Lanco's mini hydels to generate carbon credits

Hyderabad-based Lanco Group has registered two of its hydro power plants as clean development mechanism (CDM) projects with Geneva-based United Nations Framework Convention on Climate Change (UNFCCC).

The two projects will generate an additional 35,000 certified emission reductions (CER) a year, taking the group's total CER tally to 1.1 lakh, a company press release said here on Tuesday.

The two projects -- 5 Mw Baner III and 5 Mw Iku II on the Beas river -- are the first hydro projects of Lanco to be registered as CDM projects. The projects, which are under construction, are expected to be commissioned by 2008.

Lanco's existing biomass and wind projects have already been registered as CDM projects with 75,000 CERs a year, the press release stated.

Reacting to the development, Lanco Infratech Limited chairman L Madhusudhan Rao said, "Lanco is one of the first Indian corporates to get its projects registered as CDM projects with UNFCCC. We are closely looking at the developments in the international carbon market where we see a potential for further value addition to the company."