The proposed project activity is Stage-II of a 500 MW capacity gas-fired CCGT of Bhander Power Limited (“BPL”). This 340 MW power plant has been developed in two phases: 200 MW under Phase-II and 140 MW under Phase-III. BPL is a special purpose vehicle for this project. The Stage – I of the project of 155 MW capacity has been developed as a CDM project (UNFCCC Registration No. 1300). The proposed project activity that is the subject matter of this PDD is the Stage-II (comprising two phases) 340 MW capacity of the Combined Cycle Power Plant (“CCPP”). ESTL has obtained the necessary approvals from the regulatory authorities to this effect1. The project activity receives Natural Gas (NG) in pipelines from ESTL, and water is pumped from the Tapi river. BPL and ESTL have entered into a ‘Power Purchase Agreement (PPA) 2 under which BPL would supply 340 MW power to ESTL. The project employs state of the art technology with estimated project life of 20 years. Two Gas Turbine (“GT”) and generator packages (MS 9171E), GE Frame 9E, with a site rating of 108 MW capacity each (GTG – 2 and GTG – 3) have been procured from Bharat Heavy Electricals Limited (“BHEL”). The power generated from this project activity at BPL is evacuated at 220 kV to MRSS (Main Receiving Sub-Station) of ESTL which is connected to Gujarat Energy Transmission Corporation Limited (“GETCO”) grid. The spatial extent of the project boundary includes the equipment that form a part of Phase-II 340 MW CCPP at BPL’s Hazira. The equipments that form part of the project boundary are:

1. No Equipment Specifications
2. GTG Two Gas Turbine Generators (“GTG”) are MS 9171E, GE Frame 9E with site rating of 108 MW capacity each. Manufactured by BHEL under license from GE Energy.
3. STG Steam Turbine Generator (STG – 2) of 124 MW rated capacity at site conditions manufactured by Siemens
4. HRSG Two Heat Recovery Steam Generators (“HRSG”) of triple pressure type,

       manufactured by IHI, Japan and Hangzhou Boiler Group Company, China                         respectively.

In the calculation of project emissions, only CO2 emissions from fossil fuel combustion at the project plant are considered. In the calculation of baseline emissions, only CO2 emissions from fossil fuel combustion in power plant(s) in the baseline are considered.

Pre project scenario: Since the project activity is a new grid connection power plant, the pre-project scenario entails generation of power from existing or proposed new power plants connected to the Western regional grid. The power plant is proposed to supply the power to ESTL. ESTL has undergone an expansion of its steel making capacity from 2.4 MMTPA to 4.6 MMTPA. The power requirement for 2.4 MMTPA capacity steel plant is met through Essar Power Limited (215 MW), Bhander Power Limited – Stage 1 (155 MW) and import from Dakshin Gujarat Vij Company Limited (contract demand 44 MVA capacity). ESTL would have met the power requirement for its enhanced steel making capacity from 2.4 MMTPA to 4.6 MMTPA either from the Regional Electricity Grid or from the other alternatives such as establishing similar new generation capacity based on domestic coal, imported coal; or a mix of both; lignite; natural gas, naphtha, nuclear energy; renewable sources of energy (like Wind, Hydro). The other alternatives included capacity additions to existing power plants or establishing new inter-connections with the other regional grid. All these alternatives have been discussed in detail in section B.4. Project Scenario: In the project scenario natural gas will be utilized as fuel for power generation in combined cycle power plant. The Gas turbine plants operate on the Brayton cycle. In this cycle a compressor is used to compress the inlet air upstream of a combustion chamber. Then the fuel normally Natural Gas / Liquefied Natural Gas is introduced and ignited to produce a high temperature, high-pressure gas that enters and expands through the turbine section to produce electricity. The exhaust from the gas turbine will then be utilized in boiler to generate steam which will be utilized in steam turbine to generate electricity. In addition to the main plant equipment, auxiliary cooling water system, condenser cooling water system, electrical systems, evacuation of power, etc., will also be installed as a part of the project. The necessary transmission lines for this purpose are installed by BPL for the purpose of power evacuation. The NG used as fuel for the project is a combination of NG and Regasified Liquid Natural Gas (“R-LNG”) and is received from ESTL who in turn receives the same from various sources. Purpose of the project activity: The proposed project activity will generate power using NG as fuel and supply it to one of the GETCO grid connected customers’ viz. ESTL under a PPA. Baseline scenario: The applied baseline methodology AM0029 version 03 is based on the approach 48 (b) of CDM modalities and procedures “Emissions from a technology that represents an economically attractive course of action, taking into account barriers to investment” for determining the baseline scenario. Based on this, all the plausible baseline scenarios (as enlisted above) were evaluated based on investment analysis using levelized cost of generation as a parameter for identifying the “economically most attractive baseline scenario alternative”. In case of the subject project activity, this was ascertained and found to be a power plant (s) based on Coal as fuel with supercritical technology would have been the most plausible baseline scenario for the project activity. The details on technology, efficiency, operating lifetime for various fuel/ technology options have been discussed in detail in Section B.4. Reduction of greenhouse gas emissions: Two gas turbine (“GT”) and generator packages of 108 MW capacity each at site conditions3, has been procured from BHEL. BHEL has manufactured the Gas Turbines under license from General Electric, USA. Two triple pressure heat recovery steam generators (“HRSG”) with integral de-aerator with HP steam production of about 184 tonnes per hour (“TPH”), IP Steam Production of 19 TPH and LP steam production of about 16 TPH and a new steam turbine generator (“STG”) of 124 MW rated capacity under site conditions were also procured.

The steam generated from the HRSG is fed to the ST to generate power. Using the above mentioned major components, a plant with 340 MW rated capacity is being installed. The project activity avoids requirement to purchase power from the Western grid of India that is predominantly supplied with coal/ lignite based power plants, and reduces requirement of its power generation in the grid, thereby avoiding emission of Green House Gases (“GHGs”). Views of the project participant on contribution of the project activity to sustainable development

The National CDM Authority (“NCDMA”) in India has approved the project and granted host Government approval. The contribution of this project activity towards sustainable development as per the four indicators prescribed by NCDMA in India i.e., Ministry of Environment and Forests (“MoEF”) is presented below based on which the NCDMA has granted host Government approval to the project activity.

Social well being:

• The project activity has generated employment for the local population during the construction as well as operational phases of the project activity, both direct and indirect. • It has also provided an opportunity for secondary small scale entrepreneurs’ development near the project site, such as small shops, etc. Overall, there has been employment creation as a result of the project activity. This has provided social security to local villagers in the area which was otherwise a saline wasteland without any productive use such as agriculture. • The project activity avoids need for the Gujarat grid to provide electricity to the Essar operations at Hazira, whereby such power is now available for use in the area. • Essar group has been supporting social initiatives in four areas namely:

Educational and self employment training: this is being done through supporting Hazira primary school by the way of building improvement; providing scholarships and sponsorship of events; instituting award for best student in local tailoring institute, among others

Infrastructure & Welfare Amenities – village community centre in Hazira village; water tank and pipeline; widening, re-carpeting and electrification of road Recreational

       Medical, Sanitation & Health Care needs: ambulance, drainage, community dust-bins,             insecticides, eye-camps, health camp in primary school Economic well being:

1. By creating employment in the area, as described above, the project activity has brought in economic improvement for the local population.
2. If the project activity is registered as a CDM project, then by way of generating Certified Emission Reductions (“CERs”) and through transaction of such CERs with Annex I Parties, the project activity would bring in additional revenue to India. Environmental well being:
3. The project activity avoids use of any other fossil fuels such as coal, lignite, naphtha, diesel, etc., and thus reduces emissions of GHGs, oxides of sulphur and nitrogen, particulate matters and unburned carbon, fly ash (in case of coal and lignite), etc.

Technological well being: