Administrative Office: CL – 238, Salt Lake City, Sector – II, Kolkata – 700 091 (W.B.

)
Tel: +91 33 32555 039 Fax: +91 33 2321 2762 E-Mail: minop@hotmail.com
Date: 01/08/2007

To,
The Director,
BANKURA DRI MINING MANUFACTURERS (P) LTD
1, Maharshi Debendra Road,
Kolkata 700 007

Kind Attn: S Bhattacharjee,

Dear Sir,

Subject: Development of Biharinath Coal Mining Block of Bankura DRI Mining

Manufacturers Private Limited

Following the presentation made by us before the directors of DRI as regard the
feasibility of the development of “Biharinath Block”, it was agreed that both
“Minop” & “DRI” will enter into of memorandum of understanding for working
together.

For this purpose we requested you to define the responsibilities of “Minop” as well
as the obligation and responsibilities of “DRI”. Till date we have not received any
advice from you in this regard. However, as requested by you we have forwarded
another draft copy of memorandum of understanding prepared by us for your
considerations. We hope you are working with the “MOU” and we will be able to
hear from you shortly.

You also requested us to submit the cost break – up of the capital expenditures for
the activities to be incurred by “DRI” for the development of the block. The above
expenditures will mainly be for the activities and equipment which are immovable
assets. During our presentation we apprised that the above expenditures to be borne
by “DRI” as being the owner of the block.

Registered Office: 21, C.L.M. Lane, Raniganj – 713 347 (W.B.) Tel: +91 341 2449 113 Fax:+91
341 2446 477
Administrative Office: CL – 238, Salt Lake City, Sector – II, Kolkata – 700 091 (W.B.)
Tel: +91 33 32555 039 Fax: +91 33 2321 2762 E-Mail: milanparkeria@hotmail.com

The break – up of Rs.14110.00 lacs has been given in the annexure enclosed. Earlier
we had mentioned that the expenditures will be rs.13610.00 lacs but not cost was
included for the additional drilling and prospecting. The provision for rs.500.00 lacs
has been kept for that purpose as such the total capital expenditures for DRI will be
rs.14110.00.

I hope the above break up will help you to obtain investment approval from the
financial institutions.

Thanking You,
Yours Faithfully,
For Minop Innovative Technologies Pvt Ltd

(Director)
Rajiv Ganeriwala

Registered Office: Ganeriwala Bdg, 21, C.L.M. Lane, Raniganj – 713 347 (W.B.) Tel: +91 341 2449 113 Fax:+91 341
2446 477
 Capital Expenditures
Sl. Particulars Amount
No. (Rs Lacs)
1 Land (annex I) 500.00
2 Non Residential Building (annex III) 350.00
3 Residential Building (annex IV) 1162.00
4A Mine Development (shaft sinking) (annex V) 2500.00

5.5 mtr dia shaft sinking, 505 mtr depth with

headgear, shaft lining & insets at Seam No. RX,
RIX & R VII

4B Mine development (Incline/ Drifting 2 Nos) 2040.00

I) Each of 2025 mtr with arching, drainage,

support, walling etc
II) Strata Bunker 200 Tonne – 300 Tonne capacity
5 Roads & Culverts ( annex VI) 275.00
6 Water Supply & Sewerage (annex VII) 125.00
7 Underground Equipment (annex VIII) 3430.00
8 Surface Plant & Machinery ( annex IX ) 616.00
9 Workshop Equipment (annex X ) 75.00
10 Coal Handling Plant (annex XI ) 357.50
11 Misc. items like Cap Lamps, Safety item ( annex XII) 150.00
Furniture & Fittings (annex XIII ) 20.00
12 Vehicles (annex XIV) 86.00
13 E.M.P. ( annex XV ) 635.00
14 Site Investigation & scientific studies ( annex XVI ) 125.00
15 Prospecting & Planning
(i) Purchase of Geological Report 1100.00
(ii) Additional Drilling & Boring 500.00
(iii) Preparation of DPR 63.50
Grand total Rupees in lacs 14110.00
 Annexure 1
Land Requirement
Sl.No. Particulars Requirement
In Ha
A Outside Mining Area

1 Residential Building including internal roads for 20

3000 nos quarters
2 Parks & Playground 4
3 Approach road to project site (Double Lane) 6
Total 30

B Within Mining Area

1 (a) Non residential service building 5

(b) For open excavation for inclines
(c) Shaft Area 4
(d) Open space for green to protect dust
2
13
2 Roads within Mining Area 5
3 CHP 5
4 Coal Ground Stock for 3 days production 6
Total 40

GRAND TOTAL IN Ha 70
Provision for fund Rs in lacs Rs.350.00
(70 Ha @ Rs.5.00 lacs / Ha)

Compensation for the land affected during Rs.150.00

depillaring Rs in lacs

Total Rs in Lacs Rs 500.00

 Annexure II
Estimated Capital Requirement for Civil Works
Sl.No. Particulars Amount
(Rs.in lacs)
1 Non Residential Service Building 350.00

2 Residential Building 1162.00

3 Roads & Culverts 275.00

A) Colony Roads & Culverts

B) Approach road, service roads &
culverts
4 Water Supply & Sewerage 125.00
5 5.5 mtr dia, 505 mtr shaft sinking with insets at 2500.00
R-X, R-IX, R – VII complete with head gear
and shaft fittings
6 Incline Cutting & Drift drivage 4.8 mtr x 3 2040 .00
mtr, 2 nos each of 2025 mtr

Strata Bunker at RX, R IX, R VII 500 tonne

each

7 Roads & culverts 275.00

8 Water supply & sewerage 125.00
Total Rs in lacs 6727
 Annexure III

Non – Residential Service Building

Sl. No. Particulars PlinthArea,Rate Amount
(Sq.mtr.), Rs/Sq.m (Rs lacs)
1 Project office including control 600@Rs 6500/m2 39.00
room, manager office, security
office
2 Workshop Building 600 @ Rs 8000 48.00
3 Mine Store including barbed 400 @ Rs8000 32.00
wire fence
4 Sub station building including 350 @ Rs8000 28.00
maintenance room
5 Fan House Lump Sum 15.00
6 Haulage Room Lump sum 15.00
7 Winder House 400 @ Rs10000 40.00
8 Service Magazine small 100 @ Rs6000 6.00
9 Canteen 120 @ Rs6000 7.20
10 Dispensary 200 @ Rs6000 1.20
11 V.T. Centre 200 @Rs 6000 1.20
12 Cop Lamp Room 200 @ Rs6000 1.20
13 Cycle Stand 150 @ Rs4000 6.00
14 Garage 150 @ Rs4000 6.00
15 First Aid Room 50 @ Rs6000 3.00
16 Boundary Wall Lump Sum 20.00
17 Soil Investigation Lump Sum 5.00
18 Workers Institute Lump Sum 10.00
19 Lavatories & Urinal Lump Sum 7.00
20 Contingencies 10% 32.00
Total 350.00
 Annexure IV
Residential Building

Sl.No. Category Plenth Nos Rate/m2 Amount

Area (in Rs/Sq.m (Rs lacs)
m2)
1 For Senior 150 6 6500 58.00
Executives
2 For Executives 120 20 6000 144.00
3 For supervisors 80 100 4500 360.00
4 For workmen 60 170 4500 459.00
5 Hostel bachelor 34.00
accommodation
6 Contingencies 107.00
Total 296 1162.00

Annexure VI
Roads & Culverts

Sl.No. Particulars Length in Rate / Amount

Km m2 (Rs in lacs)
1 Approach Roads – 4 25 100.00
double lane
2 Road within mining 3 20 60.00
area
3 Roads within colony 4 10 40.00
4 Culverts L.S. 50.00
5 Contingencies 25.00
Total 275.00
 Annexure VII
Water supply & sewerage

Sl.No. Particulars Particulars Amount (Rs.in lacs)

1 Water supply & Lump Sum 125.00
Sewerage

Annexure V
Mine Development

Sl.No. Mine Development Rate / Mtr Amount in Rs

lacs
1 Shaft sinking 5.5 m dia, 505 4, 50, 000 2272.50
mtr depth with headgear, shaft
lining and 3 insets at RX, R IX
& RVII seam
2 Contingencies for shaft sinking 10% 227.50
Total 2500.00
1 Incline drifting including open 45, 000 1822.50
excavation, arching, watering,
supports, drainage 2 nos each
of 2025 mtr
2 Strata Bunker 200 – 300 M.T. 30.00
capacity
3 Contingencies 10% 187.50
Total 2040.00
Grand Total 4540.00
 Annexure VIII
Underground Fixed Equipment
Sl. No. Particulars Quantity Amount (Rs
in lacs)
1 Main drift trunk conveyor 3 900.00
175 mtr lift, 550 m length, 500 TPH,
1000 m wide
2 In seam trunk conveyor 75m lift, 750 3 300.00
length, 500 TPH
3 Gate Belt Conveyor 25 mtr lift, 1000 2 300.00
mtr length 500 TPH
4 Gathering Conveyors 15 mtr length 2 60.00
250 mtr long 300 TPH
5 500 mtr head x 40 Lps with 6.6 kv 4 120.00
electricals
6 250 mtr head x 80 Lps 4 100.00
7 Misc Small Pumps 25.00
8 Pipes including shaft ranges 105.00
9 Contingencies for 1 to 8 10% 190.00

