PRE-FEASIBILITY REPORT FOR MULTI COLOR GRANITE QUARRY In 5-00 Acres of Govt. Kharabu Land Survey Number: 167 Kotekoppa Village, Kanakapura Taluk Ramanagara District, Karnataka By M/s. Shivashakthi Enterprises No. 201, 68th Cross Road 5th Block, Rajaji Nagar BENGALURU – 560 010 KARNATAKA M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report C O N T E N T S Sl. Description Page No. No. 1 Executive Summary P-2 2 Introduction P-3 3 Market Review P-5 4 Project Description P-11 5 Site Analysis P-14 6 Planning P-16 7 Proposed Infrastructure P-19 8 Rehabilitation & Resettlement Plan P-21 9 Project Schedule & Cost Estimates P-23 10 Analysis of Proposal & Conclusions P-24 P-1 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report 1. EXECUTIVE SUMMARY Owner’s Name : M/s. Shivashakthi Enterprises Mine Site Area : 5-00 Acres of Govt Land Mine Type : Semi-Mechanized Open Cast Material : Multi Color Granite Survey No./ Plot No. : Survey No. 167 Region : Kotekoppa Village Taluk/ Tehsil : Kanakapura District : Ramanagara State : Karnataka Status of lease : Operating (Q. L. No. 627) Govt. Land Total Area 5-00 Acres Reserves : Type Geological (m3) Mineable (m3) Proved 1,94,413 64,755 Probable 40,929 33,633 Possible 40,929 31,343 Total 2,76,271 1,29,731 Proposed Production : Year Saleable (Cum) Waste (Cum) First 12,006 28,014 Second 10,004 23,342 Third 12,006 28,014 Fourth 10,004 23,342 Fifth 12,006 28,014 TOTAL 56,026 1,30,724 AVERAGE 11,205 26,145 P-2 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report 2.0 Introduction 2.1 General: Granite is the gift; Mother Nature has blessed the mankind, who has always found various means to utilize these treasures. A strong and solid rock, granite has found umpteen uses, particularly in the construction of buildings and other structures. Another popular usage of the stone is as the architectural stone in exterior, interior decoration, landscaping and monuments. 2.2 What is Granite? The definition of "granite" varies. A geologist might define granite as a coarse-grained, quartz- and feldspar-bearing igneous rock that is made up entirely of crystals. Granite technically refers to a light-colored granulose plutonic rock composed of feldspars, plagioclase, quartz (felsic minerals) and minor amounts of mafic minerals such as biotite, hornblende, pyroxene, iron oxides etc. But in the commercial parlance, the term Granite has become synonymous with all those crystalline rocks which have pleasing colors, strength to bear the processes of quarrying, cutting & polishing and are used commonly for decorative purposes. In the dimension stone trade, the word "granite" is used for any feldspar-bearing rock with interlocking crystals that are large enough to be seen with the unaided eye. By this classification, rocks such as anorthosite, gneiss, granite, granodiorite, monzonite, syenite, gabbro and others are all sold under the trade name of "granite". Being more resistant to wear and tear as well as weathering, granite is the most sought- after stone to be used as building as well as decorative stone. The fascination for granite is due to its taking mirror-like polish, high compressive strength, longevity and beauty. Indoors, polished granite slabs and tiles are used in countertops, tile floors, stair treads and many other design elements. Granite is a prestige material, used in projects to produce impressions of elegance and quality. One of the P-3 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report most familiar uses of granite in the United States is in kitchen countertops. In addition to solid slab countertops, granite tiles can be used to create a colorful and durable work station. 2.3 Present Proposal: Considering the abundantly available granite source and the growing demand in the domestic as well as international market, M/s. Shivashakthi Enterprises has been carrying-out Quarrying of Multi Color Quarrying in a Govt. land of 5-00 acres area, in Sy. No. 167 of Kotekoppa Village, Kanakapura Taluk, Ramanagara district, Karnataka. The said quarry is an Operating Quarry vide QL No. 627. It is proposed to quarrying with an annual production rate of 11,245 Cum/annum (Avg). 2.4 Promoters’ Background: The Multi Color Granite Quarry is being operating by M/s. Shivashakthi Enterprises who is an experienced entrepreneur from Bengaluru District of Karnataka State. P-4 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report 3.0 Market Review 3.1 General Due to the changing trends in the construction industry, increased affordability of common middle class population and increased demand for the residential and commercial tenements across the country, utilization of Granite has picked-up a great pace since the last decade. Also, the very quality of its polishing ability, appearance, strength etc. have made granite as an obvious choice in the construction of residential houses/ apartments, religious centers (temple, church etc.), commercial complexes, hotels and business centers etc. The granite used for decorative purposes is a costly material in comparison with other materials. Hence its utilization and trade within the country has been at a low profile when compared with the exports. As explained above, with the emergence of rich middle class and spurt in the construction activity, the internal trade is on the rise. 3.2 Prime Varieties of Indian Granite In the world market, there are nearly 300 varieties of granite. India supplies about 200 varieties. Out of these, prime varieties represent a wide spectrum of colour, texture and structure. These prime varieties have substantial resource base. Commercial names of granite are derived from area of origin, colour, pattern etc. Karnataka state specializes in the production of ruby red, chilly red, cera grey, Kanakapura Multi-colour, Himalayan Blue and Sira Grey varieties of granite. Andhra Pradesh is famous for Black galaxy, Srikakulam Blue and Black varieties of granite while Tamil Nadu is abundant in Jet-Black and Tippu-White, Kashmir-White and Paradiso Sea green varieties of granite. Odisha specializes in Green colour, silver grey, sea weed green, chilka blue and grey wave varieties of granite. The availability of various granites in various states is given below: P-5 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report State Varieties of Granite Available Andhra Pradesh Black Galaxy, Srikakulam Blue, Steel Grey, Paradiso, Anantapur Grey, Silver Galaxy etc. Bihar Tiger Skin, Mayurakshi Blue, Sawan Rose, English Teak, Black Cheetah etc. Gujarat Sonabadi Grey, Balaram Green, Ajapur Galaxy, Godhra Grey, Maharaja Tiger Black etc. Haryana Steel Grey Porphyry, Purplish Granite Porphyry, Deep Green etc. Karnataka Ruby Red, Fish Belly, Himalayan Blue, Sira Grey, Red Multi, Hassan Porphyry, Hassan Green, Magadi Green, Tiger Black etc. Kerala Tropical Green, Paradiso, Kerala White etc. Maharashtra Grey Silk, Light Green, Jhansi Red etc. Madhya Pradesh Multi-Coloured, Black Granite etc. Odisha Berhampur Blue, Silver Grey, Seaweed Green, Chilka Blue, Red Pearl, Jeypur and Keonjhar Black etc. Rajasthan Mokalsar Green, Nagina Green, Rosy Green, Blue Pearl, Chima Green, Bala Flower, Platinum White etc. Tamil Nadu Kashmir White, Rawa Silk, Paradiso, Green Multi, Colombo Juparana, Tiger Skin, Kunnam Black, Turiyur Blue etc. Uttar Pradesh Ruby Red, Jhansi Red, Green granite, Black Granite etc. West Bengal Bero Green Porphyry, Steaky Gneiss, Purulia Black, Birbhum Green, Spotty Black etc. 3.3 Market Demand: Although Granite is classified as a Minor Mineral under the MMDR Act 1957, it is a major contributor in foreign exchange earnings. India is one of the largest producers of dimension stones in the world and is the second largest exporter of raw granite after China and is ahead of Brazil and South Africa. India ranked fifth in the export of processed (value added/ finished) granite products. The dimension stone industry in India employs over one million workforces. This industry plays a vital role in the economy of states like Tamil Nadu, Andhra Pradesh, Karnataka and Rajasthan. Rural economy of many developing states like Madhya Pradesh, Uttar Pradesh, Odisha and North-Eastern States is dependent on this industry. Granite is the most sought-after stone black granite since long. In the ancient times, the granite pillars and beams were preferred material to support the P-6 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report huge structures of temples and palaces and for making protective walls around them. With the invention of modern tools of greater hardness and polishing ability, the use of granite has rather increased for aesthetic values. The modern motorized tools of tungsten carbide and brazed diamond have enabled the user to cut and polish the granite as per the specifications of the building sector. Presently cut and polished granite slabs of 20mm thickness are preferred for flooring, while tiles of 10 or 12 mm thickness are used for cladding. In addition to this, grave stones and monuments of various shapes and sizes are also in vogue. Because of the flexibility of the cutting tools, many artifacts of granite for decorative purposes are being made. Granite also finds its application in making garden furniture such as benches, fountains and many other articles which are used for landscaping and/or for decorative purposes. The cut-to-size small blocks are used as cobble stone, kerb stone, road sidings and many other innovative uses. Crude granites are utilized for structural purpose after little dressing & sizing whereas processed