F. No. J-11011/160/2010-IA-II (I)

Government of India

Ministry of Environment and Forests

(I.A. Division)

Paryavaran Bhawan

CGO Complex, Lodhi Road

New Delhi – 110 003

E-mail: ahuja.rai@nic.in

Tele/fax: 011 – 2436 3973

Dated: 29^th March, 2012

To,

The Director

M/s OCL Iron and Steel Ltd

Village Lamloi, P.O Garvana

Rajgangpur - 770017, District Sundergarh, Orissa

Fax no. 06624 222564

E-mail: oslrgp@oclsteel.in / globalexperts@rediffmail.com

Sub: Expansion of Integrated Steel Plant from 75000 TPA to 2,50,000 TPA , Steel Melt Shop & Rolling Mill alongwith 60 MW Captive Power Plant at Village Lamloi, Tehsil Rajgangpur, District Sundargarh in Orissa by M/s. OCL Iron & Steel Limited- regarding Environmental Clearance

Sir,

This has reference to your letter no. OISL/EXP/ ENV-002/2011-12 dated 29.07.2011 along with copies of EIA/EMP and public hearing reports and subsequent communication dated 30.09.2011 seeking environmental clearance under the provisions of EIA Notification, 2006.

2. The Ministry of Environment and Forests has examined your application. It is noted that M/s OCL Iron & Steel Limited have proposed for an expansion of Integrated Steel Plant from 75000 TPA to 2,50,000 TPA, Steel Melt Shop & Rolling Mill, 300 TPH Coal Washery along with Power Plant 60 MW located at village Lamloi, Tehsil Rajgangpur, District Sundargarh in Orissa. Existing production facility is for Sponge Iron (1,20,000 TPA), Steel Billets (76,000 TPA) and Power Plant of 14 MW. The land area requirement for the project is 99.15 acres of which 32.70 acres will be covered under the green belt. No forest land is involved. There is no National Park / Wildlife sanctuary / biosphere reserves is located within 10 km radius of the project site. However, reserve forests exist within 10km distance. No schedule-I fauna are presents within the study area. No rare and endangered species of flora and fauna have been reported in the study area. The total cost of the expansion project is Rs. 498 Crores and 19.92 Crores would be earmarked for environment protection measures.

3. Details of the plant configuration and production capacity are given below:

Unit	Capacity	Product	Production
Existing Plant
DRI Plant	4x100 TPD	Sponge Iron	1,20,000 TPA
Furnace IF	2x12 T	Liquid Steel Steel Billets	76,000 TPA 74,500 TPA
Ladle Furnace	1x14 T
Billet Caster	2 Strand
WHRB	4x10 TPH	Power	14 MW
AFBC Boiler	1x30 TPH	Power
Coal Washery	1x50 TPH
Expansion
DRI Plants	2x500 TPD	Sponge Iron	3,00,000
Coal Washery	1x300 TPH
Induction Furnace	4x15 T	Liquid Steel Steel Billets	1,80,000 TPA 1,75,500 TPA
Ladle Furnace	1x30 T
Billet caster	3 Strand
Rolling Mill	0.2 MTPA	TMT/ Wire Rod	2,00,000 TPA
WHRB	2x45 TPH	Power	20 MW
CFBC Boiler	1x160 TPH	Power	40 MW

4. The iron ore will be sourced from Joda / Barbil in Orissa. Dolomite will be obtained from Biramitrapur in Orissa and scrap requirement would be met from in plant generation, pig iron will be purchased from the local market. The char and coal washery middling will be used in the CFBC boiler to produce steam. The coal requirement will be met from the coal block Radhikapur (West) Coal mining private Limited for which the company has joint ownership having exclusive ownership of 16.13 MT of coal.

5. To control the fugitive emissions, raw material handling area and material transfer points will be provided with dust suppression system like bag filters, dry fog system. Close conveyor system would be provided. The product handling area will be provided with the pulse jet bag filter and ESP will be installed to DRI kiln and CFBC boiler to control the particulate emissions. Dust settling chambers for settling for coarse particles and after burning chamber for burning of CO for the DRI kilns will be provided. Spark extractor, dust extraction system comprising of pulse jet bag filter, suction hood would be provided to induction furnace. To control particulate emissions form the CFBC boiler, ESP will be installed. Limestone dozing along with coal field to control the SO₂ emissions will be provided.

6. Make up water requirement of 9,987m³/day will be sourced from Shankha River. Permission from the State Irrigation Department for drawl of water has already been obtained. Domestic effluent will be treated in septic tank followed by soak pit.  No effluent will be discharged outside the premises and ‘Zero’ discharge will be adopted. It is proposed to harvest the rain water to recharge the ground water as well as to reduce the fresh water requirement.

7. Solid waste generated will be mostly from Coal Washery Rejects (88,200 TPA) will be sold to outside party for making briquette. DRI Char (75,000 TPA) will be used in the CFBC boiler. SMS Slag (27,000 TPA) will be sold to the cement plants and used for road construction. Fly ash from the power plant (3,48,461 TPA) will be sold to OCL cement plant. The rolling mill scale will be recycled in the steel melting shop. It is proposed to develop green belt all along the plant site.

8. The integrated Steel plants are listed at S.No. 3(a) under Primary Metallurgical Industries under Category ‘A’ and appraised by the Expert Appraisal Committee -1 (Industry) in the Ministry.

9. The proposal was considered by the Expert Appraisal Committee-1 (Industry) in its 28^th meeting held during 26^th - 27^th September, 2011. The Committee recommended the proposal for environmental clearance subject to stipulation of specific conditions along with other environmental conditions. Public hearing for the project was held on 28.04.2011.

10. Based on the information submitted by you, presentation made by you and consultant, Global Experts, Bhubaneswar, the Ministry of Environment and Forests hereby accords environmental clearance to the above project under the provisions of EIA Notification dated 14^th September 2006 subject to strict compliance of the following Specific and General conditions:

A. SPECIFIC CONDITIONS:

i. Efforts shall be made to mitigate particulate levels in the ambient air and a time bound action plan shall be submitted. On-line ambient air quality monitoring and continuous stack monitoring facilities for all the stacks shall be provided and sufficient air pollution control devices viz. Electrostatic precipitator (ESP), gas cleaning plant, bag filters etc. shall be provided to keep the emission levels below 50 mg/Nm³ by installing energy efficient technology.

ii. As proposed, Electrostatic precipitator (ESP) shall be provided to WHRB, CFBC and DRI plants to control particulate emissions within 50 mg/Nm³. Fume extraction system shall be provided to induction furnaces to control the emissions within the prescribed standards.

iii. The National Ambient Air Quality Standards issued by the Ministry vide G.S.R. No. 826(E) dated 16^th November, 2009 shall be followed.

iv. Gaseous emission levels including secondary fugitive emissions from all the sources shall be controlled within the latest permissible limits issued by the Ministry and regularly monitored. Guidelines/Code of Practice issued by the CPCB shall be followed. New standards for the sponge iron plant issued by the Ministry vide G.S.R. 414(E) dated 30^th May, 2008 should be followed.

v. Hot gases from DRI kiln shall be passed through Dust Settling Chamber (DSC) to remove coarse solids and After Burning Chamber (ABC) to burn CO completely and used in waste heat recovery boiler (WHRB).  The gas then shall be cleaned in ESP before leaving out into the atmosphere through ID fan and stack.

vi. Make up water requirement shall not exceed 9,987m³/day. Efforts shall further be made to use maximum water from the rain water harvesting 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. All the effluent should be treated and used for ash handling, dust suppression and green belt development.  No effluent shall be discharged and ‘zero’ discharge shall be adopted. Sanitary sewage should be treated in septic tank followed by soak pit.

vii. Efforts shall be made to make use of rain water harvested. If needed, capacity of the reservoir should be enhanced to meet the maximum water requirement. Only balance water requirement shall be met from other sources.

viii. Regular monitoring of influent and effluent surface, sub-surface and ground water (including chromite) should be ensured and treated wastewater should meet the norms prescribed by the State Pollution Control Board or described under the Environment (Protection) Act whichever are more stringent. Leachate study for the effluent generated and analysis shall also be regularly carried out and report submitted to the Ministry’s Regional Office at Bhubaneswar, SPCB and CPCB.

ix. The water consumption shall not exceed as per the standard prescribed for the steel plants.

x. All the coal fines, char from DRI plant shall be utilized in CFBC boiler of power plant and no char shall be used for briquette making or disposed off anywhere else. CFBC boiler shall be installed simultaneously along with the DRI plant to ensure full utilization of char from the beginning.  Scrap shall be used in steel melting shop (SMS) and SMS slag and kiln accretions shall be properly utilized. All the other solid waste including broken refractory mass shall be properly disposed off in environment-friendly manner.

xi. Proper utilization of fly ash shall be ensured as per Fly Ash Notification, 1999 and subsequent amendment in 2009.

xii. Vehicular pollution due to transportation of raw material and finished products shall be controlled.  Proper arrangements shall also be made to control dust emissions during loading and unloading of the raw material and finished product.

xiii. All internal roads shall be black topped. The roads shall be regularly cleaned with mechanical sweepers. A 3-tier avenue plantation using native species shall be developed along the roads. Facilities for parking of trucks carrying raw coal from the linked coalmines shall be created within the Unit.

xiv. Proper handling, storage, utilization and disposal of all the solid waste shall be ensured and regular report regarding toxic metal content in the waste material and its composition, end use of solid/hazardous waste should be submitted to the Ministry’s Regional Office at Bhubaneswar, SPCB and CPCB. 

xv. Risk and Disaster Management Plan along with the mitigation measures shall be prepared and a copy submitted to the Ministry’s Regional Office at Bhubaneswar, SPCB and CPCB within three months of issue of environment clearance letter.

xvi. As proposed, green belt shall be developed in 33 % of plant area as per the CPCB guidelines in consultation with the DFO.

xvii. All the recommendations made in the Charter on Corporate Responsibility for Environment Protection (CREP) for the Steel Plants should be implemented.

xviii. All the commitments made to the public during the Public Hearing / Public Consultation meeting held on 28^th April, 2011 should be satisfactorily implemented and a separate budget for implementing the same should be allocated and information submitted to the Ministry’s Regional Office at Bhubaneswar.

xix. At least 5 % of the total cost of the project should be earmarked towards the Enterprise Social Commitment based on Public Hearing Issues and item-wise details along with time bound action plan should be prepared and submitted to the Ministry’s Regional Office at Bhubaneswar. Implementation of such program should be ensured accordingly in a time bound manner.

xx. The company shall provide housing for construction labour within the site with all necessary infrastructure and facilities such as fuel for cooking, mobile toilets, 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.

xxi. 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.

B. GENERAL CONDITIONS:

i. The project authorities must strictly adhere to the stipulations made by the Orissa State Pollution Control Board and the State Government.

ii. No further expansion or modifications in the plant shall be carried out without prior approval of the Ministry of Environment and Forests.

iii. The gaseous emissions from various process units shall conform to the load/mass based standards notified by this Ministry on 19^th May, 1993 and standards prescribed from time to time. The State Board may specify more stringent standards for the relevant parameters keeping in view the nature of the industry and its size and location.

iv. At least four ambient air quality monitoring stations shall be established in the downward direction as well as where maximum ground level concentration of PM₁₀, SO₂ and NO_X are anticipated in consultation with the SPCB. Data on ambient air quality and stack emission shall be regularly submitted to this Ministry including its Regional Office at Bhubaneswar and the SPCB/CPCB once in six months.

v. Industrial wastewater shall be properly collected, treated so as to conform to the standards prescribed under GSR 422 (E) dated 19^th May, 1993 and 31^st December, 1993 or as amended form time to time. The treated wastewater shall be utilized for plantation purpose.

vi. The overall noise levels in and around the plant area shall be kept well within the standards (85 dBA) by providing noise control measures including acoustic hoods, silencers, enclosures etc. on all sources of noise generation. The ambient noise levels should conform to the standards prescribed under EPA Rules, 1989 viz. 75 dBA (daytime) and 70 dBA (nighttime).

vii. Occupational health surveillance of the workers should be done on a regular basis and records maintained as per the Factories Act.

