Ministry of Environment and Forests Telefax : 011: M/s Posco India Private Limited

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F. No. J-11011/285/2007- IA II (I) Government of India Ministry of Environment and Forests Paryavaran Bhawan CGO Complex, Lodhi Road New Delhi 110 003 E-mail : tchand2003@yahoo.co.uk Telefax : 011: 24363963 To M/s Posco India Private Limited 512, Tower - A, Park Centra, Tower A, NH-8, Sector - 30, Gurgaon, Haryana - 122001. Dated: 7 th January, 2014 Subject : Integrated Iron & Steel Plant (4.0 MTPA) with Captive Power Plant (4x100MW) at Kujang, Near Paradip, Jagatsinghpur in Odisha by M/s POSCO India Private Limited regarding revalidation of Environmental Clearance. Ref. : (i) Ministry s EC letter of even no. dated 19.7.2007 and subsequent communications dated 31.1.2011, 24.5.2012,14.2.2013,1.5.2013 and 30.7.2013 (ii) Your letter no. PI(LA) 49/12 dated 24.5.2012 and subsequent communications dated 22.4.2013, 29.4.2013,30.8.2013 and 25.11.2013 Sir, This is in continuation of this Ministry s letters referred above and your letters under reference, wherein you have requested for revalidation (extension of validity) of the aforesaid Environmental Clearance (EC) dated 19.7.2007. 2. The above proposal was placed before the Expert Appraisal Committee (Industry-1) in its 37 th meeting held during 14-15 th June, 2012. Thereafter, the proposal was again placed before the Reconstituted Expert Appraisal Committee (Industry) in its 6 th meeting held during 5-7 th March, 2013 and further reconsidered in its 8 th meeting held during 16-17 th May, 2013. 3. It was noted that the original plan of M/s POSCO India Private Limited during 2007 is to set up 12 MTPA Integrated Steel Plant(ISP) on 4,004 acres of land. Presently, POSCO s Intermediate Plan (2012) is to set up 4 MTPA integrated steel plant (Phase-I) with in-built provision for another 4 MTPA (Phase-II) on 2,700 acres of land. Accordingly, the revised lay out plan was submitted. However, the original plan of setting up of 12 MTPA steel plant has remained unchanged and intact. POSCO committed to develop green belt in 33% of the total area. 4. It was also noted that Odisha Industrial Infrastructure Development Corporation, Government of Odisha has committed to hand over the 2700 acres of land. The captive source of the iron ore linkage for the POSCO is M/s Kandahar mine in Sundargarh district, Odisha. Till the time captive mine is ready, POSCO will make a long term agreement with Odisha Mining Corporation (OMC) and other private mine owner for the iron ore. POSCO is in the process of

making an MOU with GAIL for the supply of Liquefied Natural Gas. POSCO has submitted the water withdrawal permission for the ISP project from the Competent Authority. As per the revised water balance submitted to the Ministry, the total water intake will be 45480 m 3 /day. The wastewater generated at different units will undergo primary treatment within the shop itself for recycling and the blow down water will be treated in Common Effluent Treatment Plant (CETP). The treated CETP water would be used for low end use within the Plant. A part of the treated CETP water of about 8400 m 3 /day will undergo further treatment in RO Plant. The RO Plant Permeate will be connected to Plant make-up water circuit. A part of the RO Plant rejects would be used for the maintenance of green belt and the balance 1128 m 3 /day would be discharged into the sea through a marine pipeline. POSCO will make provision for 20 days water storage during contingency lean period. 5. After taking into consideration aforesaid facts and events, the Committee recommended for the revalidation of the environmental clearance dated 19.7.2007 subject to environmental safeguards including the recommendations given in the report of the Expert Committee headed by Shri K.Roy Paul which was constituted by this Ministry in pursuance to the directions given by the Hon ble National Green Tribunal on 30.3.2012. 6. The Ministry accepts the recommendation of the REAC (Industry) and revalidates the Environmental Clearance of even no. dated 19.7.2007 for a period of five years with effect from 18.7.2012 subject to stipulation of the following additional conditions for compliance by M/s POSCO India Private Limited. i. CRZ clearance shall be obtained for discharge of wastewater into the sea through pipeline. ii. iii. iv. On-line ambient air quality monitoring and continuous stack monitoring facilities for all the stacks should be provided and sufficient air pollution control devices viz. Electrostatic precipitator (ESP), and bag filters etc. shall be provided to keep the emission levels below 50 mg/nm 3 by installing energy efficient technology. The National Ambient Air Quality Standards notified by the Ministry vide G.S.R. No. 826(E) dated 16 th November, 2009 should be followed. Gaseous emission levels including secondary fugitive emissions from all the sources should be controlled within the latest permissible limits issued by the Ministry vide G.S.R. 414(E) dated 30 th May, 2008 and regularly monitored. Guidelines / Code of Practice issued by the CPCB should be followed. v. Dust suppression system and bag filters shall be installed to control the fugitive dust emissions at conveyor and transfer points, product handling, loading and unloading points. vi. vii. viii. Total water requirement shall not exceed 45,480 m 3 / day. Effluent of 1128 m 3 /day would be discharged into the sea through a pipeline after meeting the standards for discharge. The proponent shall consider installing a desalination plant to cater drinking water to the neighborhood. No ground water shall be withdrawn for the proposed project.

