PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) - Version 03

CDM Executive Board

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-SSC-PDD) Version 03 - in effect as of: 22 December 2006 CONTENTS A. B. C. D. E. General description of the small scale project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information

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Revision history of this document

Version Number 01 02

Date 21 January 2003 8 July 2005

Description and reason of revision Initial adoption The Board agreed to revise the CDM SSC PDD to reflect guidance and clarifications provided by the Board since version 01 of this document. As a consequence, the guidelines for completing CDM SSC PDD have been revised accordingly to version 2. The latest version can be found at <http://cdm.unfccc.int/Reference/Documents>. The Board agreed to revise the CDM project design document for small-scale activities (CDM-SSC-PDD), taking into account CDM-PDD and CDM-NM.

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22 December 2006

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SECTION A. General description of small-scale project activity A.1 Title of the small-scale project activity: >> GHG reduction by chemical recovery in Pulp and Paper manufacturing facility. Version 01 Date: 21/08/07

A.2.

Description of the small-scale project activity:

>> The project proponent, Shree Shyam Pulp and Board Mills Limited (SSPBML), is one of the leading integrated paper manufacturing units in the state of Uttaranchal, India. The paper manufacturing facility of SSPBML uses bagasse as the raw material and has the paper production capacity of 150 tons per day. Purpose of the project activity The project proponent, SSPBML, commissioned a chemical recovery plant in October 2006 to recover the caustic soda from the waste black liquor generated in the pulping section of the integrated paper manufacturing process which would reduce the amount of soda required to be purchased as the pulp manufacturing process requires large quantity of caustic soda which is generally procured form the prevailing chemical manufacturers in the market.. Since the recovery process of the caustic soda involves a much lesser input of energy than that required in the manufacturing of caustic soda, there would be a reduction in the consumption of electricity (thus leading to a reduction in the GHG emissions). The total recovering capacity of the project plant is 60 tons per day of caustic recovery. The following paragraphs illustrate how the caustic requirements in the pulping section were being met prior to the project activity and how are they met after the project implementation. Pre Project Scenario Prior to the project activity, the caustic soda requirements for the paper manufacturing process in SSPBMLs unit were being completely met by the amount of soda procured from the chemical manufacturers prevailing in the market. The caustic soda manufacturing process followed by the chemical manufacturers is quite energy intensive. There are mainly three processes1 followed in the country for the caustic soda manufacturing. All of these processes involve varied inputs of electricity, as shown in the table below:

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S.No. 1. 2. 3.

Process Diaphragm Process Mercury Cell Membrane Cell

Average Power Consumption (KWh/MT) 3500 3300 2900

Since 1986, the government has made it mandatory that new caustic soda units be set up using membrane cell technology only. Indian manufacturers are slowly shifting from mercury to membrane cell process, and, at present, about 66% of the domestic capacity is based on membrane cell technology. The paper manufacturing unit of Shree Shyam Pulp and Board Mills Limited has been procuring the caustic required for its plant from two Indian2 chemical manufacturers namely; 1. Punjab Alkali and Chemicals Limited (PACL) 2. Shree Ram Vinayak and Chemicals Industry (SRVC) The following table gives the energy consumption and the % of total soda consumed procured from each manufacturer in the past 3 years: Year KWh consumed per ton of KWh consumed per ton of % amount of soda manufacture3 by PACL soda manufacture4 by SRVC soda procured from PACL 2656 2699 2699 2664 2692 2692 50% 50% 50% % amount of soda procured from SRVC 50% 50% 50%

2003-04 2004-05 2005-06

Thus, the weighted average electricity consumed in KWh per ton of caustic soda manufactured is 2683.67 KWh. Post Project Scenario The project activity involved the commissioning of a chemical recovery plant wherein caustic soda is recovered from waste black liquor generated in the process of manufacturing paper. The total installed recovering capacity of the chemical recovery plant is 60 tons per day of recovered soda.
2 3 4

No caustic soda was imported from other countries at SSPBML integrated paper manufacturing facility. Annual reports of the chemical manufacturers (PACL) Annual reports of the chemical manufacturers (SRVC)

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Since the energy required recovering one ton of soda is much lesser than what is required to manufacture the same quantity of fresh stock in a conventional plant, the project activity aids in reducing the emissions of green house gases. Project activitys contribution to Sustainable Development The indicators of sustainable development as stipulated by the Government of India in the interim approval guidelines for CDM projects are: Environmental well being Technological well being Economic well being Social well being The project activity proposed by SSPBML contributes to the above in following manner: Environmental well being: The project activity will result in the reduction of GHG emissions as a much lesser quantity of electricity will be consumed in recycling the caustic soda than that consumed in manufacturing the fresh stock. Technological well being: The technology used in project activity is safe and sound and would also provide a highly replicable model for other industries in this sector. Economical well being: Soda recovered from chemical recovery plant (CRP) will reduce the quantity of soda required to be procured from the market. The reduced soda requirement will lead to reduction in total cost of raw material which eventually brings in economic benefits to the company. Social well being: Installation of additional equipments in the plant will generate direct and indirect employment opportunities for skilled as well as unskilled labours in the region. This will improve the local standard of living. Project activity will also facilitate capacity building amongst employees of the plant. A.3. Project participants: >> Name of Party involved (*) ((host) indicates a host Party)

Private and/or public entity(ies) project participants (*) (as applicable)

Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No)

India

Shree Shyam Pulp and Board No Mills Ltd.

A.4. Technical description of the small-scale project activity: >> The black liquor generated in the pulp mill has a total solids concentration of upto 8% which needs to be increased considerably before the liquor can be burnt .This liquor is concentrated upto 45-48% in multiple effect evaporators and then further concentrated to 62% solids content in the cascade evaporator.

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The concentrated black liquor with 62% solids content is then fired in the recovery boiler. The concentrated liquor that comes out from the furnace as molten mass is in the form of smelt which consists mainly of sodium carbonate. The smelt is then dispersed in the main dissolving tank where it is termed as green liquor. The hot gases from the furnace pass to the top of the boiler tank to generate steam and convert the water into steam in recovery boiler and the steam thus generated is reused in the evaporation plant. The green liquor so produced is pumped to the causticizing plant. The green liquor received in the causticizing plant from the recovery boiler is then transferred to the drum slaker where it is mixed with free lime. The green liquor is clarified and causticized in a causticizing plant with lime where sodium carbonate is converted to sodium hydroxide for pulping. The complete process can be depicted from the flow diagram given below:

Weak black liquor

Evaporator

Conc. black liquor

Recovery boiler S m e l t

White liquor

Causticizing plant

Green liqour

Dissolving tank

Lime mud

The schematic diagram of the process

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A.4.1. Location of the small-scale project activity: >> A.4.1.1. >> India A.4.1.2. >> Uttaranchal A.4.1.3. >> Kashipur A.4.1.4. Details of physical location, including information allowing the unique identification of this small-scale project activity : >> The exact location of the project activity is: Khata No. 26 and 52 and Khasra No. 20, 27, 21, 22 & 24 Village: Gangapur Tehsil: Kashipur District: US Nagar State: Uttaranchal City/Town/Community etc: Region/State/Province etc.: Host Party(ies):

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A.4.2. Type and category(ies) and technology/measure of the small-scale project activity: >> Type: III Other project activities Category: M. Reduction in Consumption of Electricity by Recovering Soda from Paper Manufacturing Process. The proposed project activity of Shree Shyam Pulp and Board Mills Ltd. reductions due to the project activity would be less than 60,000 tons of CO2 per annum. Hence, project activity is eligible as small-scale project activity under Type III. A.4.3 >> Years 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Total estimated reductions (tons of CO2e) Total number of crediting years Annual Average over the crediting period of estimated reduction (tons of CO2e) Annual Estimation of emission reduction in tons of CO2e
33249 33249 33249 33249 33249 33249 33249 33249 33249 33249 332490

Estimated amount of emission reductions over the chosen crediting period:

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33249

A.4.4. Public funding of the small-scale project activity: >> No public funding as part of project financing from parties included in Annex I of the convention is involved in the project activity.

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A.4.5. Confirmation that the small-scale project activity is not a debundled component of a large scale project activity: >> According to, appendixC of the indicative simplified modalities and procedure for small scale CDM project activity. A project activity is considered to be a debundled component of large project activity if there is a registered small scale CDM project or request for registration by another small scale project activity By the same project participants; In the same project category and technology/measure; and Registered within the previous 2 years; and Whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. SSPBML has implemented small scale projects for power and steam generation which do not fall under the same project category as this project. Hence, it can be said that above points are not valid in case of SSPBML project activity and it is not a debundled component of a large project activity.

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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 small-scale project activity: >> Title: Reduction in Consumption of Electricity by Recovering Soda from Paper Manufacturing Process. Type: III Other project activities Category: M. Version 02, EB 33 B.2 >> Justification of the choice of the project category:

According to the methodology, category III.M. is applicable under the following conditions; This project category comprises of technology/measures for recovering caustic soda from waste black liquor generated in paper manufacturing. Production of caustic soda in traditional soda manufacturing processes requires more energy in comparison to recovery of equivalent amount of caustic soda. The project activity involves commissioning of a chemical recovery plant wherein caustic soda will be recovered from waste black liquor generated in pulp mill. The total installed capacity of this plant is 60 tons per day of recovered soda and the energy required to recover 1 ton of soda is much lesser than what is required to manufacture the same quantity in a conventional plant. Measures are limited to those that result in emission reduction of less than or equal to 60 ktCO2e annually. The project activity results in the emission reduction of less than 60 ktCO2e annually which can be evidenced from the CER calculations shown in the PDD. B.3. Description of the project boundary: >> According to the paragraph 3 of methodology AMS.III.M. (Version 02, EB 33), the project boundary includes all physical, geographical sites where: (a) The waste liquor is processed for recovery; (b) The physical site where caustic soda is procured; (c) The electricity generation plants connected to soda manufacturing and recovery plants are located. B.4. Description of baseline and its development: >> The baseline can be established by considering the various alternatives available and zeroing upon the one which is the most plausible. The various credible alternatives that were available with the project proponent are as follows: Implementation of the similar project activity without considering the CDM benefits.

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This alternative cannot be considered a plausible baseline scenario because of the barriers associated with its implementation as discussed in the subsequent sections of this document. Procuring the soda required for the paper plant form the available chemical manufacturers. This can be considered as the baseline scenario as this has been the usual practice and does not have any barriers associated with it. Thus from the above discussion it can be deduced that meeting the chemical requirements from the purchase of the same form the market is the baseline to this project activity. 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 small-scale CDM project activity: >> In accordance with paragraph 28 of the simplified modalities and procedures for small-scale CDM project activities, a simplified baseline and monitoring methodology may be used for a small-scale CDM project activity if project participants are able to demonstrate to a designated operational entity that the project activity would otherwise not be implemented due to the existence of one or more barrier(s) listed in Attachment A to Appendix B. Prior to the project activity SSPBML was treating black liquor in an effluent treatment plant and effluent discharge was meeting the prescribed standards for effluent discharge stipulated by state pollution control authority. SSPBMLs enterprise to recover caustic soda from waste liquor is a voluntary initiative to save energy despite of various barriers in its implementation as elaborated in following paragraph. SSPBMLs management decided to go ahead with the activity considering the CDM benefits that it may accrue upon the successful registration of the project as a CDM activity which may help in overcoming the associated barriers. Prevailing practice barrier The pulp and paper industry is one of the oldest industries established in India and dates back to around 200 years, .According to the latest available figures, the total number of pulp & paper mills in the

country is estimated to be around 6255 with total installed capacity of over 7.5 million tons which is likely to increase to 8.3 million tons by 2010 & over 14 million tones by the year 2020. The graph below indicates the growth in paper production and capacity of the country in past few decades.

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The total number of paper units existing in the country can be mainly classified into 3 broad categories on the basis of the raw material used for the production. The categories include 1. Agro based units. 2. Wood based units 3. Recycled fibre based units

There are 178 agro based paper mills in the country, the state wise distribution of which is as indicated below:
State Andhara Pradesh Bihar Chandigarh Chattisgarh Gujarat Haryana Himachal Pradesh Karnataka Madhya Pradesh Maharashtra Orissa Pondicherry Punjab Rajasthan Tamil Nadu No. of mills 18 3 1 5 6 10 4 3 3 28 1 1 21 1 3

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Uttar Pradesh Uttaranchal West Bengal

51 12 7

As listed in the table above, the state of project activity, Uttaranchal, has 12 paper manufacturing units , the details of which are as given in the table 6 below:
S.No . 1 2 3 4 5 6 7 8 9 10 11 12 Name of manufacturing unit BANWARI PAPER MILLS LTD. CHEEMA PAPERS LTD. LP PAPERS LTD. MULTIWAL PULP & BOARD MILLS LTD. NAINI PAPERS LTD. PRAKASH STRAW BOARD MILLS (P) Ltd. PILIBHIT STRAW BOARD & PAPER MILL PVT. LTD. SIDHARTH PAPERS LTD. SIDDHESHWARI PAPER UDYOG LTD. SHREE SHYAM PULP & BOARD MILLS LTD. SIDHESHWARI PAPER UDYOG LTD. VISHVAKARMA PAPER & BOARDS LTD Location Kashipur Kashipur Pilibhit Udhamsingh Nagar Kashipur Udhamsingh Nagar Tanakpur Road Kashipur U.S. Nagar Kashipur Kashipur Kashipur Capacity (TPA) 12000 38000 12600 12000 18000 4500 3000 10500 14600 52000 9500 18000

There are 12 small and medium scaled paper manufacturing units (including SSPBML), as listed above. At present, none of the units is equipped with a chemical recovery system. Overall in the state of Uttaranchal there is only one large scale paper manufacturing unit (Century Papers Capacity 84600 TPA) which has the provision for chemical recovery, Thus, it can be deduced that none of the small or medium scaled paper units in the state of project activity Uttaranchal are equipped with any chemical recovery system due to constraints7 like high capital investment, and nature of black liquor (i.e. high silica content, low solid, high viscosity etc) in the implementation and thereafter operation of the system. Till date, the prevailing practice in the region has been to discharge the black liquor as such (after necessary treatment to meet the stipulated pollution control board standards) without any recovery or after partial recovery of chemical. The above discussion highlights the Indian paper industry with focus on the chemical recovery system. It can be inferred that the caustic soda recovery is not a prevailing practice in the region and thus there is always a high level of uncertainty associated with its successful operation.

6 7

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Technological barrier

SSPBML is an agro based paper unit and utilizes bagasse as the main raw material for pulping and paper

manufacturing and thus may face the following obstacles 8in soda recovery. 1. A high content of silica in raw material and thus in black liquor can result in frequent scaling of evaporator, and boiler. It may also lead to higher moisture content in sludge generating in causticizing plant thereby causing sludge handling problems due to its bulky volume. 2. A high content of chloride in raw material and thus in black liquor results in scaling problems in evaporator and boiler and thus affect the working of the boiler and can also cause problems in smelt flow in recovery boiler and in the process of causticizing in causticizing plant. 3. High viscosity of the black liquor, especially the concentrated liquor (TS>40%), hampers the further concentration of the liquor to desired concentration (>50%). 4. The high concentration of black liquor can also cause frequent choking of flow pipes. B.6. Emission reductions:

B.6.1. Explanation of methodological choices: >> According to the paragraph 14 of the methodology AMS III.M. , the emission reductions will be calculated using the formula given below: ERy = BEy PEy where: ERy Emission reduction in the year y (tons of CO2) BEy Baseline Emission in the year y (tons of CO2) PEy Project Emission in the year y (tons of CO2) Project Emissions PEy = PEy,electrical + PEy,thermal PEy,electrical = Qrec,y X EPT X EFP where PEy Project activity direct emissions in the year y (tons of CO2) Qrec,y Quantity of soda recovered in year y (tons) EPT Electricity consumed for recovering 1 ton of soda (KWh/ton) EFP Emission factor of the electricity used for recovering soda (tCO2/KWh) PEy,thermal = Qff,y X EFff,y where Qff,y Quantity of fossil fuel consumed for thermal energy in the recovery process in year y
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EFff,y

(tons) Emission factor for the fossil fuel (tCO2/tonne, local values are used, if local values are difficult to get IPCC default values may be used)

Baseline Emissions BEy = Qrec,y X EBT X EFB where BEy Baseline emissions (CO2 emissions in absence of the project activity, tons) Qrec,y Quantity of soda recovered in the process (tons per annum) EBT Electricity consumed for producing 1 ton of soda (KWh/ton) EFB Emission factor of the electricity used for soda production (tCO2/KWh) B.6.2. Data and parameters that are available at validation: >> 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 : EFy Emission factor for Northern Region Grid tons of CO2/ GWh Baseline Carbon Dioxide Emission Database Version 2.0 http://www.cea.nic.in 797.55 Emission factor for northern regional grid has been taken from published sources of Central Electricity Authority (CEA), Government of India. The CEA has computed the baseline emission factor as specified in approved methodology ACM0002 as combined margin of OM and BM. Simple OM approach has been used since low cost must run sources contributed less than 50 % average generation in last 5 years and dispatch data is not available for the grid to do dispatch analysis. Both OM and BM emission factors have been used based on ex-ante data vintages. Note: CEA is a statutory organisation under Ministry of Power which collects and records the data concerning the generation, transmission, trading, distribution and utilization of electricity. This is used to calculate baseline and project emissions Electricity (EBT) KWh/ ton of soda Specific energy consumption for manufacturing soda Annual reports of the suppliers of the caustic soda 2683.667 The annual reports of the chemical manufacturers clearly mention the process adopted by them in the manufacturing of soda and the electricity consumption associated with the same.

Any comment: 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 :

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Any comment:

This is used to calculate baseline emissions

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B.6.3 Ex-ante calculation of emission reductions: >> Project Emissions PEy = PEy,electrical + PEy,thermal PEy,electrical = Qrec,y X EPT X EFP where PEy Project activity direct emissions in the year y (tons of CO2 eq) Qrec,y Quantity of soda recovered in year y (tons) EPT Electricity consumed for recovering 1 ton of soda (KWh/ton) EFP Emission factor of the electricity used for recovering soda (tCO2/KWh) Qrec,y = 19800 tons per annum EPT = 360 KWh/ton EFP 9 = 797.55 tCO2/GWh PEy,electrical = 5685 tCO2 PEy,thermal where PEy Qff,,y EFff,y Qff,,y EFff,y PEy,thermal PE total Leakage No leakages are considered under the project activity Baseline Emissions BEy = Qrec,y X EBT X EFB where: BEy Qrec,y EBT EFB
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Qff,y X Eff,y

Project activity emissions in the year y due to fossil fuel consumption (t CO 2) Quantity of fossil fuel consumed in year y (tons) Emission factor for the fossil fuel (tCO2/ton) = 1188000 ltrs = .002910 = 1188000 X 0.0029 = 3445 t CO2 = 5685 + 0 + 3445 = 9130 tCO2

Baseline emissions (CO2 emissions in absence of the project activity, ton) Quantity of soda recovered in the process (tons per annum) Electricity consumed for producing 1 ton of soda (KWh/ton) Emission factor of the electricity used for soda production (tCO2/KWh)

Refer enclosure 1 for the calculations of grid emission factor as provided by CEA. IPCC vlaues

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Qrec,y EBT EFB BEy

= 19800 tons = 2683.667 Kwh = 797.55 tCO2/GWh = 42379 tCO2

Emission reductions The emission reduction achieved by the project activity shall be calculated as the difference between the baseline emission and the sum of the project emission and leakage. ERy = BEy PEy Leakage = 42379 - 9130 0 = 33249 tCO2 B.6.4 >> Summary of the ex-ante estimation of emission reductions: Project Emission factor (kg CO2/kWh) 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755

Year 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 TOTAL B.7 >>

Baseline Emission factor (kg CO2/kWh) 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755 0.79755

Baseline emissions (tCO2 )

42379 42379 42379 42379 42379 42379 42379 42379 42379 42379 423790

Project emissions (tCO2 )

9130 9130 9130 9130 9130 9130 9130 9130 9130 9130 91300

Emission Reductions (tCO2)

33249 33249 33249 33249 33249 33249 33249 33249 33249 33249 332490

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

B.7.1 Data and parameters monitored: Qrec, y Data / Parameter: Data unit: tons / annum Description: Quantity of Liquor recovered Source of data to be Plant Records used: Value of data 19800 Description of The quantity of soda recovered per day will be monitored daily and reported in measurement methods plant log books. and procedures to be applied: QA/QC procedures to The production is monitored on daily basis and reported in a production log book.

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be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:

This is used to calculate baseline as well as project emissions Energy (EPT) KWh/ton Electricity consumed in recovery plant Plant Records 360 Meters installed will be used for the monitoring of the electricity consumed in the recovery plant.

Electricity consumed in chemical recovery plant shall be monitored by energy meters. Calibration of these meters will be done as per manufacturers specifications to ensure highest levels of accuracy in the monitoring process. This is used to calculate project emissions QFF,Y ton Quantity of fossil fuel consumed in year Y Plant records 1188000 It shall be monitored and noted in the log books.

Quantity of fossil fuel used for generating thermal energy required in recovery process. The quantity shall be measured using standard scales. The scale has to be calibrated at regular interval. To be used for Project emissions related to thermal energy consumption EFFF ton CO2/ ltr Emission factor of the fossil fuel used for generating thermal energy IPCC values 0.0029 Latest IPCC values will be used

Emission factor for fossil fuel consumed shall be calculated using country specific data available. To be used for Project emissions related to thermal energy consumption

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B.7.2 Description of the monitoring plan: >> The parameters to be monitored for the project activity include: Quantity of Liquor recovered in a year Electricity consumed in recovery plant Quantity of fossil fuel consumed in the year Emission factor of the fossil fuel used for generating thermal energy All the above stated parameters will be monitored regularly on a daily basis and the recorded values will be reported in the plant records / log books. In order to ensure the highest levels of accuracy in the monitoring process, the instruments (such as energy meters) used for monitoring will be calibrated regularly as per the manufacturers specifications , regular inspection of the plant reports will be made by the CDM monitoring team. The CDM monitoring team set up by SSPBML is as follows: Director Director (Tech.) Senior Manager (CRP) Monitoring Supervisor-electrical Monitoring Supervisor/Shift

B.8 Date of completion of the application of the baseline and monitoring methodology and the name of the responsible person(s)/entity(ies) >> Date of completion: 22/08/07 The contact details for the persons responsible for the monitoring methodology are given in Annex 1.

