NLC INDIA LIMITED

('Navratna' - A Government of India Enterprise)

MINE-II
PRE-FEASIBILTY REPORT FOR MINING OF LIGNITE &
ASSOCIATED MINERALS
(Silica sand & Ball clay)

PRE-FEASIBILITY REPORT FOR MINING OF LIGNITE & ASSOCIATED MATERIALS AT MINE-II

1. INTRODUCTION:
NLC India Limited, (NLCIL) formerly (Neyveli Lignite Corporation limited) is Navaratna, a
Government of India Enterprise registered under Indian Companies Act, 1956, engaged in
commercial exploitation of the Lignite deposit available at Neyveli region.

NLCIL is engaged in commercial mining of the Lignite deposit available at Neyveli region
in Tamil Nadu as well as in Rajasthan. Four lignite mines having a combined production
capacity of 30.6 MTPA feeding lignite to thermal power stations having a combined generating
capacity of 3240 MW. NLCIL is operating 1000 MW Coal based Thermal Power Station as joint
venture project with NLC Tamilnadu Power Limited. The total power generating capacity of
NLCIL is 4240 MW. In addition, NLCIL is also supplying lignite (1.9 MT/Y) to an Independent
Power Plant (TAQA) of 250 MW generation capacity. A New Neyveli Thermal Power Station
(NNTPS) of 1,000 MW generation capacity at Neyveli is under commissioning as a
replacement for the existing TPS-I of 600 MW.
 In the Non-Conventional Energy Sector, 51 MW wind power project and 640 MW Solar
Power Project has been commissioned in Tamilnadu while another 709 MW at Neyveli is under
implementation stage.

NLCIL has signed a JV agreement with UP Government to establish a 1980 MW Power

Station (3 x 660MW) at Ghatampur, Uttar Pradesh and the project is at the execution phase.
The below tables show the NLCIL existing operating projects. Another 3200 MW (4 x 800 MW)
coal based Power Plant is planned in Odisha utilizing the coal from Talabira mine.

EXISTING NLCIL OPERATING MINES

Lignite Production capacity

Sl. No. Existing Mine
per annum in MT
1 Mine-I at Neyveli, Tamilnadu 10.5
2 Mine-IA at Neyveli, Tamilnadu 3.0
3 Mine-II at Neyveli, Tamilnadu 15.0
4 Barsingsar, Rajasthan 2.10
Total 30.60

EXISTING NLCIL OPERATING SOLAR & WIND POWER PLANTS

Existing NLCIL Renewable Energy Power units

Sl. No. Power Units Capacity in MW
1 Solar Power Plant at Neyveli, Tamilnadu 140
MW
2 Solar Power Plant at South Tamilnadu 600

3 Wind power plant at Tirunelveli District, Tamilnadu 51

Total Renewable Energy Power plant capacity 791

1.0 PROJECT DETAILS:

The applicant , Mine-II is a existing operating mine with a capacity of 15 MTPA to cater
Thermal Power Station - II & Thermal Power Station - II Expansion. of 1970 MW. It is one of
the important project at National level.

In order to expose lignite, overburden thickness of 45m to 112m has to be removed as

waste. The Overburden consisting of lateritic loam or blackish grey alluvial clay with Kanker,
Cuddalore group of sedimentaries, Sporadic occurrences of hand ferruginous and siliceous
sandstones, unconsolidated sandstone with admixture of clay and silica sand occurring
immediately above lignite and alternate layers of sand and clays below lignite. During the
process of overburden removal and Lignite excavation, economic bands of clay and silica sand
occurring within these formations were found which are segregated towards conserving
natural resources.
 For lignite production capacity of 15 MTPA of Mine-II, Environment Clearance from
Ministry of Environment and Forest was obtained during December, 2002. The corresponding
Environmental Impact Assessment report prepared by M/S Vimta labs earlier considered
lignite as the main product and did not consider the recovery of clay & silica sand which occurs
sporadically. Now it is proposed to include the clay & silica sand as an associated product with
lignite, for which an amendment in EC is required incorporating the recovery of clay & silica
sand. Hence this pre feasibility report is prepared for submission to MOEF & CC.

2. DETAILS ABOUT THE MINE:

The salient features of the project are given below:
Project name NLCIL, Lignite Mine-II (Open cast)
Project proponent NLC India Ltd.
Villages in the Mine area Spread of Mining area in part/full of the following villages:

Kammapuram, Kottagam, Seplanatham, Siruvarappu, Uyyakondaravi, Sathapadi,

U. Adanur, Valaymadevei Keelpadi, Valayamadevi Melpadi, Agaram, Arasakuzhi,
Kulapakkam, Kumaramagalam, Gopolapuram, Aziz Nagar, [Link], Uthangal,
Vadakkuvellur, Veppanakurichi, Kathazhai, Managathi, Melpapanapattu,
Mummudicholagam, Neyveli, Seplanatham & Maduvanamedu.