ix. Efforts shall further be made to use maximum water from the rain water harvesting sources. If needed, capacity of the reservoir should be enhanced to meet the maximum water requirement. Only balance water requirement should be met from other sources. Use of air cooled condensers shall be explored and closed circuit cooling system shall be provided to reduce water consumption and water requirement shall be modified accordingly. x. Regular monitoring of influent and effluent, surface, sub-surface and ground water shall be ensured and treated wastewater shall meet the norms prescribed by the State Pollution Control Board or prescribed under the E(P) Act whichever are more stringent. Leachate study for the effluent generated and analysis should also be regularly carried out and report submitted to the Ministry s Regional Office at Bhubaneshwar, SPCB and CPCB. xi. xii. xiii. xiv. xv. xvi. xvii. xviii. Risk and Disaster Management Plans due to plant operation and natural hazards such as flood, cyclone and earthquake along with mitigation measures shall be prepared and submitted to the Ministry s Regional Office at Bhubaneswar, SPCB and CPCB. Storage facilities for auxiliary liquid fuel such as LDO and/ HFO/LSHS shall be made in the plant area in consultation with Department of Explosives, Nagpur. Disaster Management Plan shall be prepared to meet any eventuality arising from storage/ leakage of oil and gas. Vehicular pollution due to transportation of raw material and finished products shall be controlled as well as dust emission during loading and unloading. Raw material shall be stacked at earmarked sites in sheds/stockyards with wind breakers/shields and secure of fire hazard. The proponent shall upload the status of compliance of the stipulated environmental clearance conditions and results of monitored data on their website and update these periodically. Information shall be simultaneously sent to the Regional Office of MOEF, concerned Zonal Office of CPCB and SPCB. The criteria pollutant levels, that is of PM10, PM2.5, SO2, NOx (ambient levels as well as stack emissions) and of critical sectoral parameters of the plant shall be monitored and displayed at a prominent location near the main gate of the company in public domain. No water bodies or natural drains in the area shall be disturbed. COC of 5.0 shall be adopted in the Captive Power Plant. The treated effluent conforming to the prescribed standards only shall be re-circulated and reused within the plant. Action plan for solid waste management, its conveyance outside the plant so as to ensure unfettered development of greenery within and disposal of the waste shall be submitted before completion of construction of the plant and commencement of production. Noise level in the work zone shall be limited to 75 db. For personnel working in the high noise area, requisite protective equipments like earplugs/ear muffs etc. shall be provided. Personnel so deployed shall be periodically examined and audiometric records maintained. The proponent shall prepare detailed Occupational Health Surveillance Programme for implementation from start of the construction and operation of the plant for workers health and safety.

xix. The environmental statement for each financial year ending 31 st March in Form-V as is mandated to be submitted by the project proponent to the concerned State Pollution Control Board as prescribed under the Environment (Protection) Rules, 1986, as amended subsequently, shall also be put on the website of the company along with the status of compliance of environmental conditions and shall also be sent to the respective Regional Offices of the MOEF by e-mail. xx. xxi. xxii. xxiii. There shall be a green belt around the plant of minimum 15-20 metres width and the total green area within the plant shall be 25% of its area as per the CPCB guidelines. The greenery will be raised in consultation with the DFO. Action in this behalf will commence simultaneously with construction of the plant. The Company shall submit within three months their policy towards Corporate Environment Responsibility which should inter-alia address (i) Standard operating process/ procedure to being into focus any infringement/deviation/violation of environmental or forest norms/conditions, (ii) Hierarchical system or Administrative order of the Company to deal with environmental issues and ensuring compliance to the environmental clearance conditions and (iii) System of reporting of non compliance/violation environmental norms to the Board of Directors of the company and/or stakeholders or shareholders. Provision shall be made for the housing of construction labour within the site with all necessary infrastructure and facilities such as fuel for cooking, mobile toilets, mobile STP, Safe drinking water, medical health care, crèche etc. The housing may be in the form of temporary structures to be removed after the completion of the project At least 5 % of the total cost of the project should be earmarked towards the Enterprise Social Commitment (ESC) based on locals need and item-wise details along with time bound action plan should be prepared and submitted to the Ministry s Regional Office at Bhubaneshwar. Implementation of such program should be ensured accordingly in a time bound manner. 7. All other conditions stipulated in the environmental clearance letter no. J-11011/285/2007 - IA II (I) dated 19.7.2007 shall remain the same. 8. The company shall obtain fresh environmental clearance in case of any change in the scope of the project. This issues with the approval of the Competent Authority. Copy to: (Dr.T.Chandni) Director 1. The Secretary, State Department of Environment, Government of Odisha, Bhubaneswar, Odisha. 2. The Chairman, Central Pollution Control Board, Parivesh Bhavan, CBD-cum-Office Complex, East Arjun Nagar, New Delhi, 110 032.

3. The Chairman, Odisha Pollution Control Board, Parivesh Bhavan, A/118, Neelkanthhanagar, Unit-8, Bhubaneswar - 751 012, Odisha. 4. The Additional Principal Chief Conservator of Forests (Eastern), Regional Office (EZ), A/3, Chandrasekharpur, Bhubaneswar - 751 023, Odisha. 5. Monitoring Cell, Ministry of Environment and Forests, Paryavaran Bhavan, CGO Complex, New Delhi. 6. Guard File / Record File/Monitoring file.