PDD Teesta Vi Hep 02 03 2010

PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03
CDM Executive Board
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CLEAN DEVELOPMENT MECHANISM

PROJECT DESIGN DOCUMENT FORM (CDM-PDD)
Version 03 - in effect as of: 28 July 2006
CONTENTS
A. General description of project activity
B. Application of a baseline and monitoring methodology & plan
C. Duration of the project activity / crediting period
D. Environmental impacts
E. Stakeholders comments
Annexes
Annex 1: Contact information on participants in the project activity
Annex 2: Information regarding public funding
Annex 3: Baseline information
Annex 4: Monitoring plan
Annex 5: References
Annex 6: Glossary of terms used

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SECTION A General description of project activity
A.1 Title of the project activity:

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Title : Teesta Stage-VI Hydro Electric Project
Version: 01
Date : 02/03/2010
A.2. Description of the project activity:

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The Teesta Hydro Electric Project (500 MW) is a new grid connected hydro-electric project. The project
activity intends to generate 500 MW electric power utilising naturally available hydro potential energy in
the Teesta River and export the energy to grid in Sikkim state of India. The project activity is a run-of-the
river scheme with a small reservoir having power density 2014 W/m2.
The project activity comprises Civil structures such as Barrage, Intake structures, Desilting chambers,
Headrace tunnels, Surge shafts, Pressure shafts, underground power house, tailrace tunnel and other
infrastructure. Electro-mechanical equipments in the project consist of synchronous generators,
transformers, switchgear equipment, power plant control systems, fire fighting equipment, power
evacuation arrangements etc. A Barrage has been proposed across Teesta river to divert water to the
turbines. 4 Nos de-silting chambers are provided to remove silt in the water. After silt removal, water
passes to surge shaft through 2 Head Race Tunnels. Water from the surge shafts enters the turbines
through pressure shafts. The water with high potential energy strikes the turbine blades and turbines
move at higher speed. Turbines convert potential energy into mechanical energy. The turbines are
coupled with generators by means of shaft. With the rotation of the generator, the mechanical energy is
converted into electrical energy. The electricity produced at 13.8 kV will be stepped upto 400 kV and
evacuated through 400 kV transmission line to the Regional Grid, which is a part of Indias NEWNE
(Integrated Northern, Eastern, Western and North Eastern grids of India) Power Grid. The water after
power generation is discharged back to the Teesta River by means of underground tunnel.
The project activity would generate annual gross energy of 2441000 MWh and the net energy available
for export would be 2411793 MWh after deducting 0.7% towards Auxiliary consumption and 0.5%
towards Transformation losses.
As the project utilizes naturally available hydro potential of the Teesta river for power generation and do
not consume any fossil fuels, the Project contributes for reduction of greenhouse gases to the extent of
20,26,027 tCO2eq annually to the grid, which would have, otherwise, been generated by the operation of
grid-connected power plants and by addition of new generation sources.
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Contribution to Sustainable Development
Ministry of Environment and Forests (MoEF), Government of India, has stipulated Social well being,
Economic well being, Environmental well being, Technological well being as the indicators for
Sustainable Development in the interim approval guidelines for CDM projects. Keeping this in view, the
developer has formed a strategy to set high standards for environmental and social performance to
improve the quality of life and growth in the project region. The following paragraphs explain how the
project activity would contribute to sustainable development.
Social well being:
The project area and its components lie in the South District of Sikkim state where most of the
population sustains on agriculture and animal husbandry. Agriculture is still at subsistence level with low
productivity rather than commercial level as it is practiced on terraced field that has been laboriously
created from steep hill slopes. There are no major industries or other avenues of occupation in the area.
There is no much infrastructure for health, education and other sectors. The living standard of the people
is poor. The royalty i.e., 12% free energy for the first 15 years generation and @ 15% free energy from
16th year to 35th year of generation, to the state due to the proposed project activity would greatly help to
improve infrastructure such as schools, health care centres, community centres, sanitation facilities and
other amenities in the local area. The project proponent also contributes financial assistance to improve
infrastructure in the area. This will improve the living standards of the people and protect their culture.
Economic well being:
1) The investment on the project activity in the region would ensure economic development of the
local people.
2) The project activity would generate employment to 1500 persons during construction
period and 80 during operation period to skilled and unskilled persons. Besides
employment, the project activity would provide opportunities for contracts, business, and
training to rural youth to acquire skills suitable for employment in the project activity and
other industrial units.
3) Financial provision is made to encourage people on floriculture, medicinal plant
cultivation and village eco-tourism for their economic development by providing planting
materials and organizing awareness & training programmes. About Rs.4.2 million is
allocated for welfare and income generation programmes.
4) As required by the guidelines of Indian DNA, the PP desires to spend 2% of the revenue
from sale of CERs towards local area development. This provision is in addition to the
funds allocated for economic well being.
Environmental well being
The project activity would avoid 20,26,027 tCO2eq. / annum emissions. Apart from this, huge quantities
of liquid and solid wastes will also be avoided. The project will avoid air, water, soil pollution and save
environment and ecology. In order to offset minor environmental impacts associated with the 500 MW
renewable hydro power plant, Biodiversity Conservation plan, Catchment Area Treatment plan, Public
Health delivery system, Fisheries development program, landscaping and Greenbelt plan and other
measures have been proposed. Financial provisions have been made to the tune of Rs.205.555 millions
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for various environmental improvement measures. This would improve environmental well being leading
to sustainable development.
Technological well being:
The project activity would use environmentally safe and sound conventional technology in hydroelectric
projects.
As evident from the foregoing, the project activity would contribute to the sustainable development of
the host country.
A.3. Project participants:

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Name of the Party involved (*) Private and/or public Kindly indicate if the Party
((host) indicates a host party) entity(ies) project participants involved wishes to be
(*) (as applicable) considered as project
participant (Yes/No)
India (Host) Private entity: No
Lanco Energy Private Limited
(*) In accordance with the CDM modalities and procedures, at the time of making the CDM-PDD public
at the stage of validation, a Party involved may or may not have provided its approval. At the time of
requesting registration, the approval by the Party(ies) involved is required.
Contact information is provided in Annex I. The Host Country India has ratified the Kyoto Protocol to
the United Nations Framework Convention on Climate Change on 26th August 2002.
A.4. Technical description of the project activity:
A.4.1. Location of the project activity:

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A.4.1.1. Host Party(ies):
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India
A.4.1.2. Region/State/Province etc.:

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State: Sikkim
A.4.1.3. City/Town/Community etc:

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Village: Subin Khor
District: South Sikkim
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A.4.1.4. Detail of physical location, including information allowing the unique identification
of this project activity (maximum one page):
the unique identification of this project activity (maximum one page)

The Project barrage is located on the Teesta River at Longitude 880 2915E and Latitude 270 14 42N at
Sirwani village and the Power House is located at Longitude of 880 3040 East and Latitude 270
1042North at Subin Khor village of South Sikkim District of Sikkim state.
The project site can be approached by National Highway No. NH-31A. Nearest rail head is New Jalpai
Guri (NJP) railway station located at a distance of about 85 KM. The nearest Airport is at Bagdogra
(approx.95 KM from the project site). Physical location of the project site is shown below.
Project Location
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A.4.2. Category(ies) of project activity:

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Category : Grid-connected electricity generation from renewable sources
Sectoral scope : 01
A.4.3 Technology to be employed by the project activity:

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The project is a run-of-river type Hydro-electric power generation project. A small storage is envisaged
by constructing a barrage across the river Teesta for diversion of the water to the turbines for power
generation. The flows are drawn through a system of intake structure, headrace tunnel, surge shaft,
pressure shafts to the turbines where potential energy is converted into mechanical energy. The water
with high potential energy strikes the turbine blades and turbines move at higher speed. The turbines are
coupled with generators by means of shaft. With the rotation of the generator, the mechanical energy is
converted into electrical energy. The electricity produced at 13.8 kV will be stepped to 400 kV and
evacuated through 400kV double circuit transmission line to the Regional Grid which is a part of
NEWNE grid of India.
No technology transfer is envisaged for the CDM project activity.
Important technical particulars are given below.
Parameter Details
Plant Equipment
Type of Hydro turbine Francis, Vertical
No. of generating units 4
Rated capacity of each generating 125 MW
unit
Generation voltage 13.8 kV
Grid interface voltage 400 kV
Hydrology
Rated Discharge for each unit 132.75 m3/s
Rated net head for each unit 103.2 m
Energy
Gross energy generation per 2441000 MWh
annum
Annual export to the grid 2411793 MWh
A.4.4 Estimated amount of emission reductions over the chosen crediting period:
>>
The chosen crediting period for the project activity is 10 years. It is estimated that the project activity
would generate 202,60,270 Certified Emission Reductions (CER) during the crediting period of 10 years.
Annual estimates of emission reductions by the project activity during the above crediting period are
furnished below.
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Annual estimation of emission

Years
reductions in tonnes of CO2 e
2012- 2013 20,26,027
2013-2014 20,26,027
2014-2015 20,26,027
2015-2016 20,26,027
2016-2017 20,26,027
2017-2018 20,26,027
2018-2019 20,26,027
2019-2020 20,26,027
2020-2021 20,26,027
2021-2022 20,26,027
Total estimated reductions (t CO2 e) 2,02,60,270
Total number of crediting years 10
Annual average over the crediting
period of estimated reductions (tonnes 20,26,027
of CO2 e)
A.4.5. Public funding of the project activity:

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The project activity does not involve any public funding from Annex-1 countries.
SECTION B Application of a baseline and monitoring methodology
B.1. Title and reference of the approved baseline and monitoring methodology applied to the
project activity:
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Sectoral Scope : Energy Industries (renewable/non-renewable sources)
Scope Number : 01
Approved consolidated methodology : Consolidated baseline methodology for grid connected
electricity generation from renewable sources, ACM0002
Version :11
Tools used:
1) Tool for the demonstration and assessment of additionality (Version 05.2)

2) Tool to calculate the emission factor for an electricity system (Version 02)
3) Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (Version 02)
B.2 Justification of the choice of the methodology and why it is applicable to the project
activity:
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In the methodology ACM0002, applicability criteria for various projects are mentioned. Applicable
conditions for the present activity and fulfillment of the same are mentioned below.
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Applicability criteria Project activity

. The project activity is the installation, capacity The proposed activity is a new renewable hydro
addition, retrofit or replacement of a power power plant with run-of-river reservoir
plant/unit of one of the following types: hydro power
plant/unit (either with a run-of-river
reservoir or an accumulation reservoir), wind power
plant/unit, geothermal power plant/unit, solar
power plant/unit, wave power plant/unit or tidal
power plant/unit
In case of hydro power plants, one of the following The project activity results in new reservoirs and the
conditions must apply: power density of the power plant is 2014 W/m2 which
is greater than 4 W/m2
a) The project activity is implemented in an existing
reservoir, with no change in the volume of Surface area of reservoir at:2,48,225 m2
reservoir; or Project capacity 500 MW or 500000000 W
b) The project activity is implemented in an existing Power Density =500000000/248225 =2014 W/ m2
reservoir, where the volume of reservoir is
increased and the power density of the project
activity, as per definitions given in the Project
Emissions section, is greater than 4 W/m2; or
c) The project activity results in new reservoirs and

the power density of the power plant, as per
definitions given in the Project Emissions section, is
greater than 4 W/m2.
The geographic and system boundaries for the Indian electricity system is divided into two
relevant electricity grid can be clearly identified regional grids namely NEWNE and Southern grids.
and information on the characteristics of the grid is The project activity is covered in the geographic
available. boundary of NEWNE grid. The electricity system
is managed by Power Grid Corporation of India
Limited (PGCIL), a central level authority for
electricity in India, which monitors power
generation from all plants connected to the grid
system. Hence, the geographic and system
boundaries of the NEWNE regional grid system
can be clearly identified.
The project meets the criteria mentioned in the methodology ACM0002, Version 11 and hence justifies
the selection of approved consolidated baseline methodology for this project activity.
B.3. Description of the sources and gases included in the project boundary
>
Project boundary encompasses the physical and geographical site of the renewable energy generation
source, i.e., Reservoir, Barrage, Intake structure, Headrace tunnel, Power house, Tail race tunnel and
switchyard where the project proponent has full control. Hence, project boundary would be considered
within these terminal points.
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Only CO2 emissions from fossil fuel fired power plants connected to the grid are included. No other
GHG emissions are included for the project activity and for the purpose of determining the baseline
emissions.
The following table summarizes the details of the GHG emissions included for the project activity.
Source Gas Included/Excluded Justification / Explanation

Grid electricity CO2 Included Main emission source
Baseline
generation CH4 Excluded Excluded for simplification

N2O Excluded Excluded for simplification
Hydro electricity CO2 Excluded Not applicable, since no emissions

generation occur from project operation.
CH4 Excluded Minor emission source. Excluded for
Project
simplification as power density is > 10

w/m2.
N2O Excluded Not applicable since no emissions occur
from project operation.
B.4. Description of how the baseline scenario is identified and description of the identified
baseline scenario
>>
According to the approved consolidated methodology ACM0002, version 11, baseline scenario for the
installation of a new grid-connected renewable power plant is as follows.
Electricity delivered to the grid by the project activity would have otherwise been generated by the
operation of grid-connected power plants and by the addition of new generation sources, as reflected in
the combined margin (CM) calculations described in the Tool to calculate the emission factor for an
electricity system.
As the proposed project activity is new renewable grid-connected power plant, the applicable baseline
scenario for this project is the electricity delivered to the grid by the project activity which would have,
otherwise, been generated by the operation of grid-connected power plants and by addition of new
generation sources, as reflected in the combined margin (CM) calculations.
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below
those that would have occurred in the absence of the registered CDM project activity (assessment
and demonstration of additionality):
>>
Additionality of the project activity is demonstrated using the Tool for the demonstration and
assessment of additionality Version 05.2 as specified by the approved methodology ACM0002 as
described below:
Step 1. Identification of alternatives to the project activity consistent with current laws and
regulations
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The project participant has identified following realistic/credible alternatives to the project activity,
which provide output comparable to the project activity. Then the alternatives are verified for compliance
with applicable legal and regulatory requirements.
Sub-step 1a.: Define alternatives to the project activity:
The selection of baseline is also done after evaluating alternative scenarios as per tool for demonstration
and assessment of additionality.
The possible alternatives to the project activity are as follows:
Alternative-1: The proposed project activity undertaken without being registered as a CDM project
activity
The alternative is in compliance with current laws and regulations of India. However, according to the
investment analysis in section B.5, the proposed project activity without CDM revenues is economically
unattractive because the project IRR works out to 9.29% against benchmark of 12.38%. Therefore, the
Alternative is not feasible and should not be the baseline scenario of the Project.
Alternative-2: Continuation of current situation or Business as usual scenario (BAU).
Under BAU scenario, the power demand would be met from the construction of the newly built thermal
power plants using fossil fuel resources, mostly coal in the NEWNE grid. This is evident from the
following discussion in the CEA user guide version 5 (page No 14&15) available at
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm. Figure 3 &
Figure 4 mentioned in the following discussion are also available in the above web page.
Figure 3 shows the build margins for the four fiscal years 2005-06 to 2008-09. A significant increase is
observed in both regions. As illustrated in Figure 4, this is due to an increased share of coal-based generation
in the build margin, with a corresponding decrease in the shares of hydro, nuclear and (in the case of the
NEWNE region) gas-based generation. In the NEWNE region, the increased weight of coal-fired generation
relative to other generation modes can be primarily explained by a higher average plant load factor for the
coal-fired stations, as several coal-based units commissioned in the previous year took up commercial
operation. In addition, the plant load factors observed in those nuclear units falling into the build margin were
lower than in previous years.
It should be noted that due to the definition stipulated by the CDM rules, the build margin can react
sensitively to a few large units being added to the grid in a given year. Consequently, the changes observed
here need not necessarily point to longer-term trend. .
Alternative-3: To construct a power plant using wind potential with the same installed capacity as the
Project
The alternative is in compliance with current laws and regulations of India. However, Sikkim state,
where the Project is located lacks of economically feasible wind resources for constructing a wind farm
with the same installed capacity as the Project. As per the statistics published by Ministry of New and
Renewable Energy (MNRE) there is no wind potential in the state of Sikkim as observed from the
following table:
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Source: http://mnes.nic.in/annualreport/2005_2006_English/CH8/2.html
Therefore, Alternative 3 is not feasible and should not be the baseline scenario of the Project.
Alternative-4: To construct a power plant using bio-mass with the same installed capacity as the Project
The alternative is in compliance with current laws and regulations of India. However, there is no
potential for setting up of biomass based power projects of similar capacity in the state of Sikkim. As per
information available, there are only 11 states in India which have the potential for biomass power
generation and the state of Sikkim is not included in the list. The list and the source are furnished
below:
STATE-WISE/YEAR-WISE LIST OF COMMISSIONED BIOMASS POWER /

CO-GENERATION PROJECTS (AS ON 30.11.2008)
(In MW)
upto 31.03.2003
S.No. State 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Total
1 Andhra Pradesh 160.05 37.70 69.50 12.00 22.00 33.00 9.00 334.25
2 Chattisgarh 11.00 -- -- 16.50 85.80 33.50 9.88 156.10
3 Gujarat 0.50 -- -- -- -- -- -- 0.50
4 Haryana 4.00 -- 2.00 -- -- -- -- 6.00
5 Karnataka 109.38 26.00 16.60 72.50 29.80 8.00 12.00 274.28
6 Madhya Pradesh 0.00 1.00 -- -- -- -- -- 1.00
7 Maharashtra 24.50 -- 11.50 -- 40.00 38.50 41.50 155.50
8 Punjab 22.00 -- -- 6.00 -- -- -- 28.00
9 Rajasthan 0.00 7.80 -- 7.50 8.00 -- 8.00 31.30
10 Tamil Nadu 106.00 44.50 22.50 -- 42.50 75.00 18.20 308.70
11 Uttar Pradesh 46.50 12.50 14.00 48.50 -- 79.00 172.00 372.50
Total 381.30 129.50 136.10 163.00 228.10 266.00 270.50 1677.13
Source: http://mnes.nic.in/prog-biomasspower.htm
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Therefore, Alternative 4 is not feasible and should not be the baseline scenario of the Project.
The above mentioned alternatives are tested for their compliance with the applicable legal and regulatory
requirements. All alternatives are found to meet all the legal and regulatory requirements in India. In
addition, implementation of the proposed project activity is not restricted by any law.
In the absence of the CDM project activity, second alternative would prevail and hence has been
considered as baseline for the project activity.
Sub-step 1b.: Consistency with mandatory laws and regulations:
The above mentioned alternatives are tested for their compliance with the applicable legal and regulatory
requirements. These alternatives are found to meet all the legal and regulatory requirements in force in
India
Step 2. Investment analysis
Sub-step 2.a.: Determine appropriate analysis method
The tool for additionality provides the following three options for investment analysis.
Option I : Simple cost analysis

Option - II : Investment comparison analysis
Option III : Benchmark analysis
Option I: Simple cost analysis is not applicable to the project activity as the CDM revenues are not the
only means of income. Out of the remaining options, project participant selected Option III, Benchmark
analysis. The Benchmark analysis is also considered appropriate for the project activity in as much as the
baseline does not require investment and the choice of the developer is to invest or not to invest.
Therefore, the selection of benchmark analysis is in conformity with the guidance 16 of Annex 58 of EB
51.
sub-step 2.b.: Option III - Benchmark analysis
IRR is the commonly used financial indicator to assess the intrinsic viability of the project. Moreover,
since the project is funded by a mix of debt and equity, project IRR is considered as an appropriate
financial indicator as the financial indicator accounts for both the cost of debt and return on equity. The
PP seeks to demonstrate the addtionality of the project through Project IRR. The IRR so computed is
compared with a benchmark indicator to assess the financial attractiveness of the project.
Based on the guidelines of EB framed at its 41st meeting PP has considered the RBI PLR, which is the
commercial lending rate of the banks, as the applicable bench mark and the same is in agreement with
Guidance 12 of Annex 58 of EB 51 and the Additionality Tool Ver.05.2 Sub-step 2b (6) (b) according
tom which discount rates and benchmarks should be derived from inter alia Estimates of the cost of
financing and required return on capital (e.g. commercial lending rates and guarantees required for the
country and the type of project activity concerned), based on bankers views and private equity
investors/funds required return on comparable projects. Accordingly PP has chosen Average RBI PLR
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as the benchmark and the same is ascertained at 12.38%, prevailing during prior month of investment
decision1
Sub-step 2.c.: Calculation and Comparison of Financial Indicators
The PP had chosen project IRR as the financial indicator to demonstrate the additionality of the project.
The PP prepared the DPR and submitted to the Central Electricity Authority, Government of India which
is a statutory authority for according Techno-economic clearance for the large hydro power projects in
India. The CEA accorded the Techno-economic clearance for the project activity. The key parameters
such as project cost, annual energy generation, tariff, O&M costs and its escalation etc., are taken from
the DPR. While computing the IRR all the benefits and fiscal concessions available to the project have
been taken into account. The PP has also considered the capital expenditure towards refurbishment
(which is likely to occur during 10th, 20th and 30th years of continuous operation) in the investment
analysis.
Table B.2.: Assumptions underlying Financial Indicators
Project Cost Rs. 29,968.92 millions

Means of Finance
- Equity Rs. 5968.92 millions
- Term Loan Rs. 24000.00 millions
Annual Gross Energy 2441000 MWh (55.73%)
Electricity Tariff Rs.2.32 /kWh
Interest on Term Loans 10.75 % per annum
Operation & Maintenance 1.50 % of project cost with 4 %
escalation per annum
Loan tenure 15 years
Income Tax (MAT) 11.33%
Income Tax ( Regular) 33.99%
Annual Emission Reductions 20,26,027 tCO2eq. / annum
Important input data used in the financial analysis along with source of input data are given
below.
Parameters Value Source for input Values
Project cost Rs. 29,968.92 millions DPR
Annual Gross Energy 2441000 MWh Techno-economic clearance dated 27/12/2006
(55.73%) granted to the project activity by Central
Electricity Authority, Government of India
Electricity Tariff Rs.2.32 /kWh PPA concluded with Maharashtra State
Electricity Distribution Company Limited
(MSEDCL)
Interest on Term Loans 10.75 % per annum Rupee Facility Agreement
Operation & 1.50 % of project cost DPR. Further supported by CERC guidelines
1
http://www.rbi.org.in/SCRIPTS/BS_ViewBulletin.aspx?Id=8414
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Maintenance with 4 % escalation per

annum
Auxiliary 0.7% DPR. Further supported by CERC guidelines
consumption
Transformation losses 0.5% DPR. Further supported by CERC guidelines
Royalty - Free energy Implementation agreement date 07-12-2005
up to 15 years 12%
Royalty - Free energy
from 16th year 15%
Environment Cess Rs.0.01/Kwh Implementation agreement date 07-12-2005
Project life 35 years Implementation agreement date 07-12-2005
In this context, it needs to be mentioned that the generation i.e Plant Load Factor 55.73% used in the
PDD is approved by Central Electricity Authority (CEA), Government of India. As PLF
approved by Government of India is used in the PDD it complies with EB 48 Annex 11
paragraph II 3(a) Guidelines for the Reporting and Validation of Plant Load Factors.
Based on the above, the project IRR works out to 9.29% in contrast to the benchmark return of 12.38%
(RBI PLR) chosen for project IRR. With CDM support the IRR improves to 11.39%.
Soft copy of the financial calculations are attached as annexure.
Sub-step 2.d.: Sensitivity Analysis
The tool for the demonstration and assessment of additionality requires that a sensitivity analysis is
conducted to check weather the financial attractiveness is robust to reasonable variations in the critical
assumptions. The Guidance on the Assessment of Investment Analysis issued by the EB in its 51st
Meeting requires subjecting those variables which constitute more than 20% of project cost or total
project revenue to sensitivity analysis and considering a +/- 10% variations in the selected variables.
Accordingly, following variables have been identified, viz., revenue (generation), tariff , project cost and
O&M cost by 10% on either side.
The results of the sensitivity analysis for the IRR are shown in the table B.3 below.
Table B.3.: Sensitivity Analysis
Project IRR
Sensitive Factors
-10% 0% +10%
Generation 8.35% 9.29% 10.18%
Tariff 8.35% 9.29% 10.19%
Project Cost 10.43% 9.29% 8.32%
O&M cost 9.43% 9.29% 9.16%
With CDM benefits 11.39%
Bench mark 12.38%
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The sensitivity analysis proves that the project is unlikely to be financially attractive even under the most
optimistic conditions of project cost going down by 10%, revenue (i.e. generation) and tariff going up by
10%. This proves that the project activity is not a business-as-usual scenario. CDM benefits would
improve the financial attractiveness of the project activity, as evident from the fact that with CDM
benefits, the project IRR would improve to 11.39% in contrast the benchmark return of 12.38 %. Hence,
CDM benefits are imperative to make the project financially attractive.
Further it is also observed that IRR cross benchmark in the following scenarios:
1. Generation goes up by 37.00%

2. Project cost reduced by 24.10%
3. Tariff increased by 36.80%
4. O & M Cost reduced by 279%
All the above scenarios are not expected for the following reasons:
The energy is estimated based on detailed hydrology study and 90% dependable energy is considered as
the possible energy from the power plant. The PP does not expect that the energy generation will go
beyond what has been anticipated in the project design. As this is a long gestation project, based on the
inputs available with the company with respect to costs already incurred there is no probability of project
cost coming down than what is envisaged to be incurred. Infact CEA has estimated the project cost as
Rs.32830 millions. Since the tariff of Rs.2.32/kWh is fixed in the power purchase agreement which is for
a long term, the increase of tariff is not anticipated. Similarly operation and maintenance costs are
expected to go up instead of coming down.
Outcome of Step 2: The sensitivity analysis proves that the project is not financially attractive without
CDM support. With the CDM support the project IRR improves to 11.39%. Under the circumstances, the
PP seeks the registration of the project activity as CDM project.
Step 3 Barrier analysis
Sub-step 3a Identify barriers that would prevent the implementation of type of the proposed project
activity.
Step 3 b. Show that the identified barriers would not prevent the implementation of at least one of the
Alternatives
All the realistic and credible alternatives available to project participant were evaluated with respect to the
barriers that would be faced by the project activity. These barriers have been dealt with in Sub-Step 3a
and the evaluation of the alternatives has been done in Sub-Step 3b.
Sub-step 3a Identify barriers that would prevent the implementation of type of the proposed project
activity
The barrier analysis lists out four barriers, viz.,
a) Investment barrier
b) Technological barrier
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c) Barrier due to prevailing practice and

d) Other barriers
Of the above, the project faces generation loss due to silt problems as other barrier.
Silt problems: The silt content of water in the Teesta river is very high. High silt content causes damage
to the turbine blades, guide vanes and under water components of the project activity. Occurrence of
landslides is quite common in the region which contributes large quantity of silt in the water during
monsoon season. The units are to be shutdown due to the high silt during monsoon season for quite some
time and project loses energy generation. This is evident from the problem occurred with the Teesta
Stage-V (500 MW) project of NHPC upstream of the proposed project activity. The Teesta stage-V
project was shutdown for 44 days in 2008-09 and project suffered loss of power generation as well as
damage to the structures. The NHPC demanded the beneficiaries of the power to consider the loss of
energy due to siltation problem as deemed generation as per CERC regulation2.
There is no provision in the PPA to claim deemed generation by PP for loss of power due to siltation and
hence the project faces barrier.
Step 4 Common practice Analysis
Sub-step 4a. Analyze other activities similar to the proposed project activity
Hydropower projects in operation and construction in Sikkim state are given in the table below.
Table A. Hydropower Projects in operation
S.No Project Installed capacity Year of

in MW completion
1 Jail Power House 2.1 1966
(Rongnichu stage-I)
2 Rimbi stage-I 0.6 1971
3 Lower Lagyap 12.0 1980
4 Rongnichu stage-II 2.5 1989
5 Rimbi stage-II 1.0 1989
6 Chetan micro power plant 0.1 1990
7 Lachung micro power plant 0.2 1994
8 Meyongchu 4.0 1994
9 Upper Rongnichu 8.0 1995
10 Kalez Khola 2.0 1996
11 Rangit (NHPC public sector) 60 2002
12 Rambochu 3.0 2003
13 Rothak 0.2 Not available
Teesta Stage-V (NHPC-public 510 2009
14 sector)
http://www.sikkimpower.org/files/annual%20report%2005-06.pdf
2
This fact is recorded in the Minutes of 10th Commercial Sub- Committee meeting of ERPC held on 25.06.2009 at
ERPC, Kolkata available at http://www.eastrpc.org/MOM%20of%2010th%20CCM%20on%2025.06.09.pdf
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Table B. Hydropower Projects under construction
S.No Project Installed capacity MOU date
1 Chuzachen HEP 99 MW 14-11-2003

2 Teesta Stage- III 1200 MW 18-07-2005
3 Teesta Stage-VI (present 500 MW 07-12-2005
project activity)
4 Rangit-IV HEP 120 MW 19-12-2005
5 Prethang Loop HEP 96 MW 05-12-2005
http://www.sikkimpower.org/files/Status%20of%20HEPs.pdf
The Electricity Act, 2003 was promulgated and came into existence on 10th June 2003, which repealed
the Indian Electricity Act, 1948 and all Policy announcements under it, except those which were not
inconsistent with the Act of 2003. In pursuance to Section 3 of the said Act, the National Electricity
Policy was formulated and notified by the Central Government on 12th February, 2005.
Government of Sikkim, following the recommendations of High Power Committee, adopted Hydro
Power Policy/Terms and Conditions for Issuance of Letter of Intent for selection of private developers in
the State. The aim of the selection of the private developer is to harness maximum power at the most
competitive price.
Analysis of the above schemes:

Out of the 14 projects under operation, 13 projects are of low capacity. One project of 510 MW started
construction before 2000 prior to National Electricity Policy was formulated i.e before competitive
market environment. The costs for construction of the projects have increased several times. The
investment cost of this project was around Rs 5.0 Cr/MW against Rs 6.5 Cr/MW for the projects under
construction. According to the tool for the demonstration and assessment of additionality, projects are
considered similar in case they take place in a comparable environment with respect to regulatory
framework, investment climate, access to technology, access to financing, etc. In view of the reasons
explained, the projects in Table A, i.e., projects under operation in Sikkim state are not considered
similar to the project activity.
Sub-step 4b. Discuss any similar options that are occurring
The projects under construction (Table B) are similar to the project activity. Like this project activity, all
these projects are applying for CDM support evidencing the existence of barriers. Therefore, the project
is additional.
Serious consideration of CDM
Annex 22 of EB 49 provided elaborate guidelines on the demonstration and assessment of prior consideration
of the CDM. The guidelines specified that in respect of project activities with start date before 2 August 2008,
for which start date is prior to the date of publication of the PDD for global stakeholder consultation, the PP is
required to demonstrate that CDM was seriously considered in the decision to implement the project activity.
Such demonstration, as per the Annex requires the following elements to be satisfied with documentary
evidence viz.
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a) awareness of the CDM prior to the project activity start date, and that the benefits of the CDM were a
decisive factor in the decision to proceed with the project; and
b) that continuing and real actions were taken to secure CDM status for the project in parallel with its
implementation.
PP was aware of the CDM through print and electronic media and is evident from the fact that two of the
projects belonging to Lanco group were registered as CDM projects. These are two small scale bundled
projects having reference number of 0958 and 0960. Thus awareness of CDM prior to the project activity
start is demonstrated.
The fact that benefits from CDM were a decisive factor in the decision to proceed with the project is
evidence by the resolution passed by the Board of Directors on the serious consideration of CDM. The
resolution a copy of which is furnished to the DOE stated that The financial analysis carried out at the
higher investment and envisaged generation resulted in less attractive internal rate of return. In this
background the promoters have decided to develop the project seriously under Clean Development
Mechanism to generate additional cashflow by sale of CERs to improve the financial viability. Thus
CDM has become a decisive factor in the implementation of the project. As board meeting minutes is
one of the documents stipulated by the EB, the first element of the EB guidelines on serious
consideration of CDM is satisfied. Subsequent to the board decision the annual report (Directors report
to the shareholders) of the company for the years 2006-07, 2007-08 and 2008-09 have clearly established
that CDM has been considered seriously by the project proponent. Copies of annual reports are furnished
for verification.
The second element relates to the demonstration, by means of reliable evidence, that continuing and real
actions were taken to secure CDM status for the project in parallel with its implementation. Evidence to
support this, as per Annex 22 of EB 49 includes contracts with consultants for CDM services, appointment
of DOE, among others. The chronology of events of the project activity is furnished below:
Board resolution considering CDM revenue : 01/03/2007

EPC Agreement for Civil and Electro Mechanical equipment
(Considered for start date of project activity) : 23/03/2007
Institution of internal study to prepare a road map for CDM : 05/06/2007
Discussion on CDM in the Annual General Meeting : 03.09.2007
Report on the road map for CDM : 15/09/2007
Enquiry for appointment of CDM consultant : 20/10/2007
Offer from the consultant : 15/12/2007
Appointment of the consultant : 15/05/2008
Discussion on CDM in the Annual General Meeting : 23.08.2008
Draft PDD from the consultant : 15/12/2008
Review of the PDD and clearance to float enquiries for
appointment of DOE : 10/03/2009
Discussion on CDM in the Annual General Meeting : 14/09/2009
Enquiry for appointment of DOE : 29/09/2009
Receipt of offers from DOE : 30/09/2009
Appointment of DOE : Dec. 2009
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Since the gap between any two CDM activities is less than two years, it is submitted that continuing and
real actions were taken to secure CDM status for the project in parallel with its implementation in as
much as the project is still under implementation as per Annex 22 of EB 49. The project is likely to
commence commercial operations by November 2012. Documentary evidence relating to the
appointment of consultant for CDM services, and appointment of DOE are furnished to DOE as
evidence.
As both the elements stipulated by Annex 22 of EB 49 are fulfilled, it is submitted that the CDM was
seriously considered in the decision to implement the project activity.
B.6. Emission reductions
B.6.1. Explanation of methodological choices:

>>
Application of baseline methodology
According to the Tool to calculate the emission factor for an electricity system which is referred to in
the methodology ACM0002, the baseline emissions are the amount of electricity produced times the grid
emission factor which is the Combined Margin (CM), calculated as the simple average of the Operating
Margin (OM) emission factor and the Build Margin (BM) emission factor. The emission factor of the
grid for the ex-ante approach is calculated in the following way:
In accordance with the "Tool to calculate the emission factor for an electricity system, Version
01.1 the grid emission factor is calculated by Central Electricity Authority, Government of India
and published in the website. The following procedure was adopted for estimating the grid
electricity emission factor:
Step 1. Identify the relevant electric power system

Step 2. Select an operating margin (OM) method
Step 3. Calculating the operating margin emission factor according to the selected method.
Step 4. Identify the cohort of power units to be included in the build margin (BM)
Step 5. Calculate the build margin emission factor.
Step 6. Calculate the combined margin (CM) emission factor.
Step 1 Identify the relevant electric power system
The CEA of the host country has published a delineation of the project electricity system and
connected electricity systems. According to data published by the CEA of India the project
activity falls under NEWNE Grid.
Step 2 Select an operating margin (OM) method
The approved methodological tool recommends the use of one of the following for the
calculation of the operating margin emission factor (EF grid,OM,y):
a) Simple OM, or
b) Simple adjusted OM; or
c) Dispatch data analysis OM; or
d) Average OM.
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The methodological tool recommends the use of dispatch data analysis as the first
methodological choice. However, in India availability of accurate data on grid system dispatch
order for each power plant in the system and the amount of power dispatched from all plants in
the system during each hour is practically not possible. Also, still the merit order dispatch system
has not become applicable and is unlikely to be so during the crediting period.
In view of this it is proposed to apply other choices as suggested in the methodological tool.
Since the power supplied by low cost must run power plants3 to the NEWNE Grid during 2007-
08 is clearly below 50%, the CEA has applied the Simple OM method.
The data vintage option selected is the ex-ante approach, where a 3 year average OM is
calculated. The most recent three year CEA data published on the emission factor of NEWNE
region is considered.
Step 3 Calculate the operating margin emission factor according to the selected method.
a) Simple OM
In the Simple OM method, the emission factor is calculated as generation weighted average CO2
emissions per unit net electricity generation (tCO2/MWh) of all generating sources serving the
system, not including low-operating cost and must-run power plants. Simple OM can be
calculated using any of the three available methods. Option A has been selected where the data
on fuel consumption and net electricity generation of each power plant/ unit is available. The
CEA derived baseline using the following formulae to calculate simple OM
FC i ,m , y * NCVi , y * EFCO 2,i , y

EFgrid ,OMsimple, y =
i ,m
(1)
EG
m
my
Where:
EFgrid,OM,simple,y is simple operating margin CO2 emission factor in year y (tCO2/MWh)
FCi,m,y is amount of fossil fuel type i consumed by power plant / unit m in year y
(mass or volume unit)
NCVi,y is net calorific value (energy content) of fossil fuel type i in year y (GJ
/mass or volume unit)
EFco2,I,y is CO2 emission factor of fossil fuel type i in year y (tCO2/GJ)
EGm,y is net electricity generated and delivered to the grid by power plant / unit
m in year y (MWh)
m is all power plants / units serving the grid in year y except low-cost /
must-run power plants / units
i is all fossil fuel types combusted in power plant /unit m in year y
y is either the three most recent years for which data is available at the time of
submission of the CDM-PDD to the DOE for validation (ex-ante)
3
Defined as Hydro, geothermal, wind, low cost biomass, nuclear and solar generation plants in the
METHODOLOGICAL TOOL.
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Table 1: Operating Margin4
Most recent three years 2006/07 2007/08 2008/09
Net Generation (NEWNE) in MWh 379470597 401641586 421802632
Operating Margin* (OM) in tCO2 1.00848 0.99990 1.00655

e/ MWh
Recent three year weighted average 1.00493

Simple Operating Margin
(tCO2/MWh)
* including imports
Source: CO2 Baseline Data base, Version 5.0, November, 2009(www.cea.nic.in)
Step 4 Identify the cohort of power units to be included in the build margin
The tool to calculate the emission factor for an electricity system offers two options for
determination of build margin emission factor: ex ante and ex post determination of the Build
Margin (BM). Option 1 is selected wherein the build margin emission factor is calculated ex-
ante based on most recent information available on plants already built for sample group m in
NEWNE region. This simplifies the monitoring procedures, but also offers a conservative
approach of BM calculation. The sample group m shall be the one having higher power
generation between (a) five power plants that have been built most recently and (b) the capacity
additions in the electricity system that comprises 20% of the system generation built most
recently. It is found that the option (b) has higher generation compared to option (a). Hence
option (b) is selected.
Step 5 Calculate the build margin emission factor
The build margin emissions factor is the generation of weighted average emission factor
(tCO2/MWh) of all power units m during the most recent year y for which power generation data
is available, calculated as follows:
EG EF
m, y EL , m , y
EFgrid , BM , y =m
EG
m
m, y
Where:
EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)
4
CEA published CO2 data base,
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
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EGm,y Net quantity of electricity generated and delivered to the grid by power unit m in year y
(MWh)
EFEL,m,y CO2 emission factor of power unit m in year y (tCO2/MWh)
m Power units included in the build margin
y Most recent historical year for which power generation data is available
Build Margin emission factor as published by CEA for the year 2007-08 is furnished below:
Build Margin (BM) 0.67518 tCO2 e/ MWh

Source: CO2 Baseline Data base, Version 5.0, November 2009 (www.cea.nic.in)
Step 6 Calculation of the baseline emission factor (Combined Margin)
The baseline emission factor in year y is calculated as the average of the OM and BM emission
factors, i.e. the defaults weights for OM and BM are each weighted at 50 %. As noted above, the
resulting Combined Margin is fixed ex ante for the duration of the crediting period:
EF grid,CM, y = wOM EFgrid,OM,y + wBM EFgrid,BM,y
Where:
EFgrid,BM,y Build margin CO2 emission factor in year y (tCO2/MWh)
EFgrid,OM,y Operating margin CO2 emission factor in year y (tCO2/MWh)
wOM Weighting of operating margin emissions factor(%)
wBM Weighting of build margin emissions factor(%)
Default weights for calculation tCO2 e/

of Combined Margin MWh
50% of Operating Margin 1.00493
50% of Build Margin 0.67518
Combined Margin (CM) 0.84005
The calculated value has been fixed ex-ante for the crediting period.
Calculation of the baseline emissions
The baseline emissions in year y are calculated as:
BEy = EGPJ,y EFgrid,CM,y

Where:
BEy = Baseline emissions in year y (tCO2/yr)
EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result
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of the implementation of the CDM project activity in year y (MWh/yr)

EFgrid,CM,y = Combined margin CO2 emission factor for grid connected power generation in year y
calculated using the latest version of the Tool to calculate the emission factor for an
electricity system (tCO2/MWh)
Calculation of EGPJ,y
The calculation of EGPJ,y is different for (a) greenfield plants, (b) retrofits and replacements, and (c)
capacity additions.
The project is a Greenfield renewable energy power plant since as the project activity is the installation of a
new grid-connected renewable power plant/unit at a site where no renewable power plant was operated prior to
the implementation of the project activity, then:
EGPJ,y = EGfacility,y
Where:
EGPJ,y = Quantity of net electricity generation that is produced and fed into the grid as a result
of the implementation of the CDM project activity in year y (MWh/yr)
EGfacility,y = Quantity of net electricity generation supplied by the project plant/unit to the grid in
year y (MWh/yr)
Leakage
No leakage emissions are considered. The main emissions potentially giving rise to leakage in the context
of electric sector projects are emissions arising due to activities such as power plant construction and
upstream emissions from fossil fuel use (e.g. extraction, processing, transport). These emissions sources
are neglected.
Emission reductions
Emission reductions are calculated as follows:

ERy = BEy PEy
Where:
ERy = Emission reductions in year y (t CO2e/yr)
BEy = Baseline emissions in year y (t CO2/yr)
PEy = Project emissions in year y (t CO2e/yr)
Project activity emissions
As per ACM0002, if the power density of the power plant is greater than 10 W/m2 for hydro power
plants that result in new reservoirs, then project emissions, PEy = 0.
The power density of the Project is 2014 W/m2>10 W/m2. Therefore, PEy =0 tCO2e. However, the project
activity would install a diesel generator to meet the emergency requirements of power house etc. Project
Emissions due to use of fossil fuel (diesel) need to be accounted as project emissions as per Tool to
calculate project or leakage CO2 emissions from fossil fuel combustion, Ver 02. The emission
parameters on account of diesel generator will be monitored.
Project emissions due to the combustion of fossil fuels (DG set PEFF,y)
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PEFFy = PEFC,j,y
PEFC,j,y = FCi,j,y COEFi,y

i
Where:
PEFC,j,y = CO2 emissions from fossil fuel combustion in process j during the year y (tCO2)
FCi,j,y = the quantity of fuel type i combusted in process j during the year y
COEFi,y = CO2 emission coefficient of fuel type i in year y (tCO2 / mass or volume unit);
i = are the fuel types combusted in process j during the year y.
The CO2 emission coefficient COEFi,y can be calculated using one of the following two Options as
provided in the above said tool, depending on the availability of data on the fossil fuel type i, the project
has adopted Option B:
COEFi,y = NCVi,y EFco2,i,y
Where:
COEFi,y = the CO2 emission coefficient of fuel type i in year y (tCO2 / mass or volume unit);
NCVi,y = the weighted average net calorific value of the fuel type i in year y
(GJ/mass or volume unit);
EFco2,i,y = the weighted average CO2 emission factor of fuel (diesel) type i in year y (tCO2/GJ);
I = are the fuel types combusted in process j during the year y.
Based on the above, the derived formula is
In summation, the project emissions due to use of fossil fuel (diesel) in the project activity will be
evaluated using the following equation:
PEFFy = FFd , y i NCVi , y EFCO 2,i , y / 10^6

Where,
FFd,y = Quantity of fossil fuel type i (diesel) combusted (DG set) during the year y in lit
i = Density of the fuel type i (diesel) in kg/lit
NCVi,y = the weighted average net calorific value of the fuel type i in year y (TJ/Gg)
EFCO2,i,y = the weighted average CO2 emission factor of fuel type i in year y (tCO2/TJ)
Leakage
According to the methodology ACM0002, the Project takes no account of leakage.
According to the ACM0002 methodology, the project emissions (PEy) as well as the leakages are zero for
hydro power projects that result in new reservoirs with reservoir power density greater than 10W/m2, and
therefore the emission reductions are equal to the baseline emissions. However, the project activity
would install a diesel generator to meet the emergency requirements of power house etc. Project
Emissions due to use of fossil fuel (diesel) will be accounted for as per Tool to calculate project or
leakage CO2 emissions from fossil fuel combustion, Ver 02. The emission parameters on account of
diesel generator are to be monitored. At present, project emissions (PEy) may be taken as zero.
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ERy = BEy - PEy = EGPJ,y EFgrid,CM,y - PEy
B.6.2. Data and parameters that are available at validation:
Data / Parameter: EFgrid,CM,y

Data unit: t CO2/MWh
Description: Emission factor of electricity system ie NEWNE grid applicable for the
project activity.
Source of data used: Derived from CEA CO2 Baseline Data base, Version 5.0, November
2009(www.cea.nic.in).
Value applied: 0.84005

Justification of the choice of The Emission factor is derived using CEA published data on Indian
data or description of regional grid systems. The data parameter is calculated as per the
measurement methods and guidelines of CDM modalities and procedures. Since, CEA is the prime
procedures actually applied : authority for publishing all the relevant to Indian power sector, the
choice of the data is conservative.
Any comment: --
Data / Parameter: EGfacility,y

Data unit: MWh/yr
Description: Quantity of net electricity generation supplied by the project to the grid
in year y
Source of data used: Project activity site.
Value applied: 2411793
Justification of the choice of Electricity meters. Main meters and check meters will be installed for
data or description of measurement of energy fed to the grid and these are of 0.2 class
measurement methods and accuracy. The company shall keep requisite sets of metering
procedures actually applied : equipment, duly tested/calibrated, as spares, for replacement as and
when required. Main meter or Check meter shall be replaced by spare
set of meter with mutual consent of the Parties whenever the Main
meter or Check meter is required to be removed Both meters will be
calibrated once in every year. If during the yearly test checks, the main
meter is found to be with in the permissible limits of error and
corresponding Check meter is found to be beyond the permissible
limits of error, then billing will be as per the main meter as usual. The
corresponding Check meter, shall, however, be calibrated or replaced
with spare tested calibrated meter, as may be necessary.
If during the yearly test checks, the main meter is found to be beyond
permissible limits of error but the check meter is found to be with in
permissible limits of error, then the billing for the month and upto the
date and time of the calibration/replacement of defective main meter,
shall be as per the check meter. Such meter shall be immediately
calibrated or replaced with the spare tested/calibrated meter, as may be
necessary, where after billing shall be as per the main meter.
Any comment: --
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Data / Parameter: CapBL

Data unit: W
Description: Installed capacity of the hydro power plant before the implementation of
the project activity.
Source of data used: Project site
Value applied:
0
Justification of the choice of -
data or description of
measurement methods and
procedures actually applied :
Any comment: --
Data / Parameter: ABL

Data unit: m2
Description: Area of the reservoir measured in the surface of the water, before the
implementation of the project activity, when the reservoir is full (m2).
Value applied:
0
Justification of the choice of -
data or description of
Any comment: --
Data / Parameter: i
Data unit: kg/Lit
Description: Density of the fossil fuel used for the project site (Diesel)
Source of data used: Society of Indian automobile manufacturers (SIAM)
http://www.siamindia.com/scripts/Diesel.aspx
Value applied: 0.82
Justification of the choice of The SIAM value is considered as it is publicly available and can be
data or description of referred as authentic source.
Any comment: --
Data / Parameter: NCVDiesel

Data unit: TJ/Gg
Description: Net calorific value of diesel
Source of data used: IPCC default values
Value applied: 43.0
Justification of the choice of Page No. 18 of 2006 IPCC Guidelines for National Greenhouse Gas
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data or description of Inventories vide web link

measurement methods and http://www.ipcc-
procedures actually applied : nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_1_Ch1_Introductio
n.pdf
Any comment: Project participants have no control on the parameter. Hence, No
QA/QC procedures are applicable
Data / Parameter: EFCO2,i

Data unit: tCO2/TJ
Description: Carbon dioxide emission factor for diesel (i)
Source of data used: Indias Initial National Communication to UNFCCC
IPCC default values
http://www.ipcc-nggip.iges.or.jp/EFDB/find_ef.php
Value applied: Diesel : 74.10
Justification of the choice of Page No. 16 of 2006 IPCC Guidelines for National Greenhouse Gas
data or description of Inventories vide web link
measurement methods and http://www.ipcc-
procedures actually applied : nggip.iges.or.jp/public/2006gl/pdf/2_Volume2/V2_2_Ch2_Stationary_
Combustion.pdf
Any comment: Any future revision of the IPCC Guidelines shall be taken into account.
B.6.3 Ex-ante calculation of emission reductions:

>>
Baseline emissions
Baseline emissions calculated as explained in section B.6.1 above are summarised as below.
ERy = BEy - PEy = EGPJ,y EFgrid,CM,y - PEy
BEy = 2411793 MWh * 0.84005 tCO2/MWh -0
BEy = 20,26,027 -0 20,26,027 tCO2
Project emissions
The project emissions due to the combustion of diesel are considered as zero for estimating emission
reductions. The quantity of diesel consumed for operating the DG set during emergency situations is
expected to be negligible. However the quantity of diesel combusted in the project activity will be
monitored during each year of crediting period (B.7.1) and project emissions will be deducted from
baseline emissions. Provisions have been made in Section B.6.1 for calculating project emissions. Since
the quantity of diesel that will be consumed is unpredictable before actual operation of the project, and
also to simplify the ex-ante calculations of emission reductions, excluding project emissions is
considered reasonable.
PEFF y = FFd , y i NCVi , y EFCO 2,i , y / 10^6
PEy = 0 x 0.82 x 43 x 74.1 / 10^6 = 0 tCO2 e

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Leakage:
As described in part B.6.1, the leakage of the Project ( Ly ) is 0 tCO2e.

Ly = 0
Emission reductions
Emission reductions from the project activity are estimated as the difference between baseline emissions,
project emissions and leakage.
ERy = BEy - PEy

ERy = 20,26,027 - 0 = 20,26,027 tCO2e
B.6.4 Summary of the ex-ante estimation of emission reductions:

>>
It is expected that the Project will generate GHG emission reductions of about 20,26,027 tCO2e annually
over the 10-year crediting period from 2012 to 2022.
Estimation of Estimation Estimation of

Estimation of
Year Baseline of project overall emission
Leakage
emissions emissions reductions
(t CO2 e)
(t CO2 e) (t CO2 e) (t CO2 e)
2012- 2013 20,26,027 0 0 20,26,027
2013-2014 20,26,027 0 0 20,26,027
2014-2015 20,26,027 0 0 20,26,027
2015-2016 20,26,027 0 0 20,26,027
2016-2017 20,26,027 0 0 20,26,027
2017-2018 20,26,027 0 0 20,26,027
2018-2019 20,26,027 0 0 20,26,027
2019-2020 20,26,027 0 0 20,26,027
2020-2021 20,26,027 0 0 20,26,027
2021-2022 20,26,027 0 0 20,26,027
Total
(tonnes of 2,02,60,270 0 0 2,02,60,270
CO2 e)
B.7 Application of the monitoring methodology and description of the monitoring plan:
B.7.1 Data and parameters monitored:
Data / Parameter: EGfacility,y

Data unit: MWh/yr
Description: Quantity of net electricity generation supplied by the project activity to
the grid
Source of data to be used: Project activity site.
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Value of data applied for the 2411793 MWh

purpose of calculating expected
emission reductions in section
B.5
Description of measurement Main meters and check meters will be installed for measurement of
methods and procedures to be energy supplied to the grid and these are of 0.2 class accuracy. The
applied: company shall keep requisite sets of metering equipment, duly
tested/calibrated, as spares, for replacement as and when required.
Main meter or Check meter shall be replaced by spare set of meter
with mutual consent of the parties whenever the Main meter or Check
meter is required to be removed
QA/QC procedures to be Main meters and check meters for measurement of energy are of 0.2
applied: class accuracy. Both meters will be calibrated once in every year. If
during the yearly test checks, the main meter is found to be with in the
permissible limits of error and corresponding Check meter is found to
be beyond the permissible limits of error, then billing will be as per
the main meter as usual. The corresponding Check meter, shall,
however, be calibrated or replaced with spare tested calibrated meter,
as may be necessary.
calibrated or replaced with the spare tested/calibrated meter, as may
be necessary, where after billing shall be as per the main meter..
Any comment: -
Data / Parameter: TEGy

Data unit: MWh/yr
Description: Total electricity produced by the project activity, including the electricity
supplied to the grid and the electricity supplied to internal loads, in year y
Source of data to be used: Project activity site.
B.5
Description of measurement Measured daily using calibrated meters and aggregated monthly.
methods and procedures to be
applied:
CDM Executive Board
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be necessary, where after billing shall be as per the main meter.
Any comment: -
Data / Parameter: EGaux,y

Data unit: MWh
Description: Electricity consumed for the auxiliaries
Source of data to be used: On-site measurements
B.5
Description of measurement Main meters and check meters will be installed for measurement of
methods and procedures to be consumed energy and these are of 0.2 class accuracy as defined in
applied: applicable IEC/Indian standards. The company shall keep requisite
sets of metering equipment, duly tested/calibrated, as spares, for
replacement as and when required. Main meter or Check meter shall
be replaced by spare set of meter whenever the Main meter or Check
meter is required to be removed
Any comment: -
Data / Parameter: EGimport,y

Data unit: MWh
Description: Grid electricity import to the project activity during the year y
Source of data to be used: On-site measurements
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Value of data applied for the 0

B.5
Description of measurement Measured monthly using calibrated meters and aggregated annually.
applied:
Any comment: --
Data / Parameter: EFgrid,CM,y

Data unit: tCO2/MWh
Description: Emission factor of electricity system ie NEWNE grid applicable for the
project activity.
Source of data used: Derived from CEA CO2 Baseline Data base, Version 5.0, November
2009(www.cea.nic.in).
Value of data applied for the 0.84005

B.5
Description of measurement The Emission factor is derived using CEA published data on Indian
methods and procedures to be regional grid systems. The data parameter is calculated as per the
applied: guidelines of CDM modalities and procedures. Since, CEA is the prime
authority for publishing all the relevant to Indian power sector, the
choice of the data is conservative.
QA/QC procedures to be -
applied:
Any comment: --
Data / Parameter: ABL

Data unit: m2
Description: Area of the reservoir measured in the surface of the water, after the
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implementation of the project activity, when the reservoir is full (m2).

Value of data applied for the 2,48,225
B.5
Description of measurement -
applied:
applied:
Any comment: --
Data / Parameter: CapBL

Data unit: W
Description: Installed capacity of the hydro power plant after the implementation of the
project activity
Source of data to be used: Project site
Value of data applied for the
purpose of calculating expected 500000
B.5
QA/QC procedures to be --
applied:
Any comment: --
Data / Parameter: Sustainability development fund

Data unit: 2% of CERs revenue
Description: The PP committed to spend every year an amount of 2% of the CERs
revenue realized through sale of emission reductions for sustainable
development including activities related to society/community
development.
Source of data to be used: Project site
Value of data applied for the Cost of 40521 CERs
B.5
Description of measurement -
applied:
applied:
Any comment: -
B.7.2 Description of the monitoring plan:

>>
As detailed in Section B.7.1., electricity supplied to the grid by the project activity would be monitored
using calibrated meters. The project would employ latest microprocessor based high accuracy monitoring
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and control equipment that would measure, record, report, monitor and control of various key parameters
like generation by the project and net energy exported to the grid. Necessary check meters would be
installed, along with main meter for cross verification. All meters would be calibrated and sealed as per
the industry practices at regular intervals. Thus, high quality would be ensured for all the above
parameters. Sales records would be used and kept for checking consistency of the recorded data.
Monitoring structure
A CDM project team would be constituted with participation from relevant departments. People will be
trained on CDM concept and monitoring plan. This team will be responsible for data collection and
archiving. This team will meet periodically to review CDM project activity check data collected,
emissions reduced etc. On a weekly basis, the monitoring reports will be checked and discussed by the
CDM manager. In case of any irregularity observed, it shall be informed to the concerned person for
necessary action. On monthly basis, these reports shall be forwarded to the management.
CDM Manager
In charge of the CDM monitoring
Technician Shift incharge & support staff

Data collection and
facilities and meters maintenance
maintenance
Supervisor
Supervise the conduct of CDM
monitoring
The staff concerned will receive training on monitoring and measurement to ensure the implementation
of this monitoring plan before project operation. Designated staff will collect the measured electricity
data every month and complete the corresponding records. Before archival, these records will be cross
checked to ensure the correctness. The data from these records will be digested and analyzed and the
results will be reported to CDM manager. All the relevant data records will be kept by the Project owner
during the crediting period and two years after for DOEs verification.
The Power Purchase Agreement signed by the Project Participants and the purchaser would provide
procedures for monitoring the energy fed to the grid, emergency preparedness, calibration of monitoring
equipment, companys operation and maintenance responsibilities etc. The same would be adopted for
GHG audits and would form part of the monitoring plan.
Metering and Communication
Metering
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The delivered energy would be metered by the Parties at the high voltage side of the step up transformer
installed at the project site.
Metering Equipment
Metering equipment would be electronic trivector meters of accuracy class 0.2 required for the Project
(both main and check meters). The main meter would be installed and owned by the company, whereas
the check meter would be installed and owned by the purchaser. Dedicated core of both CTs and PTs of
required accuracy would be made available by the company to purchaser during the first week of every
month. The metering equipment would be maintained in accordance with electricity standards. The
meters installed would be capable of recording and storing half hourly averages of all the electrical
parameters for minimum of 35 days with digital output.
Meter Readings
The monthly meter readings (both main and check meters) would be taken jointly by the Parties on the
first day of the following month at 12.00 Hrs. At the conclusion of each meter reading an appointed
representative of the purchaser and the Company would sign a document indicating the number of
kilowatt-hours indicated by the meter.
Inspection of Energy Meters

All the main and check energy meters (export and import) and all associated Instrument Transformers
installed at the project would be of 0.2 accuracy class. Each meter would be jointly inspected and sealed
on behalf of the Parties and would be interfered with by either party only in the presence of the other
Party or its accredited representatives.
Meter Test Checking

All the main and check meters would be tested for accuracy once in every year with reference to a
portable standard meter which would be of an accuracy class of 0.2. The portable standard meter would
be owned by purchaser at its own cost and expenses and tested and certified at least once in every year
against accepted laboratory standard meter in accordance with the electricity standards. The meters
would be deemed to be working satisfactorily if the errors are within specifications for meters of 0.2
accuracy class. The consumption registered by the main meters alone would hold good for the purpose of
billing as long as the error in the main meter is within the permissible limit.
Interconnection and Metering facilities

The company would provide dedicated core for the check metering. Both the main meter and the check
meter would be installed nearest to the PT in the outdoor yard and would be housed in a suitable
weatherproof cubicle.
Communication Facilities
The company would install and maintain, at its cost, communication facilities, such as fax and
telecommunication facilities at the project, to enable receipt of data at the Load Dispatch Centre.
PARAMETERS REQUIRING MONITORING
The following parameters / variables would be monitored under this monitoring protocol.
Project Emissions:
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No significant emissions by sources within the project boundary have been identified by the project
participants. Hence, no parameters or variables are required to be monitored under project emissions.
Leakage:
No significant measurable emissions by sources attributable to the project activity. Hence, no parameters
or variables are required to be monitored under leakage.
Baseline:
The following parameters / variables are required to be monitored under this monitoring protocol. These
parameters / variables are in accordance with the approved methodology, i.e., consolidated methodology
for grid connected zero emission project activities.
1. Electricity supplied to the grid by the project

2. Emissions reductions due to the project activity
The data CO2 Database published by Central Electricity Authority (CEA) every year would be
considered to calculate the baseline emissions and emission reductions as referred in ACM0002. The
Operating Margin, Build Margin and Combined Margin would be taken readymade from CEA website.
The project has necessary provisions for emergency preparedness so that any unforeseen events such as
fire etc. could be averted. The provisions include fire fighting systems, standby features for critical items
etc.
All the data monitored under the monitoring plan would be kept in electronic form and hard copy format
for 2 years after the end of crediting period or the last issuance of CERs for this project activity,
whichever occurs later. The monitored data would be presented to the verification agency or DOE to
whom verification of emission reductions is assigned.
Internal audits of CDM project compliance-
CDM audits shall be carried out to check the correctness of procedures and data monitored by the
internal auditing team entrusted with the work. Report on internal audits done, faults found and
corrective action taken shall be maintained and kept for external auditing.
Monitoring frequency and responsibility

Data Variable Recording Responsibility for Monitoring and quality
Frequency check and assurance
Total electricity generated by the Hourly Project Manager will be responsible for
power plant measurement and calibration of meter from time to time,
monthly recording monitoring and recording of data
Net Energy Exported by the Hourly Project Manager will be responsible for
power plant measurement and calibration of meter from time to time and for
monthly recording monitoring and recording of data
Necessary formats / tables / log sheets etc. would be developed by the project participants for monitoring
and recording of the data and would be made part of the registered monitoring protocol.
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B.8 Date of completion of the application of the baseline study and monitoring methodology
and the name of the responsible person(s)/entity(ies)
>>
Date of completion of the application of baseline study and monitoring methodology: October, 2008
Name of the responsible Entity: M/s Lanco Energy Private Limited with inputs from their consultants.
Contact information of the above entity is provided below.
Organization: Lanco Energy Private Limited

