINKER PRODUCTION -2.0 MTPA

CEMENT PRODUCTION- 3.0 MTPA

By

LOK CEMENTS LTD

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).

1.0 EXECUTIVE SUMMARY

M/s Lok Cements Limited (LCL), an industry of Birla Corporation(BC)

ABOUT BIRLA CORPORATION

This flagship company of the M P Birla Group has presence in

Cement, Jute Products, PVC Floor Covering, Auto Trim and Steel

Casting industries.

Birla Corporation Limited is in the production and marketing of

cement since the past 52 years and possesses a wealth of knowledge

and expertise in the technology & business of cement. The Company

has been included in the prestigious ‘’Best under a billion” list by

Forbes, Asia based on its excellent performance.

The Cement Division has 7 (seven) plants in various States in India,

having a capacity of approx. 9.3 Million Tons per annum.

There are plans to grow to 15 million ton capacity in cement

production by end 2014-15. A list of Cement Plants is given below:

Satna Cement Works (SCW) and Birla Vikas Cement (BVC) at Satna,

Madhya Pradesh, India. Capacity: 2.4 Million Tons

Raebareli Cement Works at Raebareli, Uttar Pradesh India. Capacity:

0.70 Million Tons & Raebareli Hitech Cement Works at Raebareli

Capacity: 0.5 Million Tons in under progress.

Birla Cement Works (BCW), Chanderia Cement Works (CCW) and New

Chanderia Cement Works (CCW) at Chanderia, Rajasthan, India.

Capacity: 3.7 Million Tons,

Durgapur Cement Works (DCW), Durga Hi-Tech Cement (DHTC) at

Durgapur, West Bengal, India. Capacity: 2.0 Million Tons

All our 7 (seven) plants are ISO certified.

The company holds limestone mining leases in India, in the States of

Madhya Pradesh and Rajasthan and has long operating experience. The

cement plants are with most modern technologies, environment friendly

with waste heat recovery systems.

There are experienced and qualified teams of personnel for complete

cement plant project design & engineering and also to operate and

maintain limestone mines and cement plants.

These plants manufacture varieties of cement like Ordinary Portland

Cement (OPC) of 33, 43 and 53 grades, Portland Pozzolana Cement (PPC)

(Flyash-based), Low Alkali Portland Cement, Portland Slag Cement, Low

Heat Cement and Sulphate Resistant Cement. The company has wide

marketing network across India.The brief financial position of the

company is as below:

PHILANTHROPIC ACTIVITIES

The M P Birla Group is well-known for its philanthropic activities. It

manages several hospitals and educational institutions in different

States.

Educational Institutions:

South Point School, Kolkata

M P Birla Foundation Higher Secondary School, Kolkata

Industrial Training Institute at Rewa, Madhya Pradesh

M P Birla Institute of Management, Bangalore

Birla Institute of Astronomy & Planetarium Science, Kolkata

Schools at Birlapur (West Bengal), Satna (Madhya Pradesh),

Chanderia (Rajasthan)

Hospitals:

Bombay Hospital, Mumbai & Indore

Belle Vue Clinic, Kolkata

Priyambada Birla Aravind Eye Hospital, Kolkata

Birlapur Hospital, Birlapur (West Bengal)

M P Birla Hospital, Satna and Siddhi (Madhya Pradesh)

Priyamvada Birla Cancer Research Institute, Satna (Madhya Pradesh

BCL proposes to setup a Greenfield Cement Project of production 2.0

MTPA clinker and 3.0 MTPA cement , at Kalamala village of

Yerrakuntla Mandal of YSR Kadapa district, Andhra Pradesh. In the

name of Lok Cements Limited(LCL). Limestone requirement of the

plant will be sourced from captive mine located 0.5 km east of cement

plant area.

The primary markets of interest for BCL are Rajasthan, NCDR,

Chhattisgarh, Madhya Pradesh and West Bengal. Now, BC proposes to

spread its wings in Southern India with setting up of the Lok cement

plant to meet the demand in AP, Karnataka, Tamilnadu, and Kerala

The cement plant will be located in an area of 80 Ha .

The principal raw materials are Limestone, iron ore, Coal and

Gypsum. The major raw material, limestone will be met from Captive

limestone mine.

