Disclaimer - Environmental Clearance

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Disclaimer

C-Borne Services (CBS) has been engaged by M/S Indo Energy International Ltd.having registered office in Navi Mumbai Maharashtra, for preparing the FinalFeasibilityStudyReport fordevelopmentofadeepwater jetty facilityonKondalikaRiver,Korlai,Raigad,Maharashtra.Thestatementsoffact,opinionsandconclusionsexpressedinthisreportarecorrecttothebestofourknowledgeandbeliefandarebasedoninformation,collectedinthefield,providedbypromotersoftheproject,andthatavailableinthepublicdomain.ThisReport should be used in its entirety only and shall not be reproduced in anyformwithoutpriorpermissionfromtheconsortiumofC-BorneServices.Neither C-Borne Services nor any Partner, representative or employee of C-BorneServices accepts any liability for any direct, consequential or perceived loss arisingfromtheuseofthisreportoritscontents.C-BorneServiceshasnofinancialliabilitywhatsoevertothepromotersoftheprojectoranyotheruser(s)ofthisreport.

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1 Introduction

1.1 Introduction

India’s shipping sector continues to expand at a rapid pace, with a combination ofincreasingconsumerdemandandoverseastradevolumesboostingshippingvolumestoandfromthecountry’sports.Thecountry’sgrowingtraderelationshipwithChinaisexpected toprovide fuel forgrowthover thenext fewyears,while thecountry isalso establishing itself as an important transshipment hub on Europe-Asia traderoutes.Portsplayavitalroleintheoveralleconomicdevelopmentofanycountry.About95per centbyvolumeand70per centbyvalueof the country’s international trade iscarriedthroughmaritimetransport.Indiahasatotalof187minorandintermediateports and 13major ports spread across the ninemaritime states. According to thePlanningCommission,thecapacityofIndianportswillhavetonearlydoubleto2,302million tonnes (MT) over the next five years to be able to handle the fast growingcargotraffic.TheElectricityAct,2003hasthrownupmanyopportunities inthepowersectorforprivateplayers;theattractivenessoftheseopportunitiesisenhancedbytheongoingregulatorydevelopmentsand improving financialperformanceof the sector.This isnoticeableinthesignificantriseininterestofexistingaswellasnewprivateplayersinthesector.Over the lastdecade, thedemand forelectricityhasbeengrowingat5% to8%perannum.Thoughthesupplyhasincreased,itstilllagsbehinddemandgrowth.Inviewof India’s overall economic outlook and low per capita consumption compared tootherdeveloping countries likeChina, the growth indemand is expected to furthergather steam. As per the current estimates, India would require doubling of itsexistinggenerationcapacityinlessthanadecadetomeetthisever-growingdemand,

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alongwithcommensurateadditionalinvestmentsinthetransmissionanddistributioninfrastructure.AsperCentralElectricityAuthority(CEA)LoadGenerationBalanceReport2013-14,Indiahadadeficitof9%inpeakpowerand8.7%shortageinenergyterms.Thepeakpowersupplywasonly123295MWagainstthedemandrequirementof135453MW.In Maharashtra, rapid industrialization has resulted in increased demand forelectricity and hence there is a widening gap between demand and supply of theelectricityinthestate.Thestatehastakenupnumberofstepsforcapacityaddition,modernizationofexistinginfrastructurefortransmissionanddistributionandtocurbtheunauthorizedelectricityconsumption.Alotisdesiredtomeettherequirementofpowersupply.ThetotalpowersupplypositionintermsofpeakpowerinMaharashtra,during2012-13,wasapeakdemandof17934MWandpeakmetwas16765MW.AsperCEA in2012-13, Maharashtra had a deficit of 6.5% in peak power and 3.2% shortage inenergyterms.AccordingtotheeconomicsurveyofMaharashtra2012-13,theGSDPfor2011-12wasestimatedatRs.11,99,584andcontributed14.4%tothenationalincome.Thestatehas a coastline of 720KM along theArabian Sea. The state has twomajor ports inMumbai and Nhava Sheva and GOM has entered in to concession agreement fordevelopmentofsixnon-majorports.

1.2 Maharashtra Maritime Board

Maharashtra Maritime Board (MMB) is the nodal agency that takes care of theregulatoryanddevelopmental frameworkofthestate’smaritimeactivities.Overtheyears, the board has taken a number of initiatives to harness the potential of itscoastline. These include development of the marine front including setting up of

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several cargo jetties,passenger jetties, largerport terminals, inlandwater transportsystem and shipyards amongmany others. MMB ports presently handle close to 7percentofthetotalcargohandledbyminorportsinthecountry.

1.3 Company Background

IndoEnergyInternationalLimited(IEIL)isacompanyinthesectorofInfrastructureDevelopmentandPower.Setupin1999,itispromotedbyEsquireShippingPvt.Ltd.tohandlethevariousfieldsoftradeinseatransportation;EsquireShipping&TradePvt.Ltd.wassetup intheyear1992. Itprovides full transportservice for incomingand outgoing cargo – by sea, train or road, and also clearance, cargo handling,warehousing and distribution. Some of the services are chartering and brokerage,shipagencymanagement,shippingconsultingandmultimodaltransport.IndoEnergystartedoutbyservicingtheneedsofthepowersectorbybuildingajettyand barge unloading points. The company specialises in the fields of – Handling ofimport/export bulk cargo like Steam Coal, Iron Ore, Bauxite, Lime Stone, Sulphur;International trading; Multi modal transport; Port infrastructure development;Marinesurveysandconsulting.In2009thecompanyalsobuiltafairweathermulti-purpose terminal, notified under the Indian Customs Act 1962, to handle allimport/exportandcoastalcargosattherateof12000-20000MT/day.M/s Indo Energy International Ltd. has an operational multi purpose jetty atSanegaon since 2009. The jetty has been approved by Customs, through theirnotificationdated2Feb2010,forunloadingofimportedgoodsnamelyIron,Ironorepellets,Ironoreconcentrate,Coal,Dolomite/Limestone,PetroleumGas,Steelmeltingscrap,HDIchips/fines,Pulp,Magnesite,Sulphur.ThejettyhasalsobeenapprovedbyCustomsforloadingofexportgoodsnamelySpongeIron,rejectsofIronOrechipsandBauxite. IEIL has 6000 m2 of notified unloading/loading area (200 m x 30 m) atSanegaonandhasacustombondedareaofaround40,000m2.

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C-Borne Serviceswas appointedby IndoEnergy International Ltd. as a consultingfirmtoconduct theFeasibilitystudyof theprojectandpreparethisreport.C-BorneServices(CBS)providesservicesfocusingonOffshoreMarineConsultancy.CBShasapoolofspecialists toundertakeoffshoreconsultancyprojects.Thecompany focusesonprovidingconsultancyservicestoglobalclientsininfrastructureprojects.

1.4 Project Summary

1.4.1 Present Operation

TheIndo-EnergyLimited, ispresentlyengagedintransportationandtradingofCoalusinglighteragefacilityatSanegaon,locatedontheRightBankoftheKundalikaRiver,about50kmsouthofMumbaiasshowninFigure1.1below.Figure 1-1: Location of present unloading facility at Sanegaon on the West Coast of India

IEIL intends to expand the facility to include the Coal required for the proposedPower Plant planned to be located close to the riverine facility at Sanegaon. TheexistingJettyisabout21kmupstream(referFigure1.2below)ontherightbankoftheriverKundalikaandisabout200mlongwithabackupareaofabout5hectareforstorage,handlinganddespatchofmaterial.Figure1.2alsoindicatestherouteofthepresentdaybargesuptotheSanegaonJettythroughtheriver.

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Figure 1-2: Proposed location of present unloading facility at Sanegaon

ThesizesofthebargesmovingintheRiverarelargelycontrolledbythedepthintheriverandthenavigationwidthofferedbythebridgepiersdownstreamoftheRiver.Theclearspanbetweentheintermediatebridgepiersis36m.Inordertoensuresafenavigation, the beam of the bargeswould have to be limited to about 15 to 16m,especially in the monsoon, when the higher current could affect the stability andnavigationalcontrolofsuchvessels.Thedimensionsof thepresentdaybargesusedbyIEILgenerallyagreewiththeaboveassertionandareasfollows:

1. Lengthoverall(LoA): 60m2. Beam: 14m3. LoadedDraught: 3.8m4. Capacity: About2500DWT

Needless to say, the system ishighly inefficient andhas limited capacityof about1milliontonsofcoalperyear.

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1.4.2 Proposed Operation

Thecapacityofthepresentdayoperationsislargelylimitedbecauseofthefollowingthreefactors:

1. Handling of the Coal at the anchorage,which is non-operational for about 4monthsduringsouthwestmonsoon

2. Depth(draught)availableintheRiver3. CapacityoftheBarges.

Inorder to improve the capacityof this transportation chain, it is recommendedasfollowing:

1. Ensureallyearbyshiftingmothershipoperationsinsidethecreek2. Undertake dredging wherever required to improve available draught in the

river3. Modernise/Mechanisehandlingsystematthejetty4. Rationalise dimensions of the barges to increase carrying capacity for better

efficiency

1.4.2.1 Anchorage Handling vis-à-vis Jetty Handling OpenanchoragesintheArabianSeaareaffectedbythevagariesofweather.Besidesthe occasional oceanographic disturbances, the anchorage handling is affected bymonsoonconditions,whichgeneratehighorderwaves.Inordertoreducetheeffectsof themonsoon conditionsports andharbors areoftenprovidedwithbreakwaters,which provide the desired level of tranquility. The Revadanda creek being at theconfluenceoftheKundalikaRiverandtheArabianSeaisprotectednaturallyfromthepredominant SWwaves by the Korlai headland. This provided the desired level oftranquility to permit handling of bigger size vesselswithout getting affectedby theoceanographicfactorsincludingmonsoon.Accordingly, the possibility of moving the Jetty/anchorage handling inside theRevdanda Creek was examined and it was concluded that a fixed Jetty with shorebasedequipmentalongtheLeftbankoftheRiveradjacenttothe‘Rat’islandwouldbemostideal.

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An application to theMaharashtraMaritimeBoard (MMB) for the proposed facilitylocatedbetweengeographical co-ordinatesof latitude18°32'9.66"N, longitude72°54'54.88"Eandlatitude18°32'11.82"N,longitude72°55'11.71"E,ontheleftbankoftheKundalikaRiver,behindtheRatIslandwasmadefordevelopingasadirectde-berthing port for Panamax size vessels. A feasibility reportwas preparedusing theservices of M/s C-Borne Services, Navi Mumbai, prepared using limited filed datacollectedwith regard to the bathymetry, and soil conditions. The application alongwith the feasibility report was submitted toMMB for consideration and allotment.MMBconsideredthesameintheBoardMeetingheldon16.03.2015andallotted500m waterfront along with permission for reclamation of intertidal land to createstoragearea,subjecttotheconditionthatsuchdevelopmentdoesnotaffectthecreekmorphology.Thefacility,whendeveloped,wouldservicetwolargesizevessels(onePanamaxandoneHandymaxsize)simultaneously.

1.4.2.2 Handling System at the Berth While the tranquility at the berth is a basic requirement, the operational efficiencywoulddependon the efficiency of thehandling equipment on theberth. Therefore,theproposedjettywouldbeprovidedwithstateoftheartmechanization.Inadditionto the operational efficiency, this equipmentwould be equippedwith the best dustsuppressionsystemforenvironmentalprotection.Theoperationalparameters for theportshallbebenchmarkedwiththebest in theworld, with 48 hours turnaround time for the Panamax vessel and 36 hourturnaround time for the Handymax vessels. In addition to the material handlingequipment,thefacilitywouldbeprovidedwithstateoftheartconveying,storageandreclaimingsystem.Theconveyorsystemandthestoragearea,especiallyforthebulkcargo,shallbefullycovered.

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1.4.2.3 Improvement in Barge Handling Barge handling forms an important link in the proposed logistical chain.Hence theselectionofthesuitablesizedbarges, loadingandunloadingmechanismwouldhavetobeintegratedintothesystemforaseamlessfunctionalsupplychain.Thepresentdaybargesaretobestudiedindetailandtheymustbereplacedwithlargerandmoreefficient barges.As the cargo transfer between themother ship Jetty and thebargefacilitygrows, itwouldbe imperativeto increasethebargeparcels inordertokeepthetrafficdensityintheriverchannelwithinacceptablelimits.Therefore,inalimitedwaythisreportwouldexaminethelikelybargesizestobedeployedforanacceptabletrafficdensityandefficientcargotransfer.

1.5 Scope of the Present Study

ItwasthereforeconsiderednecessarytoprepareacomprehensiveFeasibilityReport,to examine the feasibility of creating a direct deep water berthing port inside theRevdanda Creek and also improve the barge handling system for improving theexisting barge transport chain in the river. Accordingly, the scope of the FeasibilityReportisproposedtoincludebutnotlimitedtothefollowing:

1. Examinethesiteforthesuitabilityforadirectdeepwaterberthingfacility2. Collectprimaryorsecondarydata3. Studytheavailabledata/reportforascertainingthetrafficinthearea4. Plananddesignfacilityforberthingandoperationofthedesignship5. Carryoutbasicstudiesforthematerialhandlingsystemsattheberthandthe

storageyard6. OtherInfrastructurerequirements7. PrepareBlockcostEstimatesforthefacilityandthefinancialviability

Thisreportisbasedonlimitedsitecollectedprimarydataaswellassecondarydataandwouldbeusedforenvironmentalandotherstatutoryclearancesforthefacility.Concurrently, a detailed field campaign shall be organized for data collection andbased on those data a Detailed Project Report shall be prepared for submission to

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various agencies and/or help preparing strategies for detailed engineering andprojectimplementation.

1.6 Outline of the report

Thispresentreportshallcontainthefollowing:• SiteConditions• DataCollectedfortheProject• Trafficprojections• Planningoffacilities• Mathematicalmodelstudies• PortEngineering• MaterialHandlingandInfrastructure• CostEstimatesandFinancialEvaluation• ConclusionandRecommendations