Patna, (BiharTimes): Thanks to two hydel power plants set up by the Bihar Hydroelectric Power Corporation (BHPC) at Triveni Link Canal in West Champaran and Nasrigunj in Rohtas districts. Bihar is about to enter the Carbon Credit Market. The two plants have received host country approval for clean development mechanism (CDM).

Reports say that the CDM generates certified emission reduction (CER), which can be traded to generate revenue also called ‘carbon credit’. Saving of one tonne of CO2 emission gives one carbon credit point. Host country approval is given by the Union ministry of forest and environment for projects using CDM.

After getting the host country approval, the proposals have now been sent to the United Nations for final approval after which the BHPC would be able to sell its carbon credit in the international market.

The international market of carbon credit is generated as a large number of countries are signatories to United Nations Framework Convention on Climate Change which entails reduction in carbon di-oxide emission in the environment. The developed countries, which have CO2 emission levels well over the stipulated norm, purchase carbon credits for getting sanction for their future projects.

According to estimates made by the Bihar State Pollution Control Board (BSPCB), the two hydroelectric plants of BHPC are saving around 22,000 tonnes of CO2 every year which means that around 22,000 carbon credit points is accruing to the corporation every year.

“With each credit point being sold for about Euro 10 in the international market, BHPC stands to earn Euro 2.20 lakh per annum once UN approval is given,” a senior BSPCB official was quoted in the Times of India.

“The funds received from carbon credit marketing would be used for installing new hydroelectric power units as well as upgradation of the existing ones,” BHPC managing director L P Sinha told the daily.

Apart from the two units in West Champaran and Rohtas, the BHPC has 16 other projects as well and process has already been started for fulfilling the norms for sending a proposal to the Union ministry of forest and environment for host country approval.

The estimated carbon credit points which BHPC stands to gain from these projects is around 60,000 per annum which is worth Euro 6 lakh in the international carbon market.

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Great Job done by BHPC
It is a great achievement and we look forward to a brighter future with many more production units
My best wishes to Mr Sinha and his entire team ably led by current chief-minister
Abhishek Kumar

abhishek@godrej.com