The Captive Limestone mine spread over an area of 575 Ha with about

90 million tonnes of proven reserves and will meet the limestone

requirement for more than 30 years.

Initially, the Coal will be imported or procured through E-Auction. , till

the coal linkage is established with the Ministry of Coal. Indian Coal

required for Cement plant will be sourced from Coal fields of Singareni

Collieries Company Limited (SCCL).

Water requirement of the plant is 800 m3/day and will be met from

Ground water initially and from mine pit at a later stage.

The project is based on Clinkerization factor of 1.5 on kiln feed basis

with specific heat consumption of 700 Kcal/ kg clinker.

No solid waste generation from the plant.

Wastewater generation is only from domestic use and the same is

treated in Sewage Treatment Plant.

There is no wild life sanctuary, national park, eco-sensitive area

within the 10 km radius of the project site.

Infrastructure include railway siding , roads, storm water drains with

adequate storage space for clinker and flyash and parking area will be

developed.

Housing Colony with about 150 houses is proposed.

Greenbelt will be developed in about 28 Ha.

Power requirement will be about 30 MW and will be met from Grid.

Plant is expected to be commissioned by November 2018.

Total capital Investment Cost is Rs. 1500 crores and Rs. 80 crores

will be spent for Environmental Management Plan.

Various sensitivity analyses indicate reasonable project and cash

break- even percentages. In view of the acceptable level of returns, the

project is financially feasible.

2.0 INTRODUCTION OF THE PROJECT/ BACKGROUND

INFORMATION

(I) IDENTIFICATION OF PROJECT AND PROJECT PROPONENT

Birla Corporation has established their brand cement in Northern

and Eastern states in a very short span of time. It has commitment

for providing better quality of cement and better services BC .now

proposes to enter into South India to widen its base.

The group’s philosophy already mentioned

The superior manufacturing process adopted by BC packs with

properties that make it stronger and more reliable than other

cements.

The highest level of in quality is maintained at every step of the

manufacturing process. This starts with the choice of

mined limestone, which is one of the purest and in fact one of the best

deposits in the Country. The world class Vertical Rawmills & Pyro

Processing Unit ensures high standards of processing. The quality is

controlled by electronic Weigh Feeders for raw material grinding and

clinker grinding, thus ensuring a more uniform particle size

distribution of cement. The efficient packing by electronic packers

ensures the right quantity and quality of cement.

(ii) BRIEF DESCRIPTION OF NATURE OF THE PROJECT.

Lok Cements Limited (LCL) , Group company of Birla

Corporation proposes to setup a Greenfield Cement Plant based

on state-of-the- art technology.The proposed cement plant will

be capable of production capacity of 2.0 MTPA clinker and 3.0

MTPA cement at Kalamala, near Yerrakuntla in Rayalaseema

region of Andhra Pradesh. . .

POWER

The requirement of power is estimated to 30000 KVA which will be

availed from APCPDCL nearest sub-station,

In case of any power interruptions or power failures, to operate the

kiln section, loading & dispatch section and other necessary utilities,

suitable capacity DG set will be installed.

In addition to the above, LCL is proposing to install the ‘waste heat

recovery system’ for generating power of approx. 8.0 MW from the

waste heat being generated from the pyro section

The plant layout is shown in FIGURE-A

FIG - A

PLANT LAYOUT

(iii) NEED FOR THE PROJECT AND ITS IMPORTANCE TO THE

COUNTRY AND OR REGION

It is expected that, the Cement demand will grow at much higher rate

than the national average. The bulk distribution of cement in the

region is likely to see a high growth due to a number of new Ready Mix

concrete plants and projects. Considering this, LCL proposes to

produce Cement with installation of this new plant.

Opportunities for the Industry

Though India ranks second in the world in cement production, its per

capita annual consumption is very low. Per capita consumption in

India has grown from a low level of 70 Kg to around 180 kg over the

last 8 years, which is still way behind the world per capita

consumption of 800 Kg (as of 2013). Cement Industry has growth

potential not only within the country but also for exports to the

neighbouring countries. With Indian growth rate rising, the

opportunities for the industry seem to be large.

