1

ACB (India) LIMITED

PRE FEASIBILITY REPORT FOR THE PROPOSED COAL WASHERY EXPANSION FROM 5 MTPA TO 10 MTPA

@ Village Kanika, Tehsil Himgir, Dist Sundargarh Odisha

ACBIL

21.10.2013

This report consists of technical details of the washery

2

C O N T E N T S

CHAPTER PARTICULARS PAGE NO

1 Executive Summary 3

2 Introduction of the Project/Background Information

4

3 Project Description 11

4 Site Analysis 24

5 Planning Brief 28

6 Proposed Infrastructure 30

7 Rehabilitation and Resettlement ( R & R) Plan

33

8 Project Schedule & Cost Estimates 34

9 Analysis of Proposal (Final Recommendations)

36

10 Addendum of EIA - EMP 39

3

Chapter - 1

Executive Summary

1. Name of the Company : M/S. ACB (India) Ltd.

2. Address of the Unit : 7th Floor, Corporate Tower, Ambience Mall, NH-8, Gurgaon -122 001. Haryana.

3. Proposed Location : Himgir, Dist. Sundargarh, Odisha, within existing premises of the Company.

4. Proposed Expansion : 5 MTPA to 10 MTPA

5. Power requirement : 2x4.2 MVA

6. Power consumption : Approx. 2.5 units per tonne of Raw Coal throughput

7. Water requirement : 300 m3 per hour. (For the proposed expn.)

8. Estimated cost of the expansion :

Rs. In Lakhs (approximate)

i) Consultancy : 45.00

ii) Land : 0.00

iii) Building & Structural : 750.00

iv) Railway Siding : 1500.00

v) Plant & Machinery : 950.00

vi) Miscellaneous Fixed Assets : 800.00

vii) Contingencies : 45.00

4090.00

Say 40.00 Crores of Rupees

9. Project Schedule : 18 Months

4

Chapter - 2

Introduction of the Project/Back Ground Information

2.1 Identification of Project and Project Proponent

M/s. ACB (India) Ltd. the project proponent intends to expand the capacity of its existing Coal Washing Plant at Himgir, Sundergarh (Orissa) from 5 MTPA to 10 MTPA. This Coal Washery expansion shall cater to the needs of Power Plants, Sponge Iron Industry, etc. The Coal from nearby mines of Ib Valley area, F-G Grade of around 44% ash shall be washed in this washery to produce washed coal of around 33 to 34% ash. The middling along with Dewatered Coal Fines of GCV around 2200 Kcal per Kg shall be used as fuels in FBC Power Plant.

The Coal Washery expansion shall be environment friendly with close circuit water system comprising of Classifying Cyclone, High Frequency Screen, Thickener and Multi Roll Belt Press Filter. The washery shall be State-Of-The-Art with modern instrumentation and PLC Controls.

2.2 Brief Description of Nature of the Project

The proposed expansion of the Coal Washing Plant shall be 10.0 Million Tonnes Per Annum of Raw Coal throughput having the following parameters:

Capacity : 1600 TPH (2 X 400 TPH existing and

2 X 400 TPH new).

No. of operating days in a year : 335 days.

No. of operating hours in a day : 20 hours (three shift operation Including daily short maintenance and start stop).

Plant utilisation : 85%.

Annual throughput : 1600 TPH X 20 hrs. X 335 X 0.85 ( % Plant utilisation) = 9656000 tonnes.

Say 10.0 million tonnes.

5

The washing plant shall have the following input & outputs:

Raw Coal - Ash 44%

Washed Coal - Ash 34%, Moisture 7.50%, Yield 67%

GCV : 4250 K Cal / Kg.

Middling Coal - Ash 64%, Moisture 6%, Yield 33%

GCV : 2200 K Cal / Kg.

The above data are based on the quality of actual coal produced by the neighbouring mines.

All the yield figures indicated are tentative and are meant for estimation purposes only. Actual yield figures can be predicted only after full scale washability data are available.

2.3 Need for the Project and Its Importance to the Country and or Region

Coal is the most abundant fossil fuel. India is blessed with huge coal reserve, nearly 7% of total coal in the world. 85% of this reserve is non Coking Coal, which caters to the need of power, cement and sponge iron plants. However, most of these reserves are of very low grade coal and the reserves of good quality coal is fast depleting. On the other hand, the demand for coal is increasing due to higher demand of steel, power and cement. The problem of inferior coal is further aggravated due to extensive mechanised mining. As a result, the users of coal are not getting desired quality necessitating beneficiation of coal for use in Sponge Iron Kiln, Power Plant, Cement Plant, etc.

Coal India Limited and its subsidiaries are the only domestic producers and suppliers of coal. The annual requirement of non-coking coal for various industrial sectors like power, steel and cement is increasing day by day. As the reserves of lower ash good coal are depleting and hence in order to fulfil industry’s demand, huge reserve of inferior grade of coal is being mined. The problem is further aggravated due to mechanised and open cast mining of coal. Due to higher demand, selective mining is not possible. The average ash of coal now being supplied by CIL is around 45%. Also, the quality varies to a great extent since the supplies are coming from various mines and coal faces.

Government of India statute prohibits transport of Coal of Ash more than 34% to Thermal Power Plants situated at a distance more than 1000 Kms from Coal Mines which shall get reduced to 500 km from the pit head

6

from Jan 2014. In order to satisfy this statute various State Electricity Boards are looking for Coal Washery operators to supply washed coal for their Power Plants. Further, the use of washed coal for the Thermal Power Plants shall have the following advantages:

1. Supply of consistent quality coal can be ensured thereby avoiding frequent adjustments in input to boiler and minimising operators’ error.

2. Higher Thermal efficiency of boiler and higher steam rate.

3. Less wear and tear of the coal grinding mills.

4. Lower capital and operating cost for installing smaller ESP.

5. Less ash handling requirement at power plant & consequently less requirement of area for ash-pond etc.

2.4 Demand – Supply Gap

Coal India Ltd said in June 2013 that, it would place orders worth Rs 2,000 crore for at least seven coal washeries by the current fiscal.

“The contract for seven coal washeries would be placed by this fiscal with washing capacity of 15-16 million tonnes (MT) of coal,” CIL General Manager (project monitoring) T K Sinha said on the sidelines of the CII-organised India-South Africa cooperation seminar.

