Biz Plan

The Clean Development Mechanism: The Clean Development Mechanism (CDM) is the only mechanism under the Kyoto Protocol involving countries that are not subject to binding greenhouse gas emission caps by the protocol( non-Annex I countries). Under the CDM, investors from Annex I states receive Certified Emissions Reduction units (CERs) for the actual amount of greenhouse gas emissions reduction achieved in projects financed by them in non-Annex I countries.

The Business opportunity: According to World Power 2005 publication, the value of Global Emissions Market is expected to reach Euros 54.0 billion in 2010 and Euros 100.0 billion by 2020. The major sources of supply of Carbon Credits are expected to be from Brazil, China and India.

Total carbon credit market CDM share India’s share in CDM

2005 actual Volume Value (million (million Tons USD) CO2 Eqvt.) 799 11961

2012 estimated Volume Value (million (million Tons USD) CO2 Eqvt.) 5500 85000

397 NA

2500 500

2525 NA

25000 5000

 The Clean Development Mechanism (CDM) remains the largest market segment in terms of volume. Point Carbon estimates that emission reduction purchase agreements (ERPAs) corresponding to 397 Mt CO2e were entered into in 2005.  India and Brazil are the countries with most projects at Project Design Document (PDD) level or higher, 186 and 101 respectively.  Indian market is viewed very favorably in the international CER markets which is evident from the first rank given to India by Point Carbon in ratings of CDM project hosts: Source: Point Carbon

These factors make India an ideal supplier of CERs to Annexure-I countries. We plan to harness this strength of India in CER generation for our business.

Where do we get CDM projects in India? The per capita consumption of power in India is 356 kWh, as against 600 kWh in China, 8,305 kWh in Singapore and 20,868 kWh in USA. India’s per capita power consumption is bound to increase, as it embarks upon ambitious sustainable development goals. Currently, India faces a peak electricity generation shortage of over 20% and an energy shortage of about 12%. In the above market space, we will be focusing on financially committed Project Promoters, who want to benefit from both Ministry for Non-Conventional Energy Sources (MNES)’s identified ‘investment opportunities’ in Renewable Energy in India and also on the market potential resulting from UNFCCC’s Clean Development Mechanism (CDM) of the Kyoto Protocol. According to the GoI estimate, the estimate of addition Renewable sources of energy by the year 2012 is estimated to be about 10000 MW The following gives the break up of the renewable Sources of Energy Wind power 6000 MW Small Hydro Power 2000 MW Biomass power 1500MW Others 500 MW All these renewable energy projects will present to us a big opportunity to partner in them and get CERs for further trading.

Scope of company’s business activities:  Arranging ' Project Finance ' from G-8 countries for Renewable Energy and Energy Efficient Projects in India & Sri Lanka, under the Clean Development Mechanism (CDM) to benefit from the UNFCCC Kyoto Protocol  Arranging Equity Participation / Technical Collaborations between Indian Corporations and Overseas Companies for implementing CDM projects.  Facilitating 'Donor / Technical Assistance' from Donors / NGO's from overseas for Renewable Energy & Energy Efficiency Projects in India.  Mobilizing ' Carbon Credits ' from Renewable Energy & Energy Efficiency Projects in India for sale to International Buyers in Europe, Japan and Canada.  Set up a subsidiary company engaged in the manufacture, distribution, installation and export of Renewable Energy Systems such as Bio-mass Gasifiers, Village Electrification Systems, Mobile Power Plans (mini), Municipal Solid Waste Processing Equipments and Mobile Bio-digesters.

 Promote a Joint Venture with National Bio-fuel Corporation and a renowned International Financial Institution, to cultivate Jatropha plant in 25,000 acres in South India for manufacture of bio-diesel and arrange for its distribution and sale. Revenue Break- up

Project finance syndication 15% Profits/commis sion from manufacturing 20% Equity Syndication 15%

Commission from sale of CERs 30%

Consulting services 20%

Our Competitive Advantage:  The consulting "industry" in green energy segment as of now has a number of niche players, with western roots. This plays well for the buy side of the carbon markets. However, to be effective in these markets, these firms need to tie up with suppliers, who almost always happen to be from the developing countries like India and China.  The cultural chasm between the two groups is a major source of frustration for these players. Our management team will provide a unique combination of Indian roots and global outlook and in turn will be the binding force bringing the suppliers and the purchasers together.

IMPLEMENTATION STRATEGY: 1 For the demand side: Our Company will focus on North American Market – USA and Europe. With the help of a marketing and technical personnel (to be appointed), we would identify potential buyers of CERs in these markets. We will also tie up with Carbon Warehouses and market players like M/s Carbon Credit Capital, New York and sell CERs to them directly. For the supply side: We will focus on three geographical markets, India, Sri Lanka and Bangladesh, and in limited product segments: Renewable Energy and Energy Efficiency

projects providing one-stop solutions. The target customer is usually the CEO of midsize corporation ( SME) intending to generate captive power/diversifying into power sector.

The USP of our Company  With the help of its subsidiaries in the manufacturing of Renewable Energy equipments and Bio-Diesel, we would be able to provide true end-to-end services in the Green space. Such a broad spectrum of horizontal integration will set the cost of entry at a higher level to the competitors and mitigate the threat of new entrants into its market space.  We would also be entering into CDM Project Consultancy Assignments including Carbon Trading Services Assignments with well established Indian Financial Institutions and Banks. Such services are being bundled as part of latter’s ‘Offer Package’ to Project Promoters in RE and EE sector. _______________________________________________________________________