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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. B. C. D. E. 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 General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments

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SECTION A. General description of project activity A.1. Title of the project activity: >> Demwe Lower Hydro Electric Project; Arunachal Pradesh; India Version Number: 02 Date: 12/05/2011

A.2.

Description of the project activity:

>> The Project (Demwe Lower Hydro Electric Project) is located on the Lohit River in the elevation stretch of EL+ 426.80 m to EL + 300 m, in Lohit District, Arunachal Pradesh State in India. This Greenfield power Project envisages generation of environment friendly power through Run of River hydro technology with diurnal storage, and feed into North East West & North Eastern (NEWNE)1 Grid of India. The total installed capacity of the project will be 1750 MW2. The scenario existing prior to the start of the implementation of the project activity: Prior to the start of the implementation of the Project activity, electricity demand in NEWNE Grid of India is being supplied from all the power plants connected NEWNE Grid, which is dominated by fossil fuel based power plants3. There also exists, substantial power shortage in the NEWNE Grid e.g. energy shortage of 9.3% and peak demand shortage of 15.7%4. The Project Scenario: The proposed project activity consists of 6 sets of vertical Francis turbine of capacity (5 x 342 MW + 1 x 40 MW = 1750 MW), a concrete gravity dam at height of 163.12 m from Deepest Foundation Level, which will create submergence of about 1131 Hectare at Full Reservoir Level (FRL), results in power density of 154.73 W/m2. The detailed description of the technology has been provided in the Section A.4.3 of the Project Design Document (PDD). On completion of the project, it will provide 1750 MW of peak power with generation of about 6322 GWh / year of electricity as per 90% dependable year hydrology and 95% plant availability. The baseline scenario: The baseline scenario, as identified in Section B.4, is the same as the scenario prior to the start of implementation of the project activity. The purpose of the Project is to produce electricity with clean and renewable Run of River hydro power technology with diurnal storage and supply to the NEWNE grid which is dominated by fossil fuel fired power plants. This will result in reduction of 5,652,952 tonnes of carbon dioxide equivalent (tCO2 e)
1 2 3 4

http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf Page No. 07 Source: Detailed Project Report (DPR) Statistics of share of fossil fuel dominance in the NEWNE grid shown in separate Excel sheet (30/11/2010) Separate sheet attached with data source links and calculation (For the period 2010-11)

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Green House Gases (GHG) emissions per annum as detailed in Section B.3 of the PDD. The estimated emission reductions are 56,529,520 tCO2 e by the project activity through the entire crediting period of ten (10) years. The Project will contribute to sustainable development of India, the State of Arunachal Pradesh and the local community with following aspects: Environmental Well Being: Supply clean electricity to the grid and helps in mitigation of GHG emissions. Helps in mitigating emissions of environmental pollutants, such as the SOX, NOX, SPM etc, in comparison with the fossil fuel based thermal power production.

Economic Well Being: Create job opportunities for locals during the Project construction and operation period. Helps in development of livelihood options for the local and improve their economic condition. Royalty in the form of free power to the state will improve the states exchequer and its budgetary allocation to the local development

Social Well Being: Improve power availability in the Project area and State, results in improvement/ development of enterprises. Helps in development of communication and road infrastructure in the backward Project area. Various planned outlay as per Rehabilitation and Resettlement (R & R) activities and Local Area Development Plan (LADP) will help in improvement of livelihoods and standard of living of the local villagers.

Technological Well Being: The Project activity, being an efficient and environment friendly Run-of-River hydro technology with diurnal storage will have minimal disruption to the local environment and its inhabitants.

A.3. Project participants: >> Name of Party Involved Private and/or Public Entity (ies) Kindly indicate if the party ((Host) indicates a Host Party) Project Participant (As involved wishes to be applicable) considered as project participant (Yes/No) Government of India M/s Athena Demwe Power No Limited (Private Entity) A.4. Technical description of the project activity:

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A.4.1. Location of the project activity: >> A.4.1.1. >> India A.4.1.2. Region/State/Province etc.: >> North-Eastern Region / Arunachal Pradesh / Lohit District A.4.1.3. City/Town/Community etc.: >> Village Parashuram Kund / Brahma Kund A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): >> The Project is located at the foothill of Lohit basin and falls in Lohit district of the State of Arunachal Pradesh. The geographical co-ordinates of the Dam site are Latitude 275248 North and Longitude 962239 East. The nearest airport Dibrugarh is at a distance of about 215 km, the nearest railway station Tinsukia is at a distance of about 160 km from the Dam site of the Project. National Highway - 52 is approximately 1 km from the Dam site of the Project. Host Party(ies):

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A.4.2. Category(ies) of project activity: >> Sectoral Scope: 1Energy Industries (Renewable/Non-renewable sources) A.4.3. Technology to be employed by the project activity: >> The purpose of the Project is to produce electricity with clean and renewable Run of River hydro power technology with diurnal storage, and supply to the NEWNE grid which is dominated by fossil fuel fired plants as mentioned in the Section A.2 of the PDD. a) Prior to the start of implementation of the Project activity, electricity demand of the region is supplied by the power plants connected with NEWNE grid, which is dominated by fossil fuel fired plants. b) The Project is a Run of River hydro power project with diurnal storage for peaking power generation. The various components of the Project are described below:

Dam

Reservoir

Power Intake Pressure Shaft Power House

Type Length at top Top width Top of the Dam elevation Maximum Height above deepest foundation Full reservoir level (FRL) Minimum draw down level (MDDL) Storage at FRL Storage at MDDL Live storage Type & location Size Numbers, diameter and type Length Type and location

Concrete Gravity 474.35 m 6.00 m EL. 426.80 m 163.12 m EL. 424.80 m EL. 408.00 m 516.38 MCM 345.18 MCM 171.20 MCM Rectangular forebay type with inclined trash rack on the right bank of the Lohit river. 160 m long, 32.57 m wide and 48.8 m high 5 Nos., 10.0 m diameter, underground

Tailrace

Length varying from 550.00 m to 640.00 m Surface powerhouse on the right bank of Lohit river about 650.0 m downstream of dam axis. Design head 112.0 m (net) Size PH hall: 200.57 m (l) x 28 m (w) x 50 m (h) Type of turbine and no. Of Vertical Francis, 5 units of 342 MW each + 1 unit of units 40 MW Design discharge 337.89 Cumec for 342 MW unit, 39.52 Cumec for 40 MW unit, Total 1729 Cumec at design head of 112.0 m Installed Capacity 1750 MW Details Open channel for all 5 units of 342 MW, of dimension

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Power Generation

Generation Voltage

165 m wide, 130 m long. RCC conduit for 40 MW unit, 3m x 3m, 300.71 m long 18 kV for 342 MW Units, 11 kV for 40 MW Unit

Design Energy: Annual 6321.76 Million Units (MU) generation in 90% Dependable Year at 95% plant availability The power density of the Project is 154.73 W/m2. The electricity generated by the Project will be evacuated through one 400 kV double circuit transmission line to the nearest proposed Roing pooling station of Powergrid Corporation of India Ltd. (PGCIL) and for onward transmission to the energy deficient Northern/Western Regions of India by High Voltage Direct Current (HVDC) transmission system. The total life time of the project has been considered as 35 years5. The Monitoring Equipments of the Project shall be the Energy meters installed at the project site and the Diesel Level gauges of the DG sets which will be installed at the Project site for emergency Power Supply in the event of Grid failure. Detailed description of Monitoring equipments and plan has been described in Section B.7 of the PDD. c) The baseline scenario, as identified in Section B.4, is the same as the scenario prior to the start of implementation of the project activity. The emission sources and the greenhouse gases involved in the project activity have been detailed out in the Section B.3 of the PDD. A.4.4. Estimated amount of emission reductions over the chosen crediting period: >> Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Estimated Reductions (tonnes CO2 e) Total number of crediting years Annual average over the crediting period of estimated reductions (tonnes of CO2 e) Annual estimation of emission reduction in tonnes CO2 e 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 56,529,520 10 5,652,952

As determined while evaluating the project in the PIM by REC.

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A.4.5. Public funding of the project activity: >> The Project has not received any public funding from Annex-1 Countries.

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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: >> ACM0002, Consolidated baseline methodology for grid-connected electricity generation from renewable sources (Version 12.1.0)6 Tool for demonstration and assessment of additionality (Version 05.2)7 Tool to calculate the emission factor for an electricity system (Version 02.0)8 B.2. Justification of the choice of the methodology and why it is applicable to the project activity: >> The methodology is applicable to grid-connected renewable power generation project activities that (a) install a new power plant at a site where no renewable power plant was operated prior to the implementation of the project activity (Greenfield plant); (b) involve a capacity addition; (c) involve a retrofit of (an) existing plant(s); or (d) involve a replacement of (an) existing plant(s).The project activity is applicable under the methodology as described below: Serial No. 1 Applicability condition (Version 12.1.0) of ACM 0002 Position of the Project Vis--vis applicability condition The Project activity is the installation of a new hydro power plant (Green field Project), hence satisfies this criterion.