granites are used mostly in the construction of buildings and monuments and for interiors and exterior facings. Because of its superior wear resistance and non-denting quality, granite is used for various meteorological and engineering instruments such as surface plates, straight edges, parallels, cubes, V-blocks and work mounting tables of coordinate measuring machines. The surface plates are used as flat datum surface whenever precise measurements of dimensions and geometrical relationships are to be carried-out. For this purpose, harder variety of granite is required so that it can bear the high degree of grinding, polishing and calibration for achieving flat surface. It has been found that granite which is to be used for surface plates should have a close grain size, homogeneity, high density and hardness, uniform colour and low moisture absorption. The granite should also be free from flaws. P-7 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report Indian Granite, because of various uses enumerated above, is finding increased demand in the domestic as well as international market. It is an important commodity amongst ores and minerals which is being exported from the country. It is mainly traded in the form of crude or roughly trimmed blocks, as cut blocks and slabs and as polished blocks and tiles. The export value of granite (total) increased to Rs. 4,994 Crores in 2009-10 from Rs. 4,815 Crores in 2008-09 and contributed about 3.91% of all India exports of minerals & ores, next only to the diamond and iron ore exports. The share of granite (others) was at 49% at Rs. 2,471 Crores and that of crude or roughly trimmed blocks was about 32% at Rs. 1,617 Crores followed by granite (polished blocks/ tiles) with 13% at Rs. 672 Crores and Granite (cut blocks/ slabs) with 5% at Rs. 234 Crores. China was the most important buyer for Indian granite and its share in the total value of exports of granite was 24% followed by USA (14%) and Germany (6%). The product wise export details of granite, is given below: 2008-09 2009-10 Product Category Value Value Qty (T) Qty (T) (Rs. Cr.) (Rs. Cr.) Crude or roughly 2,641,496 1,633.41 2,598,235 1,616.57 trimmed Cut Blocks/ Slabs 379,236 199.58 295,794 234.13 Polished Blocks/ Tiles 308,493 960.68 207,505 671.95 Other Products 629,538 2,021.22 726,134 2,471.08 TOTAL 3,958,763 4814.89 3,827,668 4,993.73 From the above, it is evident that, even though there was a decline in the quantity exported, there was a net rise in the Foreign Exchange earnings into the Country’s economy. 3.4 Resource Availability India is endowed with abundant resources of a wide variety of granite comprising over 200 shades. As on 1.4.2005, resources of granite dimension stone of all varieties are estimated at 37,426 Million Cubic Metres. Of these resources, 1,130 million cubic metres (about 3%) fall in reserve category P-8 M/s. Shivashakthi Multi Color Granite Enterprises Pre-Feasibility Report while the remaining 36,296 million cubic metres or about 97% fall in resources category. Under reserve category, about 23 million cubic metres of all grades fall under proved category while 1,162 million cubic metres fall under probable category. About 93% reserves are located in Madhya Pradesh and Odisha with a share of 86% and 7% respectively. State-wise break-up of total resources reveals that Karnataka with about 25% resources followed by Jharkhand (24%), Rajasthan (23%), Andhra Pradesh (6%), Madhya Pradesh (5%) and Odisha (5%) together account for 88% of resources. Grade wise classification reveals that about 8% of the total resources fall under Black Granite while 91% under Coloured Granite. About 1% of the reserves and resources are of unclassified grade. The details of reserves/ resources as on 01.04.2005 are given below: (in Million m3) State Reserves Remaining Total Proved Probable Total Resources Resources Andhra Pradesh - - - 2,405.890 2,405.890 Assam - - - 583.950 583.950 Bihar - - - 877.612 877.612 Chattisgarh - - - 50.057 50.057 Gujarat - - - 421.296 421.296 Haryana - - - 34.000 34.000 Jharkhand - - - 8,847.364 8,847.364 Karnataka 19.212 35.600 54.812 9,252.866 9,307.678 Kerala 0.140 - 0.140 2.668 2.808 Madhya Pradesh - 969.224 969.224 1,024.860 1,994.084 Maharashtra - - - 1,158.847 1,158.847 Meghalaya - - - 286.467 286.467 Odisha - 80.000 80.000 1,763.060 1,843.060 Rajasthan - 4.500 4.500 8,520.708 8,525.208 Tamil Nadu - 17.690 17.690 541.745 559.435 Uttar Pradesh - - - 494.819 494.819 West Bengal 3.658 - 3.658 29.768 33.426 TOTAL 23.010 1,107.014 1,130.024 36,295.977 37,426.001 Black Granite 2.694 13.422 16.116 3,144.393 3,160.509 Coloured Granite 20.316 1,093.592 1,113.908 32,792.449 33,906.357 Unclassified - - - 359.135 359.135 TOTAL 23.010 1,107.014 1,130.024 36,295.977 37,426.001 P-9
Description: