E-mail : anand_goel@jindalsteel.com / vravikumar@jindalsteel.com

Fax No. : 011- 2616 1271

Subject : Cement Plant (2.0 MTPA) at Gejamuda, Raigarh, Chattishgarh by M/s Jindal Steel & Power Ltd. ? Environment clearance reg.

Ref. : Your letter no. JSPL/TOR/RGH/Cement/AB/06-07/01 dated 11^thJanuary, 2007.

Sir,

This has reference to your letter no. JNL-SPD/ENV/2008 dated 3^rd November, 2008 alongwith Form I, Pre-feasibility Report, EIA/EMP and related project documents and subsequent clarifications furnished by you vide your letters dated 15^th February, 2008, 19^th November, 2008, 2^nd and 22^nd January, 2009 for environmental clearance on the above mentioned project.

2.0 The Ministry of Environment and Forests has examined the application. It is noted that proposal is for the Cement Plant (2.0 MTPA) at Gejamuda, Raigarh, Chattishgarh by M/s Jindal Steel & Power Ltd. The cement plant will be located at 2 km. from the existing steel plant from where blast furnace slag, fly ash and iron ores will be available for making cement. Out of 2.0 MTPA cement plant, 1.0 MTPA cement plant will be based on 1.0 MTPA fly ash to manufacture Pozollana Portland Cement (PPC) and 1.0 MTPA slag based Portland Slag Cement (PSC). Total land required for the cement plant is 700 acres. Rehabilitation and Resettlement (R & R) is involved. No forest land is involved but Urdhane and Rabo reserve forests will be located within 10 km. radius of the project site. No wet land and biosphere reserves are located nearby. Total cost of the project is Rs. 605.00 Crores.

3.0 Limestone will be sourced from captive mines located at Gudheli & Basuajhar, Raigarh, washed coal will be brought from JSPL?s nearby mine located at Tamhar (40 Km). Gypsum and clay will be brought from nearby sources. Slag, fly ash and iron ore fines will be brought from steel plant of JSPL (2 Km).

4.0 Electrostatic precipitator (ESP), bag house, bag filters will be provided to control air emissions less than 50 mg/Nm³. Water sprinklers/dry fog dust suppressions system will be provided to control fugitive emissions. Total water requirement will be 58 m³/hr. No ground water will be used. All the treated wastewater will be reutilized. All the solid waste including dust will be reused in the cement plant. Power (35 MW) will be sourced from captive power plant of M/s Jindal Steel & Power Ltd. (JSPL).

5.0 Public hearing/Public consultation meeting was held on 9^th August, 2008.

6.0 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 as amended subsequently subject to strict compliance of the following specific and general conditions:

A. SPECIFIC CONDITIONS:

i. Continuous stack monitoring facilities to monitor gaseous emissions from all the stacks shall be provided. Limit of SPM shall be controlled within 50 mg/Nm³ by installing adequate air pollution control system. 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. At no time, the emission level shall go beyond the prescribed standards. On-line continuous monitoring system shall be installed in stacks to monitor SPM and interlocking facilities shall be provided so that process can be automatically stopped in case emission level exceeds the limit.

ii. Electrostatic precipitator (ESP) to clinker cooler, bag house clinker cooler and bag house to crusher and grinding unit and raw mill / kiln and bag filters to cement mill and coal mill, material transfer points, feed hoppers of raw mill, reject hoppers, hoppers of cement mills, raw meal silos, clinker silos, cement silos, fly ash silos, slag dryer, cement packing unit, limestone and additive crushers, kiln feed bins, fly ash, gypsum, slag and clinker hoppers etc. shall be provided. Water sprinklers / dry fog dust suppressions system shall be provided at crushers, truck unloading points, bunkers, stockpile etc to control fugitive emissions.

iii. Data on ambient air quality, stack emissions and fugitive emissions shall be uploaded on the Company?s website and also regularly submitted on-line to the Ministry?s Regional Office at Bhopal, Chhattisgarh Environment Conservation Board (CECB) and Central Pollution Control Board (CPCB) as well as hard copy once in six months. Data on SPM, SO₂ and NO_X shall also be displayed prominently outside the premises at the appropriate place for the information of general public.

iv. Secondary fugitive emissions shall be controlled and shall be within the prescribed limits and regularly monitored. Guidelines / Code of Practice issued by the CPCB in this regard shall be followed.

v. The company shall install adequate dust collection and extraction system to control fugitive dust emissions at various transfer points, raw mill handling (unloading, conveying, transporting, stacking), vehicular movement, bagging and packing areas etc. All the raw material stock piles shall be covered. A closed clinker stockpile system shall be provided. All conveyers shall be covered with GI sheets. Covered sheds for storage of raw materials and fully covered conveyers for transportation of materials shall be provided besides coal, cement, fly ash and clinker shall be stored in silos. Pneumatic system shall be used for fly ash handling.

vi. Ambient air quality parameters shall conform to the norms prescribed by the Central Pollution Control Board. Asphalting/concreting of roads and water spray all around the stockyard and loading / unloading areas in the cement plant shall be carried out to control fugitive emissions. Regular water sprinkling shall be carried out in critical areas prone to air pollution and having high levels of SPM and RPM such as haul road, loading and unloading points, transfer points and other vulnerable areas.

vii. Efforts shall be made to reduce impact of the transport of the raw materials and end products on the surrounding environment including agricultural land. All the raw materials including fly ash shall be transported in the closed containers only and shall not be overloaded. Vehicular emissions shall be regularly monitored.

viii. Total water requirement from the reservoir of existing steel plant of M/s JSPL at Raigarh drawing water from Mahanadi and Kelo River shall not exceed 58 m³/hr. ?Permission? for the drawl of 2,000 Kl/hr. from Mahanadi River and 1,622 Kl/hr (Total 3,622 Kl/hr) by M/s Jindal Steel & Power Ltd. (JSPL) is obtained from Water Resource Department, Govt. of C.G. & M.P. for the steel plant. No ground water shall be used. The process effluent shall be treated in effluent treatment plant (ETP) and treated wastewater shall be recycled and reused for dust suppression and green belt development etc. No process wastewater shall be discharged outside the factory premises and ?zero? discharge shall be adopted. Domestic effluent shall be treated in the sewage treatment plant (STP) and used for green belt development.

ix. ?Permission? for the drawl of 58 m³/hr water shall be obtained from concerned department in case of source and quantity of water is changed and a copy of the permission letter shall be submitted to the Ministry?s Regional Office at Bhopal.

x. All the fly ash shall be transported pneumatically to cement plant and efforts shall be made to use fly ash and slag maximum in making Pozollona Portland and Slag Cement (PPC & PSC). Efforts shall also be made to use low grade lime and solid waste in the cement manufacturing.

xi. All the bag filter dust, raw meal dust, coal dust, clinker dust and cement dust from pollution control devices shall be recycled and reused in the process and used for cement manufacturing. ETP sludge shall be used as land fill / soil conditioning agent. Spent oil and lubricants shall be sold to authorized recyclers / reprocessors only.

xii. An effort shall be made to use of high calorific hazardous waste in the cement kiln and necessary provision shall be made accordingly.

xiii. As proposed, green belt shall be developed in at least 33 % area in and around the cement plant as per the CPCB guidelines to mitigate the effects of air emissions in consultation with local DFO.

xiv. Recommendation and permission of the State Forest Department regarding impact of proposed plant on surrounding reserve forests viz. Urdhane and Rabo reserve forests shall be obtained and implemented. Further, Conservation Plan for the conservation of wild fauna in consultation with the State Forest Department shall be prepared and implemented.

xv. All the recommendations made in the Charter on Corporate Responsibility for Environment Protection (CREP) for the Cement plants shall be implemented.

xvi. As proposed, action plan for the Rehabilitation and Resettlement for rehabilitating project affected population as approved by the State Govt. shall be implemented.

xvii. The company shall provide housing for 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.

B. GENERAL CONDITIONS:

i. The project authorities shall strictly adhere to the stipulations made by the Chhattisgarh Environment Conservation Board (CECB) 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. In plant control measures for checking fugitive emissions from all the vulnerable sources like spillage/raw materials/coal handlings etc. shall be provided. Further, specific measures like dust suppression system consisting of water sprinkling and bag filters etc. shall be installed. Fugitive emissions shall be regularly monitored and records maintained.

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 SPM, SO₂ and NO_X are anticipated in consultation with the CECB. Data on ambient air quality and stack emission should be regularly submitted to this Ministry including its Regional Office at Bhopal and the CECB/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 shall 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.

i. As proposed, Rs. 30.00 Crores and Rs. 3.00 Crores 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 Bhopal. The funds so provided shall not be diverted for any other purpose.

ii. The Regional Office of this Ministry at Bhopal/CPCB/CECB will monitor the stipulated conditions. A six monthly compliance report and the monitored data along with statistical interpretation shall be submitted to them regularly.

iii. 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 CECB 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.

iv. 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.

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

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

90 Any appeal against this environmental clearance shall lie with the National Environment Appellate Authority, if preferred within a period of 30 days as prescribed under Section 11 of the National Environment Appellate Act, 1997.

10.0 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 and Handling) Rules, 2003 and the Public (Insurance) Liability Act, 1991 along with their amendments and rules

(Dr. P. B. Rastogi)

Director

Copy to:

1. The Secretary, Department of Environment, Govt. of Chhattisgarh, Chhattisgarh.

2. The Chairman, Central Pollution Control Board, Parivesh Bhavan, CBD-cum-Office Complex, East Arjun Nagar, Delhi-110032.

3. The Chairman, Chhattisgarh Environment Conservation Board, Nanak Niwas, Civil Lines, Raipur, Chhattisgarh.

4. The Chief Conservator of Forests (Eastern), Regional Office (Western Zone), E-3/240, Arera Colony, Bhopal - 462 016, M.P.

5. Adviser (IA-II), Ministry of Environment and Forests, Paryavaran Bhavan, CGO Complex, New Delhi.

6. Monitoring Cell, Ministry of Environment & Forests, Paryavaran Bhavan, CGO Complex, New Delhi.

7. Guard file.

8. Record file.

(Dr. P. B. Rastogi)

Director