The project activity is the installation, capacity addition, retrofit or replacement of a power 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 the case of capacity additions, retrofits or replacements (except for wind, solar, wave or tidal power capacity addition projects which use Option 2: on page 11 of the methodology ACM 0002 to calculate the parameter EGPJ,y): the existing plant started commercial operation prior to the start of a minimum historical reference period of five years, used for the calculation of baseline emissions and defined in the baseline emission section, and

The Project activity do not envisages any capacity additions, retrofits or replacements.

6 7 8

http://cdm.unfccc.int/methodologies/DB/C505BVV9P8VSNNV3LTK1BP3OR24Y5L http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-01-v5.2.pdf http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

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no capacity expansion or retrofit of the plant has been undertaken between the start of this minimum historical reference period and the implementation of the project activity; In case of hydro power plants, one of the following conditions must apply: The Project activity is implemented in an existing reservoir, with no change in the volume of reservoir; or The Project activity is implemented in an existing 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 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 methodology is not applicable to the following: Project activities that involve switching from fossil fuels to renewable energy sources at the site of the project activity, since in this case the baseline may be the continued use of fossil fuels at the site; Biomass fired power plants; Hydro power plants1 that result in new reservoirs or in the increase in existing reservoirs where the power density of the power plant is less than 4 W/m2. In the case of retrofits, replacements, or capacity additions, this methodology is only applicable if the most plausible baseline scenario, as a result of the identification of baseline scenario, is .the continuation of the current situation, i.e. to use the power generation equipment that was already in use prior to the implementation of the project activity and undertaking business as usual maintenance.

The Project activity results in new reservoirs and power density is 154.73 W/m2, which is greater than 4 W/m2, hence satisfies this criterion.

The Project activity neither envisages switching from fossil fuel to renewable energy sources nor is it a biomass fired power plant. The project is a Run-of- River hydro power project with diurnal Storage where the power density is more than 4 W/m2.

The Project activity is not a retrofits, replacements, or capacity addition project.

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B.3. Description of the sources and gases included in the project boundary: >> The Project will generate electricity by utilization of hydro potential and will be connected with the NEWNE grid. The Project boundary includes Diversion Tunnels, Coffer Dams, Concrete Gravity Dam, Power Intakes, Pressure Shafts, Surface Power House, Switchyard, NEWNE grid and all power plants connected to the grid.

Concrete Gravity Dam

Power Intakes

DG SET
Pressure Shafts

Bifurcated Pressure Shaft

Unit 6 (40 MW) Unit 1 342 MW Unit 2 342 MW Unit 3 342 MW Unit 4 342 MW Unit 5 342 MW

Surface Power House

DG SET

Switch yard

NEWNE Grid

Project Boundary The Project activity has a distinctive physical demarcated boundary. The following Section shows the greenhouse gases and emission sources included in or excluded from the Project boundary:

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Baseline

Source Gas CO2 emission from fossil fuel fired power CO2 plants that is displaced due to Project activity CH4 N2O For geothermal power plants, fugitive CO2 emissions of CH4 and CO2 from non condensable gases contained in geothermal CH4 steam N2O CO2 emissions from combustion of fossil fuels CO2 for electricity generation in solar thermal power plants and geothermal power plants CH4 N2O

Included? Yes No No No No No No No No

Justification/Explanation Main emission source Minor emission source Minor emission source The Project is run of the river hydro electric project with diurnal storage and not a Geothermal project. Thus, these emissions are not applicable to the Project activity. The Project is run of the river hydro electric project with diurnal storage and not a Solar Thermal Power plant or a Geothermal project. Thus, these emissions are not applicable to the Project activity. The power density of the Project is 154.73 W/m2 which is greater than 10 W/m2, therefore, the Project emission due to Submergence is not required to be taken into account and hence is taken as Zero9.

Project Activity

For hydro power plants, emissions of CH4 CO2 from the reservoir CH4 N2O

No No No

B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: >> According to ACM0002 (version 12.1.0), the Project activity is the installation of a new grid-connected renewable power plant/unit, therefore the baseline scenario is the following: 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

http://cdm.unfccc.int/methodologies/DB/C505BVV9P8VSNNV3LTK1BP3OR24Y5L

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the combined margin (CM) calculations described in the Tool to calculate the emission factor for an electricity system The Project activity will be connected to the NEWNE Grid. In this case, the only realistic and reasonable baseline scenario is to provide the same amount of electricity by the NEWNE Grid. 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): >> The following steps from Tool for the demonstration and assessment of additionality (Version 05.2) are taken to demonstrate additionality of the Project. Step 1. Identification of alternatives to the Project activity consistent with current laws and regulations. Sub-step 1a: Define alternatives to the Project activity: Possible alternatives to the project activity are listed below: Alternative 1: The proposed Project activity undertaken without being registered as a CDM Project activity; The Project activity cannot be undertaken without CDM benefits, because of the investment barriers discussed in the Section B.5 of the PDD. Hence this possibility is ruled out. Alternative 2: Adding a new fossil fuel based power plant providing the same annual electricity output; Coal availability in the state of Arunachal Pradesh is low10 and so it is not feasible to develop coal based power plants of capacity which will be able to deliver similar amount of electricity. More also the terrain of Arunachal Pradesh is very jagged resulting in poor road and railway infrastructure, so transporting coal from outside the state to the Project location will not be viable. Hence this possibility cannot be considered feasible and realistic alternative. Also a coal based power plant cannot be operated as peaking power generating plant. Natural gas or liquid fuels could be considered. But due to most of the fuel is usually imported, the cost of generation is quite high and adding the risk of the international market variation11 and transportation of the fuel to the hilly state would create additional cost and emission. Hence this possibility cannot be considered feasible and realistic alternative. Alternative 3: Adding a new Renewable power plant other than hydro power plant providing the same annual electricity output;

10 11

http://coal.nic.in/welcome.html http://www.teriin.org/opet/reports/tpp.pdf page no.16-17

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This alternative scenario includes power generation using renewable energy sources like wind energy, biomass, solar etc. The Project activity has been planned as peaking power plant of 1750 MW capacity to deliver 6321.7 Million Units of energy annually. The same quality and quantity of power from renewable energy sources are not possible due to very high upfront cost12 and technology constraint. Hence, this alternative cannot be considered as a feasible and realistic alternative. Alternative 4: Providing the same amount of electricity from NEWNE Grid. In this scenario, the present grid mix will continue with the existing power plants connected to the NEWNE grid, which are predominantly fossil fuel based power projects. This option will not reduce the GHG emissions from the grid but is likely to exist as the most credible and realistic alternative in the absence of the Project activity. The scenario has been presented in Section B.4 of the PDD. From the above discussions, it is clear that the realistic and credible alternative option to the Project activity, i.e. the baseline scenario is: Alternative 4 Continuation of the current situation in the NEWNE Grid. Sub step 1b: Consistency with mandatory laws and regulations: The alternatives identified above are in compliance with applicable legal and regulatory requirements as follows: The implementation of the Project activity is a voluntary initiative and it is no way mandatory by any law of the State / Country. For, Power generation in India, the Indian Electricity Act, 2003 does not restrict or empower any authority to restrict fuel choice. The applicable environmental regulations do not restrict the use of hydro energy. There is no legal requirement on the choice of a particular technology. Thus, considering that the above alternatives are in line with the applicable legal and regulatory requirements, the no project option i.e., continuation of the current situation where in equal amount of generation would have been produced by currently running power plants and new capacity additions of NEWNE grid electricity system, is the chosen baseline scenario, which would have happened in the absence of the proposed Project activity. The Tool for the demonstration and assessment of additionality (Version 05.2) states that the Project proponent may choose to apply Step 2 (Investment analysis) and/or step 3 (Barrier analysis). In the present case the Step 2 is used to demonstrate additionality of the Project. Step 2: Investment analysis Sub-step 2a: Determine appropriate analysis method
12

http://mnre.gov.in/press-releases/press-release-21042008-2.pdf

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As the Project activity will also generate financial benefit as revenue earned through selling of electricity to consumers, in addition to revenue due to CDM benefit, hence, Option I Simple cost analysis cannot be applied. As, the alternative to the Project activity is the supply of electricity from the grid which is outside the direct control of the Project developer, benchmark analysis has to be considered rather than investment comparison analysis.13 Sub-step 2b: Option III. Apply benchmark analysis The financial/economic indicator, suitable for the project type and decision in the context of investment has been identified as Equity IRR (EIRR). Hydro power project generally requires huge upfront investment and long gestation time; the proponent has chosen Return on Equity (ROE) as the indicator to assess the viability of the investment Project Proponent has identified benchmark by using Estimates of the cost of financing and required Return on Equity based on bankers views & private equity investors/funds required return on comparable projects14. Proponent has identified ROE calculated based on Capital Asset Pricing Model (CAPM) method from data publically available as the appropriate benchmark to Equity IRR. In CAPM theory, investors are assumed to have homogenous expectations based on the market, during the decision making period. Investors make their decision only on the basis of the expected returns, standard deviation & covariance of all the pairs of security. According to CAPM all investors hold only the market portfolio & riskless security. The market portfolio is a portfolio comprised of all stocks in the market. Formula to calculate ROE based on CAPM is: Re= Rf + (Rm-Rf) Where, Re = Expected Return on Equity; Rf = Risk free Return on investment in the host country; Rm = Estimated return on Market portfolio in the host country; = The measure of the expected volatility of a particular stock relative to a well diversified market portfolio. Yield to Maturity of SGL Transaction in Central Government Dated Securities for Various Residual Maturities over a period of 20 years has been considered to represent the risk free rate, which was found out to be 8.18%15.

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http://cdm.unfccc.int/EB/051/eb51_repan58.pdf Point No. 16 Chapter 8: Estimating Hurdle Rates for Projects, Corporate Finance by Aswath Damodaran http://rbi.org.in/scripts/BS_ViewBulletin.aspx?Id=11482

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Compound Annual Growth Rate (CAGR) of BSE 200 for a period of 19.7 years with maximum available data (i.e., 31st January 1991 to 30th September 2010); was found out to assess Return on market portfolio, calculated as 16.28%16. Beta was found for all related power sector companies relative to BSE 200 and the average value of 1.14 was taken to show the average volatility in the sector. On the basis of all the above values the Return on Equity was calculated to be = 8.18% + 1.14 (16.28% - 8.18%) = 17.40%17 Sub-step 2c: Calculation and comparison of financial indicators The EIRR of the Project was calculated using the following parameters: Parameters Design Energy Installed Capacity Generation Auxiliary Consumption Value 1750 6322 1 Unit MW MU % (Percent) Reference Detailed Project Report (DPR) DPR Project Information Memorandum (PIM) by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC PIM by REC

Long term Loan Long term Loan Repayment 14.5 Years Moratorium 6 Months Interest rate 11.50 % O&M cost (CERC Norms) 2 % Escalation 5.72 % Return on Equity (CERC Norms) 15.50 % Working capital (CERC Norms) Receivables 2 Months O&M Expenses 1 Month Maintenance (percentage of O&M cost) 15 % Royalty Upto 15 years 15 % Next 10 years 20 % 26-35 years 35 % Construction period from Financial Closure 61 Months Taxes & Duties (including surcharge @10% and Education cess @3%) Corporate Tax 33.99 %

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Detailed calculation has been shown in a separate excel sheet Detailed calculation has been shown in excel sheet

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Minimum Alternate Tax Depreciation Book (SLM) Tax (WDV)

17 2.50 15

% % %

PIM by REC PIM by REC PIM by REC

The EIRR calculated based on the above assumptions is 13.98% which is lower than the benchmark of 17.40% and hence is not financially attractive and the project can be considered as additional. Sub-step 2d: Sensitivity analysis As per the sensitivity analysis, critical assumptions which constitute more than 20% of either total Project cost or total Project revenues should be subjected to reasonable variation; like total annual electricity generation (+/-10%), Project hard costs (+/- 10%) and Operation and Maintenance Cost (+/10%). For variation of the above mentioned parameters by (+/-10%), the impact on EIRR has been shown: Sl. No. 1. 2. 3. 4. Indicators Base case Total annual electricity generation Project hard costs O&M Cost (+)10% (-) 10% (+)10% (-) 10% (+)10% (-) 10% Variation EIRR 13.98% 14.06% 13.90% 13.95% 14.02% 14.03% 13.93%

It can be concluded even in the various favourable scenarios the EIRR for the Project is not able to achieve the benchmark value (17.40 %), thus remaining additional. Therefore, from the Investment analysis, it is evident that the proposed Project is not financially attractive, even under the favourable conditions as discussed in the sensitivity analysis presented in table above. Step 4: Common Practice analysis Sub-step 4a: Analyze other activities similar to the proposed Project activity: Arunachal Pradesh despite being rich in Hydro power potential has not attracted a lot of private investments in Hydro power section18. Earlier three19 hydro power projects that were commissioned in

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http://arunachalplan.gov.in/html/docs/Draft_Annual_Plan10.doc http://www.cea.nic.in/reports/planning/cdm_co2/Database_publishing_ver6.zip

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Arunachal Pradesh were built and operated by Central Government utilities or State utilities adding a total Installed Capacity of around 415.5 MW. As per Sub-step 4.a. under Common Practice analysis test, projects are considered similar if they are in the same country/region and/or rely on a broadly similar technology, are of a similar scale, and take place in a comparable environment with respect to regulatory framework, investment climate, access to technology, access to financing, etc. The criteria for short listing projects: 1. All Mega Hydro projects (i.e. capacity more than 500 MW)20 2. Projects that fall under NEWNE grid 3. Projects developed by Private Entities. The shortlisted projects as identified are; Hydroelectric Project in Kinnaur District in Himachal Pradesh of 1000 MW capacity, Teesta Stage III, Run-of-The-River, Hydro Electric Project (Teesta Stage III, RoR, HEP) of 1200 MW capacity, Teesta Stage-VI Hydro Electric Project of 500 MW capacity . Mega hydro projects under operation from the same region as described above are at different stages of CDM process. Hydroelectric Project in Kinnaur District in Himachal Pradesh21, ongoing Validation. Teesta Stage III, Run-of-The-River, Hydro Electric Project (Teesta Stage III, RoR, HEP)22, ongoing Validation Teesta Stage-VI Hydro Electric Project23, ongoing Validation. Hence it can be established that the envisaged Project activity is not a common practice in the region. Sub-step 4b. Discuss any similar options that are occurring: It is established in sub step 4a the envisaged Project activity is not a common practice in the region. Thus, all the steps to address the Additionality tool Version 05.2 have been satisfied and the Project activity can be rendered as additional.

20

http://www.nhpcindia.com/English/Scripts/Hydro_Technology.aspx#What_is_the_classification_of_Hydro_Projects _based_on_Installed_Capacity
21

http://cdm.unfccc.int/Projects/Validation/DB/AXQUEOEK24GAUPJEOTASUR6N07X1M5/view.html >>> Hydroelectric Project in Kinnaur District in Himachal Pradesh

http://cdm.unfccc.int/Projects/Validation/DB/4NUB299IQ53P6M05UQYZDMM57L6JA4/view.html >>> Teesta Stage III, Run-of-The-River, Hydro Electric Project (Teesta Stage III, RoR, HEP) http://cdm.unfccc.int/Projects/Validation/DB/4NUB299IQ53P6M05UQYZDMM57L6JA4/view.html >>> Teesta Stage-VI Hydro Electric Project
23

22

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Project Proponent, Athena Demwe Power Limited (ADPL) have been taking continuing and real action to secure CDM revenue by registering the Project with UNFCCC from the inception of the Project itself. The evidences to substantiate this fact are available in form of correspondences of the Project Proponent with various agencies. The summarized chronology of the actions to secure CDM alongwith the Project implementation timeline is provided below: Sl. No 1 2 3 4 5 6 Date 20th Nov 09 6th Jan 10 5th Feb 10 7th Sept 10 6th Dec 10 14th Dec 10 Event Issuance of Concurrence by Central Electricity Authority (CEA) to Detailed Project Report, which Includes CDM consideration. Rupee Term Loan Sanction Letter, with CDM consideration, from Rural Electrification Corporation Limited (REC), as lead lender Project Information Memorandum from REC with CDM Consideration Board Meeting Resolution with consideration of CDM. Submission of Prior consideration of CDM form to UNFCCC & NCDMA. CDM Validation Work Order to DOE (Bureau Veritus Certification)

The above events clearly demonstrate that the CDM was considered as being essential for the implementation of the Project activity and serious steps were taken by ADPL to secure CDM for the Project activity from initial stages itself, much before the project start date. B.6. Emission reductions: B.6.1. Explanation of methodological choices:

>> The Project is a Run-of-the-River hydro electric project with diurnal storage, located in the state of Arunachal Pradesh of India and will supply power to the North-Eastern Regional (NER) Grid, which is a part of the Integrated Grid system, i.e. NEWNE Grids of India, and is dominated by thermal power plants with further plans for capacity addition through fossil fuel based generating projects. Therefore, the applicable baseline is Consolidated Baseline Methodology for Grid-connected electricity Generation from Renewable Sources - ACM 0002 24/ Version 12.1.0/ Sectoral Scope 1/17th September 2010. To calculate the emission factor, the CO2 Baseline Database of Indian Power Sector, version 6.0, dated 1st March 201125, published by Central electricity Authority (CEA), Government of India, has been used, which is based on the Tool to calculate the emission factor for an electricity system26. Baseline Methodology Procedure: Project participants have applied the following steps: Step 1. Identify the relevant electricity systems Step 2. Chose whether to include off-grid power plants in the project electricity systems (Optional)

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http://cdm.unfccc.int/methodologies/DB/C505BVV9P8VSNNV3LTK1BP3OR24Y5L http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-07-v2.pdf

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Step 3. Select a method to determine the operating margin (OM) Step 4. Calculate the operating margin emission factor according to the selected method. Step 5. Identify the group of power units to be included in the build margin (BM). Step 6. Calculate the build margin emission factor. Step 7. Calculate the combined margin (CM) emission factor. Step 1: Identify the relevant electricity systems The Indian power system is divided into five regional girds27, namely Northern, Eastern, Western, Southern and North-Eastern. The four regional grids (Northern, Eastern, Western and North-Eastern) have been integrated and are operating in synchronous mode, i.e. at same frequency. Consequently, they are treated as a single grid named as NEWNE grid. Geographical scope of the electrical systems NEWNE grid Northern Chandigarh Delhi Haryana Himachal Pradesh Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Uttarakhand Southern Grid Southern Andhra Pradesh Karnataka Kerala Tamil Nadu Pondicherry Lakshadweep

Eastern Bihar Jharkhand Orissa West Bengal Sikkim Andaman Nicobar

Western Chhattisgarh Gujarat Daman & Diu Dadar & Nagar Haveli - Madhya Pradesh Maharashtra Goa

North-Eastern Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Tripura

The project activity is located in Arunachal Pradesh, which comes under NEWNE grid of India. Therefore, NEWNE grid has been identified as the project electrical system for estimating the baseline emission. Step 2: Choose whether to include off-grid power plants in the project electricity system Project participant has chosen option I to calculate the operating margin and build margin emission factor: Option I: Only grid power plants are included in the calculation. Step 3: Select a method to determine the operating margin (OM) The calculation of the operating margin emission factor (EFgrid, ,OM, y) is based on the following methods:
CO2 Baseline Database for the Indian Power Sector User Guide, Version 6.0, March 2011, Central Electricity Authority, Ministry of Power, Government of India http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf
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(a) (b) (c) (d)

Simple OM; or Simple adjusted OM; or Dispatch data analysis OM; or Average OM.