Longitude / Latitude Mine –II, Area

Code Latitude Longitude
1 11o 27” and 11o 32” N 79o 27”and 79o35” E
Total Mine project Area Mine II & Mine II Expn. is 7193.975 Ha.
Reserve Lignite:
Geological Reserves : 622 MT,
Mineable reserve : 595.69 MT,
Mined Out : 304.27 MT (as on 31.03.2019)
Balance Extractable Reserves : 291.42 MT

The occurrence of silica sand and ball clay is sporadic in nature, the reserves in the
mine advancing front is estimated as below
Silica sand:
Mineable reserve : 32.37 LT
Ball Clay:
Mineable reserve : 26.88 LT
Rated capacity (per annum) Lignite : 15.00 MT; Silica Sand : 02.00 LT; Ball clay : 00.50 LT

Life of the mine 20 years (considering balance lignite reserve mined at 15 Mt per annum)

Stripping ratio (OB/Lignite) 5.20:1 m³/T

Overburden & Lignite:
SME Technology (BWEs, Conveyors, Spreaders)
Method of Mining &
Transportation Overburden & Lignite associated materials (ball clay & silica sand):
SME/ CME (shovel & dumper combination) as per site conditions.
Overburden quantity 1510 Mm3 (to be removed)
Working days 365 days/year (3 shifts of 8 hour each)
 Average number of persons worked during 2018-19 through direct
Manpower employment is 2448 and employed through contractor is 1808.
Cost of the project for 4.7 MTPA: Rs.278 Crs.
Cost of the project Cost of the project for 10.5 MTPA: Rs.1065.4 Crs.
Cost of the project for 15.0 MTPA: Rs.2295.93 Crs.
Elevation +15 m to +27 m above mean sea level (msl)
Topography Flat

Mining lease:
NLCIL was granted Mining Lease for mining in the region for a period of 20 years with
effect from 6.12.1956 . Thereafter upon its expiry, first renewal of the aforesaid lease was
granted for a period from 6.12.1976 to 5.12.1996 and second renewal was granted for a period
from 6.12.1996 to 5.12.2016. Copy of composite Lease document of Neyveli Lignite Field
(259 [Link]) is enclosed which is valid up to 2016. For third renewal of mining lease,
application submitted to the Tamilnadu state Geology and Mining department, Chennai
through District collector, Cuddalore on 04.12.2015 before the expiry of lease. As per the Rule
24-A(6) of the Mineral Concession Rules, 1960, if the renewal application of mining lease
submitted twelve months before the date of expiry of the lease period, the period of lease
shall be deemed to have been extended by a further period till the State Govt. grants the
lease.

3. Need for the project and its importance to the country and or region

Mine-II is an operating unit and feeding lignite to Thermal Power Station-II & II
Expansion.
The exploration studies carried out and our past mining operation has showed that in
addition to lignite occurrence, sporadic occurrence of silica sand and ball clay was noticed.
There is demand in market for silica sand used in glass making and ball clay used in making
ceramic materials. In addition to lignite, recovery of silica sand and ball clay also will bring good
return to State as well as Central Governments in the form of royalty and taxes. Therefore this
proposal is very much essential in the perspective of conservation of these valuable raw
materials, which otherwise would go as waste to the dump yard.

INDEX MAP OF MINE-II

4. Land use
The Project area for Mine-II project is 7193.975 Ha which includes mine area, external
dump area and infrastructure. In addition 159.645 Ha land is envisaged for formation of
Re-settlement centers for displaced people. The present land use breakup details is given
below:

LAND USE DETAILS TILL 31.03.2019 BREAK-UP

Sl. No. Land use Area in Ha

 1 Area mined out 2355.61

2 Area reclaimed 874.50

3 Area afforested 670.50

4 No. of tree plantations 1320650

5 External OB Dump 1242.35

Reclamation and afforestation of overburden dumps is being carried out progressively

as per approved Mine Closure Plan.

5. Demand-supply gap:
There is a good demand in market for silica sand used in glass making and ball clay used
in making ceramic materials. Mining these materials will increase State as well as Central
Governments income in the form of royalty and taxes and contributes to nation’s growth by
meeting market’s demand.

6. Imports vs. indigenous production

Indigenous production benefits the community through direct and indirect employment
creation. There is no import of this silica sand and ball clay at present.

7. Export possibility
There is no export of this quality of silica sand and ball clay at present as there is
demand in the country itself for these products.

8. Employment generation:

At present about 4,256 number of persons employed inclusive of both direct employment
and employed through contractor. There is no additional manpower requirement for
recovery of silica sand and ball clay.

9. PROJECT DESCRIPTION

Mine II project area : 7193.975 Ha.

Mining area : 4122 Ha.
Lignite Mining Capacity : 15.0MTPA

Details of alternate sites & Environmental considerations and Basis of selecting the proposed
site:
Lignite deposition is site specific and mining in this area is inevitable. Hence, no
alternate site could be considered. In order to exploit lignite, the overburden removal is
carried out as a waste material during the removal of overburden ball clay and silca sand also
mined out.

10. Geology

10.1 Regional Geology:

 Geologically, the selected mining area and the surrounding area belong to the Upper
Miocene age of the Tertiary & Recent. The sequence of the geological formation in the mining
area and for the region is given below:
TABLE SHOWING STRATIGRAPHY OF NEYVELI AREA

11.0 Geology of the Area:

Geology of the second mine cut area is similar to the first mine cut area in the sense that
in both the areas lignite is associated with Tertiary formations of upper Miocene age and
stratigraphically similar formations, in the same sequence, are met within both the areas. i.e.,
sandstones, clays, lignite and aquifer sands. These formations are designated as “Cuddalore
group of sedimentaries”.
Figure showing Geological map of the region
 Typical vertical litho section of Mine-II

G.L G.L
0
TOP SOIL & LOAM

10

ARGILLACEOUS
20 SANDSTONE

30

40 MOTTLED CLAY

50

60 ARGILLACEOUS
DEPTH IN METRES FROM G.L

SANDSTONE

70

CLAY
80 CARBONACEOUS CLAY
SAND( SEMI CONFINED AQUIFER)
90

100
LIGNITE

110
CLAY
SAND(Confined Aquifer)
120
CLAY

130
SAND(Confined Aquifer)
140
CLAY
150

There is no indication of any major structural features like folds, faults, etc., within
the “Cuddalore” in this area.

Sub-surface lithology of Neyveli Lignite Field is mainly based on the exploratory

borehole data. The investigations of the exploratory boreholes as well as the irrigation
wells established in the area form the main basis for the interpretation of the sub-surface
aspects of the area. The Tertiary formations are exposed in the northern edge of the
present and proposed Expansion area of Mine II, while the alluvial deposit covers the rest
of the area. The total thickness of the overburden material ranges between 45 and 112
m.
The uppermost layer consists of either lateritic loam or blackish grey alluvial clay
with Kanker and succeeded by Cuddalore group of sedimentaries. Sporadic occurrences
of hand ferruginous and siliceous sandstones are observed which requires selective
blasting for uninterrupted mining. The unconsolidated sandstone formation with
admixture of clay occurring immediately above lignite, generally ranges between 3 and 15
m thickness (semi confined aquifer). Lenses of economically mineable quantity of silica
sand is occurring at the bottom of this formation. The lignite underlies this formation and
varies in thickness from 4 to 24 m. In most of the area 2 to 3 m of thick clays separate the
lignite seam from the underlying confined aquifer, which contains alternate layer of sand
and clays. The ball clay and silica sand is of sporadic occurrence in nature in the selected
lignite mining area.
11.1 Reserves:

Lignite:
The general dip of the lignite bed is in East to South -East direction with 1 in 70 to 1
in 100 gradient. The basin is devoid of any geological disturbance like fold or fault. The
lignite is mainly of single seam, but splits into two or three seams at the eastern boundary
with inter burden consist mostly of clay and fine sand. Lignite thickness varies from 4 m to
24 m.

The Geological Reserve of the Mine-II is 622 MT and mineable reserve in selected
mine area of Mine II is 595.69 MT. Lignite so far mined out upto 31.03.2019 is 304.27 MT.

The Reserve details and basic Project Parameters of the Mine-II block are given in
the in the below table.

LIGNITE RESERVE & BASIC PROJECT

PARAMETERS
Sl. Parameters Unit Value
No.
1 In-situ Geological Reserves of Mine-II block Mt 622
2 Extractable / Mineable Reserves Mt 595.69
3 Balance Extractable / Mineable Reserves Mt 291.42
4 Balance Volume of OB to be excavated Mcum 1510
5 Stripping ratio t/ cum 1 : 5.2
6 Target Capacity at 100% capacity Mt/annum 15.0
7 Projected Project/ Mine Life at 15MTPA Lignite Production Years 20

Reserves of Silica sand and Ball clay :

Silica Sand:
A layer of sandy formation having a thickness of few meters to 15.0 m is occurring
just above lignite sporadically. This formation form the semi confined zone in Mine-II.
Lenses of economically mineable quantity of silica sand is occurring at the bottom of this
sandy formation. However the silica sand is mixed with clay matter, iron oxides and
sulphur bearing mineral (marcasite matter). It shows dull greenish in color.

A drawings showing the mode of occurrence of silica sand and ball clay deposits in
the mining area is shown in plate No.1 & 2.
Plate No.1
 Silica sand

A lenzoid body of Silica sand deposit occur just above lignite seam in Mine-II Plate No: 2
 Analyzed silica sand samples collected from the exposed area revealed SiO2 content of
around 90.0% or less and also contains impurities like oxides of iron, marcasite (Sulphur as
SO3) and clay particles. The analytical results of the silica sand is enclosed in Annexure-I.

Because of sporadic occurrence of silica sand, the estimated reserve of silica sand in the
lignite mining area is about 32.37 LT. However the reserves may vary depending upon the
reserve estimation by drilling exploratory bore wells in the closed intervals during the lignite
mine face advancement.

Ball Clay:
The ball clay mostly reported as clay in the bore holes below lignite and in most of the
bore holes, sand layers exists immediately below lignite. Which suggests ball clay is of sporadic
occurrence in nature in the selected lignite mining area. Because of sporadic occurrence of ball
clay, the estimated reserve in the lignite mining area is about 26.88 LT. However the reserves
may vary depending upon the reserve estimation by drilling exploratory bore wells in the
closed intervals during the lignite mine face advancement.

11.3 Lignite / silica sand mining with process details:

The Overburden is being removed in 5 benches viz, New Surface, Surface, Top, Middle
and Bottom by Specialized Mining Equipments like Bucket Wheel Excavator, Belt Conveyor,
Tripper and Spreader. During progressive mining, the overburden (OB) excavated for in order
to mine lignite is dumped as Inside & Outside Dumps. These dumps are reclaimed by proper
terracing and stabilized and top soil which is excavated from mine advancing front is spread
over these refilled/ dump area for afforestation.

Lignite excavation is carried out by Bucket Wheel Excavators, transported to pit head
lignite bunker by belt conveyors and stacked by stacker. From bunker it is reclaimed and
dispatched to Thermal Power Stations by belt conveyors.

The silica sand is available in the bottom of the Bottom bench. When the mine
advancement taking place by cutting the overburden through Bucket wheel excavator, the
silica sand will be handled and loaded in the conveyor and separately stocked in the dumping
side. From dumping side, the silica sand is re-handled using conventional mining equipments
and transported to the Stock Yard located in the surface. The method of mining depends on
the site condition, mode of availability of silica sand.

The ball clay is associated with lignite as pockets at places and it could be mined using
conventional mining equipments like shovel and transported through dumpers. After weighing
separately, silica sand and ball clay are transported by dumpers to stock yard at surface for
storage before selling to the interested parties.
YEARWISE MOVEMENT PLAN OF MINE-III WITH EXTERNAL DUMP YARD
Sequence of mining:

Continuous opencast mining method by deploying SME-Specialized Mining Equipment

comprising of BWE-Bucket Wheel Excavator, Conveyors, Tripper Car, Spreader, Stacker &
Reclaimer for removal of overburden and lignite mining. For mining and transportation of silica
sand and ball clay, SME/ CME will be used as per availability of reserve and site conditions with
stock yard at surface for storage before selling to the interested parties.

TENTATIVE MINE-II YEAR WISE PRODUCTION SCHEDULE

Year OB in MCM Lignite in MT

2019 - 20 85 (78+7) 15
2020 - 21 85(78+7) 15
2021 - 22 85(78+7) 15
2022 - 23 85(78+7) 15
2023 - 24 78 15
2024 - 25 78 15
2025 - 26 78 15
2026 - 27 78 15
2027 - 28 78 15
2028 - 29 78 15
2029 - 30 78 15
2030 - 31 78 15
2031 - 32 78 15
2032 - 33 78 15
2033 - 34 78 15
2034 - 35 78 15
2035 - 36 78 15
2036 - 37 78 15
2037 - 38 78 15
2038 - 39 0 6.42
Total 1510 291.42

With the balance reserve of 291.42 MT, at rate of 15 MT lignite production per annum, expected
mine life is 20 years. Mine life might vary subjected to yearly production & consumption from linked
Thermal Power Stations. Where ever the stripping ratio is higher, excess quantity of overburden is being
removed by outsourcing.
TENTATIVE MINE-II YEAR WISE PRODUCTION SCHEDULE OF SILICA SAND & BALL CALY

Period Production schedule

Silica sand (T) Ball Clay (T)
2019-20 200000 50000
2020-21 200000 50000
2021-22 200000 50000
2022-23 200000 50000
2023-24 200000 50000
2024-25 200000 50000
2025-26 200000 50000
2026-27 200000 50000
 2027-28 200000 50000
2028-29 200000 50000
2029-30 200000 50000
2030-31 200000 50000
2031-32 200000 50000
2032-33 200000 50000
2033-34 200000 50000
2034-35 200000 50000
2035-36 -- 50000
2036-37 -- 50000
2037-38 -- 50000
-- 50000

Mining of these materials silica sand and ball clay will be commenced upon receiving approval from
concerned authorities. Depending upon the demand and reserve the above mentioned schedule may vary
accordingly.

11.4 Raw Material Required Along with Estimated Quantity, Likely Source, Marketing Area of Final Product’s
Mode of Transport of Raw Material and Finished Product:

No raw material is required as this is a mining activity. Only diesel would be required for
transportation of vehicles and supporting HEMM and generators in case of emergency. The mined lignite
does not require beneficiation.

The quality of ball clay is good and no beneficiation is required. Silica sand is of low grade and cannot
be used for glass making in its raw form. So for conservation of mineral, it is proposed to wash the
impurities to use in glass and other industries.

11.5 Resource Optimization/ Recycling and Reuse Envisaged in the Project:

Resources like Explosives, Diesel Oil, Machinery, Land, Power and Water are fully optimized to
minimize unnecessary losses during the process of excavation and supply of lignite to the customers. The
resources which are used in the mining are recycled by various methods. Spent oil from transformers, will
be sold to the authorized vendors. The ground water pumped for safe mining is being used for power
generation in linked thermal power stations. Mine sump water collected at settling pits shall be discharged
from mine through pumps and used for dust suppression, mining activity and irrigation to surrounding
villages. Silica sand and ball clay which are valuable raw materials will be conserved for beneficial industrial
use instead of dumping as a waste material.

11.6 Availability of Water its Source, Energy / Power Requirement and Source:

Water:

The seepage water and the rain water collected in the mine sump is being utilized as industrial water
required for washing, sprinkling on mine roads for dust suppression, for watering the mine site plantations
and for irrigation of agricultural lands in the region. The drinking water is being supplied from bore well and
stored in overhead tank near the facilities area and distributed through pipe lines to different facilities
area for drinking and domestic purposes. The ground water pumped out to depressurize the upper
confined aquifer for safe lignite mining is being utilized at interlinked thermal power stations for power
generation.

Power:

The total power requirement of Mine-II & Mine-II Expansion for 15.0MTPA Stage is about 340MVA
and its availed from the nearest NLCIL Power source i.e from TPS-II. Mine Sub Station with 12 transformers
of 8 X 30 MVA & 4X 25MVA are installed and in operation.
11.7 QUANTITY OF WASTES TO BE GENERATED (LIQUID AND SOLID) AND SCHEME FOR THEIR MANAGEMENT /
DISPOSAL:
It is an operating mine and the following best practices are adopted for the waste management.

Solid waste:
The overburden so far excavated upto 31.03.2019 in Mine-II project is 1891.92 is dumped at inside
decoaled area as back filling and partial quantity was dumped at the external dump area.

As a part of environment restoration, these dumps are reclaimed by proper terracing and stabilized;
top soil is spread over and afforested. Plantation includes fruit bearing trees, flowering plants and
medicinal. Integrated farming & aquaculture is also being carried out in these afforested lands. Artificial
ponds, deer park & boat house are established. In Mine-II, mine closure activities are performed as per the
approved Mine Closure Plan approved by MOC. NLCIL has been awarded the prestigious Paryavaran
Puraskar Award in appreciation of the outstanding work done in the area of reclamation.

In the remaining mining area, about 1510 Mm3 of overburden is to be removed in the remaining
period of mine life and accordingly will be reclaimed and afforested as per Mine Closure Plan.

Waste water:
Adequate drainage systems are available in the mining, service centre for allowing the water to flow
in the predetermined path. Check wall, gully chute, edge bund, retaining wall, silt traps etc., are available to
arrest washout from the mine dump area during rainy season. All along the mine roads drainage will be
provided and benches will be properly sloped so as to avoid stagnation of water. The waste water
generated in the service yard and canteen are treated and the treated water is used for gardening.

With above measures no adverse impact is envisaged on the surface water quality in the proposed
lignite mining project. The quality of effluents is monitored regularly.

The water used for the process of washing the sand is allowed to settle in the setting pits for
removing Suspended Particulate Matter.

Hazardous waste:
The hazardous waste generated in the mine like used engine oil, used gear oil, used brake oils and
other lubricants are stored in separate drums/cans and sent to disposal through authorized-recyclers.

Air pollution Control:

Emissions from machines run by burning Fossil fuel (diesel) are controlled by properly maintaining
the vehicles. Dust emanated from the mining operations is controlled by sprinkling water.

Noise pollution Control:

Specialized Mining Machineries (SME) are used for excavation of OB and lignite. These are noise
generating machinery for which noise proof air conditioned cabins is provided for operator and the noise
levels are within the range of 60-90 dB (A). The effect of the shock/vibration from blasting is controlled at
the mine surface level itself by restoring to the use of milli-second delay action detonators and milli-second
detonating relays .There is therefore, no danger of vibration being carried on the nearer
structures/Buildings.

Sewerage system

Sewage generated from office premises is treated through septic tanks and soak pits. Well
established ETP is functioning in the township to treat the sewage from colony.
12.0 REHABILITATION AND RESETTLEMENT PLAN
The following are the Integrated R&R benefits carried out for lands acquired at NEYVELI REGION FOR
ALL PROJECTS.

Apart from ensuring the payment of compensation for the lost assets on a consensus and no-
litigation basis, NLCIL is also implementing certain R&R provisions for the project affected families.

Assistances covered under NRRP2007

 Rehabilitation grant of 750 days minimum agricultural wages in lieu of employment.
 One time financial assistance of Rs.15,000/- for reconstruction of cattle shed.
 Shifting allowance of Rs.10,000/- to the affected families whose house has been acquired.
 One time financial assistance of Rs.25,000/- to the rural artisans, small traders.
 Subsistence allowance of 25 days minimum agriculture wages for each month to a displaced project
affected family, for a period of one year, paid in a single installment.
 Allotment of alternate house site to the affected family whose house has been acquired, to a minimum
extent of 120 [Link] and a maximum of 250 [Link] in well developed resettlement centres.
 NLCIL is arranging self employment training, entrepreneurship training and other suitable training
programs in association with reputed NGOs for affected persons, so as to facilitate them to get suitable
jobs.
 NLCIL is arranging exclusive ITI apprenticeship training, medical lab technician courses etc. for affected
families.
 NLCIL is giving preference to affected persons in awarding contract works in LA and R&R Department upto
a value of Rs.5 lakh, subject to other prequalification requirements.
 Awarding of contracts to PAP contractors registered under LA Scheme on preferential basis.
 Income Generating Schemes of like cleaning material production & supply is in operation.
 Wards of PAPs are providing in-plant trainings, assistance for project work at free of cost.
 Continuance of Peripheral area Development Scheme.
Over and above the NRRP-2007 provisions:-
 Though the dwellers/encroachers of Govt. lands are not entitled for any compensation, NLCIL is paying on
compassionate grounds, a sum equivalent to 50% of the value of the house structure in which the
encroacher was residing.
 NLCIL has obtained a special Government Order for directly calling for the applications from the Project
Affected Persons for ITI Apprenticeship Training in NLCIL, instead of through the employment exchange.
 NLCIL provides better Infrastructure and amenities in the Resettlement centres, than the original and
peripheral villages.

New R&R Benefits:- with effect from 01.01.2014.

For lands being acquired for NLC India, with effect from 01.01.2014 compensation and the R&R
benefits will be provided as per the provisions of RFCTLARR Act (Schedule I, II & III) and as directed by GoTN
vide G.O. (Ms). No.13 Industries (SIPCOT-LA) Department dt.21.02.2018 and G.O.(MS) No.298 Revenue &
Disaster management Dept. dt.20.09.2017.

CORPORATE SOCIAL RESPONSIBILITY:

CSR Policy:
 Corporate Social Responsibility (CSR) has always been intricately embedded in NLC’s vision and mission to
contour the corporate success. Right from its inception in 1956, NLCIL is engaging itself in various
Corporate Social Responsibility activities, integrated with the business activities. NLCIL has been extending
health, education, transport, library and sports facilities to surrounding public along with such services
provided to NLCIL employees and their wards in the Neyveli Region. Exclusive CSR projects/schemes/
activities/ programmes are also being carried on by NLCIL for the benefit of the local society at large. With
this long local CSR experience for over 5 decades, NLCIL has evolved and further formulated the Corporate
Social Responsibility Policy and formally documented it on 26.10.09.
 The main objective of CSR plans of NLCIL is to maximize NLCIL’s contribution to the Sustainable
Development of the localities in which it operates.
 This main objective is translated into the following workable and result oriented objectives:
 Striking win-win solutions in all situations involving the interest of the stakeholders
 Establishing a harmonious relationship of NLCIL with the local public inclusive growth with appropriate
value shared with all the stakeholders
 Environment protection and up-gradation for the future.
NLCIL’s CSR evolved as a natural corollary to its business operations:
NLCIL’s operations are technology and project driven. The following dimensions of NLCIL’s CSR are
conspicuous as a natural corollary to its business i.e., Mining and Power Station Projects of large scale:
a. The production of desired products and rendering of quality services with minimum impact on the
environment, including the human environment (during the economic life) and
b. The Peripheral Development (regular extra-business contributions to the society/environment, integrated
with business activities)
Activities undertaken under CSR Policy:
As regards the routine integrated CSR activities, NLCIL continues its contribution to the neighboring society
in the important areas such as Education, Peripheral Development, Employability and Entrepreneurial/
Managerial Development, Health and also Life-quality Improvement. NLCIL is keeping harmonious relationship
with the society and striving to maximize its contribution to the sustainable development of the region.
In case of natural calamities/disasters/distress also, NLCIL is most responsive and hard working in the
region and voluntarily extends emergency measures of help. CSR projects/schemes/activities/ programmes
being carried on by NLCIL for the benefit of the local society at large in the Neyveli and Barsingsar regions are
of the following forms, among others.
 Patronizing Social Welfare Societies/Opportunity Schools for Special Children
 Grant and Infrastructure to such special institutions and other educational societies
 Community Health Screening Camps
 Medical support to the elderly
 Mosquito control programme
 Plastic menace control programme
 Immunization programme
 Epidemics-control programmes (prophylactic measures)
 Supplying water to the surrounding villages for irrigation
 Sinking of drinking water bore wells in the surrounding villages
 Bridges/culverts in the nearby villages
 Public toilets in the nearby villages
 CSR focused programmes of training and development for students and teachers
 Facilitating In-plant Training and Project Work for students of various disciplines
 Past service recognition measures
 Death benefits to the family of the deceased employees
 Contributions to the cause of women
 Providing access to facilities of township to the neighboring villagers through subsidized Transport
 Setting up of an Industrial Training Institute in Barsingsar
 Supplied drinking water to urban agglomerations (1983 & 1993) and to Chennai city (2001) by rail and
road, when struck by drought
  Voluntary deployment of NLCIL’s equipment and personnel with necessary material for disaster related
relief operations in the region – Voluntary work undertaken in Tsunami affected areas (Jan 2005), Gaja
affected areas (2018).
 Food relief works in the surrounding area including repairs to Roads, providing temporary shelter and
supplying food & medicines to the flood affected.
 Under “Swachch Vidyalaya Abhiyan” scheme, constructed 1275 toilets at a cost of Rs.35.00 crores in
government schools in the state of Rajasthan (140 Nos.) and Tamilnadu (1135 Nos.)
 The year wise CSR expenditure of NLCIL is given below :

Budget Allocated
Year Actual Expenditure (in Cr.)
(in Cr.)

2010-11 2.48 13.23

2011-12 13 14.09

2012-13 13 14.26

2013-14 41.6 47.49

2014-15 44.27 81.93

2016-17 43.46 43.46

13.0 SITE ANALYSIS

13.1 Connectivity
Neyveli Lignite Mine-II is well connected by roads to Chennai (210 Kms due North), Cuddalore (45
Kms due east), Kumbakonam (80 Kms South) and Vridhachalam (19 Kms West). All the villages within the
ambit of exploration area are interlinked by asphaltic and metalled roads. The nearest railway Station is
Neyveli (1.0 Km North) which is located on the Cuddalore- Vridhachalam Section of Southern railway. The
nearest air port is at Trichurapalli at a distance of about 120 km.

13.2 Land Form, Land Use and Land Ownership

The land requirement for Mine-II lignite project is 7193.975 Ha which includes mine area, external
dump area and infrastructure.

13.3 Topography

The surface contours of the area indicate a gentle topography with elevations varying mostly
between +27 meters in the northeast and +15 meters in the south-east.

13.4 Existing Land Use Pattern and Shortest Distances from the Periphery of the Project to Periphery of the
Forest, National Park, Wild Life Sanctuary, Eco Sensitive Areas, Water Bodies, CRZ etc:

Reclamation and afforestation of overburden dumps is being carried out progressively as per
approved Mine Closure Plan.

The existing project area does not fall under CRZ area. There are no National parks, Wild life
sanctuary and eco sensitive areas are exists within 10 Km radius of the project boundary. The nearest
wildlife sanctuary is Vedantangal Sanctuary at a distance of 100 km in NNE and nearest National Park is
Eravikulam National Park present at a distance of 290 km in SW.