Cement consumption in the coming years is likely to get a fillip

from Government initiatives for housing and infrastructure:

State highway development projects being undertaken by some

states

10,000 kms of additional highways (25% concrete)

Rural roads construction

Housing finance growing by over 25-30% annually

IT parks and SEZ zones development in proximity to metros

(iv) DEMAND- SUPPLY GAP.

Market demand and projections

Cement growth is expected to be above the GDP growth of the

country, which is expected to be around 8% for the coming

years. The Indian cement Industry is poised for a period of

significant growth and the demand for cement is expected to

match the current availability by the end of the current fiscal.

Cement demand has registered a CAGR of about 8.5% over the

last decade. In fact, at the current levels of growth, the cement

industry may have to add over 90 Million Tons of cement

capacity to meet the demand for cement over the next 5 years.

The industry performance during 2014-15 was characterized by

volume growth, stable to better cement prices and favorable demand-

supply balance in certain regions.

Cement companies were operating at levels below capacity in the past

but with the demand and supply reaching equilibrium, almost all

plants are working at above 90% capacity. This will improve the

realizations of the industry in the coming year.

(v) IMPORTS Vs INDIGENOUS PRODUCTION

India is self sufficient to meet the demands of the market with the

GDP projected at 10 % in the coming decades and in view of the

infrastructure.

The project proposed is the integrated project and the end product

being cement, the importance of the project is detailed below with

respect to cement demand. No import of limestone is planned

India is self sufficient to meet the demands of the market with the

GDP projected at 10% in the coming decades and in view of the

infrastructure.

i. Export possibility

The project proposed is the integrated project and the end product

being cement, the importance of the project is detailed below with

respect to cement demand. No import is planned.

Since the plant is located in the landlocked area and away from the

coast and the neighbouring countries, the logistic cost involved for

transporting good, it will not be economically viable export of cement.

ii. Domestic / Export markets

The project proposed is the integrated project and the end product

being cement, the importance of the project is detailed below with

respect to cement demand. The entire production is envisaged for the

domestic market.

Employment generation (direct and indirect) due to the project

The project will create the direct employment of 150 People during the

operation phase of the project. During the construction phase, 400

people on daily average will be employed for a period of 24 months.

LCL will give preference to the local people during construction and

operation phase of the project depending upon the skill, job

requirement and capability. Several other indirect employment

opportunities will be created in the surrounding areas. Transport,

business, vehicle drivers and attendants, workshops, grocery and

retails, medical, etc.

3 PROJECT DESCRIPTION.

i. Type of project including interlinked and interdependent

projects, if any.

The proposed project is a cement plant interlinked with the limestone

deposit. LCL had received the mining lease spread over an area of 575

Ha from the Government of Andhra Pradesh Department of Mines

and Geology.

The limestone excavated from the mine will be transported by

dumpers to the crusher which is situated at Mines area .After

crushing the crushed limestone will be transported to the plant site

through belt conveyors.

The total mineable limestone reserves in the mining lease area are

estimated to be about 90 million tonnes. The life of the mine is

estimated to be more than 30 years as on now and gets enhanced

further.

Location (map showing general location, specific location, and

project boundary & project site layout) with coordinates

Fig – 1 shows the Location map of Plant site- cnclosed

Fig – 2 shows the Key Map of the LCL – enclosed

Table – 1 gives the salient features of the project site.

ANDHRA PRADESH

LOCATION MAP

Chittoor

SPSR Nellore

Prakasam

GunturKrishna

Kurnool

Anantapur

YSR Kadapa

West Godavari

East Godavari

Vishakhapatnam

Vizianagaram

Srikakulam

FIG - 1

INDIA

Y.S.R.KADAPA

Chinnamandem

Tsundupalle

Rayachoti

Erraguntlakota

Mudumpadu

Kottapeta

Galivedu

Lakkireddipalle

Konapeta

Maddimadugu

Vellaturu

Pellagiri

Koduru

Settigunta

Chitvel

PenagaluruNandalur

ObalamY.S.R Kadapa

Kumbhagiri

Khajipeta

Kamalapuram

Maidukuru

Proddatur

DuvvuruPayalakunta

Badvel

Jammalamadugu

KondapuramLavanuru

MuddanuruErraguntla

Koduru

Talamanchipatnam

Balapanuru

Lingala

Pulivendla

Vempalle

Porumamilla

Kalasapadu

18

PLANT SITE

LEGEND

RAILWAY TRACK

RIVER & CANAL

ROAD

DISTRICT BOUNDARY

STATE HIGHWAY

TALUK HEADQUARTER

DISTRICT HEADQUARTER

TOWN

STREAMS

NATIONAL HIGHWAY

PLANT SITE

18

Chennur

Tangaturu

Rajampet

Pullampet

Mgilipenta

Virapalle

Guvvalacheruvu

Polatala

Gangireddipalle

Tanduru

Simhadripuram

Peddapasupula

TABLE – 1

SALIENT FEATURES OF THE PLANT

Feature Details

Altitude 175 m above msl

Longitude Between 780 27’ 11.2” to 780 27’ 54.2” East

Latitude Between 140 41’ 16.8” to 140 41’ 52.5” North

Village, Mandal, District, State Kallamalla Village, Yerraguntla Mandal, Y.S.R.Kadapa District of Andhra Pradesh

Maximum Temperature oC 46.1

Minimum Temperature oC 10.6

Relative Humidity, % 33-76

Annual rainfall, mm 783.3

Topography Plain

Soil Type Clayey

Nearest IMD Station YSR Kadapa – 45.3 km – SE.

Nearest River Penneru River – 8.8 km - NE

Nearest Highway

National Highway - NH-18 connecting Chittoor – Kurnool is at 27.8 km in NE direction to the

Plant site. State Highway SH-31 connecting Bellary – Nellore is at 2.46 km in SSW direction to the

Plant site.

Nearest Railway station Kalamalla RS - 1.7 km - SW

Nearest Industries

India Cements Limited (Nidizivve) – 9.0 km – SE

India Cements Limited (Chilamakuru) - 2.6 km - SSE Zuari Cements – 11.2 km – SSE

Rayalaseema Thermal Power Station – 0.3 km – WNW

Nearest Villages

Mekalabalavapalle – 2.5 km – NE Kalamalla – 1.0 km – ENE Keshavapuram – 1.2 km - E

Sunnapurallapalle – 1.9 km – SSW Indlasiddayapalle – 0.2 km - SSW

Nearest Town Yerraguntla 10.0 km - SE

Nearest Inter State Boundary Andhra Pradesh – Karnataka – 96.5 km – SSW, Andhra Pradesh – Telangana – 141.6 km - SSE

Nearest Air port

Hyderabad (Shamshabad) Airport – 282.0 km – N,

Renigunta Airport-165km-SE Kadapa Airport – 40.1 km – SE,

Bengaluru International Airport – 181.0 km - SSW

Nearest Forest Niduzuvvi RF -7.2 km - SSE Kosinepalle RF - 1.2 km - W Yamavaram RF - 9.6 km - WNW

Historical places None Within 10 Km Radius.

* All distances mentioned in the above table are aerial distances.

ii. Details of alternate sites considered and the basis of selecting

the proposed site, particularly the environmental considerations

gone into should be highlighted.

Keeping in view of proximity to the Limestone deposit, the subject

cement plant site has been selected.

Following are the main criteria, considered for locating an integrated

unit/ unit of desired capacity:

The plant is close to limestone deposit

The site has sufficient flat/flatter / slightly undulating land, having

good load, bearing capacity to minimize the construction cost, for

accommodating plant, railway siding, development of greenbelt and

employees’ colony with all the amenities prospects for the project

capacity plant.

Adequate ground water and in the plant site.

Availability of reliable power supply is envisaged in the region.

Proper connectivity of the unit with roads, rail and reliable transport

network. Proximity to rail head to optimize transporting costs.

iv. Size or magnitude of operation.

Clinker Production capacity of 2.00 Million Tonnes Per Annum (MTPA)

and 3.00 MTPA cement .

v. Project description with process details (a schematic diagram/

flow chart showing the project layout, components of the project

etc. should be given)

Dry process with in- line Calciner Technology is adopted for

manufacturing of clinker.

Limestone is raised from captive open cast quarry made utilizing

mechanized mining and the same are transported to crusher by dump

trucks. In the crusher (-) 1200 mm size stones are crushed to (-) 75

mm size. With stacker, the crushed material will be spread across.

Separate stockpiles are provided for storing additives like laterite,

additives and iron ore etc. Material is reclaimed into the process by

reclaimer based on the preset quality requirement and sent to buffer

hopper of raw mill section.

Raw mill is a vertical roller mill where the cement grade raw mix is

ground to fineness suitable for burning good quality clinker. Raw meal

powder is stored in continuous blending silos, which further

homogenizes chemical composition of raw mix.

For processing raw meal to final clinker, proven calcination system

known as In-Line Calciner Technology is being adopted. This is highly

energy efficient and consistent quality clinker. Clinker formed in the

Kiln is cooled in Multi-movable Cross Bar Cooler to a temperature

convenient for handling and storing in stockyard / silo.

The clinker is extracted and transported to the buffer hoppers of

cement mill where it is mixed with gypsum and ground in Vertical

Roller Mill to the desired fineness. The separator in the mill is high

efficiency separator, which controls cement residue to desired micron

size. This helps in getting higher cement strength on the same blain

values because of better particle size control. In case of Pozzolana

Cement (PPC) Production about 30% Fly Ash will be added through a

separate Fly ash handling system to the Mill. The ground cement is

stored in the cement silo, which is extracted on demand of dispatch

through a set of elevator, packer hopper and to an automatic

electronic rotary packer. Bags are filled automatically for a weight of

50 kg each and get discharged to a loading machine, which enables

positioning of the bags in trucks/rake. This eliminates manual loading

and thereby saving time in loading and also the cement lost in

loading. Detailed Process Flow Diagram is enclosed.

The whole system of manufacturing is supported by a Centralized

Control System, which enables operating staff to run the whole plant

with utmost accuracy and quality consciousness. The system

available for control is backed up with colourographic monitors.

Modern quality control laboratory will be established where latest

state-of-art equipment will be provided. Physical and chemical testing

of raw material, semi-processed materials at various intermediate

stages and finished product will be undertaken on continuous basis.

All relevant parameters affecting the quality are displayed for

continuous monitoring and feedback action required. The safety

interlocks provided help to give an alarm to the operating staff and

stop related auxiliaries, equipment which otherwise may get damaged

or may affect quality of end product.

Besides being quality conscious, the industry owes responsibility to

the environment and society. Therefore, have provided pollution

control equipment at all such points where the dust emissions are

possible. This has been done at the inception of the plant itself.

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i. Raw material required along with estimated quantity, likely

source, marketing area of final product/s, mode of transport of

raw material and finished product.

The source and requirement of raw material and fuel are given below

S.N

o

Material Quantity(

MTPA)

Source

Locality

Approx. distance

from plant ( km)

Remarks

1 Limestone 3.0 Captive mine,

Kalamala

&Chinnadandlu

villages

0.5-1 Adjacent to the plant

2. Laterite 0.75 Kurnool 160 Laterite is available in

various localities of East

Godavari District

4 Gypsum 0.15 Visakhapatnam 500 Chemical grade gypsum

from Vizag Coramandal

Fertilizers

5 Fly Ash 0.225

Rayalaseema

Thermal Power

Station, ( RTPS)

Muddanuru

2.0 Fly ash is being

generated as waste at

adjacent Rayalaseema

thermal power plant.

6 Fuel (

coal)

0.35 Imported

/Singareni

200 Chennai port /

Singareni Colleries

Transportation by

rail/road

ii. Resource optimization / recycling and reuse envisaged in the

project, if any, should be briefly outlined.

The dust collected in the air pollution control equipment in the

cement plant will be recycled back to the process. No solid waste

which requires disposal is generated from the plant.

Refractory bricks are one of the solid wastes generated from the kiln

section. Due to wear and tear, LCL will replace the refractory bricks

twice in a year. These bricks will be disposed to outside agencies due

to high recycling value will be disposed to outside agencies.

Solid waste generated from colony and sewage treatment plant will be

disposed after segregating the waste into bio-degradable and non –

degradable. Bio degradable waste will composted and non-degradable

wastes will be land filled at identified areas.

iii. Availability of water its source, energy /power requirement

Total water requirement of the integrated plant is estimated to be

about 800 m3/day. Water demand will be met from Ground water

initially and switch over to Mine pit . After development of Mine pit

with suitable rainwater harvesting methods, LCL will switch over to

use of rainwater for mining /plant operations, after the formation of

reservoir in the minepit.

The requirement of power is estimated to 30000KVA which will be

availed from APCPDCL nearest sub-station,

In case of any power interruptions or power failures, to operate the

kiln section, loading & dispatch section and other necessary utilities,

suitable capacity DG set will be installed.

iv. Quantity of wastes to be generated (liquid and solid) and scheme

for their management / disposal.

The production of cement will be based on completely dry process;

hence no process waste water will be generated from the plant. Also

the cooling water will be through a closed circuit system. The only

waste water generated will be domestic waste water from residential

township and the same will be treated in STP and will be re-circulated

for industrial use and gardening purpose.

v. Schematic representations of the feasibility drawing which give

information of EIA purpose.

Detailed schematic representations of the feasibility covering the

purpose of EIA will be given in the Environmental Impact Assessment

report.

4. SITE ANALYSIS

i. Connectivity

The plant site is adjacent to the State highway SH-31 connecting

Bellary and Nellore is about 2.46km in SSW direction.

The nearest air Port is Kadapa at a distance of 40.1 km in South

East direction. Nearest Railway line connecting Tadpatri to Y.S.R

Kadapa of South Central Railway line is at a distance of 1.4 km in

Northern direction to the site. Major Railway station is Y.S.R Kadapa

which is at a distance of 45.8 km in SE to the Mine site.

ii. Land form, land use and land ownership

The land for setting up the cement plant works out to about 80

hectares. Small residential colony will be set up near the plant

TOPOGRAPHY (ALONG WITH MAP)

It is a flat land. Fig – 4 shows the 10 km radius around the plant site

iii. 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.

iv. Existing infrastructure

Land

The land for setting up the cement plant including railway siding

works out to about 80 hectares .

Power

The requirement of power is estimated to 30000 kVA which will be

availed from APCPDCL nearest sub-station.

In case of any power interruptions or power failures, to operate the

kiln section, loading & dispatch section and other necessary utilities,

suitable capacity DG set will be installed.

Water

The water requirement for the integrated unit and colony has been

estimated as about 800 m3/day. Water is required for equipment

cooling, drinking, sanitation, horticulture, and domestic use at colony

etc.

Water demand will be met from Ground Water initially and switch over

to Mine pit at a later stage.

Depending upon the quality, water will be treated to remove impurities

and minerals to make it suitable for plant use. A suitably designed

water treatment and chlorination plant will be installed.

Water will be stored in an underground tank for plant and/or an

overhead tank for drinking purpose. Overhead tanks for process

water will be provided on respective plant buildings. For plant

equipment, water will be recirculated after cooling to avoid any

wastage and only losses will be made up from fresh water. Roof tanks

of smaller capacity will be utilized for storing and supplying water to

the non-plant buildings.

Fuel

Coal will be imported or sourced from coal fields of Singareni Colleries

Company Limited (SCCL), a subsidiary company of Coal India Limited.

These collieries are located at a distance of about 300-350 km from

the proposed plant site.

The coal transport to the proposed plant site has been considered by

rail.

Airport

The nearest air Port is at Renigunta at a distance of 165 km and

Bengaluru airport is about 181 km and Hyderabad at 282 km. .

Rail

Kallamalla is the nearest railway station of South Central Railway at

about 2.7 km from the proposed plant site. Major Railway station is

Y.S.R Kadapa which is at a distance of 45.8 km in SE to the Mine site.

Rail siding will be laid for transportation of Coal and cement /clinker

out

Communication

Communication facilities such as telephone, tel-fax and internet are

available in vicinity of the proposed plant site location.

v. Soil Classification

The top soil is black in colour, fine to medium grained. Friable and

sticky when wet. In the area eastern part of the area is covered with

0.5 m to 1.5 m (maximum) thick black cotton soil cover.

vi. Climatic data from secondary sources

In general the climate of this area is dry. Summer starts from mid of

February and continues up to first week of June, when the monsoon

breaks. The monsoon continues till the end of October. Winter is

between November and middle of February. The peak of summer is in

May. The maximum temperature is about 48 degree Celsius. During

the cold months of December the temperature falls to 12 deg C. The

average rainfall of the district is 900 mm.

vii. Social infrastructure available

Yerrakuntla is the nearest populated area and is well connected to

all major cities by rail/road. All basic amenities such as school,

hospital, market, etc. are available here. Kadapa is major city and

administrative headquarters around 50 km from plant site.

A residential colony to provide accommodation for about 150 plant

personnel is proposed. The colony will have facilities like dispensary,

shopping complex, guesthouse etc.

5. Planning Brief

i. Planning concept (type of industries, facilities transportation

etc.,) town and country planning/ development authority

classification.

ii. Population projection

The establishment of the Cement Plant would aid in the overall social

and economic development of the region. The plant and mine will give

employment to about 150 people. In addition there will be indirect

employment to many more people, in the form of contractual jobs,

business opportunities, service facilities etc. The will enhance the

economic status.

Apart from the jobs, the company will provide medical and educational

facilities to the employees which can also be availed by the people

around the plant. The company also proposes to construct a full –

fledged colony comprising 150 quarters. Adequate recreational

facilities for the staff of the company and the local people will be

created.

iii. Land use planning ( breakup along with greenbelt etc.,)

The plant will come up in about 80 Ha and 33% of the area will be

developed for Greenbelt. The areas which can be developed under

greenbelt will be finalized while preparing the EIA Report.

Assessment of infrastructure demand (physical & social)

iv. Amenities / Facilities

All infrastructure facilities such as education, health facilities and

other social facilities are adequate at district headquarter which site

makes the region adequate in amenities.

6. Proposed infrastructure

i. Industrial area ( processing area)

The following are the major equipment proposed

Raw mill

Rotary Kiln in conjunction with preheater - precalciner and

grate cooler

Coal Mill

Raw meal blending silo- continuous flow

Clinker silo

Coal crusher

Limestone blending stockpile

o Reclaimer

o Stacker

Gypsum storage- Covered hall

ii. Residential area ( non-processing area)

Residential colony will be located nearer to the plant with about 150

houses. The Waste water from colony and plant will be treated in the

Sewage Treatment Plant.

iii. Green belt.

Adequate green belt will be developed inside the plant as per statutory

norms, developing 33% of the area. Native species will be planted. The

areas which can be developed under greenbelt will be finalized in the

EIA Report.

iv.Social infrastructure

LCL has well defined CSR policy to Carryout social development and

welfare measures in the surrounding villages. Under CSR activity LCL

will initiate community development projects, in the fields of health,

education and environmental preservation, in the study area around

the plant as is done in their existing units.

v. Connectivity ( traffic and transportation road / rail/ metro/

water ways etc.,)

The plant site is adjacent to the State highway SH-31, connecting

Bellary and Nellore at 2.46km in SSW direction.

The nearest air Port is at Kadapa at 40.1km and Renigunta at a

distance of 165 and Bengaluru airport is about 181 km and

Hyderabad at 282 km.

Kallamalla is the nearest railway station of South Central Railway at

about 2.7 km from the proposed plant site. Major Railway station is

Y.S.R Kadapa which is at a distance of 45.8 km in SE to the Mine site.

Rail siding will be laid for transportation of Coal and cement /clinker

out.

vi. Drinking water management ( source & supply of water)

The water requirement of the cement plant and colony is 800 m3/day.

Water is required for equipment cooling, drinking, sanitation,

horticulture, etc.

Water demand will be met from ground. Elaborate rain water

harvesting initiative will be taken up. Also rainwater will be stored in

the mined out pits . With all the preventive measure , ground water

requirement will reduce substantially in future .

Depending upon the quality, water will be treated to remove impurities

and minerals to make it suitable for plant use. A suitably designed

water treatment and chlorination plant will be installed.

Water will be stored in an underground tank for plant and/or an

overhead (OH) tank for drinking purpose. Overhead tanks for process

water will be provided on respective plant buildings. For plant

equipment, water will be recirculated after cooling to avoid any

wastage and only losses will be made up from fresh water. Roof tanks

of smaller capacity will be utilized for storing and supplying water to

the non-plant buildings.

vii. Sewerage system

A sewage treatment plant will be installed to treat domestic waste

water. Appropriate facilities for the collection will be made.

The treated water quality will be such to allow for its re-use in the

clinker production process (water injection)/Greenbelt development.

viii. Industrial waste management

Cement Plant

The production of cement will be based on completely dry process;

hence no process waste water will be generated from the plant. Also

the cooling water will be through a closed circuit system. The only

waste water generated will be domestic waste water from residential

township and the same will be treated in STP and used for green belt

development.

Hazardous wastes like spent oil from construction equipment, DG sets

etc., generated in small quantities during construction and

operational phase would be appropriately stored & handled and

properly disposed off in accordance with the provisions of the

Hazardous Waste Management Rules, 2010.

ix. Solid waste management

The dust collected in the pollution control equipment will be recycled.

Refractory bricks will be disposed to licensed vendors.

x. Power requirement & supply / source

The requirement of power at 100% capacity utilization is estimated to

30000kVA. This power can be availed from APCPDCL for which the

power will be fed at 132 kV level from nearest sub-station.

In case of any power interruptions or power failures, to operate the

kiln section, loading & dispatch section and other necessary utilities,

suitable capacity DG set will be installed.

It is also envisaged that the power requirement during construction

phase will be met by grid/installing DG set through respective sub-

contractor(s).

7. Rehabilitation and resettlement (R & R) Plan

i. Policy to be adopted (central / state) in respect of the project

affected persons including home oustees, land oustees and

landless labourers (a brief out line to be given).

There ARE NO homesteads. For land oustees, Andhra Pradesh State

R&R policy will be honoured in relocating them. . However with a

direct dialogue with land owners will be made along the consent of

State government. The compensation will be better than any other

policy.

8. Project schedule & Cost Estimates

i. Likely date of start of construction and likely date of

completion.

An implementation period of 30 months for the integrated unit from

the date of signing/ effectiveness of the main equipment supply

contract is foreseen for this project.

S. No. Activity Starting Completion

1 Applications to financial institutions

for financial assistance and

approval

OCT 15 Nov 15

2 Application to statutory bodies and

statutory approvals

OCT 15 Aug 16

3 Finalization of orders for major

equipment

Sep16 Oct 16

4 Basic engineering Oct16 Dec16

5 Detail engineering Oct16 Feb17

6 Civil construction Oct16 Dec17

7 Delivery of major equipment April 17 Sep17

8 Mechanical erection May17 Feb18

9 Electrical & instrumentation

erection

May17 March17

10 Trial runs Feb18 March 18

11 Commencement of commercial

production

April 18

ii. Estimated project cost along with analysis in terms of economic

viability of the project.

Total capital Investment Cost is Rs. 1500 Crores and Rs 80 crores

will be spent for Environmental Management Plan.

The estimated investment Cost for the project has been based on the

requirement of fixed and non-fixed assets for both cement plant and

limestone mine.

The financing of the project has been considered on the basis of

Equity and Term Loans from Financial Institutions. The debt: equity

ratio has been considered as 2: 1.

Based on the investment and operational costs, financial workings

have been projected for the first 20 years of operation. Financial

analyses reveal the performance results as given in below.

Indicator Units Value

IRR on Total

Investment

% 17.2%

IRR on Equity % 23.8%

Net Present Value @

12.00%

Rs. Lakhs 62.715

Payback Period 5 years 1 month

Average Debt Service

coverage

- 2.01

The sensitivity of project beak-even to variations in certain key

operating parameters has been tested in order to determine operating

flexibility. The parameters considered and the break-even points thus

arrived at, are summarized below:

9. Analysis of proposal (Final Recommendations)

i. Financial and social benefits with special emphasis on the

benefit to the local people including tribal population, if any, in

the area.

No tribals are residing or have lands at the proposed location.

Employment: Preference will be give for locals for employment based

on qualifications & requirement. 375 people will be directly

employed and another some more indirectly employed.

Medical facilities: Medical facilities will be provided for employees as

well as people of nearby villages.Hospital will built and will be made

open to all.

Educational facilities: Basic educational and vocational facilities will

be provided for the children of employees as well as nearby villages.

Infrastructure facilities: Approach roads will be developed at par

with plants roads

Additional: The establishment of factory will facilitate additional

auxiliary facilities lime banking post office & recreation facilities.