Pre-Feasibility Report [Application submitted for obtaining Terms of Reference for Prior Environment Clearance]

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1 Pre-Feasibility Report [Application submitted for obtaining Terms of Reference for Prior Environment Clearance] Project Proposal: Expansion of Cement Plant capacity from 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh Project Proponent: M/s KJS Cement Pvt Limited NH-7, Rewa Road, Village: Amilia-Lakhwar, PO: Maihar, Dist: Satna August, 2016

2 Tehsil, Satna District, Madhya Pradesh of PRE-FEASIBILITY REPORT (PFR) Contents 1 Executive Summary 2 Introduction to the Project 3 Project Description 4 Site Analysis 5 Planning Brief 6 Proposed Infrastructure 7 R& R Action Plan 8 Environmental impacts and mitigation measures 9 Proposed schedule for approval and implementation 10 Analysis of proposal Rev 01 2

3 Tehsil, Satna District, Madhya Pradesh of 1.0 Executive Summary M/s KJS Cement Private Limited (KJS), a group company of Kamal Sponge, Steel & Power Ltd. has setup a Cement Plant of 1.5 MTPA clinker and 2.25 MTPA of Cement productions and a 27 MW captive power plant, based on state-of-the- art technology near Amilia Village, Maihar Taluka, Satna District, Madhya Pradesh. The present project refers to proposed cement plant expansion with a capacity of 1.5 to 2.2 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at the existing plant site with a project cost of Rs 320 Crores. 2.0 Introduction to the Project About Project Proponent Kamal Sponge, Steel & Power Ltd. is situated at 10 km from Satna has a significant Presence in Madhya Pradesh from the year 2000 onwards. It has its own iron ore mines in Orissa and Madhya Pradesh. It has Sponge Iron Plant of 300 TPD in Madhya Pradesh producing steel bars and angles, with its own captive thermal power plant of 12 MW capacity. Brief Description of Nature of the Proposed Project The proposed Cement plant expansion is based on process optimization of existing cement plant & installation of a new Cement grinding mill. All the units in the upstream and downstream of the kiln will be designed for a clinker production capacity of 7020 TPD on an average of 330 working days basis, the total annual output of clinker will be about 2.2 MTPA. A new cement grinding mill of capacity 170 TPH will be installed. Total cement production will be 3.55 MTPA. The major raw materials for the unit are limestone, coal, pet coke, iron ore/ bauxite, gypsum and fly ash. The storage will be in covered sheds for all the raw material. cement manufacturing involves raw material preparation, raw meal preparation, clinkerisation, cement grinding, blending, cement packing & storage. Already installed APCE such as bag houses, ESP & bag filters will be upgraded to maintain the emission norms of 30 mg/nm 3. Need for the Project The cement market has growth potential due to the central government liberalization policies and new schemes for housing, road projects. Cement demand growth is anticipated to be about 5-6% increase mainly through road projects, housing projects. Continuous demand for exports to China and other South-East Asian countries along with the increased requirement of the domestic sector have leaded all the cement industries in the country to plan for increased capacities. Demand Supply Gap Efforts by the Government to push infrastructure spending and give impetus to real estate projects would have a positive rub-off on demand, resulting a meaningful and gradual recovery in cement demand from onwards. Rev 01 3

4 Tehsil, Satna District, Madhya Pradesh of Source: CRISIL Customized Research Bulletin, Oct-Nov, 2014 Figure-1: Country s Cement Demand Growth Outlook The trend of future demand in different markets of the target region is given in Table- 1. The table clearly indicates that the cement demand in the target region is likely to reach around 90 MT. Table-1: Future demand in Target Region S. Cement Demand (MT) Market No FY14 FY15 FY16 1 Karnataka Maharashtra Andhra Pradesh & Telangana Goa Total Employment Generation The management of KJS Cement Pvt. Ltd. has proposed to give preference to local people for recruitment in semi-skilled and unskilled categories. About 514 persons are presently employed at the existing plant KJS provides employment to the local populace and also further labour of unskilled and semi-skilled categories will be taken from the nearby villages and towns. A total of about 100 persons would be given indirect employment during construction and installation of proposed expansion project. About 30 number of persons will be employed during operation phase of the proposed expansion project. 3.0 Project Description Outline of the Manufacturing & production process Cement Plant The cement plant will adopt Dry Process Technology for Cement manufacturing with Pre Heating and Pre Calciner Technology. The major steps in the manufacture of cement are given hereunder: Rev 01 4

5 Tehsil, Satna District, Madhya Pradesh of Clinker Section The main steps involved in the process are: Limestone Crushing Limestone Storage Raw Mill Feeding Raw Mill Grinding Homogenizing and Storage Blending Silo Cyclone pre-heater Kiln Cooler Coal Grinding Clinker Storage Cement Manufacturing The main steps In the Process of the cement Manufacturing are Cement Grinding Cement Blending Cement Storage and Packing 4.0 Site Analysis As the proposed project refers to expansion of the existing cement plant, no alternative sites have been considered. The efficient functioning of the plant depends on the availability of the basic requirements. Apart from this, the suitability/compliance of the site with respect to the guidelines of the Ministry of Environment and Forests and location of the deposit has been evaluated. The reasons for selection of the existing cement plant site at Amilia are given below: Availability of land and water Compliance of the site with the sitting guidelines of MoEF&CC Proximity of the captive limestone deposit. Availability of road to facilitate and transportation of the plant equipment, raw material and product. Availability of labour force during construction and operation phase. Accessibility of the site from environmental aspects. No national park or wild life sanctuary exists within 10 km of the plant. The salient features of the proposed project site are given in Table-2. Rev 01 5

6 Tehsil, Satna District, Madhya Pradesh of Table-2: Salient Features of Project Site District & State Satna District, Madhya Pradesh Tehsil Maihar Tehsil Village Amilia Village Land Availability 91 ha Nature of the Area Plain Topo-sheet No 63 D/ 15 and 63 D/ 16 Coordinates General Climatic Conditions Maximum Temperature 47 C Minimum Temperature 1 C Annual Rainfall Wind Pattern during study period Elevation above mean sea level Road Connectivity Rail Connectivity Airport Water bodies Archaeological/ Historically Important Site Eco-Sensitive Places Sanctuaries / National Parks Important Religious & Tourist Places 5.0 Planning Brief Salient features of the project Latitude: 24 14'50.96" N & 24 15'27.70" N Longitudes: 80 47'28.99" E & 80 48'09.66"E 1,100 mm Predominantly from North West and North East during Post-Monsoon Season 335 to 340 m above MSL NH km N Maihar-Umariya SH -3 KM. West Maihar 3 km, W Jabalpur- 155 km Tamas river km E Seranji Nallah -1.6 km NE Lilji Nallah-6.3 km N Ghusra Nallah-3.5 km WNW Gadha Nallah-6.2 km NE Pathna Nallah-6.6 km N None within 10 km radius of the site None within 10 km radius of the site None within 10 km radius of the site Sharda Temple -8.5 km W The salient features of the project are given in Table-4. Table-4: Salient Features of the Project S. No Item Description 1 Capacity 1.5 to 2.2 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement 2 Land requirement 91 ha 3 Water requirement 2900 m 3 /day (Existing + Proposed) 4 Power requirement 39 MW (Existing + Proposed) 5 Limestone Requirement 3.2 MTPA (Existing + Proposed) 6 Primary fuel 0.6 MTPA (Existing + Proposed) 7 Auxiliary fuel Furnace oil, High Speed Diesel 8 Project cost Rs 320 Crores 9 EMP cost Capital Cost: Rs 600 Lakhs Recurring Cost: Rs 70 Lakhs Rev 01 6

7 Tehsil, Satna District, Madhya Pradesh of 6.0 Proposed Infrastructure Raw Material Requirement The major raw material requirement for proposed plant will be limestone, bauxite, iron ore, gypsum, slag, fly ash and coal. The details of raw materials requirement, the source and mode of transportation are provided in Table-5. Raw Material Table-5: Raw Materials and Source Additional Total Existing Proposed Proposed Source (MTPA) (MTPA) (MTPA) Mode of transport Limestone captive mines road Iron ore/ private mines in Bauxite Katni, Shahdol area road South Eastern Coal Coalfields & nearby petroleum refineries. Rail/Road Mineral Gypsum from mines in Gypsum Nagpur/Bikaner districts road Nearby thermal Fly ash power plant Bulkers Source: KJS Project Report Infrastructure Requirement Water: The existing water requirement is 2400 m 3 /day for cement plant and CPP. The additional water requirement of 500 m 3 /day for the proposed expansion project will be obtained from the rainwater harvested in the captive mine pits, located adjacent to the plant area. Power: The total power requirement for the proposed cement plant expansion of 39 MW will be met from existing 27 MW CPP and MPSEB grid. Land: Existing plant complex covers an area of 91 ha. About 30 ha of land has been developed into greenbelt. 7.0 R& R Action Plan As the plant is existing and it is an expansion project without any additional area acquisition, no Rehabilitation & Resettlement (R&R) issues are involved. Rev 01 7

8 Tehsil, Satna District, Madhya Pradesh of 8.0 Environmental impacts and mitigation measures Air The emissions generated from Cement Plant process are Particulate Matter (PM), Oxides of Nitrogen (NO 2 ) and Sulphur dioxide (SO 2 ). High efficiency ESP have been installed for cooler, bag house for raw mill and kiln, bag house for coal mill and cement mill to control the PM emissions to less than 30 mg/nm 3. These APCE will be further upgraded to take additional load. Fugitive emission shall be controlled by covered storage facilities for raw material & product. Installation of bag filters and water sprinkling shall be carried out at the material transfer points. Water No industrial waste water will be generated from cement manufacturing process. There is already a Sewage treatment plant of capacity 850 KLD. This STP is having sufficient capacity to treat additional domestic waste water generated after capacity enhancement. Sludge will be used as manure for green belt development within the plant premises. Solid Waste/ Hazardous waste No solid waste is generated in cement manufacturing process. Dust collected from air pollution control equipment is recycled in process. Generated used oil will be sold to authorized recyclers. Noise During operational phase noise will be generated from compressors, motors, blowers, grinding mills, crushing units etc. in the cement plant. Noise will be controlled by providing silencers, acoustic enclosures and providing sound barriers wherever feasible, Ear plugs/ muffs will be provided to persons working in high noise zone. Socioeconomic The major positive impact on the socio economic environment of the surrounding area of the project site will be increase in the work opportunity. There would be more employment opportunities generated due to the proposed project both during the construction phase and operation phase. In Addition to this industrial and economic development of the area will also take place No major impact is anticipated on socio economic environment. It is anticipated that the impacts on parameters of human interest could be mitigated by proper implementation of the control measures indicated in the Environmental Management Plan for the proposed project. An amount of about Rs 2.46 Crores has been indicated as CSR budget which as stated by the proponent is indicative only and the detailed budget will be prepared once detailed need based assessment in the study area during is carried out. Rev 01 8

9 Tehsil, Satna District, Madhya Pradesh of Green belt development Green belt development within the premises will reduce noise levels and dust levels by acting as a barrier between the outside environment of the premises and the inside environment of the premises. To make the green belt effective for this purpose, it is essential to select proper plant species rich in foliage and design the green belt spacing that results in lowering the sheltering effect. They will act like a sieve by separating the suspended particles of the air by offering physical obstruction. In the development of green belts multipurpose plant species should be selected. This will satisfy the ecological requirement of species diversity. The total area being developed as green belt is 33%, i.e., 30 ha. The details regarding the tree are based on the guidelines for developing green belts by the CPCB. The green cover proved beneficial in many ways, such as retention of soil moisture, prevention of soil erosion, recharge of ground water and moderation of the micro-climate of the area. This will help in reducing adverse effect of pollution in general. Environment monitoring plan The main attributes for which monitoring shall be carried out are: Ambient air Quality Stack Emission Wastewater Quality Noise Level Hazardous Waste Online monitoring of Ambient & stack air quality. Health Checkup for workers Regular monitoring of all above parameters shall be carried out as per the guidelines prescribed by the statutory body. 9.0 Proposed schedule and cost Estimates Time Schedule The ground works of the proposed cement plant expansion will be commenced after seeking all necessary clearances from the governing bodies. Installation and implementation of the expansion project would take around 12 months time period after getting Consent for Establishment from the MPPCB. Estimated Project Cost The proposed project cost is estimated as Rs 320 Crores, which includes Rs 170 Crores for installation of new ball mill and Rs 150 Crores for railway siding for raw materials handling and cement transportation. All other units of the existing cement plant will be optimized to meet proposed additional production capacity. The project is economically viable, involving innovative technology and is sustainable in terms of investing financial resources into the project. Rev 01 9

10 Tehsil, Satna District, Madhya Pradesh of 10.0 Analysis of Proposal By considering the proposed project and by evaluating all the possible environment impacts of the project, it can be concluded that project activities during construction and operation phase of this proposed expansion project by. will not have any significant negative impact on environment if the Environment Management Plan and Disaster Management Plan are strictly followed. More over this project will have a positive impact on the socio economy of this region as source of employment. Rev 01 10

11 capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of Figure 1: Index Map Rev 00 11

12 capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of Figure 2: Study Area Map Rev 00 12

13 capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of Figure 3: Google Map Rev 00 13

14 Pre-Feasibility Report for prior Environment Clearance for the Proposed Cement Plant Expansion with a capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of M/s KJS Cement Pvt Ltd Annexure-2: List of Survey Nos Rev 00 14

15 Pre-Feasibility Report for prior Environment Clearance for the Proposed Cement Plant Expansion with a capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of M/s KJS Cement Pvt Ltd Rev 00 15

16 Pre-Feasibility Report for prior Environment Clearance for the Proposed Cement Plant Expansion with a capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of M/s KJS Cement Pvt Ltd Rev 00 16

17 capacity of 1.5 to 2.20 MTPA of Clinker and 2.25 to 3.55 MTPA of Cement at Amilia Village, Maihar Tehsil, Satna District, Madhya Pradesh of Figure 4: Plant Layout Map Rev 00 17

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