“Agreement for two washeries had already been signed and two more would be signed shortly. The rest would be done during the year,” he said.

Asked about a low demand for washed coal from consumers, Mr Sinha said there was demand for washed coal from non-power consumers.

CIL officials said the company has 17 washeries with an installed capacity of 34 million tonnes.

Mr. Sinha said Coal India would pump Rs 2,000 crore in these seven washeries, while the decision for the rest would be taken later.

The investment is over and above the Rs 5,000 crore the CIL proposes to infuse during the current fiscal for purchasing equipment, land, railway siding, etc, excluding acquisition.

Coal India Limited has decided to set up 16 washeries in its various subsidiaries to reduce the quantity of ash and other un useful component from coal so as to make it competitive in comparison to imported coal.

7

The subsidiary-wise details of these proposed coal washeries are as follows:-

Table No. 1

Sl.

No.

Name of

washery

Capacity

(Million Tonne

per annum)

Subsidiary State

1 Kusmunda 10.0 SECL Chattisgarh

2 Baroud 5.0 SECL Chattisgarh

3 Madhuband 5.0 BCCL Jharkhand

4 Patherdih 5.0 BCCL Jharkhand

5 Patherdih 2.5 BCCL Jharkhand

6 Dahibari 1.6 BCCL Jharkhand

7 Dugda 2.5 BCCL Jharkhand

8 Bhojudih 2.0 BCCL West

Bengal

9 Ashoka 10.0 CCL Jharkhand

10 Konar 3.5 CCL Jharkhand

11 Karo 2.5 CCL Jharkhand

12 Chitra 2.5 ECL Jharkhand

13 Basundhara 10.0 MCL Orissa

14 Jagannath 10.0 MCL Orissa

15 Hingula 10.0 MCL Orissa

16 Ib-Valley 10.0 MCL Orissa

Total 92.10

CIL and its subsidiary companies already have 17 Coal washeries in operation which are as follows:

Table No. 2

Sl. No.

Name of coal washery

Subsidiary company

Capacity (Million Tonne per annum)

1. Dugda-ii BCCL 2.00

2. Bhojudih BCCL 1.70

3. Patherdih BCCL 1.60

4. Sudamdih BCCL 1.60

5. Moonidih BCCL 1.60

6. Mahuda BCCL 0.63

8

7. Madhuband BCCL 2.50

8. Kathara CCL 3.00

9. Swang CCL 0.75

10. Rajrappa CCL 3.00

11. Kedla CCL 2.60

12. Nandan WCL 1.20

13. Dugda-I BCCL 1.00

14. Gidi CCL 2.50

15. Piparwar CCL 6.50

16. Kargali CCL 2.72

17. Bina NCL 4.50

Total 39.40

The ash content of domestic coal is 45-50 per cent. The majority of coal delivered to customers is not washed. This affects plant performance and imposes the additional burden of environmental impact, ash handling, and transportation costs. The existing coal washing capacity of about 135 mt is inadequate as compared to the annual coal production of 570 mt. This demand-supply gap in coal washing will increase with growth in domestic coal supply. The gap will widen further with the enforcement of regulations on coal washing. The existing norms stipulate an ash content of 34 per cent for coal transported over 1,000 km. This is being reviewed. The changes under consideration include a reduced distance of 500 km from the pithead and determination of ash content on a daily average basis instead of the current practice of annual determination. Implementation of the revised stipulations could be a key driver for augmenting coal washing capacity in the country. Private participation is expected to play a major role in coal washing capacity addition. Coal India Limited has planned 16 new coal washeries, to be set up as explained above by private players on a build-operate-maintain basis. The potential use of washery rejects in power generation has also drawn private sector interest in coal washing capacity. Further, capacity addition could be achieved through the renovation of ageing washeries.

9

The case for coal washing will become stronger as utilities demand for quality in their fuel supply agreements and regulations become tougher on plant efficiency and emissions. The investment opportunity is huge for the industry to meet the future demand for washed coal.

2.5 Imports Vs Indigenous Production

There has been increase in coal production and supply during 2012-13. The details of targets of coal production and supply for 2011-12 and 2012-13 and corresponding achievements are given below.

Table No. 3 (in million tonnes)

Year Production

Target Production

Ach. in %

Supply Target

Supply Ach. in %

2011-12 554.00 539.950 97.5 559.00 535.299 95.8

2012-13 574.40 557.707 97.1 580.30 569.767 98.2

In 2012-13, the domestic production was 557.707 million tonnes and the

total domestic supply of coal was 569.767 million tonnes. In addition to

the domestic supply of coal, the country imported 137.56 million tonnes

of coal in order to meet the demand. This information was given by the

Minister of State for Coal, Shri Pratik PrakashBapu Patil in a written reply

in Rajya Sabha on 19th August 2013.

2.6 Export Possibility

The project proponent is targeting only domestic market at present.

2.7 Domestic / Export Markets

There is a huge market in both domestic and export for the high grade washed coal.

2.8 Employment Generation (Direct and Indirect) Due to the Project

The Plant Management of an Industry is the vital part of the unit for its survival. The Management will be responsible for overall efficiency of the unit. Management shall be supported by a group of highly skilled persons of varied expertise and experience who function individually and collectively for the overall performance of the unit.

10

Table No. 4 Manpower Details

Sl. No Category No.

1 Manager Production 1 No.

2 Engineer (Mech. & Process, Electrical & Instrumentation)

3 Nos.

3 Foreman cum control room operator

4 Nos.

4 Fitter cum Operator 4 Nos.

5 Helper 9 Nos.

6 Electrician 3 Nos.

7 Instrument mechanics 2 No.

8 Unskilled Labour 10 Nos.

9 Peon 1 No.

10 Chemist 3 Nos.

11 General Majdoor 04 Nos.

12 Total 44 Nos.

11

Chapter - 3

Project Description

3.1 Type of the Project Including Interlinked and Interdependent Project if any

The proposed project is an expansion of existing 5.00 MTPA capacity Coal Washery. The capacity will be expand up to 10.00 MTPA at present. There is neither any interlinked nor interdependent project.

3.2 Location (Map Showing General Location, Specific Location and Project Boundary & Project Site Layout) with Coordinates

The proposed project will be set up within the existing premises of Himgir Coal Washery at village Kanika under Himgir Tehsil in Sundargarh district of Odisha state. The area is 13.52 ha. and there is no forest land involved in the project.

The said project can be located in Survey of India Topo sheet No.64 O/9. The location of said project is demarcated in the Toposheet as shown in the following Map No. – 01. The project site is bounded by latitude Latitude 210 53’ 29.2” N to 210 53’ 38.9” N and Longitude 830 43’ 28.9” E to 830 43’ 38.5” E.

3.3 Details of Alternate Sites Considered and the Basis of Selecting the Proposed Site, Particularly the Environmental considerations gone into should be Highlighted

No site alternatives are considered as the site for the proposed expansion project is the same where the 5 MTPA plant is already under operation. Since adequate land is available to go for expansion, it will be possible to expand the existing plant to 10 MTPA, efficiently, quickly and optimally. The site is in the close proximity to the source of raw coal which requires washing. Attributing to the vicinity of availability of ROM it reduces the transportation of high ash coal to larger distances. The infrastructure and auxiliary facilities are adequately present for the proposed activity.

12

Map No. 1 Location Map (Marked in the Toposheet)

13

The Ib Valley Coalfield would serve as source of coal which lies between latitudes 21041’N and 22006’N and longitudes 83030’E and 84008’E . Map of Coal fields of MCL is shown in Map No. 02 and Coal Mines of MCL superimposed on Toposheet shown in Map No. 03. It covers an area of 1,375 square kilometres (531 sq mi). According to Geological Survey of India, the Talcher Coalfield has reserves of 38.65 billion tonnes, the highest in India. Ib Valley Coalfield has reserves of 22.3 billion tonnes, the third highest in India. This coalfield forms part of the large Gondwana basin that extends across several districts in adjoining Chhattisgarh. Ib Valley Coalfield is served by South East Central Railway. The main railway station for passenger traffic is Brajrajnagar on the Tatanagar-Bilaspur section of Howrah-Nagpur-Mumbai line. The area links to NH 200. Construction of the 52 km (32 mi) long Jharsuguda-Barpalli rail line is essential for transportation of coal from the Ib Valley Coalfield with a potential of 90 million tonnes per annum. Mahanadi Coalfields Limited will fund this project. This Coalfield is a part of large synclinal Gondowna Basin of Raigarh-Hingir and Chhattisgarh Coalfields (Mahanadi Valley) and forms its South Eastern most member. Coal potentiality of this fields was investigated as early as 1871-75 by Mr.V.Ball of GSI. Some works were also done by Mr.W.King during 1884-86. During 1900-01 exposures of various seams were found while constructing bridge over IB River on the Bombay Howrah Railway line. Further work was undertaken by Geological Survey of India. During 1977 CMPDIL entrusted the Directorate of Mining & Geology (Govt. of Orissa) for detail exploration. Barakar & Karharbari measures are the major coal bearing formations. Barakar formation contains as many as twenty carbonaceous horizons with quality ranging from E to G. These horizons have been clubbed and five seams have been identified in the area, namely Belpahar, Parkhani, Lajkura, Rampur & IB Seams. Parkhani seam is erratic in quality and thickness. It is generally not found as mineable. Belpahar seam occurs in the deep side of Lakhanpur OCP and mining operation in this seam is not foreseen in near future. Karharbari formation contain only thin coal bands below IB seam. Basic considerations in deciding the location of plant site are listed below in order of its significance.

Availability of necessary infrastructure such as transportation, communication, roads, water etc.

The proposed location is having proximity of raw material.

Skilled and unskilled manpower is easily available.

There is no union problem.

Investment climate is good.

Government policies are favorable.

The nearest road is Belpahar to Vasundhra area office of MCL

The siting criteria are suitably met at this location

14

Map No. 2 Map of Coal fields of MCL

15

Map No. 3 Coal Mines of MCL superimposed on Toposheet

16

3.4 Size or Magnitude of Operation

The proposed project will be able to produce 10 million TPA of washed coal.

3.5 Project Description with Process Details (a Schematic Diagram / Flow Chart Showing the Project Layout, Components of the Project etc. should be given)

Selection of Suitable Process : Selection of coal washing process

depends mainly upon the following criterion:

Washability characteristic of input coal.

Size and quality (ash & moisture) requirement of products.

Like all other Indian coal deposits, the coal deposit at Ib Valley and

nearby locations are of “drift” origin (unlike European, Australian Or

American coal which are of “Insitu” origin), and hence, have very high

Near Gravity Material (NGM). Presence of high NGM (more than 20

units) in ROM coal makes the washing of coal very difficult. Hence,

selection of suitable washing process is of paramount importance for

such coal. Bird’s classification of NGM Vis-à-Vis suitable washing process

are indicated below

NGM Type of Coal Process

0 – 7 Simple Coal Jig

7 – 10 moderately difficult Baths, tables, spirals

10 – 15 Difficult to wash

15 – 20 Very difficult HM Cyclone

20 – 25 exceedingly difficult

> 25 Formidable

From the above table it is clear that the HM Cyclone process is the only suitable process for treating high NGM coal.

17

Moreover, from process efficiency point also, the HM Cyclone process is most suitable process which gives lowest EP (Ecart Probable – means Error Probable) i. e; lowest misplacement. A comparison of EP achievable in various processes is given below:

1. HM Cyclone : 0.025 to 0.035.

2. Jig/Drum Washer : 0.10 to 0.12

3. Barrel : 0.09 to 0.10

Considering all the above mentioned factors, the following processes are recommended for the proposed expansion:

1) 15 / 20 mm to 50 mm fraction Drum Washer.

2) -15 / 20 to + 1 mm fraction H M Cyclone

Technical Process Flow Sheet for the proposed expansion

The raw coal from the ramp is fed to the two grizzly feeders having 400 TPH capacities each.

The +150mm fraction from above is forwarded to the feeder breaker with rock breaker through belt conveyor 3 and 3A.

Then the -150mm coal from the feeder breaker is fed through belt conveyor 4 and 4A to the belt conveyor BC – 2.

Then the total -150mm coal is fed to the four nos. 400TPH Double deck screen for primary screening having top deck of 50mm and bottom deck of 20mm sieve size.

The +50mm coal is then directed to the two nos. 400TPH crusher to get desired -50mm coal.

The Output of the crusher is fed again to another set of Double deck screen for secondary screening having same sieve size as previously mentioned Screens.

The Secondary Double deck screens have two output which are “-50 to +20” and “-20mm”

Then these two separate sizes coal is then fed to their separate surge bunkers having appropriate capacities.

Coal having “-50 to +20” size is fed to 2 numbers Heavy Media Drum Washers having capacities 250TPH each for washing. The clean coal from the drum washer after passing De-watering screen and ash monitoring by a coal ash monitor is then sent to the clean

18

coal bunker via belt conveyor BC – 14 and rejects coal to the reject coal bunker via belt conveyor BC – 16.

Coal size having -20mm from the Secondary Double deck screens is then fed to the 2 numbers Heavy media cyclones of 300 TPH capacities.

Clean coal from the cyclones after passing De-watering screen and ash monitoring by a coal ash monitor is then sent to the clean coal bunker.

There is also a provision to collect -20 mm coal directly (without washing in the Heavy Media cyclones) in the clean coal bunker in case -20 mm coal having less ash percentage.

Fines generated in the circuit in the form of slurry will be handled by the slurry circuit as shown in the flow sheet attached.

19

Drawing No. 1 Process Flow Drawing

20

Main Equipments required for capacity expansion:

As shown in the plant layout the major equipments which is to be used in

the washery (Phase Wise) are as follows:

Table No. 5 List of the Washery Equipment

Himgir Washery Equipments

S. No Item Description Quantity

1. Double Deck Screen (400 TPH) 6 Nos.

2. Dewatering Screens (2.4X6 M) 4 Nos.

3. Desliming Screen (2.4X5.25 M) 2 No.

4. Grizzly Feeder ( 400 TPH) 2 No.

5. Feeder Breaker (200 TPH) 1 No.

6. Crusher ( 400 TPH) 2 No.

7. Drum Washer (250 TPH) 2 No.

8. Wet Drum Magnetic Separator 3 No.

9. Unbalance Motor Feeder (500 TPH) 2 No.

10. Over band Magnetic Separator 3 No.

11. Sieve Bend 11 Nos.

12. High Frequency Screen 2 No.

13. Classifying Cyclone 6 Nos.

14. Hi Rate Thickner 2 No.

15. Horizontal Basket Centrifuge 2 No.

16. Belt Press 2 No.

17. Slurry Pumps 1 Lot

18. Water Pumps 1 Lot

19. Air Compressor with drier 1 Set

20. Belt conveyor 1500 Mtr

21. Travelling Tripper 1 No.

22. Dry fog dust suppression 1 No.

23. Misc. Items (Gates, Samplers, Belt Scrapers) 1 Lot

24. HM Cyclone 6 Nos.

25. Electricals 1 Lot

21

3.6 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 raw material required for the project is only Raw Coal. The quantity is 10 million Tons. The coal for washery will be sourced from the Coal Mines of Mahanadi Coalfields Limited (MCL) located in Sundargarh district.

3.7 Resource Optimization / Recycling and Reuse Envisaged in the Project, if any, should be briefly outlined.

Operation will be carried out strictly as per the detailed Project Report with a view to optimize all resources available.

3.8 Availability of Water, Its Source, Energy / Power Requirement and its Source

Power: The total power requirement of 10 MTPA washery will be 5 MVA. Power is being provided by the Orissa State Electricity Board (OSEB) subsidiary known as WESCO. The power is taken from Remja substation which is 28 Kms from the washery site by erecting concrete poles. Voltage level of the power provided by the OSEB is 33 KV. This 33 KV power is stepped down at washery premises by installing a 33/0.415 KV substation. Then the desired 415 V power is fed to the MCC room which distributes it to the various equipments. Power back up is being provided by the 6 nos. 380/500 KVA silent type Diesel Generator sets. Water: The water would be required for working of drum washer and dust suppression. The total requirement of water is 300 m3/day. The Company has received a letter from Office of Executive Engineer, Sundergarh writing to the Superintending Engineer, Hirakund Dam Circle recommending allocation of 300 m3/day from Brahmani Nallah. The breakup of the water requirement for the expansion is presented in the Table No. 6.

Table No. 6

Breakup of make-up water requirement

Sl. No. Component Requirement (cum/day) 1 Process 260

2 Green belt development 15

3 Dust suppression 10

4 Domestic 5

5 Miscellaneous 10

TOTAL 300

22

3.9 Quantity of Wastes to be generated (Liquid and Solid) and Scheme for Their Management / Disposal

During construction, waste generated is limited to levelling of any low lying areas within the plant premises. 100 % utililization of rejects is envisaged in the project. These rejects are being used in the captive power plant of the company located at Bomaloi village in Sambalpur district. Plant would operate on zero discharge concepts. Thus no waste water discharge is envisaged in the said project of both existing and expansion. Drawing No. 02 shows the Waste Water Management Scheme.

Drawing No. 2

Waste Water Management Scheme

23

3.10 Schematic Representations of the Feasibility drawing which give information of EIA Purpose.

Purpose of preparation of EIA is for prior environmental clearance required as per

EIA notification dated 14th September, 2006 and amended thereafter as the

project proponent proposed for enhancement of Washery from 5.00 MTPA

to 10.00 MTPA. The proposed schematic representation provides information for

preparation of EIA is as per Drawing No. 02 and 03.

Drawing No. 3

Activity of Washery

24

Chapter – 4

Site Analysis

4.1 Connectivity

The proposed project will be set up within the existing premises of Himgir Coal Washery at village Kanika under Himgir Tehsil in Sundargarh district of Odisha state. The proposed site is accessible from road and rail transport.

4.2 Land Form, Land Use and Land Ownership

The total land requirement is of 13.5 ha. The total land has already been acquired and is owned by the project proponent.

The land available for the project is sufficient for the expansion. The breakup of the land use for the project area has been described in the Table No. 7

Table No. 7 Break up of Land use

Land use Area (ha)

Plant area 3.25

Raw coal stock yard 2.5

Clean coal stock yard 1.75

Water Reservoir 1.0

Parking and Rest room area 0.25

Green belt area 4.5

Administrative building 0.25

Total 13.5

Railway siding : ACB (India) Ltd. has already commissioned its own Railway siding at Himgir railway station for loading of washed coal rakes in Dec 2012. The location of siding is between Daghora and Himgir Railway station of South East Central Railway, Bilaspur division. The distance of the proposed Railway siding from coal washery is 3 Kms. The purpose of constructing the Railway siding is to supply washed coal to;

Power houses of Maharashtra and Gujrat. Power houses of West Bengal Power Development Corporation. Cement and Sponge iron units in Eastern and Central India.

25

The total land required for construction of Railway siding was 10 Acres. Currently the coal from Gopalpur coal fields is conveyed by road to the washery and after washing, washed coal would be transported by road to the siding for loading of rakes. Total cost for construction of Railway siding is approximately 25 Crores.

It is also proposed to construct a closed conveyor system from washery to the siding through the forest area. This conveyor will carry the washed coal from washery and feed directly to the siding. The closed conveyor system will be fully eco-friendly. This will discharge the washed coal on the siding platform. Then with the help of pay loaders washed coal will be loaded to the coal rakes. Application has already been made to the State Forest dept for the purpose.

4.3 Topography

The Project area under reference is a plain area. The contour of the study area varies from 256 m aMSL tp 300 m aMSL. There is no Ecologically Sensitive area as per Hon’ble Supreme Court Civil writ petition No.460 of 2004.

There is no national park/wild life sanctuary/biosphere reserve/ tiger reserve/ elephant reserve in the core (project area) and buffer zone (10 km radius of the project area) as per the EIA report prepared for earlier EC. However, detail study and survey will be conducted during preparation of EIA/EMP report for the proposed expansion proposal.

There is no perennial nala passing through the proposed plant area. Surface run-off water flows along the natural slopes, valleys and finally falls into the Brahmani nala which is flowing in the west of project area at a distance of 550.0 meters.

There is no endangered fauna like elephant, sloth bear, python etc in & around the project area as per the EIA report prepared for earlier EC. Nearest CRZ area is at Paradeep, which is more than 300 kms from the project area by road.

4.4 Existing Land Use Pattern (Agriculture, Non- Agriculture, Forest, Water Bodies (including area under CRZ)), shortest distances from the periphery of the Project to the periphery of the Forest, National Park, Wild Life Sanctuary, eco-sensitive areas, water bodies (distance from the HFL of the River), CRZ.

Existing land use is Industrial.

26

Distance of Various Physical Features from the Boundary of the Project Area

There is no national park/wild life sanctuary/biosphere reserve/ tiger reserve/ elephant reserve in the core (project area) and buffer zone (10 km radius of the project area).

Barghumra Reserve forest, contour having 298 m AMSL is at a distance of 50 meters from the project site towards south.

Garjan Pahar Reserve Forest having contour 341 m aMSL is towards west of project site at a distance of 560 meters.

Chhengapahar Reserve Forest is at distance of 380 meters towards east of project site and 100 .00 meters towards north of project site.

Brahmani Nala is flowing at a distance of 550.0 meters towards west of Project site.

Hemagiri Railway Station is at a distance of 2.00 kms from project site towards South southeast.

South Eastern Railway is passing towards south of project site at a distance of 2.00 kms.

Hemagiri – Kanika State Road which is east of the project site is passing at a distance of 380 meters from the project site.

Hemagiri Town is situated at a distance of 6.200 kms towards north of the project site.

4.5 Existing Infrastructure.

For establishment and successful operation of a coal washery it is imperative to ensure availability of the following infrastructure:

i) Availability of principal raw materials, viz., Raw Coal, and its proximity to the plant to reduce cost of transportation.

ii) Road / Rail head connection so that raw materials and products can be easily and economically transported.

iii) Availability of water.

iv) Permanent and reliable source of power.

v) Land for Plant installation, storing of products and disposal of rejects.

Since the raw material shall be required in bulk quantities, the location of the washery shall be nearest to the mines to save in transportation cost and to ensure consistent supply of raw coal.

Necessary road connection is already available between the plant site and nearby coal mines.

27

Power supply can be easily met from the existing grid / DG Set. Sufficient land required for expansion of coal washery is available at the plant site.

4.6 Soil Classification

The soil is silty clay in texture and light brown in colour. Slightly acidic with pH variying from 4.92 to 5.53. Soil is rich in organic matter, Ca and nitrate. Iron content is high.

4.7 Climate data from Secondary Sources

Meteorological conditions prevailing at any geographical area play an important role in analyzing its existing air quality and the environmental conditions. Climate, weather and other meteorological parameters generally influence and also alter site-specific activities. Meteorological data, which is averaged over thirty years of data from 1961 to 1990 by Indian Meteorological Department will be considered while preparing EIA/ EMP report as a secondary data. And on-site meteorological data of standard parameters such as wind speed, wind direction, temperature, relative humidity and rain fall for the study period will be collected.

The climate of this region is mainly tropical and is influenced to some extent by the conditions in Bay of Bengal.

Southwest monsoon season starts from June and extends upto September with total average annual rainfall of 1314.4 mm out of which 90% of rainfall is observed in the monsoon season only. The summer is peak during May – June with temperature as high as 41.89 0C in May. Winter prevails from December to January. The minimum average temperature recorded during January is 12.31 0C. The relative humidity varies from 27 % in May to 81 % in August.

4.8 Social Infrastructure available

Criteria are suitably met at this location.

Nearest village Kanika is at 2.5 kms from the project site.

Nearest railway station at a distance of 3.00 kms from the project site.

Nearest town Belpahar is at a distance of 18 kms from the project site.

Necessary infrastructure such as transportation, communication, roads, water etc. are also available.

The proposed location is having proximity of raw material.

Skilled and unskilled manpower is easily available.

The nearest road is Belpahar to Vasundhra area office of MCL.

The siting Hospitals, Schools, Colleges, Police Station, Fire Station, Temples, Forests, Fishery, banking, Revenue, Judiciary Local bodies are also available in the area.

28

Chapter – 5

Planning Brief

5.1 Planning Concept (type of industries, facilities, transportation etc.) Town and Country Planning / Development Authority Classification

The said proposal is an expansion project of existing Coal Washery. The project does not have any plan for construction of its own town ship for its employees. Mostly local villagers are and will be employed. They are and will be commuting from local areas. Public and self transport facilities are used for commuting from their residence to the project site.

5.2 Population Projection

Present population in the study area is 22725 and of the district as a whole is 1829000 as per 2001 Census report. Growth rate (1991 – 2001) in the district (Sundargarh) is around 16.26 % as per 2001 Census report.

5.3 Land Use planning (breakup along with green belt etc.).

The total land requirement is of 13.5 ha. The whole of land already acquired and is owned by the Project proponent.

The land available for the project is sufficient for the expansion. The plant lay out is shown below and breakup of the land use plan for the project area has been described in the Table No. 8.

Table No. 8

Break up of Land use

Land use Area (ha)

Plant area 3.25

Raw coal stock yard 2.5

Clean coal stock yard 1.75

Water Reservoir 1.0

Parking and Rest room area 0.25

Green belt area 4.5

Administrative building 0.25

Total 13.5

29

5.4 Assessment of Infrastructure Demand (Physical & Social)

There will be requirement of water, electricity and raw material.

Public road will be used for transportation.

Permission of water is required. Application for expansion is submitted at CGWB.

Local Grid will be used.

Local market will be used for office stationary and daily requirement.

Public School & Colleges will be used for employees’ children’s education.

Govt. hospitals will be used in some extent.

5.5 Amenities / Facilities

Nearest village Kanika is at 2.5 kms from the project site.

Nearest railway station at a distance of 3.00 kms from the project site.

Nearest town Belpahar is at a distance of 18 kms from the project site.

Necessary infrastructure such as transportation, communication, roads, water etc. are also available.

The proposed location is having proximity of raw material.

Skilled and unskilled manpower is easily available.

The nearest road is Belpahar to Vasundhra area office of MCL.

The siting criteria are suitably met at this location.

Hospitals, Schools, Colleges, Police Station, Fire Station, Temples, Forests, Fishery, banking, Revenue, Judiciary Local bodies are also available in the area.

30

Chapter – 6

Proposed Infrastructure

6.1 Industrial Area (Processing Area)

The proposed project will be set up inside the existing premises of Himgir Coal Washery at village Kanika under Himgir Tehsil in Sundargarh district of Odisha state. No extra land is required for expansion. The land land is industrial land.

6.2 Residential Area (Non – Processing Area)

No residential facilities envisaged in the project.

6.3 Green Belt

33% of the total area will be covered under plantation. The local species are and will be selected for plantation.

The green belt is planned to be completed in four years. Plantation will be carried out from the outer zone followed by the middle zone and finally the inner zone will be planted. The area covered in each year as well as the total area of green belt is given in Table below.

Table No. 9

Schedule of Green Belt Development

Schedule of plantation

Year Number of plants

per hectare

Total area in hectare

Total no of

plants

Cumulative increase in plantation

area

Cumulative increase in

Plants

1 2000 0.3 600 0.3 600

2 2000 0.5 1000 0.8 1600

3 2000 1 2000 1.8 3600

4 2000 1.2 2400 3 6000

5 2000 1.5 3000 4.5 9000

Total 4.5 9000

31

Maintenance of green belt

The green belt will be protected by barbered wire or natural fence.

Any dead plants will be regularly removed and replaced.

Proper watch and ward arrangement will be done.

Regular watering at appropriate intervals will be done and wastewater from the industry shall be utilized

6.4 Social Infrastructure

Nearest village Kanika is at 2.5 kms from the project site.

Nearest railway station at a distance of 3.00 kms from the project site.

Nearest town Belpahar is at a distance of 18 kms from the project site.

Necessary infrastructure such as transportation, communication, roads, water etc. are also available.

The proposed location is having proximity of raw material.

Skilled and unskilled manpower is easily available.

The nearest road is Belpahar to Vasundhra area office of MCL.

The siting criteria are suitably met at this location.

Hospitals, Schools, Colleges, Police Station, Fire Station, Temples, Forests, Fishery, banking, Revenue, Judiciary Local bodies are also available in the area.

6.5 Connectivity (Traffic and Transportation Road / Rail / Metro / Waterways etc.)

The proposed project will be set up inside the existing premises of Himgir Coal Washery at village Kanika under Himgir Tehsil in Sundargarh district of Odisha state. The proposed site is accessible from road and rail transport.

32

6.6 Drinking Water management (Source & Supply of Water).

The water would be required for working of drum washer and dust suppression. The total requirement of water is 300 m3/day. The Company has received a letter from Office of Executive Engineer, Sundergarh writing to the Superintending Engineer, Hirakund Dam Circle recommending allocation of 300 m3/day from Brahmani Nallah

Sewerage System

No residential facilities envisaged in the project. However, septic tank with soak pit will be provided for the employees of the project which are designed as per BIS specification.

6.7 Industrial Waste Management (Liquid Effluent)

The industrial liquid waste will be treated in Effluent Treatment Plant. As mostly the use of water will be of recirculation type, Zero Discharge Method will be adopted.

6.8 Solid Waste Management

1. Around two dumper load per month of reject coal will generated and the same will be used in the power plant of its sister concern at Bomaloi village in Sambalpur District.

2. Solid waste like waste cottons, empty bags, rejected gaskets, empty bottles, discarded jerry canes, steel structures and rejected spares of process equipments etc, generated may have scarp vale and shall be disposed off with price realization.

3. Used oil will be disposed to authorized reprocessing units having valid authorization from Orissa State Pollution Control Board.

6.9 Power Requirement & Supply / Source

The total power requirement of 10 MTPA washery will be 5 MVA. Power is being provided by the Orissa State Electricity Board (OSEB) subsidiary known as WESCO. The power is taken from Remja substation which is 28 Kms from the washery site by erecting concrete poles. Voltage level of the power provided by the OSEB is 33 KV. This 33 KV power is stepped down at washery premises by installing a 33/0.415 KV substation. Then the desired 415 V power is fed to the MCC room which distributes it to the various equipments. Power back up is being provided by the 6 nos. 380/500 KVA silent type Diesel Generator sets.

33

Chapter – 7

Rehabilitation and Resettlement (R & R Plan)

7.1 Policy to be adopted (Central / State) in respect of the project affected person including Home Oustees, Land Oustees and Land Less Labourers

No settlements exist within the project area. However, R & R Policy of Govt. of Odisha will be adopted wherever applicable and CSR activities will be adopted by the Project proponent as per the need.

34

Chapter – 8

Project Schedule & Cost Estimate

8.1 Likely date of Start of Construction and Likely Date of

Completion (Time Schedule for the Project to be given).