viii. The company shall develop surface water harvesting structures to harvest the rain water for utilization in the lean season besides recharging the ground water table.

ix. The project proponent shall also comply with all the environmental protection measures and safeguards recommended in the EIA/EMP report. Further, the company must undertake socio-economic development activities in the surrounding villages like community development programmes, educational programmes, drinking water supply and health care etc.

x. The requisite funds shall be earmarked towards capital cost and recurring cost/annum for environment pollution control measures to implement the conditions stipulated by the Ministry of Environment and Forests as well as the State Government. An implementation schedule for implementing all the conditions stipulated herein shall be submitted to the Regional Office of the Ministry at Bhubaneswar. The funds so provided shall not be diverted for any other purpose.

xi. A copy of clearance letter shall be sent by the proponent to concerned Panchayat, Zila Parishad/Municipal Corporation, Urban Local Body and the local NGO, if any, from whom suggestions/representations, if any, were received while processing the proposal. The clearance letter shall also be put on the web site of the company by the proponent.

xii. The project proponent shall upload the status of compliance of the stipulated environment clearance conditions, including results of monitored data on their website and shall update the same periodically. It shall simultaneously be sent to the Regional Office of the MOEF at Bhubaneswar. the respective Zonal Office of CPCB and the SPCB. The criteria pollutant levels namely; PM10, SO₂, NOx (ambient levels as well as stack emissions) or critical sectoral parameters, indicated for the projects shall be monitored and displayed at a convenient location near the main gate of the company in the public domain.

xiii. The project proponent shall also submit six monthly reports on the status of the compliance of the stipulated environmental conditions including results of monitored data (both in hard copies as well as by e-mail) to the Regional Office of MOEF, the respective Zonal Office of CPCB and the SPCB. The Regional Office of this Ministry at Bhubaneswar/ CPCB / SPCB shall monitor the stipulated conditions.

xiv. 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 alongwith the status of compliance of environmental conditions and shall also be sent to the respective Regional Office of the MOEF at Bhubaneswar by e-mail.

xv. The Project Proponent shall inform the public that the project has been accorded environmental clearance by the Ministry and copies of the clearance letter are available with the SPCB and may also be seen at Website of the Ministry of Environment and Forests at http:/envfor.nic.in. This shall be advertised within seven days from the date of issue of the clearance letter, at least in two local newspapers that are widely circulated in the region of which one shall be in the vernacular language of the locality concerned and a copy of the same should be forwarded to the Regional office at Bhubaneswar.

xvi. Project authorities shall inform the Regional Office as well as the Ministry, the date of financial closure and final approval of the project by the concerned authorities and the date of commencing the land development work.

11. The Ministry may revoke or suspend the clearance, if implementation of any of the above conditions is not satisfactory.

12. The Ministry reserves the right to stipulate additional conditions if found necessary. The Company in a time bound manner shall implement these conditions.

13. The above conditions shall be enforced, inter-alia under the provisions of the Water (Prevention & Control of Pollution) Act, 1974, the Air (Prevention & Control of Pollution) Act, 1981, the Environment (Protection) Act, 1986, Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008 and the Public (Insurance) Liability Act, 1991 along with their amendments and rules.

(Dr. P.L. Ahujarai)

Scientist ‘F’

Copy to:-

1. The Secretary, State Department of Environment, Govt. of Orissa, Bhubaneswar, Orissa.

2. Chairman, Central Pollution Control Board, Parivesh Bhavan, CBD-cum-Office Complex, East Arjun Nagar, New Delhi, 110 032.

3. Chairman, Orissa Pollution Control Board, Parivesh Bhavan, A/118, Neelkanthhanagar, Unit-8, Bhubaneswar - 751 012, Orissa.

4. The Chief Conservator of Forests (Eastern), Regional Office (EZ), A/3, Chandrasekharpur, Bhubaneswar - 751 023, Orissa.

5. Monitoring Cell, Ministry of Environment and Forests, Paryavaran Bhavan, CGO Complex, New Delhi.

6. Guard File / Record File.

(Dr. P.L. Ahujarai)

Scientist ‘F’