10 Electrical FLP 4 180.00

transwitches 6.6 Kv/ 1.1 Kv/ 750 Kva
11 Do, 6.6 Kv / 1.1 kv, 500 Kva 3 90.00
12 Do, 6.6 Kv/ 1.1kv, 1000 Kva 2 120.00
13 FLP switch gear L.S. 250.00
14 Cables L.S. 300.00
15 Electrical Fittings L.S. 10.00
16 Haulage for material transport 115 2 100.00
Kw
17 E/H Haulage 50 Kw 3 90.00
18 Rail & Sleepers 5000 mtr of track 70.00
length
19 Contingencies for 10 to 18 10% I20.00
Grand Total 3430.00
 Annexure XI

Coal Handling Plant

Sl.No. Particulars Amount Rs lac

1 Elevating conveyor complete 25 mtr lift, 200 325.00
mtr length, 500 TPH, 1000 mtr wide
2 Steel bunker 2 x 200 tonne
3 Steel gantry & Super structure for conveyor
4 Contingencies 10% 32.50
Total Rs in lacs 357.50

Annexure XIII
Furniture & Fitting

Sl.No. Particulars Amount (Rs.in lacs)

1 General Furniture & 20.00
Fitting
2 Office Equipment
3 Air Conditioners
4 Water Cooler &
Refrigerators
5 Fire Fighting
6 Miscellaneous
Equipment
 Annexure XIV
Vehicles
Particulars Quantity Amount (Rs.in lacs)
Diesel Tanker 2 20.00
School Bus 1 15.00
Jeep 2 9.00
Ambulance 1 6.00
Cash Van 1 7.00
Motor Cycle 2 1.00
Car 2 9.00
Explosive Van 1 11.00
Contingencies 10% 8.00
Total 86.00
 Annexure IX
Surface Plant & Machinery

Sl. No. Particulars Quantity Amount

1 Main Mechanical Ventilator L.S. 40.00
with spare motor
2 115 Kw direct Haulage with L.S. 30.00
rope
4 Sub Station

4.1 33 Kv bus including L.S. 10.00

isolations
4.2 Protection & measurement L.S. 15.00
transformers including
lightning
4.3 33 KV/ 6.6 Kw, 5 Mva with 3 75.00
all protections
4.4 6.6 Kw/33 KV 1 Mva 2 30.00
4.5 440 V/ 3.3 Kv 500 2 15.00
5 Control Switch gears with all
protection
5.1 33 Kv L.S. 40.00
5.2 6.6 Kv L.S. 70.00
5.3 3.3 Kv L.S. 60.00
5.4 440 volts L.S. 20.00
6.1 33 Kv overhead line with all L.S. 45.00
accessories
6.2 3.3 Kv overhead lines with all L.S. 20.00
accessories
6.3 440 volts overhead line wit all L.S. 15.00
accessories
7 Township electrical L.S. 10.00
8 Cables L.S. 36.00
10 Surface communication 100 L.S. 10.00
lines exchange
11 Underground communication L.S. 15.00
30 lines exchange
12 Road Weight Bridge L.S. 15.00
13 Settling tank for mine water L.S. 15.00
disposal,
 Dust suppression
arrangement at CHP

Contingency 30.00
Total 616.00

Annexure X
Workshop Equipment
Sl. No. Particulars Amount Rs lacs
1 Medium Duty Lathe Lump sum
2 Radial Drill
3 Pillar Drill 75.00
4 Shaping Machine
5 Power Hand Saw
6 Measuring tools & tackles
7 Hand grinder
8 Hand drill
Electrical repair shop
9 Motor drying furnace
10 Cable vulcaniser
11 Potable relay testing equipment
12 Measuring & testing equipment
13 Megger
14 Cable fault detector
15 Welding Transformer
16 Oxygen acetylene gas cutting set
17 Hydraulic press
18 Master Tool kit for repair of hydraulic
equipment
19 Bearing heater induction type
20 E.O.T. crane
21 Hydraulic test bench
22 Heavy duty impact wrench
23 Tools & tackles
24 Black smith shop
 Annexure XVI
Site Investigation & Scientific Studies

Sl.No. Particulars Amount (Rs. In lacs)

1 Surface Survey
2 Physio mechanical Study Lump sum
3 Gas Survey
4 Cavability study
5 RMR determination 125.00
6 Soil Investigation
7 Hydrogeological Study

Annexure XV
Capital Expenditures on EMP
Sl.No. Particulars Amount (Rs.in lacs)
1 Community Development 500.00
2 EMP data generator Lump sum
3 EMP preparation cost
4 Anti pollution measurement
within the mine area
5 Anti pollution measurement in 135.00
township
6 Water tanker with sprinkling
7 Plantation in industrial area
Grand Total 635.00
 Annexure XII
Miscellaneous Equipment

Safety & Ventilation Equipment

Sl. Particulars Quantity Amount

No. Rs lacs
1 Cap Lamps with charging 500
reactors
2 Self Rescuers with racks 500
3 Roof Bolt anchor testing 4 Lump sum
machine
4 Methane detector 6 150.00
5 Carbon monoxide detecter 10
with 10 tubes pack
6 Digital CO detector 2
7 Dust Respirators 100
8 Hydro meter (Whirling type) 2
9 Convergence Recorder 4
10 Load cells 10
11 Noise meter 2
12 Velometer 2
13 Anemometer 2
14 Barometer 2
15 Stop Watch 2
16 Gravity meter dust sampler 1
17 Flame safety lamp 10
18 Survey Instrument L.S.
19 Fire Fighting Equipment L.S.
20 Equipment for VTC L.S.
21 Front End Loader 1
23 Miscellaneous electric testing L.S.
equipment and gas testing
equipment
Administrative Office: CL – 238, Salt Lake City, Sector – II, Kolkata – 700 091 (W.B.)
Tel: +91 33 32555 039 Fax: +91 33 2321 2762 E-Mail: milanparkeria@hotmail.com
Date: 06/08/2007

To,
The Director,
BANKURA DRI MINING MANUFACTURERS (P) LTD
1, Maharshi Debendra Road,
Kolkata 700 007

Kind Attn: S Bhattacharjee,

Dear Sir,

Subject: Development of Biharinath Coal Mining Block of Bankura DRI Mining

Manufacturers Private Limited

Reference: Your letter dt: 04/08/2007 received on 06/08/2007

We thankfully acknowledge the receipt of your above letter. We are glad to know that you
are working seriously on the above project. In response to your queries raised we are
pleased to submit the following clarifications:

1. Cost of Production: We are not able to link from where you have derived the cost
of production of coal at Rs.706 per tonne. There is some misunderstanding
regarding the above cost. We like to draw your kind attention to our various
discussions held wherein it has been made amply clear by Mr.B.N.Pan that cost per
tonne of coal from Biharinath underground mines cannot be less than the notified
price of the coal India for that particular grade of coal available at Biharinath. Also
I would request you to reiterate our presentation. After the completion of the
presentation Mr.Sureka himself was convinced and confirmed that if the coal is
made available at price of Rs.1300 per tonne it will be great achievement. Hence we
request you to kindly try and recollect our discussions and please note that it is not
at all possible for us the deliver you coal at mine head for Rs.706/-.
2. Time Frame: As mentioned in our presentation the production of coal activities
will be taken up in phased manner. However, we can begin supply of coal to you
within 2 ½ years from the date of completion of formalities from your end and
handing over of mine site to us.

Registered Office: 21, C.L.M. Lane, Raniganj – 713 347 (W.B.) Tel: +91 341 2449 113 Fax:+91
341 2446 477
Administrative Office: CL – 238, Salt Lake City, Sector – II, Kolkata – 700 091 (W.B.)
Tel: +91 33 32555 039 Fax: +91 33 2321 2762 E-Mail: minop@hotmail.com

3. Production: Regarding the production capacity, we had mentioned that we can

develop the mine for a production of 1.00 million M.T. in phased manner.

We once like to mention here that taking up underground mining activities requires lots of
skills and in-depth planning. However, we have tried to answer to your above queries to the
best possible manner.

Thanking You,
Yours Faithfully,
For Minop Innovative Technologies Pvt Ltd

(Rajiv Ganeriwala)
Director

Registered Office: Ganeriwala Bdg 21, C.L.M. Lane, Raniganj – 713 347 (W.B.) Tel: +91 341 2449 113 Fax:+91 341
2446 477