GOLD STANDARD PASSPORT

CONTENTS

A. Project title

B. Project description

C. Proof of project eligibility

D. Unique Project Identification

E. Outcome stakeholder consultation process

F. Outcome sustainability assessment

G. Sustainability monitoring plan

H. Additionality and conservativeness deviations

Annex 1 ODA declarations

SECTION A. Project Title

Title: Biomass Based Steam Generation Plant at Chanakya Dairy Products Limited

Date: 14.12.2015

Version no.: 01

SECTION B. Project description

Estimated project start date: 10th April 2012 (The earliest commissioning date among both the boilers i.e., The commissioning date of 3 TPH was 10.04.2012 and 8 TPH boilers was 20.05.2012 at Chanakya Dairy Products Ltd., Gobindgarh).

Objective of the Project Activity: The purpose of the project activity is to utilize rice husk available in the region for steam generation used for captive consumption. The project undertaken generates steam by two boilers of capacity 8 TPH and 3 TPH using Biomass residues (Rice husk). Steam generated by the Boilers is used in the milk plant. The project activity is situated at the premises of Chanakya Dairy Products Limited (CDPL) at Mandi Gobindgarh, District - Fatehgarh Sahib (Punjab) India.

Proposed Activity: The project activity is the new installation of rice husk (biomass) based renewable energy steam generation plant at the same premises whose total installed/rated thermal energy generation capacity is 7.53 MW (5.48 MW + 2.05 MW) replacing prior set-up at Chanakya Diary Products Limited (CDPL) in which the demand of steam was met by two fossil fuel fired (Coal) boilers of capacity 3 TPH and 8 TPH. Prior to the project activity, the demand of steam was met by 8 TPH and 3 TPH coal fired boiler at pressure 17.5 kg/cm2 at saturated temperature and 10.54 kg/cm2 at saturated temperature respectively. Coal was consumed in the pre project scenario for thermal energy generation. Contribution to Sustainable Development and the Millennium Development Goals: The project activity will result in an average of 27,165 tonnes CO2 equivalent emissions reductions per year for the entire crediting period of 10 years and total of 271,650 tonnes CO2 equivalent emissions reductions during the entire crediting period of 10 years.

Project’s contribution to Sustainable Development

The contributions of proposed project activity towards sustainable development are explained with indicators like social, economical, environmental and technological well-being, legislative, temporal as follows:

Environmental well-being The project activity will conserve coal by avoiding the process steam generation from coal fired boiler. Also helps in Mitigating the emission of GHG (CO2) as rice husk is a carbon neutral fuel.

Social well being The project activity will pave the way for development and increases the social status and living

conditions and the prevailing living standard in the vicinity of the project activity and thus results in empowering the nearby population (supplier of the major amount of workforce for construction of the project activity).Also it will Contribute to a small increase in the local employment by employing skilled and un-skilled personnel for operation and maintenance of the equipment. This Proposed Project Activity will result in reduced migration of the local population.

Economic well being The project has created a business opportunity during construction phase for local stakeholders such as suppliers, contractors, bankers etc. contributing to economic well-being aspects. Further, the project also influences creation of employment opportunities for local people, which would enhance their social status. Also it Saves the coal and HSD and thus allows it to be diverted to other needy sections of the economy

Technological well being The project activity utilizes biomass as fuel to generate steam. The exhaust gas is passed through the electrostatic receptors and bag house in order to remove particulate matter before sending out to the atmosphere. The project activity represents the environmentally safe technology for the application.

Legislative The Project Proponent has obtained all the relevant approvals required for the establishment and operation of the project activity. All the approvals obtained are mentioned.

Temporal The CDPL has not applied for any other kind of renewable or carbon benefit anywhere else for the same. Moreover in the future also CDPL will not apply for any other kind of carbon benefit except VCS for availing carbon benefits.

It results in 40,228 tonnes CO2 equivalent emissions reductions per year for the entire crediting period of 10 years. Therefore, net reduction of 40,2280 tonnes CO2 during the entire period of 10 years.

SECTION C. Proof of project eligibility

C.1. Scale of the Project

Project Type Large Small

C.2. Host Country

India

C.3. Project Type

Please tick where applicable:

Project type Yes No

Does your project activity classify as a Renewable Energy project?

Does your project activity classify as an End-use Energy Efficiency Improvement project?

Does your project activity classify as waste handling and disposal project?

Please justify the eligibility of your project activity:

The purpose of the project activity is to utilize biomass for thermal and electrical power generation at a dairy product manufacturing unit. The project proponent proposes to use the generated steam to meet their requirements of the dairy plant, at Mandi Gobindgarh, Punjab. The proposed small scale project activity will utilize surplus biomass as fuel which is available locally to generate steam through sustainable means without causing any negative impacts on the environment. The primary biomass fuels identified and proposed for the power plant is rice husk along, which is abundantly available in the region.

The project activity falls under the Sectoral Scope 1: Energy industries (renewable - / non- renewable sources) as per the sectoral scopes defined by the CDM Executive Board.

The project activity falls under small scale methodology AMS I.C (Version 19.0) – “Thermal energy production with or without electricity”.

Pre Announcement Yes No

Was your project previously announced?

Explain your statement on pre announcement

The project activity has not been registered or currently seeking registration under any other GHG programs. The project has not participated under any other GHG program. PP declares that emission reductions generated from the project activity will not be double counted (i.e. issuance of other form of environmental credit like under CDM) for the particular crediting period, which is being claimed under GS mechanism. PP can submit an undertaking to the registry that they shall not claim for GHG emission reduction credits for the given period under any other emission-trading program. PP hereby declares that any other GHG program has not rejected the project activity; an undertaking for the same will be submitted by the PP if required.

Revenue stream from carbon has been considered since the initial stages of program inception. The Project proponent had an early recognition that programme required extensive funding for many years and Carbon revenue was the only realistic form of funding to make the project sustainable. Thus the program was initiated only after the consideration of carbon revenues as a medium for making project sustainable and alleviation of barriers.

Further, carbon feasibility assessment studies were carried out at various stages to assess risks

prevalent in the dynamic carbon markets.

C.4. Greenhouse gas

[See Toolkit 1.2.d]

Greenhouse Gas

Carbon dioxide

Methane

Nitrous oxide

C.5. Project Registration Type

[See Toolkit 1.2.f]

Project Registration Type

Regular

Pre-feasibility assessment

Retroactive projects

(T.2.5.1)

Preliminary evaluation (eg: Large

Hydro or palm oil-related project)

(T.2.5.2)

Rejected by UNFCCC

(T2.5.3)

If Retroactive, please indicate Start Date of project activity dd/mm/yyyy:

The project has obtained the requisite clearances and is commissioned on 10 April 2012 (The earliest commissioning of date from the commissioning dates of both the boilers i.e., the commissioning date of 3 TPH was 10-04-2012 and 8 TPH boilers was 20-05-2012 at CDPL).

SECTION D. Unique project identification

D.1. GPS-coordinates of project location

[See Toolkit 1.6]

Coordinates

Latitude 30° 38' 48" N

Longitude 76° 18' 7.2" E

Explain given coordinates

Physical Location:

The project is located at Chanakya Dairy products Limited Complex, Plot no. A-4,5,6, Focal Point, Mandi Gobindgarh of Punjab. The project site is located within Latitude:8 30˚ 38’ 48” N and Longitude: 76˚ 18’ 7.2” E.

D.2. Map

[See Toolkit 1.6]

SECTION E. Outcome stakeholder consultation process

E.1. Assessment of stakeholder comments

[See Annex J]

The Stakeholder Consultation Process is yet to be conducted very shortly.

E.2. Stakeholder Feedback Round

Please describe report how the feedback round was organized, what the outcomes were and how you followed up on the feedback.

[See Toolkit 2.11]

The Stakeholder Feedback Round is to be conducted very shortly

E. 3. Discussion on continuous input / grievance mechanism

[See Annex W]

Discuss the Continuous input / grievance mechanism expression method and details, as discussed with local stakeholders.

Method Chosen (include all known details e.g. location of book, phone, number, identity of mediator)

Justification

Continuous Input / Grievance Expression Process Book

Telephone access

Internet/email access

Nominated Independent Mediator (optional)

All issues identified during the crediting period through any of the Methods shall have a mitigation measure in place. The identified issue should be discussed in the revised Passport and the corresponding mitigation measure should be added to sustainability monitoring plan in section G.

SECTION F. Outcome Sustainability assessment

F.1. ‘Do no harm’ Assessment

[See Toolkit 2.4.1 and Annex H]

Safeguarding principles Description of relevance

to my project

Assessment of my

project risks breaching it

(low/medium/high)

Mitigation

measure

1. Human Rights

The programme respects internationally proclaimed human rights including dignity, cultural property and uniqueness of indigenous people. The programme is not complicit in Human Rights abuses.

The programme aims to

improve the living

conditions (considered

as a part of the right to

life, according to the

Indian constitution) of

the farmers particularly

for their women and

children by decreasing

the indoor air pollution.

All households of

farmers are / will be

involved in the

programme voluntarily.

The programme does

not restrict personal or

political freedom as

farmers sell the rice

husk at their will.

Low

Not Needed

The programme does not

involve and is not complicit in

involuntary resettlement.

The project is an efficient rice husk consuming project from the nearby farmers who willingly wishes to sell their biomass and replaces old, inefficient coal fired fuel in the project. Hence, no relocation would be involved as a part of the project activity.

Low Not Needed

The programme does not involve and is not complicit in the alteration, damage or removal of any critical cultural heritage

Since this programme is implemented in already existing industry premises, the issue of land acquisition and damage to historical, religious or cultural property does not arise.

Low Not Needed

2. Labour Standards

The programme respects the employees’ freedom of association and their right to collective bargaining and is not complicit in restrictions of these freedoms and rights

The programme is in compliance with the laws of Government of India. Government of India has ratified the ILO convention 87 (freedom of association) and 98 (right to collective bargaining). The guarantees provided for under these two Conventions are by and large available to workers in India by means of constitutional provisions, laws and regulations and practices.

Low

Not Needed

The programme does not

involve and is not complicit in

any form of forced or

compulsory labour

The programme does

not employ any form of

forced or compulsory

labour. Moreover, it is

an at will employer.

Employees can quit their

services at any time.

Low Not Needed

The programme does not employ and is not complicit in any form of child labour

The programme neither employs nor intends to employ child labour. As per the laws prevailing in India, the Child Labour (Prohibition & Regulation) Act prohibits employment of children in certain specified hazardous occupations. The Factories Act also prohibits the employment of children in hazardous industries and processes

Low Not Needed

The programme does not involve and is not complicit in any form of discrimination based on gender, race, religion,

Article 16 of Indian Constitution provides for equality of opportunity in relation

Low Not Needed

sexual orientation or any other basis.

to public employment, and prohibits discrimination based on religion, race, caste, sex, descent, place of birth, or residence in relation to such employment. The programme's employment policy does not promote discrimination of any kind. It is in abidance with the laws that promote the principle of anti-discrimination. PP has a zero tolerance policy for sexual harassment or abuse to women. This policy is clearly communicated to all employees.

The programme provides workers with a safe and healthy work environment and is not complicit in exposing workers to unsafe or unhealthy work environments.

The Programme does not involve any work that has the potential to expose the workers at the industry premises to unsafe and unhealthy work. The programme provides safe and healthy work condition to the employees. Moreover, PP has a policy to provide compensation insurance and an emergency action plan for all employees.

Low Not Needed

3. Environmental Protection

The programme takes a precautionary approach in regard to environmental challenges and is not complicit in practices contrary to the precautionary principle.

The programme does not lead to release of any hazardous substances that pose threat to the environment rather it aims at reducing the Air Pollution that is

Low

Not Needed

prevalent in the local communities as a by-product of the traditional coal-fired fuel to run the two boilers for steam production.

The programme does not involve and is not complicit in significant conversion or degradation of critical natural habitats, including those that are (a) legally protected, (b) officially proposed for protection, (c) identified by authoritative sources for their high conservation value, or (d) recognized as protected by traditional local communities.

The programme uses energy efficient biomass (rice husk) and does not have any land requirements and does not pose any harm to the natural habitats of the native species.

Low Not Needed

Anti-Corruption: The project does not involve and is not complicit in corruption.

The project proponent is an organization that develops engineered solutions to improve the human condition on a global scale. It has won several awards and honours for its environmental services. It neither indulges nor promotes corruption at any stage of the programme.

Low Not Needed

Additional relevant critical

issues for my project type

Description of relevance

to my project

Assessment of relevance to my project (low /medium/ high)

Mitigation measure

Not Applicable Not Applicable Not Applicable Not Applicable

F.2. Sustainable Development matrix

[See Toolkit 2.4.2 and Annex I]

Insert table as in section D3 from your Stakeholder Consultation report (Sustainable Development matrix).

Indicator Mitigation

measure

Relevance to

achieving MDG

Chosen parameter

and explanation

Preliminary score

Gold Standard

indicators of

sustainable

development.

If relevant copy

mitigation

measure from "do

no harm" –table,

or include

mitigation

measure used to

neutralise a score

of ‘–‘

Check

www.undp.or/md

g and

www.mdgmonito

r.org

Describe how

your indicator is

related to local

MDG goals

Defined by project

developer

Negative impact:

score ‘-‘ in case

negative impact is not

fully mitigated

score 0 in case impact

is planned to be fully

mitigated

No change in impact:

score 0

Positive impact:

score ‘+’

Environment

Air quality Not required Target 7.A:

Integrate the

principles of

sustainable

development into

country policies

and programmes

and reverse the

loss of

environmental

resources.

Consent to operate

The biomass (rice

husk) use reduces

the level of Air

pollution in the

premises of industry

and surroundings.

This primarily

includes air

pollutants like CO,

CO2, Particulate

matter and smoke.

Therefore, these

parameters are

monitored to assure

the efficiency of this

biomass fired

boilers in reducing

air pollution.

+

Water quality and

quantity

Not required Target 7.A: Integrate the principles of sustainable development into country policies and programmes and reverse the loss

The programme will

not have any direct

impact on water

quality or quantity.

0

of environmental resources Target 7.b/7.5: Reduce biodiversity loss, achieving a significant reduction in the rate of loss - proportion of total water resources used.

Soil condition Not required Target 7.A:

Integrate the

principles of

sustainable

development

into country

policies and

programmes and

reverse the loss

of environmental

resources.

The programme does not have any impact on soil condition. Therefore, this indicator remains neutral.

0

Other pollutants Not required Target 7.A:

Integrate the

principles of

sustainable

development

into country

policies and

programmes and

reverse the loss

of environmental

resources.

The programme does not have any impact on the level and frequency of light or noise. Therefore, this indicator remains neutral.

0

Biodiversity Not required Target 7.A:

Integrate the

principles of

sustainable

development

into country

policies and

The programme

does not have any

impact on the

natural habitats of

the species

present in region.

0

programmes and

reverse the loss

of environmental

resources.

Target 7.b/7.1:

Reduce

biodiversity loss,

achieving, a

significant

reduction in the

rate of loss –

proportion of

land area

covered by

forest;

Sub total Positive

Social Development

Quality of

employment

Not required Target 1.B:

Achieve full and

productive

employment and

decent work for

all, including

women and young

people.

The parameter

remains neutral.

0

Livelihood of the

poor

Not required Target 1: Eradicate

Extreme Poverty

and Hunger

The programme

would lead to

improvement in the

living condition of

the people

(farmers) but since

it will be difficult to

monitor the same.

Therefore, this

parameter remains

neutral

0

Access to

affordable and

clean energy

services

Not required Target 7.A:

Integrate the

principles of

sustainable

The increased sale

of cleaner and

improved efficiency

rice husk would

+

development into

country policies

and programmes

and reverse the

loss of

environmental

resources

lead to savings in

energy cost.

Human and

institutional

capacity

Not required Target 3: Promote

gender equality

and empower

women

The programme

during its operation

would conduct

environmental

Awareness

programmes

regarding Air

Pollution. The

parameter is

considered to be

neutral.

0

Sub total Positive

Economic and Technological Development

Quantitative

employment and

income

generation

Not required Target 1.B: Achieve full and productive employment and decent work for all, including women and young people

The programme will result in employment generation. The parameter to be monitored is number of farmers involved by the programme to sell their rice husk

+

Balance of

payments and

investment

Not required Target 8: Develop a Global Partnership for

Development

The programme does not involve any foreign direct investment. Therefore, this indicator remains neutral.

0

Technology

transfer and

technological self-

reliance

Not required Target 8: Develop a Global Partnership for

Development

The programme does not involve any technology transfer. Therefore, this indicator remains

0

neutral.

Sub total Positive

Total Positive

Justification choices, data source and provision of references

Air quality The improved clean green fuel consumption reduce the level of Air pollution in the vicinity of the industry. This primarily includes air pollutants like CO, CO2, Particulate Matter and smoke. Therefore, air quality as per Section G is monitored to assure the efficiency of improved fuel and steam producing boilers in reducing air pollution. Therefore, the parameter is taken as positive. The steam requirement of the host country, India is mainly met by fossil fuel based boilers which use coal combustion for steam generation. The combustion of coal releases oxides of Sulphur which is a critical pollutant. The biomass used in the project would displace the fuel (coal) required to generate same quantity of steam and hence mitigate SOx, NOx emissions from the atmosphere and improve air quality.

Water quality and

quantity

The programme will not have any direct impact on water quality or quantity. Therefore, the parameter is considered as neutral.

Soil condition The programme does not have any impact on soil condition. Therefore, this

indicator remains neutral. There are no material end products from the

Biomass based steam generation. This it doesn’t affect the soil condition.

Other pollutants The programme does not have any impact on the level and frequency of light or noise. Therefore, this indicator remains neutral

Biodiversity The programme does not have any impact on the natural habitats of the species present in region. Therefore, this indicator remains neutral.

Quality of

employment

The operation of the energy generation from Biomass plant would involve

skilled and unskilled labor. The steam generation from a clean fuel like

Biomass project would improve the working conditions of its employees.

Livelihood of the poor The programme would lead to improvement in the living condition of the people but since it will be difficult to monitor the same. Therefore, this parameter remains neutral Increase in employment opportunities would help removing poverty and helping them get access to basic medical and health services.

Access to affordable

and clean energy

services

The increased sale of cleaner and improved efficiency biomass (rice husk) would lead to savings in energy cost.

Human and

institutional capacity

Working days of plant operators. The programme during its operation would conduct environmental awareness programmes regarding Indoor and Outdoor Air Pollution. The parameter is considered to be neutral.

Quantitative

employment and

income generation

The employment opportunities both for skilled and unskilled labor would increase income of the people.

Balance of payments

and investment

The programme does not involve any foreign direct investment. Therefore,

this indicator remains neutral.

Technology transfer

and technological

self-reliance

Power generation from Biomass will create employment and technology

transfer to many enterprises.

SECTION G. Sustainability Monitoring Plan

[See Toolkit 2.4.3 and Annex I]

Copy Table for each indicator

No 1

Indicator Air Quality

Mitigation measure NA

Repeat for each parameter

Chosen parameter Reduction in smoke or Particulate Matter (PM). Governmental requirements fulfillment

Current situation of parameter The project fulfills the government requirements and consent to operate under Air Act is granted

Estimation of baseline situation of parameter

Relatively higher smoke generation due to traditional use of coke as fuel / coal based power generation which would have impacted the environment with CO2 emissions.

Future target for parameter Continuous demonstration of noticed improved air quality over use of biomass residues (risk husk).

Promotion of renewable energy based power generation.

Way of monitoring How Through regular air quality monitoring through sample testing for qualitative assessment of improvement in air quality achieved by the project activity (reduction in smoke or PM). Sample quantitative analysis may also be used to quantify the reduction in PM, smoke concentration due to usage of environment friendly biomass residue.

Thus, Consent to operate for Air

When Just before expiry of validity for “Consent to Operate”

By who By State Pollution Control Board

No 2

Indicator Access to affordable and clean energy services

Mitigation measure NA

Repeat for each parameter

Chosen parameter 1. Quantity of rice husk used to yield qualitative green energy in form of steam

2. Net energy generation by power plant

Current situation of parameter Energy sources are expensive and not affordable to the poor and those living in rural areas have erratic power supply. A lot of them are dependent on expensive energy source either from grid, fossil fuel or wood.

Estimation of baseline situation of parameter

Energy generation through steam using traditional coke as fuel.

The total annual generation of steam from project activity will be xx GWh.

Future target for parameter The future target for parameter is that the annual net steam generation is xx GWh.

Continuous demonstration of noticed improved air quality by use of biomass residues (risk husk)

Way of monitoring How 1. Interviews with the local inhabitants near the project sites about change in fuel consumption pattern

2. Through regular air quality monitoring through sample testing for qualitative assessment of improvement in air quality achieved by the project activity (reduction in smoke or PM). Sample quantitative analysis may also be used to quantify the reduction in PM, smoke concentration due to usage of environment friendly biomass residue.

When Ongoing, shall be monitored at least annually

By who Project Developer / Third Party

No 3

Indicator Quality of employment

Mitigation measure N/A

Chosen parameter Number of trainings provided to unskilled, semi-skilled and skilled people

Current situation of parameter People are recruited without been properly trained, with unsafe work practices

Estimation of baseline situation of parameter

NA

Future target for parameter Hiring of skilled and unskilled personnel in the plant and providing specific trainings to them

Way of monitoring How Employment training record

When Continuous

By who Project proponent HR & training department

No 4

Indicator Livelihood of the poor

Mitigation measure NA

Chosen parameter Number of people employed and other employment opportunities created in unskilled jobs.

Current situation of parameter Unskilled employs are dependent upon daily wage jobs.

Estimation of baseline situation of parameter

NA

Future target for parameter Hiring of skilled and unskilled personnel in the plant and providing them wages as per government norms

Way of monitoring How Employment training records

When Every year

By who Project proponent HR & training department

No 5

Indicator Quantitative employment and income generation

Mitigation measure NA

Chosen parameter Number of jobs created

Current situation of parameter NA

Estimation of baseline situation of parameter

NA

Future target for parameter Hiring more skilled and unskilled employees for the project operation at the plant and thus increasing the number of jobs created by the company

Way of monitoring How Employment record

When Every year

By who Project proponent HR and admin department

Additional remarks monitoring

Not Required

SECTION H. Additionality and conservativeness

This section is only applicable if the section on additionality and/or your choice of baseline does not follow Gold Standard guidance

H.1. Additionality

Since the baseline and additionality are demonstrated following the Gold Standard Guidance, the same can be referred to in Section E.4 and Section E.5 of the PoA-DD

H.2. Conservativeness

This Project abides by the Gold Standard conservativeness principle through the following: - Adoption of the recent versions of the UNFCCC baseline and monitoring methodologies and relevant tools and guidance for the estimation of emission reductions by the Programme - Analysis of the Program sustainability matrix based on referenced information and third party opinion

ANNEX 1 ODA declaration

[See Toolkit Annex D]

No ODA funds are involved for the project activity. Further, a declaration for the same shall be submitted to the DOE.

The declaration is to be provided very shortly