It is expected to commission the Washery expansion within 18 months from the receipt of the all regulatory approvals.

8.2 Estimated Project Cost along with Analysis in terms of Economic Viability of the Project.

The project cost is budgeted at Rs 40.00 Crores (Rupees forty crores) and will be funded by financial institutes with promoters contribution.

Rs. In Lakhs (approximate)

1. Consultancy : 45.00

2. Land : 0.00

3. Building & Structural : 750.00

4. Railway Siding : 1500.00

5. Plant & Machinery : 950.00

6. Miscellaneous Fixed Assets : 800.00

7. Contingencies : 45.00

Total 4090.00

Say 40.00 Crores

35

Table No. 10 Annual Cost for Environmental Protection

Sl. No. Particulars Cost

(Rs. In Lakhs)

1 Pollution control 19.22

2 Pollution monitoring 9.32

3 Occupational health 0.64

4 Green belt 1.41

5 Reclamation 3.96

6 Others 3.36

7 Interest on capital cost 3.46

8 Overheads 0.63

Total 42.00

36

Chapter – 9

Analysis of Proposal (Final Recommendations)

9.1 Financial and Social Benefits with Special Emphasis on the Benefit to the Local People including Tribal Population, if any, in the area.

Most of the work force required for construction and operation of the proposed project will be employed from the surrounding areas. No rehabilitation and resettlement issues are involved in the proposed project.

The economic growth of the area in terms of employment generation and market-growth are the expected outcomes of the project. The project has an employment generation impact on skilled/ semiskilled/ unskilled category of manpower. The direct employment potential of the project is estimated as 100 persons for the total project existing and proposed expansion. The share of local people in this is expected to be significant. However, indirect employment potential will have major share in the regional economy, which is expected to be of high order. It is assumed that the generation of indirect employment would be multiple of direct employment.

The direct beneficiaries in this process would be the local producers and local people providing services. Therefore, the significant positive impact on employment and occupation is envisaged on account of

Better economic status of the community due to better earnings

Higher inputs towards infrastructural facilities due to establishment of plant

Enhancement of literacy due to improved educational facilities made available to the locals as a part of Corporate Social Responsibility of the company.

The general social development of the area, at least in restricted sense of the term, is expected due to the improvements in infrastructure and communication system. New facilities will be created to meet growing demand of the population. Due to proposed project, there will be development of communication facilities in the area. The plant site area will be equipped with sufficient infrastructural facilities including drinking water, toilets, sanitation facilities, dispensary, etc.

37

Improvement in Socio-Economic Conditions

Employment: During operation, plant will generate direct employment. The p reference will be given for local population for employment in the semi-skilled and unskilled category. Indirect employment is created by the plant for supply of daily domestic goods.

Health and Safety Measures: The workers engaged in pollution generation area will be equipped with appropriate protective equipment.

Following measures will be adopted in the plant to keep check on the safety measures and health:

A periodic health check-up camp will be arranged for the workers in the plant for occupational diseases. All the employees will have to undergo medical check- ups at regular time interval to determine any impact on the health of employees due to the plant atmosphere.

Inspection and maintenance of pollution control systems regularly

All safety measures such as provision of safety appliances, imparting training, giving-of safety awards, display of posters with slogans related to safety will be taken

The workers exposed to noisy sources will be provided with ear muffs/plugs

Adequate facilities for drinking water and sufficient toilets will be provided for the employees

Social Welfare Measures: The Company shall earmark funds for social development and welfare measures in the surrounding villages. These measures shall include funding for:

Repair and improvement of existing schools

Repair and improvement of health centres

Improving the facilities for general lighting

Repair and improvement of community centres, building such as panchayat halls, baratghars, etc.

Conducting Awareness pro grams

Women and child development programs

Medical camps

Competitions and prizes

Drinking water availability efforts

Rain water harvesting measures

38

Table No. 11 CSR Activity Wise Budget

Sl. No Activities Covered under C.S.R Fund Allocation

(Annual) Rs. In Lacs

1 Development of village school and maintenance

2.5 lacs

2 Conducting medical camps and extending medical facilities

3.0 lacs

3 Development of village roads 1.5 lacs

4 Provision of tube wells for potable water and maintenance

2.0 lacs

5 Conducting cultural activities 1.0 lacs

Total 10.0 lacs

39

Chapter – 10

Addendum of EIA - EMP Report of Proposed Expansion

10.1 The aspects of EIA / EMP report of the proposed Expansion proposal would be as follows.

Brief description of Purpose of the report, Identification of project &

project proponent, description of nature, size, location of the project, Its

importance to the country and region, scope of the study – with details of

regulatory scoping to be carried out and the Terms of Reference to be

given by the committee will be incorporated in chapter 1.

In chapter 2 the detailed description of the proposed project, such as the

type of the project, need for the project, project location, layout, project

activities during plan period and conceptual period will be explained.

Chapter 3 will cover baseline environmental data and its analysis with

respect to the Study Area (project area and the buffer area).

Chapter 4 will describe the anticipated impacts on the environment and its

mitigation measures. The method of assessment of impacts including

studies to be carried out, modelling techniques to be adopted to assess the

impacts, details of the impacts on the baseline parameters, and the

mitigation measures to be implemented will be given in this chapter.

In chapter 5 the planned environmental monitoring program including the

technical aspects of monitoring the effectiveness of mitigation measures

proposed will be provided.

Chapter 6 will cover the details of the additional studies required in

addition to the ToR. The subject identified by the proponent, subjects

identified by the regulatory authority, subjects identified by the public and

other stakeholders, Risk Analysis & Disaster Management Plan, Natural

Resource Conservation and Rehabilitation & Resettlement (R&R) may be

covered.

Chapter 7 will describe the benefits that the project is going to provide to

the locality, neighbourhood, region and nation as a whole. Details of

benefits by way of improvements in the physical infrastructure, social

infrastructure, employment potential and other tangible benefits will also

be discussed.

40

Chapter 8 will be the Environmental Management Plan (EMP), which will

include the administrative and technical setup, summary matrix of EMP,

the cost involved to implement the EMP and provisions made towards the

same including the environmental policy of the company as whole

proposed conceptual-monitoring scheme will also be described in this

chapter.

Executive Summary will be provided in chapter 9 and details of the

consultant to prepare the EIA / EMP report will be given in chapter 10.