As per the Tool to calculate the emission factor for an electricity system (Version 02), any of the four methods can be used, however, the simple OM method can be used only if the low-cost/must run resources constitute less than 50% of the total grid generation in: 1) average of the five most recent years, or 2) based on long term averages for hydroelectricity production. The amount of power supplied by low cost/must-run power plants to the NEWNE grid in the last five years is 17% to 19%, which is less than 50%. Therefore, the Simple OM method has been opted. Share of Must-Run/Low cost power plants in the NEWNE grid Selected Years 2005-06 2006-07 2007-08 2008-09 2009-10

Share of Must-Run/ Low cost power plants in the NEWNE 18.0% grid (% of Net Generation)28

18.5%

19.0%

17.4%

15.9%

Step 4: Calculate the operating margin emission factor according to the selected method The simple OM emission factor is calculated as the generation-weighted average CO2 emission per unit net electricity generation (tCO2/MWh) of all generating power plants serving the system, not including low-cost/must-run power plants/units. The simple OM may be calculated: Option A: Based on the net electricity generation and a CO2 emission factor of each power unit, Or Option B: Based on the total net electricity generation of all power plants serving the system and the fuel types and total fuel consumption of the project electricity system. As per tool, Option B can only be used if: (a) The necessary data for Option A is not available; and (b) Only nuclear and renewable power generation are considered as low-cost/must-run power sources and the quantity of electricity supplied to the grid by these sources is known; and
CO2 Baseline Database for the Indian Power Sector, Version 6.0, March 2011, Central Electricity Authority, Ministry of Power, Government of India http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf
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(c) Off-grid power plants are not included in the calculation Option A is a preferred choice under Tool to calculate the emission factor for an electricity system (Version 2.0). In India, Central Electricity Authority (CEA) has estimated the baseline emission factor for the power sector. This data has been endorsed by the DNA and is the most authentic information available in the public domain. Under option A, the simple OM emission factor is calculated based on the net electricity generation of each power unit and an emission factor for each power unit, as follows:

Where: EFgrid,OMsimple,y = Simple operating margin CO2 emission factor in year y (tCO2/MWh) = Net quantity of electricity generated and delivered to the grid by power unit m in year y EGm,y (MWh) EFEL,m,y = CO2 emission factor of power unit m in year y (tCO2/MWh) m = All power units serving the grid in year y except low-cost / must-run power units y = The relevant year as per the data vintage chosen in Step 3 of the tool. The Central Electricity Authority (CEA) of India has published the official emission factors for all regional grids in India, in order to facilitate CDM projects and offer consistent data for all project developers. Application of this officially published database represents the most accurate approach, and hence, has been applied in this project activity. As per the Tool to calculate the emission factor for an electricity system (Version 02), the calculation of OM has been done as per ex-ante based approach on the basis of most recent 3 years data as available at the time of PDD submission.

Selected Years

2007-08

2008-09 1.0066

2009-10 0.9777

Simple Operating Margin (tCO2/MWh)29 (Incl 0.9999 Imports) Weighted Average of the 0.9942 Three years in t CO2 / MWh

Step 5: Identify the group of power units to be included in the build margin (BM)

CO2 Baseline Database for the Indian Power Sector, Version 6.0, March 2011, Central Electricity Authority, Ministry of Power, Government of India http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf

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The Build Margin emission factor has been considered as per fixed ex ante approach, based on most recent information available on plants already built at the time of PDD submission. This simplifies the monitoring procedures and offers a conservative approach of BM calculation30. Step 6: Calculate the build margin emission factor The build margin emission is the generation-weighted average emission factor (tCO2/MWh) of all power units m during the most recent year y for which power generation data is available. The officially published database by Central Electricity Authority (CEA) has been used for Build Margin Emission Factor, which reflects best and accurate practice31. Build Margin (BM) 2009-10 Step 7: Calculation of combined margin emissions factor The baseline emission factor in year y is calculated as the simple average of the OM and BM emission factors, i.e. OM and BM are each weighted with 50%. As noted above, the resulting Combined Margin is fixed ex ante for the duration of the crediting period: EF grid, CM, y = EF grid, OM, y WOM + EF grid, BM, y WBM Where: EF grid, CM, y EF grid, BM, y EF grid, OM, y WOM WBM = Combined Margin CO2 emission factor in year y (tCO2/MWh) = Build Margin CO2 emission factor in year y (tCO2/MWh) = Weighted Average Operating Margin CO2 emission factor including imports in year y (tCO2/MWh) = Weighing of Operating Margin CO2 emission factor (%) = Weighing of Build Margin CO2 emission factor (%) 0.8123 (tCO2/MWh)

The following default values should be used for WOM and WBM: Wind and solar power generation project activities: WOM = 0.75 and WBM = 0.25 (owing to their intermittent and non-dispatchable nature) for the first crediting period and for subsequent crediting periods; All other projects: WOM = 0.5 and WBM = 0.5 for the first crediting period, and WOM = 0.25 and WBM = 0.75 for the second and third crediting period, unless otherwise specified in the approved methodology which refers to this tool.

CO2 Baseline Database for the Indian Power Sector User Guide, Version 6.0, March 2011, Central Electricity Authority, Ministry of Power, Government of India http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf CO2 Baseline Database for the Indian Power Sector, Version 6.0, March 2011, Central Electricity Authority, Ministry of Power, Government of India http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf
31

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Combined margin (CM)

0.9032 (tCO2/MWh)

Baseline Emissions: The baseline emission in year y is calculated as: EG facility, y = EG Exp, y EG Imp, y Where: EG facility, y

= Quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr) = Quantity of electricity exported by the project plant/unit to the grid in year y = Quantity of electricity imported by the project plant/unit from the grid in year y

EG Exp, y EG Imp, y

BEy = EG facility, y EFgrid, CM, y Where: BEy EG facility, y EF grid, CM, y = Baseline emissions in year y (tCO2/yr) = Quantity of net electricity generation supplied by the project plant/unit to the grid in year y (MWh/yr) = 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)

Project Emissions: If the power density of the project activity (PD) is greater than 10 W/ m2: PEHP, y = 0 The power density of the project activity (PD) is calculated as follows:

PD =

Cap PJ Cap B APJ AB

Where: PD = Power density of the project activity (W/m2) CapPJ = Installed capacity of the hydro power plant after the implementation of the project activity (W) CapBL = Installed capacity of the hydro power plant before the implementation of the project activity (W). For new hydro power plants, this value is zero

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APJ ABL

= Area of the reservoir measured in the surface of the water, after the implementation of the project activity, when the reservoir is full (m2) = Area of the reservoir measured in the surface of the water, before the implementation of the project activity, when the reservoir is full (m2). For new reservoirs, this value is zero

Though the project emission from the water reservoir is zero, there is provision of two diesel generators (DG) set of capacity 1250 kVA32 combined for emergency power supply. Project Emission from the D.G. set is calculated as follows33: The formula to account ex-post emissions from diesel consumption in D.G sets is provided below: PEHSD = HSDCONS x DensityDiesel x CV Diesel x EF tCO2Diesel x 10-6 x OFDiesel Where, PEHSD HSDCONS DensityDiesel CVDiesel

EF tCO2Diesel OFDiesel

= Project emissions due to use of HSD in tCO2 = HSD Consumption in Litres = Density of HSD 0.86 kg/litre(Density of diesel as provided by Indian Oil, Supplier) = Calorific Value of HSD, 43.932MJ/kg (10,500 kcal/kg) (CDM CO2 Baseline Database, version 5.0 published by Central Electricity Authority (CEA), Ministry of Power, Government of India) = IPCC 2006 Emission factor for HSD, 74.100 tCO2e /TJ (IPCC 2006 Default emission factor (table 2.2 of chapter 2: stationary combustion)) = Oxidation Factor for HSD, 1 (IPCC Guideline for Greenhouse Gas Inventories, Page 2.6)

Leakage As per the methodology ACM0002 (Version 12.1.0, 17th September 2010), no leakages has to be considered for the project activity. Emission Reduction Emission reductions are calculated as follows: ERy = BEy PEy Where: ERy BEy = Emission reductions in year y (tCO2e/yr) = Baseline emissions in year y (tCO2/yr)

