The Hindu Business Line : MSPL plan to sell carbon credits worth Rs 200-250 cr

MR SHRENIK BALDOTA (left), Managing Director, MSPL Ltd, and Mr Sunil Chandiramani, Partner, Ernst & Young Pvt Ltd, at a press conference in Mumbai on Friday. — Shashi Ashiwal

Mumbai , Nov. 3

The 125-MW wind power project of MSPL Ltd — in Chitradurga, Davangere and Bellary in Karnataka — has been registered with the United Nations Framework Convention on Climate Change (UNFCCC).

Ernst and Young is the project advisor. The green project activity will replace conventional energy (equivalent to 356.83 million units) and cut CO2 (carbon dioxide) emissions by 25,32,400 tonnes over a 10-year crediting period.

Carbon Credits

The registration will enable the company to generate about 2.5 million certified emission reductions (CERs) from the developing countries through the CDM (Clean Development Mechanism) route. Each CER stands for one tonne of carbon dioxide reduction and can be traded globally. According to the Kyoto Protocol, developed countries that are unable to curtail their emissions, have to purchase CERs through the CDM route.

"We intend to sell carbon credits valued at Rs 200-250 crore in the international market to boost revenue," said Mr Shrenik Baldota, Executive Director of MSPL Ltd.

He also added that MSPL is planning to ramp up the capacity to 300 MW at a cost of Rs 750 crore by 2008. The company is also planning to enter the capital market with an IPO. "We are looking at going public around December this year," said Mr Baldota. MSPL Ltd diversified into wind power in 2001, which contributes around 10 per cent to the company's kitty.

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