10.2 Status of Environmental Quality

Ambient air quality was carried out at five sampling stations within the study area. The concentration of RSPM was found in between 35 to 69 µg/m3, SPM between 81 to 135 µg/m3, SO2 is between 4.5 to 9.5 and NOX is in the range of 8.4 to 13.5. The depth to water table over the study area is highly variable ranging between 6m to 8m below ground during summer season. The rainfall is the main source of groundwater recharge in the area. The study area is underlain by mostly pre–Cambrian formation which is

devoid of any primary porosity. The ground water occurs in the

secondary porosity of the formation present. The occurrences and

movement of ground water is controlled by prevailing morphology.

Annual ground water recharge is 43.24 MCM.

Water quality in the study area shows that physical parameters like colour, odour, taste, turbidity and temperature. pH, hardness, chloride, total solids are within the desirable limits. Alkalinity is found within the desirable limit in most of the samples except at Baradhera and Bishnath Pur. The noise level was found to be between 41.50 db[A] to 55.00 db[A]

during day time and 35.00 db[A] to 45.00 db[A] during night. It is

concluded that the existing sound pressure levels in the area are within

the standards specified for respective area categories.

The soil quality analysis show that soil is silty clay in texture and light brown in colour and slightly acidic, with pH varying from 4.8 to 5.5. The soil is rich in organic matter, Ca and nitrate. Iron is high, values are between 29.2 to 39.7 mg/kg.

41

10.3 Specific Issues of Anticipated Impacts and Mitigation Measures in Existing as well as in Proposed Expansion

Impact on topography, climate and drainage No major change in topography of the plot, except for minor levelling of

land in some parts. Buildings will be constructed and sheds will be made,

thereby causing interference in the free flow of storm water. For that

purpose, storm water drains will be provided. Site is located in the

catchment of Brahmani Nala, which drains out the storm water. Minor

impact on topography is envisaged due to storage of raw materials since

small stacks shall be created. Any impact on topography and drainage

will be managed through drainage systems installed at the time of

construction and an well designed Storm Water Management Plan. Impact on air quality Major source of air pollution are discharge of coal into receiving hopper,

discharge of coal at the crusher, discharge of coal at screens and

Primary impact due to transportation. Appropriate pollution control

equipment with adequate capacity is proposed to be installed to avoid

degradation of air environment.

The dust generated by transportation activities will be mitigated by

sprinkling. Roads will be strengthened and maintained and stack emission

monitoring for particulate matter will be carried out as per frequency

prescribed by State Pollution Control Board. Wind shelters /wind

breaks will be provided by green belt and plantation.

Construction of Closed Belt Conveyor Corridor for transportation of

Washed Coal from Hemgiri Coal Washery to Railway Siding in Hemgiri by

M/s ACB (INDIA) Limited is also under process of establishment. This will

help in much reduction of generation of fugitive emission from the project

due to transportation of washed coal.

Impact on water quality Surface water: - Rain water flowing through the project area will carry

loose soil, thereby increasing suspended solids of receiving water body.

However, the impact is temporary and reversible. Garland drains around

the plant would be provided for rain water

42

However no impact is envisaged on surface water bodies. There will not

be any effluent discharge from the proposed plant. The plant would

operate on zero discharge concept and all the process water would be

clarified and recycled back to the system in a closed circuit module. Ground water:- Ground water would be sourced from bore holes inside

the plant site. The makeup water requirement for the proposed project is

of the order 600 m3/day. The water demand due to this project is only

0.21% of the available ground water resources in the area. Thus there

will be negligible impact of the ground water withdrawal on the

agricultural and other users of ground water. During the operation there

will not be any direct contact between shallow water table and

effluent/slurries. The run-off from the coal handling area will flow through garland drains

around the coal storage area and coal handling buildings into a common

basin (settling tank) where settlement of suspended solids shall take

place. The oil water mixture collected in the separate drains, will lead to an oil-

water separator. The separated water containing less than prescribed

limit of oil and grease will be led into the drainage system which will

finally discharge into station sump. The domestic sewage effluent from

the proposed plant will be treated in septic tank and soak pit system.

Coal washery would operate on zero discharge system.

Impact on land environment There is no impact envisaged on the land use of the nearby area or in

the study area as any minor change due to the proposed activity are

restricted to the plot. Due care shall be taken to maintain natural settings/ greenery in and

around the plant. For the purpose of landscaping, it is intended to

provide green belt of adequate width in and around the plant site. An

area of 4.0 hectares will be devoted for green belt. Impact due to noise & vibration The noise level will be due to equipment machinery and at coal transfer

points. The noise level near the sources such as crushers, DG set and

other operational points will be higher The noise level at sources like the

generator are anticipated to go as high as 95 dB (A).

43

The noise level will be maintained by providing and maintaining green belt,

noise generating machinery including transportation vehicles, reducing

the exposure time of workers to the higher noise levels.

Impact on traffic density The raw material transport will be carried out by trucks from coal

deliverance point to the plant. The washed coal will be transported from

plant to the siding by conveyor. Thus, increase in the traffic density is

envisaged for receipt of raw material. The coal received would be 10

MTPA i.e. 30302 TDP using an equal number of 20 T and 30 T trucks. This

would contribute 52 trucks an hour approximately. (26 nos x 20 T +26

nos x 30 T).

Adequate road infrastructure is available for transportation of raw and

washed coal. Local strengthening of road may be required up to the

railway siding. The length of the road between the plant and the railway

siding shall be maintained by the company.

Impact on ecology No impact on flora or fauna is expected since the land is devoid of trees, as such. There is no ecologically sensitive place, national park, sanctuary etc in the 10 km radius of the project. There is no schedule I animal in the core zone. With the progressive growth of greenery (due to greenbelt), biological terrestrial environment will improve in due course of time. It has been proposed to create and maintain a green belt in 4.0 Ha i.e. 29.5 % of total land area. Solid waste

During construction, waste generated is limited to levelling any low lying areas within the premises. There is no impact envisaged due to the solid waste generation. 100% utilization of rejects is envisaged in the present project. Captive power generation of 45 MW is proposed at AIPPL, Bomloi village where in the rejects can be put to combustion. No impact is envisaged on the water resources due to discharge of waste water, since plant would operate on zero discharge concepts.