Street/P.O. Box: Udyog Vihar,
Building: Plot No.397, Phase-III
City: Gurgaon-140016, INDIA.
State/Region: HARYANA-
Postfix/ZIP: 122016
Country: INDIA.
Telephone: +91- 124-4741000
Fax: +91-124-4741400
E-Mail: srinagesh@lancogroup.com
URL: www.lancogroup.com-
Represented by:
Title: SPV Head
Salutation: Mr.
Last Name: Ramabhotla
Middle Name: ---
First Name: Srinagesh,
Department: --
Mobile: +91-9810571433
Direct Fax: +91- 124-4741400
Direct Tel: +91-124-4741305(Direct)
Personal E-Mail: srinagesh@lancogroup.com
The above entity is a project participant.
SECTION C. Duration of the project activity / crediting period
C.1 Duration of the project activity:
C.1.1. Starting date of the project activity:

>>
23/03/2007 (EPC agreement for Civil and Electro Mechanical equipment)
C.1.2. Expected operational lifetime of the project activity:

>>
35 years from Commercial Operation Date
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C.2 Choice of the crediting period and related information:
C.2.1. Renewable crediting period

>>
C.2.1.1. Starting date of the first crediting period:

>>
C.2.1.2. Length of the first crediting period:

>>
C.2.2. Fixed crediting period:

>>
10 years
C.2.2.1. Starting date:

>>
01/12/ 2012 or from the date of registration whichever is later
C.2.2.2. Length:
>> 10 years
SECTION D. Environmental impacts

>>
D.1. Documentation on the analysis of the environmental impacts, including transboundary
impacts:
>>
Environmental Impact Assessment (EIA) studies were carried out for Teesta HEP (500 MW) by M/s
Forest, Environment and Wildlife Management Department, Government of Sikkim, Gangtok, Sikkim as
per the prevailing regulations of the Host Party i.e. India represented by Ministry of Environment and
Forests (MoEF), Govt. of India. Environmental Management Plan is prepared to address the negative
impacts. The EIA along with Environmental Management Plan (EMP) were submitted to the MoEF,
GOI. MoEF granted the Environmental Clearance to the project vide Lr Ref No.J-12011/55/2006-IA.I
dated 21-09-2006. SPCB granted Consent for Establishment under Water (Pollution Prevention and
Control) Act 1974 and Air (Pollution Prevention and Control) Act 1981. Copies of the environmental
clearances are available for validation.
In the EIA process, Environmental and social impacts during construction and operation phases of
project activity are studied. Environmental impact analysis is documented as follows.
Impact on Biological environment
As per the findings, there is no rear or endangered plants or animal species likely to be affected by the
proposed project activity. However, different constructional activities of barrage, headrace tunnels,
power house, colonies etc and other activities such as quarrying, muck disposal, vibration of machines,
and movement of vehicles may cause disturbance to the existing wildlife population. Breeding potential
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of the different species of wildlife, avifauna, reptiles etc may also be affected temporarily due to the
project activities. Proper management Plan is proposed by the project proponent to minimise the impacts.
Impact on physiography
The project components to be established near to the steep slopes may have to have an in-built
components of protective engineering measures in order to have greater stability. The physiographic
features of the project area may not have any perceptible negative impact due to the project activity.
Impact on aquatic ecology and fisheries
The project activity would have impact on the existing aquatic flora and fauna especially during lean
seasons of the year. There are no migratory fish species in the river, the proposed diversion barrage will
not result in any negative impact on the fish fauna of the river. Proper conservation plan is proposed to
mitigate the impacts.
Impact on socio-economics
Total land required for project is 105 Ha, which includes both government and private land. A total of
111 families are likely to loose only their lands partially. No family is going to loose their house or part
of that. As several socio-economic measures are proposed, the impact on socio-economics will be very
positive.
Air Quality
The increase in the vehicular traffic, installation of stone crusher machines, drilling activities,
construction of project works is likely to increase the level of particulate matter, NOx, SO2 and CO,
which may cause slight deterioration of the ambient air quality. Dust suppression system will be
employed to minimise the dust pollution. Proper maintenance of vehicles and use of good quality fuels
will be ensured to reduce the pollution. However, the impact is minor and limited to construction stage.
After construction, the quality will improve due to greenbelt, land scaping etc.
Water quality
The different construction activities may contribute to marginal negative impacts on water quality
parameters such as colour, taste, turbidity, sediment, dissolved oxygen, BOD etc. To avoid any
deterioration of water quality, proper sewage disposal systems are proposed. Once the works are
completed, water quality will return to its original level.
Noise quality
Vehicular traffic, drilling operations, stone crushers and construction activities may result in the increase
in noise levels. This impact is minor and limited to construction phase.
Impact of muck disposal

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The muck will be generated from various excavation activities. Part of muck will be recovered for the
project. The remaining fraction of the muck is proposed to be dumped in the identified dump areas. There
is a possibility of washing away of the muck into the main river which might cause some negative
impacts on the aquatic ecosystem of the river. Proper muck disposal plan is proposed to store the muck in
the environmentally sound dump sites away from water bodies.
D.2. If environmental impacts are considered significant by the project participants or the host
Party, please provide conclusions and all references to support documentation of an environmental
impact assessment undertaken in accordance with the procedures as required by the host Party:
>>
All environmental and social impacts have been studied as per the guidelines of the Ministry of
Environment and Forests, Government of India, the host country. These details as well as mitigation
measures for significant impacts are given in the Environmental Impact Assessment and Environmental
Management Plan. Detailed report will be made available for validation. However, important aspects are
given below.
Biodiversity Conservation Plan
To provide better habitation to the wild life, it has been proposed to take up 25 Ha of plantation with fruit
bearing plants, tubers and grasses. Specific studies on Wildlife diversity and conservation studies will be
carried out. Salvation and Rehabilitation of Schedule I wildlife will be undertaken. Butterfly park will be
created. About Rs 9.548 million is earmarked for this activity. Compensatory afforestation will be taken
up in 3.2 Ha at the cost of Rs 0.5 million.
Fisheries Development Plan
There are no migratory fishes in the rivers. In order to save Mahaseer fish species, Mahaseer farm with
necessary infrastructure will be constructed at the cost of Rs 5 million.
Public Health Delivery system
The migrant workers may be the potential carriers of diseases such as AIDS, VDS, Malaria, Gastro-
enteritis etc. The project authorities and contractors would ensure all the labourers and their family
members get registered and quarantined, vaccinated against common ailments like malaria, T.B etc.
Catchment Area Treatment plan
Vulnerable areas for erosion and land slides are identified using remote sensing techniques. Various
engineering and biological treatment measures are suggested for degraded zones.
Rehabilitation of muck disposal sites
Following engineering and biological measures have been proposed for the development of dump sites.
Engineering Dry stone rubble structure RR masonry, catch water drain, levelling and spreading of soil
and improvement of drainage.
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Biological measures: The spoil area will be protected with grass turfing and close planting of soil binding
plants to achieve maximum growth rate within short gestation period.
Summary of impacts, suggested management measures and implementation agency are summarised as
follows.
TABLE: Summary of Impacts, suggested management measures and implementing agency.
S.No. Parameters Impact Management measures Implementing

Agency
1. Land Environment
Construction Increases in Proper collection and PP
phase turbidity in the disposal of
river construction spoils at
downstream of identified safe and
barrage and stable land
power house
Increased Development of PP &

incidence of Hospital and health District
water related centers, health camps, Medical
diseases other Bleaching and anti officer.
health mosquito spray

Generation of Disposal at designated PP
solid wastes from landfill sites,
labour Community lavatory
camps/colonies
2 Water Resources
Operation River stretch More than 15% of PP
Phase from Barrage site minimum flow is
to tailrace outfall released to maintain the
will have reduced reverine ecology and
flow during lean dilution of domestic
season. effluent. The Rongni
chu and Ranpo chu, the
two main sub streams of
Teesta river feed the
Teesta at this location.
Negligible No impact, CAT, Rim PP &

siltation and treatment plans are Forest
sedimentation proposed to be done in Department
problems directly draining
catchments
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3. Water Quality
Construction Water pollution Provision of community PP
due to disposal of toilets, and sewage
sewage from treatment plant
labour colonies.
Disposal of Provision of settling PP

effluents with tanks, Conditions
high turbidity Stipulated by the SPCB
from crushers and Forest department
commissioned at will be implemented at
various sites and the time of crusher
effluents from operation
adits at tunnel.
Operation Deterioration of Minimum flow will be PP

Phase water quality in released
the dry stretch of
river due to
reduced flow
during the lean
season.
Disposal of Commissioning of PP
sewage from Sewage Treatment Plant
project colony. (STP)
4. Terrestrial Flora
Construction Cutting of trees Provision of subsidized PP

phase for meeting fuel kerosene, Electricity
wood and LPG to construction
requirement by labors and staff.
labors
Acquisition of Compensatory Forest
forest land afforestation Departme
nt and PP
5. Terrestrial; Fauna
Construction Disturbance to No major wildlife is Forest
phase wildlife due to found, hence impact is departme
operation of not expected to be nt shall
various significant monitor
construction
equipment.
CDM Executive Board
page 42
Surveillance through
Operation Disturbance to check posts is Forest
Phase wildlife due to recommended. departme
increased nt
accessibility in
the area.
6. Aquatic Ecology
Construction Marginal Treatment through PP
phase decrease in settling tanks
aquatic
productivity
Due to
increase turbidity
and lesser light
penetration.
Operation Impact on Stocking of river Teesta Fisheries

Phase migration of upstream and Departm
snow trout downstream of dam ent.
site.
Drying of river Release of minimum PP and

stretch flow, Avoid Forest
downstream of destruction to Rani departme
barrage up to Khola nt.
tail race outfall.
7. Noise Environment
Construction Marginal Maintenance of PP
Phase increase in noise construction equipment
levels due to Provision of ear
operation of plug/ear muff for
various laborers, Use of
construction sophisticated equipment
equipment.
8. Air Environment
Construction
Fugitive Commissioning of PP
Phase emissions due cyclone, sprinklers in
to crusher each crusher.
operation at
various sites.
9. Socio-economic Environment
Construction Acquisition of Compensation as per Land
Phase land and other the existing rates. revenue
CDM Executive Board
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properties and PP
10. Increased incidence of water-related diseases
Construction Increase water- Provision of community PP

phase borne diseases toilets and STP.
Increase in water Medical checkup of PP &

related diseases labor and development Health,
due to creation of of medical facilities Departme
suitable habitats through mobile nt.
for growth of hospital.
vectors.
Spray of Chemicals to
avoid growth of
vectors.
SECTION E. Stakeholders comments