32 33

As per DPR ( page no. 8-15)

Tool to calculate project or leakage CO2 emissions from fossil fuel combustion (version 02, 02nd August, 2008) http://cdm.unfccc.int/methodologies/PAmethodologies/tools/am-tool-03-v2.pdf

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PEy

= Project emissions in year y (tCO2e/yr)

B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) EFy = EFgrid, CM, y Data / Parameter: Data unit: tCO2/ MWh Description: Combined margin CO2 emission factor for the project electricity system in year y Source of data used: Baseline Carbon Dioxide Emission Database/ Version 6.0 dated 1st March, 2011, as published by Central Electricity Authority of Government of India Value applied: 0.9032 Justification of the Information available from Central Electricity Authority of Government of choice of data or India has been used. The same is calculated as a weighted sum of Operating description of margin emission factor and Build Margin emission factor as per the measurement methods methodology of ACM0002. and procedures actually applied : Recording frequency Once at the time of the submission of PDD. Any comment: Total data is archived both electronically and on paper. EFgrid, OM, y tCO2/ MWh Operating margin CO2 emission factor for the project electricity system in year y Source of data used: Baseline Carbon Dioxide Emission Database/ Version 6 dated 1st March, 2011, as published by Central Electricity Authority of Government of India Value applied: 0.9942 Justification of the Calculated based on the 3-years weighted average data, available at the time of choice of data or the PDD submission. description of measurement methods Recording frequency Once at the time of PDD submission. and procedures actually applied : Any comment: Total data is archived both electronically and on paper. Data / Parameter: Data unit: Description: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods EFgrid, BM, y tCO2/ MWh Build margin CO2 emission factor for the project electricity system in year y Baseline Carbon Dioxide Emission Database/ Version 6 dated 1st March, 2011, as published by Central Electricity Authority of Government of India 0.8123 Information available from Central Electricity Authority of Government of India has been used. The Build Margin emission factor is based on the most recent information available on plants already built at the time of PDD submission.

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and procedures actually applied : Recording frequency Once at the time of the PDD submission. Any comment: Total data is archived both electronically and on paper. Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: DensityDiesel Kg/Litre Density of Diesel Density of diesel as provided in the diesel specifications document of Indian Oil; the supplier. 0.86 http://www.iocl.com/Products/DieselSpecifications.pdf

The value is assumed ex ante and will be constant for the entire crediting period. CVDiesel MJ/Kg Calorific value of the Diesel As provided by IPCC. 43.932 Above value is obtained in MJ/kg, by converting the published value of 10500 Kcal/kg. http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html

Data / Parameter: Data unit: Description: Source of data used: Value applied:

Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

The value is assumed ex ante and will be constant for the entire crediting period. OFDiesel Oxidation factor of Diesel

Data / Parameter: Data unit: Description:

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Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:

As provided by IPCC 1 The same value is provided by IPCC 2006 in Table 1.4 of Chapter 1Introduction. http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html

The value is assumed ex ante and will be constant for the entire crediting period. EFtCO2,diesel tCO2/TJ CO2 emission factor of Diesel in year y IPCC 2006 Default emission factor (Table 2.2 of Chapter 2: Stationary combustion) http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html 74.1 1. The EF tCO2Diesel as defined in the PDD is IPCC 2006 Emission Factor for HSD. Hence, the IPCC 2006 default emission factor is considered for the calculation. 2. Supplier provided data or local data is not available for the said Project activity. Indias Initial National Communication (NACOM) to the UNFCCC refers to and justifies the use of IPCC 2006, values and hence the same have been used as emission factor. http://unfccc.int/resource/docs/natc/indnc1.pdf The value is assumed ex ante and will be constant for the entire crediting period. CapBL W Installed capacity of the hydro power plant before implementation of the project activity. Project site. 0 For Demwe Lower hydro Electric Project this value is zero, as this is a new power project.

Data / Parameter: Data unit: Description: Source of data used:

Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied :

Any comment:

Data / Parameter: Data unit: Description:

Source of data used: Value applied: Justification of the choice of data or description of

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measurement methods and procedures actually applied : Any comment: ABL m2 Area of the reservoir measured in the surface of the water, before the Implementation of the project activity, when the reservoir is full. Source of data used: Project site Value applied: 0 Justification of the For this Project activity, the value is zero as there is a new reservoir. choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description:

B.6.3. Ex-ante calculation of emission reductions: >> As the Project is a Run-of-the-River hydro-electric project, which supplies electricity to the respective grid, the methodology chosen is ACM0002/ Version 12.1.0, 17th September 2010. To calculate the Baseline emission factor, the CO2 Baseline Database of Indian Power Sector, version 6, 1st March, 2011 which is based on the Tool to calculate the emission factor for an electricity system and published by Central electricity Authority (CEA), Government of India has been used. The Emission Reductions have been estimated as follows: Calculation the operating margin emission factor according to the selected method Average Operating Margin (OM): Selected Years Operating Margin (OM) in tonnes CO2 / MWh (incl. imports) Weighted Average of the Three years in t CO2 / MWh 2007-08 0.9999 0.9942 2008-09 1.0066 2009-10 0.9777

Calculation of the Build Margin Emission Factor: Build Margin (BM) Emission Factor 0.8123 tCO2 / MWh

Calculation of Combined Margin (CM) Emissions Factor - Emission factor for the Grid electricity:

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The baseline emission factor (EFy) is calculated using the Operating Margin emission factor (EFgrid, OM, y) and the Build Margin emission factor (EFgrid, BM, y). The baseline emission factor is the weighted average of the Operating Margin emission factor (EFgrid, OM, y) and the Build Margin emission factor (EFgrid, BM, y). So, EFgrid, CM, y = WOM EFgrid, OM, y + WBM EFgrid, BM, y = EFy Where, EFy = Combined Margin emission factor WOM = Weight Operating Margin EFgrid, OM, y = Operating Margin Emission Factor = 0.9942tCO2 / MWh WBM = Weight Build Margin EFgrid, BM, y = Build Margin Emission Factor = 0.8123 tCO2 / MWh Where, the values of WOM and WBM, by default, are 50% (i.e., WOM = WBM = 0.5) So, EFy = 0.5 0.9942 + 0.5 0.8123 = 0.9032 tCO2 / MWh

Calculation of Baseline Emission: The baseline emissions in year y are calculated as: EG facility, y = EG Exp, y EG Imp, y EG facility, y = 6258.5424 GWh- 0 GWh = 6258.5424 GWh BEy = EFy EG facility, y

BEy = 6258.5424 GWh 903.2 tCO2 /GWh BEy = 5,652,952 GWh Calculation of Project Emission: If the power density of the project activity (PD) is greater than 10 W/ m2: PEHP, y = 0 Following the formula as described in the Section B.6.1 CapPJ CapBL APJ ABL = 1750 106 W =0 = 1131 104 m2 =0

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Therefore, PD = 1750 106 /1131 104 W/ m2 PD = 154.73 W/ m2 which is greater than 10 W/ m2 Hence PEHP, y = 0

The emission from these D.G. set has been considered and accounted as project emission. An average operation of D.G. set for 12:59 hours annually has been assumed based on enquiry reports of NorthEastern Regional Power Committee34 (NeRPC) on Grid failure in North east Region. Consumption of Diesel fuel by the two DG sets is 13 Ltrs/hr, so the amount of diesel consumed at Project site is 13 Ltrs/hr 12:59 hrs/year which is 163.67 Ltrs/year. Diesel Consumption in kilogram is 42.33 kg/year, and the energy contribution of diesel considering calorific value of diesel 43.932MJ/kg is 0.0062 TJ35. The CO2 emission factor of diesel is 74.10036 tCO2/TJ; therefore the emission from Diesel fuel is 0.4582 tCO2. So, the annual emissions by DG operation, would reduce annual emission reductions by 0.0000087 % compared to the total yearly emission reduction (5, 652,952 t CO2e), which is much lower than 1%. Therefore, the emission from the diesel consumption has been avoided for simplification for ex-ante emission calculation. PEHSD = 163.67 litres37 0.86 kg/litre 43.932 MJ/kg 74.1tCO2e /TJ 10-6 1 = 0.4582 tCO2e As mentioned above, for Ex-ante calculation, diesel consumption is assumed to be zero. Calculation of Leakages: As per the methodology ACM0002 (Version 12.1.0, 17th September 2010), no leakages has to be considered for the project activity. Hence Leakage (LEy) = 0 Calculation of Emission Reduction: Emission reductions are calculated as follows: ERy = BEy PEy Where: ERy BEy
34 35 36

= Emission reductions in year y (tCO2e/yr) = Baseline emissions in year y (tCO2/yr)

http://nerpc.nic.in/Reports.htm

Separate excel sheet showing the calculation is attached

Calculated from 2006 IPCC Guidelines for National Greenhouse Gas Inventories; Chapter 1: Introduction; Page no 1.23
37

Separate sheet the calculation is attached

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PEy

= Project emissions in year y (tCO2e/yr)

Therefore, ERy = 5,652,952 tCO2e/yr 0 tCO2e/yr = 5,652,952 tCO2e/yr

The amount of electricity generated has been sourced from Chapter 5: Power Potential Studies, Annexure 5.4 of the Detailed Project Report (DPR), which has been approved by the Central Electricity Authority, Government of India. The net electricity generated (EGy) of 6258.54 GWh has been found out after deducting 1% as auxiliary consumption from the gross generation of 6321.76 GWh and deducting Energy imported by the Project from the grid.

B.6.4 >>

Summary of the ex-ante estimation of emission reductions: Estimation of project activity emission (tonnes CO2 e) 0 0 0 0 0 0 0 0 0 0 0 Estimation of overall emission reductions (tonnes of CO2e) 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 56,529,520

Years

Estimation of baseline emission (tonnes CO2 e) 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 5,652,952 56,529,520

Estimation of leakage (tonnes CO2 e) 0 0 0 0 0 0 0 0 0 0 0

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total (tonnes CO2 e)

B.7.

Application of the monitoring methodology and description of the monitoring plan:

B.7.1 Data and parameters monitored: (Copy this table for each data and parameter) EG facility, y MWh Quantity of net electricity generation supplied by the project plant/unit to the grid in year y Source of data to be Calculated used: Value of data applied for the purpose of 6,258,542.4 Data / Parameter: Data unit: Description:

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calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied:

The Joint Meter Reading (JMR) data would be used to find the amount of electricity exported (EG Exp, y) from the Project to the grid and the amount of electricity imported (EG Imp, y) to the Project from the grid. The quantity of net electricity generation supplied by the project plant/ unit to the grid (EG facility, y) would be found out by subtracting the amount of electricity imported from the grid from the amount of electricity exported to the grid. EG facility, y = EG Exp, y - EG Imp, y

Monitoring Frequency : Continuous measurement and at least monthly recording Responsible person/Entity: Authorized representatives from both Power Grid Corporation of India Limited (Central Transmission Utility) and Project proponent, will be responsible for taking the JMR data. QA/QC procedures to Invoices raised by the Project Proponent will be used to crosscheck JMR data. be applied:

Any comment:

The total data will be archived both electronically and on paper. Archived data will be kept for 2 years following the end of the crediting period.

(Copy this table for each data and parameter) Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: EG Exp, y MWh Quantity of electricity exported by the project plant/unit to the grid in year y Joint Meter Reading(JMR)

6,258,542.4

Monitoring frequency: Continuous measurement and at least monthly recording Monitoring Equipment: Bi-directional tri vector meters of accuracy class 0.2s Calibration frequency: It will be calibrated once in a year Responsible person/Entity: Authorized representatives from both Power Grid Corporation of India Limited (Central Transmission Utility) and Project proponent, will be responsible for taking the JMR data. QA/QC procedures to Invoices raised by the Project Proponent will be used to crosscheck JMR data. be applied: Any comment: The total data will be archived both electronically and on paper. Archived data will be kept for 2 years following the end of the crediting period.

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(Copy this table for each data and parameter) Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: EG Imp, y MWh Quantity of electricity imported by the project plant/unit from the grid in year y Joint Meter Reading(JMR)

Monitoring frequency: Continuous measurement and at least monthly recording Monitoring Equipment: Bi-directional tri vector meters of accuracy class 0.2s Calibration frequency: It will be calibrated once in a year Responsible person/Entity: Authorized representatives from both Power Grid Corporation of India Limited (Central Transmission Utility) and Project proponent, will be responsible for taking the JMR data. QA/QC procedures to Invoices raised by the Project Proponent will be used to crosscheck JMR data. be applied: Any comment: The total data will be archived both electronically and on paper. Archived data will be kept for 2 years following the end of the crediting period. Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: HSD CONS Litre Quantity of fuel (Diesel) consumed in Diesel Generator (DG) Sets during year y Onsite measurements as per ADPL records 163.67

Monitoring equipment type: Level gauge indicator Calibration frequency: It will be calibrated once in a year Recording Frequency: Monthly recording Responsible person/entity: Athena Demwe Power Limited. Diesel consumption in the respective DG sets is measured using the level gauge indicator as provided in the tank of DG sets. The consumption data are being cross checked with purchase diesel receipts/issue register at stores. The calibration of the level gauge indicators are required to be carried out once in a year for consistency check and if discrepancy found the level indicator would be replaced. All data will be manually recorded in the paper in addition to being archived

Any comment:

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electronically, and will be kept at least 2 years after the end of last crediting period or till the last issuance of CERs, whichever occurs later. Data / Parameter: Data unit: Description: CapPJ W Installed capacity of the hydro power plant after implementation of the project activity.

Source of data used: Project site. Value applied: 1750000000 Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: -

Data / Parameter: Data unit: Description:

Source of data used: Value applied: Justification of the choice of data or description of Measured by Topographical maps provided by qualified parties. measurement methods and procedures actually applied : QA/QC procedures Yearly measured. Any comment: For the calculation of the power density.

APJ m2 Area of the reservoir measured in the surface of the water, after the Implementation of the project activity, when the reservoir is full. Project site 11310000

B.7.2. Description of the monitoring plan: >> This monitoring plan is developed in accordance with the requirements of the approved consolidated baseline and monitoring methodology ACM0002 (version 12.1.0, 17th September 2010). The Project Proponent will monitor all the parameters mentioned in the Section B.7.1 of the Project Design Document. ADPL will form an operational and management structure in order to monitor emission reductions due to Project activity. The net electricity supplied by the Project activity to the NEWNE grid and will be metered and monitored by subtracting the amount of electricity imported by the Project activity from the amount of electricity exported by the Project activity to estimate the emission reduction on yearly basis from the Project activity as proposed in the methodology.

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EG facility, y = EG Exp, y - EG Imp, y Where, EG Exp, y = Total Electricity exported to the Grid in year y; EG Imp, y = Total Electricity imported from the Grid in year y; EG facility, y = Net Electricity supplied by the project to the grid. Along with the monitoring of net electricity supplied to the grid, monitoring of total diesel consumption by the DG Sets during emergency situations will also take place. The emissions arising from diesel consumption will be accounted as project emissions. Log books will be maintained at the project site by the proponent and monthly recording will be kept and to ensure the amount is correct which will be crosschecked with diesel issuance data as recorded in the project store. Calibration of the level gauge meter of the DG sets will be performed once in every year. All data will be both recorded manually and electronically archived. The structure of the team responsible for measuring, recording and storage of the measured data is presented below.

Director

Power Plant Incharge

Electrical Incharge

Mechanical Incharge

Store & Accounts

The members of the team would report to the Director on a monthly basis. The Power Plant In-charge will be responsible for the overall cross reviewing of the monitoring informations described in Annex 4 of the PDD. Based on the amount of the net electricity supplied, monitoring reports will be prepared by the team and will be reviewed by the Project In charge, who is a qualified engineer with 10-15 years of experience. In case of any irregularity observed, immediate action will be taken. The monitoring informations will be archived both electronically and on paper at least for 2 years after the end of the last crediting period.

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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 baseline study: 4/11/2010 Organization: Street/P.O. Box, City: State/Region: Country: Telephone: Fax: Email: Represented By: Last Name: Middle Name: First Name: Designation: Athena Demwe Power Limited 1st Floor NBCC Tower, 15, Bhikaji Cama Place, Delhi New Delhi 110066 India +91-11-46198802 +91-11-46198811 kseethayya@gmail.com Kadimcherla Seethayya Managing Director

The entity determining the baseline & applicable methodology is also 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: >> 24/12/2010 is the project start date on which letter of acceptance (LA) was issued to EPC consortium. The consortium was selected through a global competitive bidding process.

C.1.2. Expected operational lifetime of the project activity:


>> 35 Years 00 months. C.2. Choice of the crediting period and related information: The project activity will use a fixed crediting period of 10 years. C.2.1. Renewable crediting period: Not Chosen C.2.1.1. >> Not Applicable Starting date of the first crediting period:

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C.2.1.2. Length of the first crediting period: >> Not Applicable C.2.2. Fixed crediting period: Opted C.2.2.1. >> 01/05/2016 C.2.2.2. >> 10 Years 00 months. Length: Starting date:

SECTION D. Environmental impacts >> D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> In accordance with the Environment (Protection) Act (1986), the proposed project submitted an application for approval to the Ministry of Environment and Forests (MoEF). As part of the approval process, a comprehensive Environmental Impact Assessment (EIA) of the Project was prepared in accordance with the requirements of MoEF. Relevant documents submitted to MoEF include: Environmental Impact Assessment Report; Environmental Management Plan (EMP); and A report on the proceedings of the Public Hearing. Copies of each document are available upon request. Environmental Clearance was obtained from MoEF on 12th Feb, 2010. 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: >> The EIA study report has identified both adverse and positive environmental impacts which will occur as a result of implementation of the project. The environmental benefits are envisaged in the form of mitigation of climate change, socio-economic benefits for the area etc. The adverse impacts anticipated as a result of project implementation pertains to change in land use and habitat, anthropogenic pressure, impacts on wildlife, aquatic ecosystem, human ecosystem, and downstream impacts, are summarized below:

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A. Physical Environment: Increase in soil erosion Pollution by construction spoils Use of land for labour colonies Problem due to muck disposal Solid waste from labour camps Acquisition of land for various project appurtenances B. Water Resources and Water Quality: Increase in turbidity of nearby receiving water bodies Degradation of water quality due to disposal of waste from labour colony and construction sites Disruption in hydraulic regime Sedimentation and siltation risks C. Aquatic Ecology: Increased pressure on aquatic ecology as result of indiscriminate fishing Reduced productivity due to increase in turbidity Impacts on migratory fish species Impacts on spawning and breeding grounds Increased potential for reservoir fisheries D. Terrestrial Ecology: Increased pressure of nearby forests due to labour force to meet their fuel wood and timber requirements Loss of forests Impacts on wildlife movement Impacts on wildlife habitats Impacts on biodiversity and productivity of flora E. Socio Economics Aspects of Environment: Acquisition of land and private properties Impacts on archeological and cultural monuments Impacts on mineral reserves Improved employment potential during project construction and operation phase Development of allied sectors leading to greater employments Pressure on existing infrastructure facilities Friction between guest and host community Increased revenue from power generation F. Air Pollution:

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Impacts due to emission generated by crushers and other equipments Impacts due to increased vehicular movement Fugitive emission from various sources G. Noise Pollution: Noise due to operation of various equipments Noise due to increased vehicular movement Noise due to blasting activities H. Public Health: Increased incident of water related diseases Transmission of diseases by immigrant labour population

To mitigate the above mentioned impacts various measures were identified in the EIA have been addressed in the Environmental Management Plan (EMP). Rs. 315.1471 crores has been allocated by the project developer to implement these measures, a summary of which is outlined below.

A. Biodiversity Conservation & Wildlife Management Plan Establishment of gardens for voucher specimen Butterfly parks Preparation of PBR Natural Resource Management Research and Development activities Identification of invasive species / recovery of susceptible species Forest Protection Plan Wildlife Management Plan Biodiversity Management Committee B. Catchment Area Treatment Plan The Catchment Area Treatment (CAT) plan highlights the management techniques to control erosion in the catchment area of a water resource project. Catchment Area Treatment Plan has been formulated for free draining catchment. Various component of the CAT Plan under engineering, biological measures, other provisions has been summarized below: Biological Measures i. Afforestation ii. Maintenance of Afforestation area iii. Pasture Development iv. Nursery Development v. Maintenance of Nursery vi. Vegetative Fencing

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Engineering Measures i. Contour Bunding ii. Check Dams

C. Fishery Management Plan Fish farm and hatcheries are proposed for fish management and to maintain the aquatic diversity. The fishery development has been aimed towards the conservation of threatened species and economic upliftment of the region. 3 hatcheries are proposed for the indigenous species alongside the reservoir or the tributaries. The species, viz. Tor putitora, T. tor, Acrossocheilus hexagonolepis, Labeo rohita, L. dero, Schizothorax richardsoni, Schizothoraicthys progastus are suggested for the hatchery unit, however, fishery department can use the hatchery unit for other species. The proposed fish hatcheries will helps in propagating the ova of required species to different water bodies and will play an important role in the conservation of threatened species and sustenance fishery. For sustenance of aquatic life a provision of 35 Cumec of flow downstream of dam has been made under EMP. D. Health Management Plan Public Health Delivery System facilities will be provided for Project workers as well as project affected villages under Local Area Development Programme. Following infrastructure has been proposed under Public Heath delivery System: One Hospitals Two Primary Health Centers One Women & Child Welfare Centre One Crche Strengthening of existing Health facilities E. Solid Waste and Sanitation Management Plan Improper Solid Waste Management causes all types of pollution: air, soil, and water. After proper understanding of locations of labour camps, residential areas, hospitals, office complex, etc. provisions for solid waste management facilities are made for safe collection, transportation and disposal of solid waste. During construction phase of the project, congregation of labour force will generate sewages and solid wastes. Therefore, it is proposed to commission adequate number of septic tanks for treatment of sewage to ensure that the sewage from the labour camps do not pollute the river water. The following infrastructure i.e Incinerators, Septic Tanks, Soakpits, Sewage Treatment Plants, Community Toilets, Bathrooms and Washing Places has been proposed for Project site as well as for affected villages as part of Solid Waste & Sanitation Management Plan. F. Provision for Fuel and Energy Conservation Measures To avoid the illegal tree feeling from the nearby forest by the work force following provisions has been made under Forest Protection Plan:

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Opening up LPG Depots Free distribution of LPG Cylinders among Contractors and Employees Support to the villagers in obtaining LPG connection Community Kitchen Facility for the workers at the Project site Distribution of Pressure Cockers, Solar Cockers, Smokeless Chullahs Free / subsidized distribution of fuel woods felled from diverted forest areas

G. Disposal and Rehabilitation of Muck The proposed Demwe Lower Hydro Electric Project is likely to generate large volume of muck, of which some quantity will be utilizable in the project construction and the remaining muck volume needs to be rehabilitated at appropriate dumping sites in a technically and ecologically sound manner. About 150 ha of area has been identified for the Muck disposal. Following are the summarized measures proposed for effective Muck disposal and rehabilitation: Engineering Measures i. Cement Concrete Grade M 15 Retaining Wall ii. Cement Concrete Grade M 10 Foundation of the Retaining Wall iii. Stone Filling and Filter behind Retaining Wall Reclamation of the Dumping Area i. Pitting ii. Manure and Import of Soil iii. Plantation iv. Grass Seeding v. Weir fencing vi. Development of Children Park and Parking Place H. Restoration of Construction Areas and Landscaping Demwe Lower Hydro Electric Project will involve construction of colonies for staff and laborers, roads linking to various components of project, offices, workshops, etc. This existing landscape will be modified or changed due to proposed project. It is, therefore, the project Proponent has planned detailed restoration activities after the project work and related activities are over, to bring them back to their similar pre-construction condition. The following measures has been planned for restoration: Engineering Measures i. Top Soil Transplantation and stockpiling ii. Retaining Walls & Diversion Channels iii. Bio-engineering measures iv. Carpeting with geo-textile v. Grass seeding vi. Development of Parks vii. Stream bank stabilization

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Biological Measures i. Planting of herbs and grass species ii. Planting of trees and shrubs Development of Nursery

I. Green Belt Development Plan To mitigate the environmental impacts arising during project construction Project Proponent has planned for the development of green belt in the project area. Total 2887.8 ha has been identified around the Project area including the reservoir for the development of green belt. This area has been divided into three layers for plantation of plant species depending upon the microclimatic condition that will develop after creation of the reservoir in the region.

J. Rehabilitation & Resettlement Plan Though the Project will be not resulting to loss of any homestead, but total 204 families will be affected due to partial loss of their land result of land acquisition for the Project. Baseline status of socioeconomic environment in respect of Demwe Lower Hydro Electric Project was evaluated for population status, social and cultural environment, land holdings and other parameters. Based on the baseline data, a comprehensive Resettlement and Rehabilitation (R&R) plan for the Demwe Lower Hydroelectric Project has been worked out. In order to formulate the R&R plan, better provisions of the guideline issued by the Arunachal Pradesh State Government under its R & R policy, National Rehabilitation and Resettlement Policy 2007 and the draft National Policy for the Scheduled Tribes, Govt of India, have been considered. In addition to the R & R benefits the following measures have been identified under Local Area Development Plan (LADP) to support the project affected communities and surrounding villages: Vocational Skill Development Distribution Merit Scholarship Distribution Marriage Grant Income Generation Scheme Development Education facilities Construction of Footpath Support services for Agricultural and Horticultural Activities Development of Women Technology Park Protection of Cultural Heritage and Old Monuments Training and Assistance to Fishermen Development of Communication Facilities Development of Community Welfare Center Development of Transportation Infrastructure Development of Recreation Facilities Setup Public Library Crafts and Skill Up-gradation Programme

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Development Water Supply Systems Development of Market Complex The progress of implementation of R & R plan will be regularly monitored by a Standing R & R committee for 2 districts formed by State Government will be regularly monitored.

K. Disaster Management Plan Dam break of Concrete Gravity Dam is a rare phenomenon and hypothetical situation. However to avert any major impacts during natural calamity/ catastrophe following measures has been suggested: Setting up of V-SAT Communication System Installation of Alert Systems and Setting up Control Room Setting up Notification and Publication Procedures Setting up Seismic Observatory Construction of Emergency Rehabilitation Shelters Provisions of Emergency Vehicles L. Compensatory Afforestation Scheme Degraded forestland has been selected for Compensatory Afforestation for Demwe Lower Hydro Electric Project. Thus, Compensatory Afforestation will be undertaken over twice of the surface forest land involved in the project i.e. 1409 x 2 = 2818 ha. The total time period for implementation of Compensatory Afforestation is 10 years out of which six years of time period will be required for raising of plantation and maintenance of plantation will be done for next four years. The Compensatory Afforestation will be implemented by the State Forest Department. M. Reservoir RIM Treatment Plan A detailed survey was carried out along the periphery of the submergence zone of Demwe Lower Hydroelectric project to delineate the zones of weaknesses (telus cones, stream network draining to the reservoir and the existing landslides). Reservoir Resistance and Integrated Management (RIM) treatment is basically framed to abolish the probability of sliding of any material due to natural factors or due to anthropogenic factors during the drawdown period of project operation. Accordingly, the landslides which are active, if not supported, may bring down lot of debris to the reservoir. Engineering and biological measures are proposed for the treatment of reservoir rim along with the provisions of flood control measures. N. Environmental Monitoring Plan The Environmental Monitoring will be required during construction and operational phases for: Social Welfare, Water Quality and Public Health, Catchment Area Treatment Measures; and Air Quality and Noise Level. In this regard a monitoring committee consisting of member from Ministry of Environment & Forests, GoI, State Forest Department, Pollution Control Board, District Administration of Lohit, and Representative of Project Proponent will be constituted to evaluate the efficacy of works being implemented.

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SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> The comments from the local stakeholders have been invited by publication of notification both in English and Hindi in various newspapers viz. ARUNACHAL TIMES, EASTERN MAIL, ECHO OF ARUNACHAL, ARUNACHAL FRONT, PURVANCHAL PRAHARI AND TIMES OF INDIA on dates from 10th to 12th July, having circulation at local / state and national level reach. The notification thus published was also contains the information of the availability of copies of EIA & EMP volumes, Executive Summary in Hindi and English. Accordingly the same were made available in all the designated places. As per the notification, the Public Hearings were conducted by the Arunachal Pradesh State Pollution Control Board (APSPCB), on the 11th & 12 August 2009. The meetings took place in the village of Parashuram Kund Mela Ground of Lohit District and Machima community Hall of District Anjaw, respectively. The meetings were held to invite suggestions, views, comments & objections from persons including bonafide residents, environment groups and families likely to be affected by construction of the Project. At the public meetings the proposed Project was presented and comments were invited. The 1st public hearing held on 11th August 2009 at Parashuram Kund Mela ground. The meeting was conducted under the supervision of Deputy Commissioner, Lohit District. More than 500 public from various parts of the District/State including project affected people, representatives of various government and regulatory bodies and representatives of the project developer and their consultants attended the hearing. Views/comments/suggestions/objections, if any, were invited in a free and democratic manner without any apprehensions in this regard. The 2nd Phase of Public hearing was held on 12th August 2009 at Machima. The meeting was conducted under the supervision of Shri C.S. Jeinow, Deputy Commissioner, Anjaw District and Additional Deputy Commissioner, Hayuliang Anjaw District and Member Secretary, APSPCB. More than 200 public from various parts of the District including project affected people, representatives of various government and regulatory bodies and representatives of the project company and their consultants were participated in the public hearing. Views/comments/suggestions/objections, if any were invited in a free and democratic manner without any apprehensions in this regard. E.2. Summary of the comments received: >> During the 1st phase of the Public Hearing, total 519 local attendees had participated and 21 issues were raised by the public and 52 written submissions were received. During the 2nd phase of the Public Hearing, total 237 local attendees had participated and 10 issues were raised and 39 written submissions were received at the time of public hearing. Summary of issues, as raised, and written submissions as received, during the Public Hearings by the stakeholders at the meetings held on 11th August 2009 at Parashuram Kund Mela and on 12th August 2009 at Machima, are listed below:

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a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s) t)

Public Hearing Notification and availability of the EIA/EMP. Issues regarding the property survey. Basin study. Issue regarding the change in installed capacity. Submergence of hospital at the Swami Camp. Resettlement and Rehabilitation of the people affected due to the project. Compensatory afforestation of the community land. Land Compensation. The sanctity and protection of Parsuramkund. Protection of Kamlang Wildlife Sanctuary. Issues related to employment and contracts to the local population, Influx of labours from other states. Availing the Medical and Health facilities provided by ADPL. Development of the project with a human face, issues related to LADP. Educational facilities to be provided by the project proponent. Forest clearance of the project Formation of Public Grievance cell to address the problem that will arise to the local populace during and after the project activity Issues related to Dam design, geology and other environmental aspects that will arise. Downstream impacts of the project Pollution of soil, water and air. Submergence Issue

A report containing detailed proceedings of the public hearing is available to the validator. E.3. Report on how due account was taken of any comments received: >> The Project proponent has taken due account of the suggestions and views expressed during the Public Hearing as follows: a) The Deputy Commissioner, Lohit District clarified that Draft EIA/EMP reports and its Executive Summary were circulated and made available to all the designated places as per the requirements of the EIA notification, 2006. b) The Deputy Commissioner, Lohit District clarified that the Property Survey has been conducted in consultation with all the PAFs. The complete Property Survey process was done in a transparent manner and all the information was open to the public regarding property survey. c) The Deputy Commissioner, Lohit District clarified that Basin study issue falls under the domain of MoEF/Central government. d) The Deputy Commissioner, Lohit District clarified that to avoid the submergence of the Kamlang Wild Life Sanctuary the original project of 3000 MW was bifurcated into Demwe Lower and Demwe Upper HEP. e) The Deputy Commissioner, Lohit District clarified that the issue regarding submergence of the hospital at the swami camp comes in the other project i.e. Mompani dam or Demwe upper HEP and is therefore not relevant for the Demwe Lower Project. f) The Deputy Commissioner, Lohit District clarified that there is no submergence of the paddy fields, homesteads and villages in the Project area, infact; this is the first one big project with no resettlement issues.

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g) The Deputy Commissioner, Lohit District clarified that State Government of Arunachal Pradesh has deposited around 140-150 crores towards the NPV of forest/community land required for various developmental projects in the past three years to CAMPA. h) The Deputy Commissioner, Lohit District clarified that adequate provision have been made in the EMP in this regard as per the prevailing norms. Further, this issue will be settled during land acquisition. i) Representative of ADPL, clarified that the sanctity of the Parshuramkund shall be maintained and protected. j) Representative of ADPL, clarified that the Kamlang Wildlife Sanctuary will not be affected by the Project activities as the Project for saving the Sanctuary has been bifurcated into two separate HEPs. k) Representative of ADPL, clarified that the labours from the other States will be moved away from the Project activities after completion of the Project works, work contract will be given as per the eligibility. l) Representative of ADPL, clarified that the medical facilities proposed under LADP can be availed for Lohit and Anjaw District both. m) Representative of ADPL, clarified that the company has earmarked huge amount i.e. about Rs. 100 crore for LADP activities for benefits of the locals and upliftment of the area. n) Representative of ADPL, clarified that adequate educational facilities have been incorporated in the LADP. o) Representative of ADPL, clarified that the Project requires Forest Clearance; the necessary application has been submitted to the DFO. p) Representative of ADPL, welcomed the suggestion of formation of public grievance cell; and said that the same will be implemented in consultation with the locals and District Administration as soon as possible. q) Representative of Energy Infratech Private Limited (EIPL), the design & engineering consultant, clarified that, proper and latest scientific technology will be used to assess real time seismicity in the Project area. An extensive geological investigation has been carried out before choosing Concrete Gravity Dam for the Project. r) Representative of EIPL, clarified that, no downstream impact will be due to the Project as the Project does not involve diversion or consumption of the water and therefore water will be released downstream regularly, hence no agricultural impact is envisaged. s) Representative of EIPL, clarified that the Project during its operation will not use any fossil fuel thus will not be causing any local as well as global pollution (GHGs). Hence the Project will be eligible for development as Clean Development Mechanism Project in accordance with the modalities of UNFCCC. After the detailed interactions during the Public Hearings and clarifications on the issues of concerns, local people have welcomed the Project. Subsequently the issues highlighted during the Public Hearings, have been incorporated the revised EIA & EMP reports, which was dully approved by Ministry of Environment & Forests (MOEF), Government of India, as a part of the Environmental Clearance of the Project.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postcode/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last name: Middle name: First name: Department: Mobile: Direct FAX: Direct tel: Personal e-mail: Athena Demwe Power Limited 15, Bhikaji Cama Place 1st Floor, NBCC Tower New Delhi New Delhi 110066 India +91-11-46198802 +91-11-46198811 kseethayya@gmail.com

Managing Director Mr. Kadimcherla Seethayya +91-9810101467

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING The Project has not received any public funding from Annex-1 Countries.

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Annex 3 BASELINE INFORMATION According to the methodology ACM0002 version 12.1.0, 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 detailed calculations have been shown in the Section B.6.1 and B.6.3 respectively. Adequate data and information is available to estimate the grid emission factor. Central Electricity Authority (CEA) of India has already compiled and published CO2 Baseline Database of Indian Power Sector and whose latest version 6 has been out for public consumption on 1st March, 2011. This has been used for computing the grid emission factor38 .

38

http://www.cea.nic.in/reports/planning/cdm_co2/user_guide_ver6.pdf

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Annex 4 MONITORING INFORMATION It was envisaged in the Pre-feasibility Report of the Demwe Lower Hydro Electric Project prepared by Central Electricity Authority (CEA), India that the power from the Project would be pooled at Roing pooling point. However, pooling point shall be finalized by Central Transmission Utility (CTU) i.e. Power Grid Corporation of India (PGCIL) considering other generating stations to be developed in Arunachal Pradesh by the other developers. Power generated from the Project is proposed to be evacuated through one 400 kV double circuit transmission line with quad moose conductors to Roing point. The distance between the Project location and Roing pooling point would be around 80 km. From Roing further transmission will take place through HVDC transmission systems to be implemented by CTU. Power generated and supplied will be checked by meters installed at Project location site and Roing pooling point. Detailed monitoring plan have been discussed in Section B.7.2

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