The environmental setting details the project area are below:

 ENVIRONMENTAL SETTING

Item Description Distance

Nearest Highway State highway No.10 7.0 km, North
Nearest Railway station Neyveli 1.0 km, North
Nearest Air port Pondicherry (70 km, East)
Nearest Air port Chennai 230Km NNE
(international)
Nearest town Vadalur (8.0 km, East)

Nearest Water bodies Nearest River Parvanar river (2km,N),

Manimukta river (4.5 km, SW),
Vellar river (8.0 km, S)
Nearest lake/ ponds Walaja tank (9.0 km, E),
Vriddhachalam anicut,
Wellington reservoir, Jambu eri,
Perumal eri.
Ecological Sensitive Zones within 15 Km from M.L. Boundary Nil
National Parks/ Wild life Sanctuaries within 15 Km from M.L. Nil
Boundary
CRZ Nil
Historical Places within 15 Km from M.L. Boundary Nil
Any other Industrial Establishments Nil
Nearest Forest Blocks Reserve Forests:
Narumanam RF 11.0 km, NW
Semakkottai RF 13.0 km, NW
Velangulam RF 14.0 kM,N
Ammeri RF [Link], NW

Paravanar channel leading to walajai eri flowing in the advancing area of mine is being diverted in
stagewise away from the mine movement area.

13.5 Existing Infrastructure

Mine-II is a working mine, where all infrastructures like office building, statutory buildings, colony,
roads, water supply, power supply etc are in place.

13.6 Soil classification:

The Tertiary formations are exposed in the northern edge of the present and proposed Expansion
area of Mine II, while the alluvial deposit covers the rest of the area. The uppermost layer consists of either
lateritic loam or blackish grey alluvial clay with Kanker.

13.7 Climatic Data From Secondary Source:

The climate of this region is mainly tropical type and is influenced by the conditions in Bay of Bengal.
However, the real monsoon months are October to December when the area is influenced by the North-
east monsoon. The long-term data in respect of various meteorological parameters are monitored by NLCIL.

The area Secondary information on meteorological conditions has been collected from the Centre for
the Applied and Research Development (CARD) of NLCIL. Data of 18 years (2001-2018) has been collected
and analyzed. Wind speed, temperature, relative humidity is measured twice a day.
 CLIMATOLOGICALLY DATA STATION: CARD, NEYVELI (2001-2018)

Month Wind speed in Temperature (0C) Relative Humidity (%)

km per hr
08:30 16:30 Max. Min. 08:30 17:30
January 9.0 9.0 35.4 20.8 98.0 96.4
February 6.0 14.0 35.3 21.7 85.9 64.3
March 3.2 11.0 37.5 24.0 95.5 84.8
April 4.4 14.0 43.9 35.4 68.7 56.3
May 6.0 16.0 43.6 27.4 68.1 58.6
June 6.0 11.0 42.9 27.6 82.9 78.5
July 6.0 20.0 42.3 26.4 75.1 76.9
August 6.0 16.0 41.1 25.9 100.0 89.0
September 6.0 16.0 40.4 25.5 100.0 60.9
October 8.0 12.0 38.3 23.9 100.0 97.2
November 6.0 9.0 35.8 23.0 99.9 96.5
December 8.0 11.0 33.8 21.5 95.3 99.4
Average 6.22 13.25 39.19 25.26 89.12 79.90

14. PLANNING BRIEF

Mining Method:

In Mine-II & Mine II Expn. project, BWE’s, Conveyors, Spreaders (SME Technology) are deployed for
the removal of overburden and lignite excavation. The excavated lignite transported to Lignite Stockyard by
conveyor system. For excavation by BWE, where ever hard rock is encountered drilling and blasting
operation is being carried out with adherence to norms. The excavated overburden is being refilled by using
spreaders in the mined out area. After Top soil spread, the backfilled area will be biologically reclaimed and
afforested to restore to pre-mining condition.

For mining and transportation of silica sand and ball clay SME/ CME will be used as per availability of
reserve and site conditions with a stock yard at surface for stacking/ storage before selling to the interested
parties. For mining these ball clay and silica sand no additional equipments are required.

Assessment of Infrastructure Demand (Physical & Social)

The existing road and other infra structure facilities are enough to meet out the requirements.

Amenities/Facilities

All facilities like office, statutory buildings, water, power, medical facilities etc are already available in
the project.

14. 1 PROPOSED INFRASTRUCTURE:

No additional infra structure required as this a existing mine in operation.

15.0 PROJECT SCHEDULE & COST ESTIMATES

The balance life of the project is 20 years for the targeted production of 15.0 Mt/annum. The total
mine capital cost is about Rs 3639.33 Crores and there is no additional investment required for this
amendment proposal. Project schedule of lignite, Silica sand and ball clay as mentioned above.
16.0 ANALYSIS OF PROPOSAL (Final Recommendations)

The lignite mine project has already given direct as well as indirect employment facilities to the
Project affected families and villagers and employment through contractors. Lot of employment
opportunities have been created in the form of service providers, petty contracts, hiring vehicles etc. In
addition to above, silica sand and ball clay recovery from mine will provide business opportunities to
transporters, traders and employment opportunities in glass manufacturing and ceramic industries.

Annexure-I
Analytical Results Of Silica Sand
 Annexure-II
Analytical Results Of Ball Clay