>>
E.1. Brief description how comments by local stakeholders have been invited and compiled:
>>
Before implementing any project, project developers need to follow following steps.
Step-1 Stakeholder analysis: This is to identify the people who are likely to get affected because of the
project. Such analysis will be invaluable in identifying those who are likely to be vulnerable to hardship,
those whose voices are not likely to be heard in the project process.
Step-2 Identification of the Stakeholders: Revenue survey was conducted to identify the land required
for the project components. Joint inspection was completed and identified Project Affected Persons
(PAPs) involved in the project. Socio-economic profile of the PAPs is prepared.
The project participants identified the following stakeholders for the project activity.
Table E.1. Identified Stakeholders and their Functions
Stakeholder Name Function of Stakeholder

Project Affected Persons (PAPs) People directly affected by the project
Local reprsentatives Elected leaders from local public
NGOs and other environmental Work for environmental related problems
activists
Ministry of Environment and Grants environmental clearance from environmental angle for the
Forests, GOI project
(www.envfor.nic.in)
Sikkim State Pollution Control Conducts public hearing for the project. Statutory body to grant
Board Consent for Establishment from pollution angle to the project. State
level environmental regulatory agency
CDM Executive Board
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District Collector Land survey and Land compensation
Step-2 Process of inviting comments of the stake holders
Socio-economic survey was carried out to hear the views and comments of the public. Subsequently,
public hearing notification containing full information of the project was published in four local news
papers viz Now, Sikkim Express, Samay and Prajashakti inviting suggestions, view, comments
& objections stakeholders. Public hearing was held on 21st, June, 2006 at Power Sub-Station, Mamring,
South Sikkim for the project. Comments, views and objections, suggestions given by Project Affected
People, general public, NGOs and Environmental experts are recorded. Project developer addressed the
points raised in the public hearing.
Environmental clearances
The views of the public and responses of project proponent were discussed in the MoE&F Expert
Committee meeting. Ministry of Environment and Forests, GOI accorded environmental clearance for the
project vide letter No.J-12011/35/2006-IA-I dated 21-09-2006.
Clearances from State Pollution Control Board
1The Sikkim State Pollution Control Board has issued Consent for Establishment under Air (Prevention
& control of Pollution) Act, 1974 vide letter No. 117/SPCB dated 31-03-2008. The Sikkim State
Pollution Control Board has issued Consent for Establishment under Water (Prevention & control of
Pollution) Act, 1974 vide letter No118/SPCB dated: 31-03-2008.
E.1: Stakeholders Comments
E.2. Summary of the comments received:

>>
A large number of people from different quarters attended the public hearing meeting held on 21-06-2006
and expressed their views and comments about the project. Summary is as follows.
Concerns of Local people about Landslides
Several people expressed fear about sinking of the land leading to damage to the properties due to the
tunnels being constructed for the project as the area is vulnerable to land slides. The safety of the slide
prone area which may be affected with heavy blasting is the cause of concern for the villagers.
Employment opportunities
Public requested employment and contract works to the locals.
Non-Governmental Organisation (NGO)
The Non-Governmental Organisation in the South Sikkim district requested to provide fish ladder for
protection of fish, proper catchment area treatment plan, fodder plantation in the forest and private lands
to protect environment, supply of LPG to the project workers so that wood is not used as fuel and release
of minimum water from barrage to avoid drying upof the river.
CDM Executive Board
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E.3. Report on how due account was taken of any comments received:
>>
The project proponent addressed all the issues mentioned in the public hearing. A detailed Environmental
Management Plan is prepared incorporating the stakeholders suggestions. Financial provisions are made
for various environmental mitigation measures to the tune of Rs 205.555 millions. These plans will be
implemented comprehensively.
Brief details of the provisions for implementation of stakeholder suggestions are given below.
Design consideration to prevent land slides due to construction of tunnels and blasting activities
The blasting will be done using modern technology. Such technologies do not involve heavy blasting.
The blasting will be within a very controlled manner by use of series of detonators. The tunnels will be
well supported with required supports so that there is no chance of sinking of land. Thus, the fear of land
slide due to tunnel construction and blasting activities are allayed.
Environmental protection measures
PP informed that necessary provisions such as Catchment Area Treatment plan, provision of fish ladders
in the barrage, supply of Gas/kerosene, release of minimum discharge from barrage during lean season
flows have been made in the Environmental Management Plan.
Providing employment to local people
PP assured that maximum opportunities will be given to the locals for employment, contract and supply
works.
CDM Executive Board
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Annexe 1
CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY
Organization: Lanco Energy Private Limited

Street/P.O. Box: Udyog Vihar,
Building: Plot No.397, Phase-III
City: Gurgaon-140016, INDIA.
State/Region: HARYANA-
Postfix/ZIP: 122016
Country: INDIA.
Telephone: +91-124- 4741000
Fax: +091-124-4741400
E-Mail: srinagesh@lancogroup.com
URL: -www.lancogroup.com-
Represented by:
Title: SPV Head
Salutation: Mr.
Last Name: Ramabhotla
Middle Name: ---
First Name: Srinagesh,
Department: --
Mobile: 091-9810571433
Direct Fax: +91- 124- 4741400
Direct Tel: 091-124-4741305(Direct)
Personal E-Mail: srinagesh@lancogroup.com
CDM Executive Board
page 47
Annex 2
INFORMATION REGARDING PUBLIC FUNDING
The project does not propose to receive any public funding from the Official Development Assistance
(ODA) or other funds provided by any Annex I countries.
CDM Executive Board
page 48
Annex 3
BASELINE INFORMATION
This project uses grid emission factors officially published by the Central Electricity Authority (CEA) of
India, following the approaches and rules defined in ACM0002. For details and further information on
data please see CEA CO2 data base from the following web link:
http://www.cea.nic.in/planning/c%20and%20e/Government%20of%20India%20website.htm
==> CDM Carbon Dioxide Baseline Database, Version 5.0 (November 2009)
CDM Executive Board
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Annex 4
MONITORING PLAN
This monitoring plan is designed for the Teesta HEP (500 MW). This monitoring plan describes about
the monitoring structure, quality of metering, parameters to be monitored, monitoring practices,
frequency of monitoring, data storage and archiving etc. Project participants would implement this
monitoring plan right from the start of the implementation of the project.
Monitoring plan is given in the Section B.7.2.

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page 50
Annex 5
REFERENCES
a. For Baseline emission factor:
The baseline emission factor has been adopted from the CO2 Baseline Database published by
CEA, Version 5.0, November 2009(www.cea.nic.in)
.
http://www.cea.nic.in/planning/c%20and%20e/Govertment%20of%20India%20website.htm
b. For completing PDD:
1) Website of Clean Development Mechanism (CDM) section of United Nations Framework

Convention on Climate Change (UNFCCC), http://cdm.unfccc.int
2) Consolidated baseline methodology for grid-connected electricity generation from renewable
sources, ACM0002, Version 11, Sectoral Scope: 01, 12th February, 2010 and UNFCCC tools
a)Tool for the demonstration and assessment of additionality, Version 05.2
b)Tool to calculate the emission factor for an electricity system (Version 01.1)
c)Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (Version 02)
3) Detailed Project Report (DPR)
4) Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) prepared by
M/s Forest, Environment and Wildlife Management Department, Government of Sikkim, Gangtok,
Sikkim state, India.
5) Power Purchase Agreement

6) Implementation Agreement
7) Techno Economic Clearance
CDM Executive Board
page 51
Annex 6
GLOSSARY OF TERMS USED
BM Build Margin
BoD Board of Directors
CAT Catchment Area Treatment
CDM Clean Development Mechanism
CEA Central Electricity Authority
CO2 Carbon dioxide
CM Combined Margin
DPR Detailed Project Report
EIA Environment Impact Assessment
GHG Greenhouse gas
LEPL Lanco Energy Private Limited
GoS Government of Sikkim
kWh Kilo watt hour
MWh Million Watt Hour
MNRE Ministry of New and Renewable Energy
MoEF Ministry of Environment & Forest
MT Metric Tonne
MW Mega watt
OM Operating Margin
PDD Project Design Document
PGCIL Power Grid Corporation of India Ltd
PPA Power Purchase Agreement
SPDC Sikkim Power Development Corporation
UNFCCC United Nations Framework Convention on Climate Change
USEPA United States Environment Protection Agency
WACC Weighted Average Cost of Capital

PDD Teesta Vi Hep 02 03 2010

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PDD Teesta Vi Hep 02 03 2010

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PROJECT DESIGN DOCUMENT FORM (CDM PDD) - Version 03

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CLEAN DEVELOPMENT MECHANISM

A. General description of project activity

B. Application of a baseline and monitoring methodology & plan

C. Duration of the project activity / crediting period

Annex 1: Contact information on participants in the project activity

Annex 2: Information regarding public funding

Annex 3: Baseline information

Annex 4: Monitoring plan

Annex 6: Glossary of terms used

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SECTION A General description of project activity

A.1 Title of the project activity:

A.2. Description of the project activity:

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Contribution to Sustainable Development

Social well being:

Economic well being:

Environmental well being

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Technological well being:

A.3. Project participants:

A.4. Technical description of the project activity:

A.4.1. Location of the project activity:

A.4.1.2. Region/State/Province etc.:

A.4.1.3. City/Town/Community etc:

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the unique identification of this project activity (maximum one page)

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A.4.2. Category(ies) of project activity:

A.4.3 Technology to be employed by the project activity:

No technology transfer is envisaged for the CDM project activity.

Important technical particulars are given below.

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Annual estimation of emission

A.4.5. Public funding of the project activity:

SECTION B Application of a baseline and monitoring methodology

1) Tool for the demonstration and assessment of additionality (Version 05.2)

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Applicability criteria Project activity

c) The project activity results in new reservoirs and

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Source Gas Included/Excluded Justification / Explanation

generation CH4 Excluded Excluded for simplification

Hydro electricity CO2 Excluded Not applicable, since no emissions

simplification as power density is > 10

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Sub-step 1a.: Define alternatives to the project activity:

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STATE-WISE/YEAR-WISE LIST OF COMMISSIONED BIOMASS POWER /

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Sub-step 1b.: Consistency with mandatory laws and regulations:

Step 2. Investment analysis

Sub-step 2.a.: Determine appropriate analysis method

Option I : Simple cost analysis

sub-step 2.b.: Option III - Benchmark analysis

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Sub-step 2.c.: Calculation and Comparison of Financial Indicators

Table B.2.: Assumptions underlying Financial Indicators

Project Cost Rs. 29,968.92 millions

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