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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: >> 25/10/2006

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

>> 25 Years C.2 Choice of the crediting period and related information: >> Fixed crediting period is chosen C.2.1. Renewable crediting period C.2.1.1. >> N.A. C.2.1.2. >> N.A. C.2.2. Fixed crediting period: C.2.2.1. Starting date: Length of the first crediting period: Starting date of the first crediting period:

>> 01/02/2008 The crediting period will start only after the successful registration of the project activity. C.2.2.2. >> 10 Years Length:

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SECTION D. Environmental impacts >> D.1. If required by the host Party, documentation on the analysis of the environmental impacts of the project activity: >> The project proponent has procured the legal consents required for environmental compliance from state pollution control board in form of No Objection certificate for establishing the project activity. The following impacts have been identified by SSPBML on various environmental attributes due to the project plant. Land and water Since the project has been implemented within the premises of SSPBML no additional land was procured. Therefore, the issues like rehabilitation, change in land use pattern, ecological imbalance are not considered while evaluating impacts of the project on land environment. Moreover, the chemical recovery plant averts the problems associated with the disposal of the black liquor generated from the paper unit. Air During the construction phase of the project activity there has been an increase in the concentration of suspended particles in the atmosphere but this would only be a temporary impact. Moreover, the GHG reductions caused by the project activity will definitely have a positive global environmental impact. 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: >> No significantly adverse impacts are anticipated to occur as a result of the project activity.

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SECTION E. Stakeholders comments >> E.1. Brief description how comments by local stakeholders have been invited and compiled: >> The various stakeholders identified for the project activity are as follows: 1. Local Community 2. Agricultural farm owners in the vicinity. 3. Members of the gram panchayat. In order to inform the interested stakeholders on the environmental and social impacts of the project activity and discuss their concerns regarding this project activity, SSPBML convened a stakeholder consultation meeting, inviting the identified stakeholders through a formal invitation letter. SSPBML representative presented the salient features of their project activity to the stakeholders, apprised them of the green houses gases, the global warming and the role of CDM to curb the GHG emissions from the environment. In the end, the stakeholders were requested to raise their concerns (if any) regarding the upcoming activity by SSPBML. E.2. Summary of the comments received: >> The following were the responses from the stakeholders: Local Community: The local residents in the region, workers were consulted. They were very appreciative of the project activity and also responded optimistically about this project activity and expressed that this project activity can serve as a model for other similar units in the region. Agricultural farm owners in the vicinity: The neghbouring agricultural farm owners were also consulted for their comments but no serious issues were raised by them. Members of the gram panchayat: Members of the gram panchayat were also very supportive of the project activity and also asked for the permission from the project proponents for the supply of the clarified water to their farms which would give them a respite from the irrigation problems. In summary, there were no major concerns raised by the stakeholders regarding this project activity. E.3. Report on how due account was taken of any comments received: >> Considering the various direct and indirect benefits (social, economical, and environmental) associated with the project activity, no serious concerns were raised during the consultation with stakeholders. Further, as prescribed by the UNFCCC, the PDD would be available at the validators web site for public comments.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postfix/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: Shree Shyam Pulp and Board Mills Ltd.

New Delhi Delhi 110037 India 011- 26783068 , 011- 26783069 , 011- 26783070 91-11-26781864 shreeshyam@shyampapers.com -

Mr. Katyal Rakesh

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING No public funding as part of project financing from parties included in Annex I of the convention is involved in the project activity.

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Annex 3 BASELINE INFORMATION As discussed in the section B.4. of this document. Calculation of the northern grid emission factor Source: Baseline Carbon Dioxide Emission Database Version 2.0 http://www.cea.nic.in Operating margin (tCO2/MWh) 2003 -04 = 0.9870 Operating margin (tCO2/MWh) 2004 -05 = 0.9758 Operating margin (tCO2/MWh) 2005 -06 = 0.9945 Average operating margin (t CO2/MWh) = 0.9858 Build margin (tCO2/MWh) 2005 -06 = 0.60 Combined margin (tCO2/MWh) 2005 -06 = (OM+BM)/2 = (0.99+0.60)/2 = 0.797

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Annex 4 MONITORING INFORMATION As discussed in the monitoring plan in section B.7.2

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